Learn the definition of marketing mix covering product, price, place and promotion and segmentation strategies necessary for business success.
The Meaning of Marketing Mix
Marketing mix is a marketing term, rather a business tool used by marketers when setting up marketing strategies. This is quite an important business tool since it determines the brand and product offering. In addition it is often associated with the 4p’s.. Usually, these 4 elements are adjusted until the right/convenient combination is arrived at; a combination that serves the needs and wants of the product’s customers, at the same time generating sufficient/sensible income. However, in service marketing, the 4 P’s are expanded to 7 P’s. The three extra P’s mainly focuses on addressing the different nature of the product or service.
This concept was first reconstructed by Neil Borden. He however started teaching it in the year 1948 when his associate, James Culliton, described the position of marketing manager as a “mixer of ingredients”. This literally means, “one who follows the recipes prepared by others, but sometimes prepares his own recipe from immediate ingredients”.
Why is Marketing Mix Important to Business?
To start with, it is a business tool so crucial in business since it maximizes company’s chances of attaining not only steady, but also continual success in all its operations. In addition, it keeps the company on alert. This it does by ensuring that it remains responsible to its customers by always delivering what they promise to deliver.
Secondly, with this tool, a company is able to strategize precisely who to target. With clear audience in mind, it’s always easy to know how to set the price and what words to use during the campaign.
Once a target has been identified, marketing mix, the promotion part will enable the company in the actual process of developing and distributing messages about its own brand and products.
Finally, and in general, marketing mix strategies allows you (company) to fully understand how to develop and distribute (sell) value to your customers. At the same time it allows you to get optimum earning from your product or service. However, it is to be noted that, for it to be effective, all the 4 P’s should be well understood and adjusted until the work for both you as a company and your customers.
Different Marketing Segmentation Strategies
Check out these different marketing segmentation strategies that marketers use to successfully sell their products and services.
Marketing segmentation is a common term people often use in the marketing field. It is the process of dividing a given homogenous market into subsets. It aggregates buyers with common needs in one category. The reasoning behind this is that different consumers place different values on a given product and this means that they will respond differently to a given marketing strategy. Segmentation, therefore, is about making different strategies to match the expectations of consumers in the different categories or market segments.
As the definition will suggest, there are many strategies that marketers use to divide the market into segments. The strategy a marketer chooses to use depends to a large extent on the product taken to market. It is common to find marketers using more than one strategy in order to meet all consumer expectations. Below are three of the main segmentation strategies.
This is segmentation done depending on where the consumers are located. For multinational companies, this might mean segmenting people depending on the geographical units for example continents. For local companies, they segment according to the different neighborhoods. The secret in this case is to have good public relations to identify the common needs, wants, and demands of the people in each category and work towards fulfilling these needs and demands.
This is very popular way of dividing the market. Segmentation in this case takes into consideration variables such as religion, gender, age, race, social class in the society or the level of income.
This marketing strategy focuses on why different consumers buy a given product. The Customers purchasing behavior varies depending on their personalities, values and lifestyles. Marketers study different consumer behaviors including personalities, lifestyles, and other values that different people hold, as these have a direct impact on the purchasing habits of different people.