Marketing Mix: Definition and the 3 Most Popular Models You Should Know

What is Marketing Mix? Marketing Mix is an important concept in economics in general and marketing in particular. If businesses do not grasp it, it will cause marketing campaigns to go in the wrong direction. Nowadays, the Marketing Mix model has also been expanded to meet the development of the times.

1. WHAT IS MARKETING MIX?

According to Investopedia, Marketing Mix includes several key areas as part of a comprehensive Marketing plan. When referring to this term, people often refer to the popular 4P model: Product, Price, Place and Promotion.

A good Marketing Mix will include strategies that allow a business to target a specific market and develop a brand that effectively attracts customers. In a specific marketing plan, the Marketing Mix identifies all the factors that influence the ideal target market and how they work together to expand reach.

2. THE IMPORTANCE OF MARKETING MIX

Marketing Mix is indispensable in any short-term or long-term business strategy. Businesses will rely on Marketing Mix to research the market, determine core values and the most available products. Good marketing will focus on goals, optimize each index to increase revenue and profit. Deploying many different marketing tools helps businesses respond flexibly to customer behavior. Marketing Mix is also an important part in developing brand identity, reaching new target audiences and creating a difference from competitors.

3. 3 MOST POPULAR MARKETING MIX MODELS

The 4P strategy laid the foundation for the Marketing Mix concept and has now been “upgraded” into many extended marketing mix models. Let’s explore what the P and C elements in the 3 most popular Marketing Mix models 4P, 7P and 4C mean.

3.1 Marketing Mix 4P Model

The traditional Marketing Mix 4P model was born in 1960, built built by E. Jerome McCarthy. This model is not only applied by many businesses but also taught at universities.

• Product – Product

The product can be a good or a service. The product must impact the customer’s mind, different from the products of competitors. This also helps businesses build brand value.

• Price

Price is basically the amount of money that customers have to pay to use the product. Adjusting the product price even a little bit can greatly affect the entire marketing strategy, sales, profits and market demand.

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• Place – Distribution Channel

Distribution Channel is a very important part of Marketing Mix. Businesses should place or distribute products in locations that are easily accessible to potential customers.

• Promotion – Marketing

The marketing communication process helps promote products, reach target audiences and promote purchases. Promotion includes Online Marketing, Direct Marketing, advertising, personal branding, promotions,…

3.2 Marketing Mix 7P Model

Marketing Mix 7P is an extended model from 4P. Nowadays, Marketing 4P is gradually becoming “outdated”, technological development has a strong impact on marketing activities. So what do the 3 newly added Ps mean?

• People – People

Including employees, brand representatives, who are in direct contact with customers. Businesses need to focus on recruiting, training the expertise and skills of employees because it affects the public’s impression of the business.

• Process – Process

Business processes and workflows affect the customer experience. Whether a business standardizes its products or personalizes its sales process will determine the ideal marketing message and tools.

• Physical evidence – Physical evidence

Physical evidence is environmental factors such as facades, store space, signs, employee uniforms, packaging, etc. This factor brings a competitive advantage, helping businesses stand out in the eyes of customers.

3.3 4C Marketing Mix Model

As the field of Marketing develops, customer approach is placed at the center. That is why the Marketing Mix 4C was built in 1990 by Robert F. Lauterborn has gradually replaced the P model, especially in Digital Marketing.

• Customer – Customer

Any Marketing strategy puts customers at the center. Customer satisfaction is the main goal to achieve. Businesses need to carefully research the needs and tastes of customers to meet their needs and desires.

• Cost – Cost

The cost that buyers pay is not only the price of the product but also the cost of use, operation and warranty. Therefore, businesses must offer a selling price commensurate with the benefits that can be brought to customers both materially and spiritually.

• Convenience – Convenience

If Place refers to the location of product distribution, Convenience ensures that the product is always ready to reach the buyer in the most convenient way. Businesses need to provide friendly ordering, payment, delivery, customer care, etc. processes.

• Communication – Communication

Communication is interactive, 2-way communication between businesses – customers and focuses entirely on the shopping experience. Encourage customers to leave feedback via Social Media Marketing, Online Advertising, Email Marketing, Wifi Marketing,…

Marketing Mix plays an important role in the business activities of the enterprise. Depending on each industry, the enterprise can expand further or focus more on certain factors. Therefore, businesses need to clearly understand what Marketing Mix is, the specific goals of each model to apply it most accurately.

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