Marketing Mix Definition and Examples of Its Application in Business

Not having an educational background in marketing doesn’t mean you don’t need to learn about marketing. With the help of the internet now you can learn things related to marketing without having to sit in college. One of the important concepts in marketing that you need to understand is the marketing mix.

You may have heard this term in seminars, television, or in the newspapers. However, have you ever studied it further? If not, this article is the right material to start learning the concept of the marketing mix.

Definition of Marketing Mix

The marketing mix is ​​a set of marketing variables used to achieve marketing objectives in the targeted market. The term was first introduced by Neil Borden, a Harvard marketing professor, in 1948.

At that time, Neil Borden had just introduced the term, but had not yet compiled the components in the marketing mix. In 1960 E. Jerome McCarthy just introduced four main variables of the marketing mix, namely product, price, place, and promotion.

The marketing mix has long been used by business owners in many countries to develop an effective marketing strategy for a business. This concept can be used by both start-up businesses and long-running businesses.

Getting to know the 7p Marketing Mix

marketing mix concept

Initially the marketing mix only included four elements, namely product, price, place, and promotion. However, in its development there are various modifications of elements from the experts.

One of the most widely known developments in the marketing mix concept is the 7P Marketing Mix. This concept was introduced by Booms and Bitner which contains four 4P elements plus three new elements, namely physical evidence, people, and process.

The following is a complete explanation of the seven main elements of the 7P’s marketing mix:

1. Product

Product is anything that is produced to meet the needs of people, it can be in the form of services, goods, or virtual products. In this digital era, products are not limited to physical products or services. You can also create virtual products such as websites, applications, and the like.

The thing to remember when creating a product is that you have to produce a product that is in accordance with the demand (demand) from the market. That’s why you need to do product research to find out what the market needs and what solutions you can offer.

To make it easier for you to do your market research, here are the questions you need to answer:

  • What problems do consumers face?
  • What solutions (products) can you offer?
  • How will consumers use your product?
  • What is unique about the products you offer?

Many businesses fail halfway through the poor quality of the product research that was done upfront. Many businesses get stuck in creating products that rely solely on subjective ideas, without research.

You need to know, making products that consumers don’t want is the biggest failure factor for most startups. As you can see in the infographic above, 36 percent of startups fail because they created the wrong product.

So make sure you make products that consumers need and want based on the data you find in the field. It’s not just your subjective idea.

Also Read: Product Marketing Strategy and Examples

2. Price

The next element in the marketing mix, namely Price or price is the amount of money consumers spend to use your product. Prices that are too low can jeopardize business continuity. On the other hand, prices that are too high will also discourage buyers.

You need to find the right point where consumers don’t mind and your business can still run. In economics, there is the term Break Even Price, which is the smallest price that can be placed on a product so that the business does not lose money.

To get the value of the break even price there is a separate formula, namely

(Total Fixed Cost/Production Volume)+Variable Cost Per Unit = Break Even Price

  • Total Fixed Cost is the total cost of making the product. This includes material costs, labor costs, and other costs (office stationery, marketing, etc.)
  • Production Volume is the total number of products made
  • Variable Cost Per Unit is the cost of making one product

Keep in mind that the break even price has not been profitable for the business. It is a safe point that does not harm your business. So you need to add a few more dollar from the break even price to get a profit.

3. Place

Place is a physical location where a business or distribution channel runs to reach the target market. A business needs an ideal sales location to be able to reach its target market easily.

This element of the marketing mix includes the head office, warehouse, factory, physical store, branch office, and branch store. You don’t have to put your head office, factory, and physical store in one location. Choose the ideal location considering function and cost.

Now places are not limited to physical locations. You also need to consider the internet as a place to sell. Places to sell products are increasingly diverse, from social media, marketplaces, to online store websites.

Each platform selling on the internet has its own advantages and disadvantages. For example, marketplaces allow you to reach more consumers. However, there are many regulations that you must comply with and profit sharing.

Unlike the online store website. You are not bound by any regulations because you manage the online store website independently. All the profits go into your pocket. Indeed you have to do everything independently, from creating products to promotions. However, you have more freedom and do not need to share the profits.

Also read: The Importance of Knowing the Target Market for Your Business

4. Promotion

Promotion is any effort to increase brand awareness and product sales. Promotion can be done using a variety of media, from websites, social media, newspapers, radio, television, digital ads, online media, online videos, to podcasts.

In this digital era, like it or not, you must be able to reach potential consumers through the realm of cyberspace. Whether it’s through social media, organic traffic, digital ads, content marketing, or video marketing.

Here are articles that can help you run your online promotions effectively:

5. Physical Evidence

Physical evidence or physical evidence is not limited to physical products. Physical products are just one of many physical evidences. Physical evidence can be in the form of logos, brochures, souvenirs, access to contact customer service, employee uniforms, events, and official websites.

Often consumers need physical evidence to be more confident in deciding to buy your product or not. For example, Hostgator is a company that provides hosting services for both WordPress hostingcheap domains, and VPS.

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