The Four P’s
There are four parts that make up your marketing tactics and are the elements of marketing mix. The marketing mix elements are price, place, product, and promotion. Let me dig in and explain the elements of marketing mix. I will discuss each of the 4 elements of marketing mix.
This refers to how you communicate your marketing to deliver a marketing campaign. Elements of marketing promotion mix consist of:
Advertising, public relations, sales promotion, direct mail, sponsorship, fairs and exhibitions and personal selling.
It is vital that you understand all elements of the marketing mix and not only the promotion component. I always start with promotion as the basis of understanding marketing mix because promotions can be mixed and matched to deliver unique campaigns and results.
Every product has a life cycle. A product is born and then progresses through stages of growth and maturity and possibly even decline. These things occur due to changes in the market and products must adapt to change.
Place is the way products get moved to market. Places can be the Internet, retailers, agents, wholesalers, etc.
Products receive pricing that can vary from premium to price skimming. Premium is when you charge a lot because you have a clear competitive advantage in the market. Four Seasons and Ritz Carlton are examples of premium priced hotels. You can also use penetration pricing when you want to enter a market a bit low to gain market share and then you increase the prices when you have the market buying from you. Economy pricing is when you offer no frills services to keep the price low. I used to shop at a grocery store that carried mostly their own generic brand and had economy pricing. At the lowest range of pricing, we have price skimming where you enter a market with a high price because of your competitive advantage and then over time the advantage is not sustainable. At that time the price falls because more companies are offering what you are offering and you are forced to lower your prices to compete with lower priced companies.
This article discussed the elements of the marketing mix. In summary, the elements of the marketing mix are price, product, promotion, and place. For retail businesses, the most popular elements of retail marketing mix are also adding in packaging, positioning, and people. These additional elements are referred to as elements of extended marketing mix.