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.

Of course Hostgator cannot provide physical products to customers. Even so, Hostgator still provides physical evidence for its consumers. The physical evidence provided by Hostgator is quite diverse. From souvenirs, customer service access, event collaboration, and so on.

6. People

People referred to here are human resources (HR) who run the business, from directors to staff. HR is the most important asset in your business. The wrong choice of HR can have fatal consequences for your business.

As you can see in the Top 10 Startup Mistakes infographic, poor recruitment is the second biggest factor in startup failure. So you can’t think of recruitment as a trivial process.

Bad recruitment can be bad for your company in many aspects. First, of course you lose financially. The recruitment process costs a lot of money to find competent people. If you recruit the wrong person, of course, the recruitment fee will not produce anything for the company.

Second, recruiting the wrong human resources will also affect the company’s productivity. There are two possibilities in this case. The first possibility is that the person you are hiring doesn’t have the competencies you need. The second possibility, even though the person has competence, his behavior hinders teamwork.

Third, hiring HR mistakes can also have a bad impact on your business reputation. Especially if the person fills a position that is directly related to consumers. Lack of competence or bad behavior can give a bad impression on the consumers he is dealing with.

7. Process

A process is a procedure, mechanism, or flow that a customer needs to go through to use your service. To put it simply, the process is the consumer’s experience from the beginning of knowing your product until he makes a purchase.

So this process starts from how consumers know your product, be it from social media, digital ads, blogs, or other media. When consumers are interested in buying your product, they must place an order. This process continues until the consumer uses the goods or services he purchased.

The most important thing in this element is consistency. Your product or service must be consistent. What you advertise must be consistent with what consumers get. Product inconsistency will ruin the consumer experience and in the worst case consumers will not want to use your product/service again.

Marketing Mix Functions for Your Business

A good product is not enough. You need an effective marketing strategy so that people know your product and the benefits they can get from it.

Well, the function of the marketing mix is ​​to help you formulate an effective marketing strategy. That way you can communicate your product to the right target market and with the right message.

In addition, you can see in the previous infographic that the failure to market products is one of the main factors for the bankruptcy of startups. One way to avoid these failures is to understand the concept of this marketing mix.

Examples of Marketing Mix You Can Apply

Above we have discussed a lot of theory about the marketing mix. Now is the time for you to learn through examples of its application. Below we will explain it using a fictitious example of ABCDEFGH Shoes, LLC.

1. Determine the Products Needed by Many People

ABCDEFGH Shoes, LLC has conducted market research and found the facts below:

– What problems do consumers face? Indonesians lack a choice of local running shoes. Most running shoes are dominated by foreign brands and are relatively expensive.

– What solutions (products) can you offer? ABCDEFGH Shoes, LLC can solve this problem by presenting local running shoes at lower prices without compromising quality.

– How will consumers use your product? How to use the same as ordinary shoes.

– What is unique about the products you offer? The uniqueness of ABCDEFGH Shoes, LLC shoes is that the materials are of high quality, but can be obtained at affordable prices. These running shoes are also durable.

2. Setting Product Prices

ABCDEFGH Shoes, LLC is a company that produces shoes. The total cost (Total Fixed Cost) for making shoes is $ 3.750.000. ABCDEFGH Shoes, LLC will produce 50,000 pairs of shoes (Production Volume). The manufacturing cost per unit of product is $.49,00.

Break Even Price ABCDEFGH Shoes, LLC: (3,750,000/50,000)+49

Using the above formula, the break even price obtained for ABCDEFGH Shoes, LLC is $ 124,00

3. Determine the Place to Sell

To make it easier for consumers to shop, ABCDEFGH Shoes, LLC decided to sell their products online. Therefore, ABCDEFGH Shoes, LLC created an online store website as its main selling place. Consumers can choose products to checkout on the website.

Not only online stores, ABCDEFGH Shoes, LLC will also open physical stores in several cities. ABCDEFGH Shoes, LLC will open its first physical store in New York.

4. Designing a Promotion Strategy

Because the target market for this product is young people, ABCDEFGH Shoes, LLC needs to design a promotional strategy that can reach young people easily.

One of the main strategies is to promote promotion on social media. ABCDEFGH Shoes, LLC will conduct a massive promotion on Instagram and YouTube in collaboration with influencers who are close to young people. In addition, ABCDEFGH Shoes, LLC will also use blogs to capture organic traffic in Google search results.

Also Read: These 5 Marketing Tools Are Very Effective For Startup Businesses

5. Provide Physical Evidence

One of the physical evidence from ABCDEFGH Shoes, LLC is the product itself, namely running shoes. In addition to physical products, ABCDEFGH Shoes, LLC will also prepare logos, brochures, souvenirs, and other forms of physical evidence to prove the existence of ABCDEFGH Shoes, LLC.

6. Recruiting HR

ABCDEFGH Shoes, LLC requires several key human resources who will support the company’s sustainability. Some of the vacancies that will be opened are the shoe designer team, HR and office operations team, marketing team, customer service team, and finance team. For shoe craftsmen, ABCDEFGH Shoes, LLC will use outsourcing to a trusted shoe maker.

7. Make Company SOPs

To facilitate the product planning process until the product is consumed by customers, ABCDEFGH Shoes, LLC requires a Standard of Procedure (SOP). This SOP is important to ensure that all products produced by ABCDEFGH Shoes, LLC are of the same quality. So all employees of ABCDEFGH Shoes, LLC must understand this SOP in order to provide a good experience for consumers.


I hope the above explanation is sufficient to answer your questions regarding the concept of marketing mix and its application in business. This concept is important for all business owners, including you. That way you can plan a more mature and effective marketing strategy.

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