Understanding the Marketing Mix: Product, Logistics, Promotion, and Price
Understanding the Marketing Mix
The marketing mix defines what is known as PLIP, which stands for Product, Distribution Logistics, Promotion, and Price.
1. Product
A product is anything that can be offered in a market to attract public attention and encourage purchase or consumption. This includes physical objects, services, places, ideas, or organizations.
During product development, the physical characteristics of the product are defined, including packaging quality and the full line of variations, such as different sizes or specific properties. For example, when launching a line of shampoos, decisions must be made about the color and shape of the container (screw cap or pressure lid, plastic or glass, etc.), variations in composition, and different uses and qualities.
Packaging
Packaging refers to the container that holds the product. It is often used as a means of launching a new product and presenting it to consumers.
2. Distribution Logistics
Distribution logistics is a variable of business management responsible for the physical delivery of products. It comprises a set of operations required to move products from the place of production to consumption sites.
The distribution functions include:
- Packaging the products
- Storage
- Order fractionation
- Transport
Defining this set involves determining how many intermediaries will be in the circuit, how to reach the public, and the company’s geographic coverage to reach the market. This is necessary for all types of businesses. Each company must ensure that its product is on time and in places where the customer seeks it.
3. Promotion
Promotion has four different aspects: promotion, advertising, distribution, and sales force.
Promotion
Promotion involves using various incentive tools, usually short-term, designed to encourage faster and greater purchasing of products or services by consumers. Examples include discount coupons in newspapers or magazines, free samples, competitions for a specified period, free services, and advice.
A feature of promotion is that it is given at a particular time and place. Advertising offers a reason to buy, while sales promotion offers an incentive.
Merchandising
Merchandising is a marketing tool that brings together all activities that guide the purchase at the point of sale. The main objectives are:
- Direct consumers to the product or service
- Draw consumer attention to products or services
- Provide care to purchase
Advertising
Advertising has three basic objectives:
- Inform the market about a new product, its use, a change in price, or performance.
- Persuade the customer to buy it or to change brands through advertising.
- Remind consumers that the product or service may be needed in the near future and where they can buy it.
There are various ways in which advertising can be done:
Graphic Advertising
This is done in newspapers, magazines, or other publications and is the most common form.
Street Advertising
This is done in the street or in public places like parks or bus stops through posters, bright signs, municipal boards, etc.
Radio Advertising
Messages are transmitted orally and appeal to the imagination or memory of the listener.
Television Advertising
This medium has the highest mass reach. Its advantages are its great range and power, appeal to all senses, and enhanced recall.
Diffusion
Diffusion is the knowledge of a product or service provided by recommendation from one person to another, commonly known as word of mouth. This strategy is more effective because we believe in those we trust and therefore value their recommendations. This strategy is used by some companies and fields, such as Avon and Amway.
4. Price
Several factors influence the price of a product or service. Basically, it checks to see if the client or the public is willing to pay a certain price for the product or service.
The basic tool for pricing is qualitative market research. Through a study, companies determine what price customers are willing to pay for the product or service. The price cannot contradict the above definitions.