This page has been robot translated, sorry for typos if any. Original content here.

Marketing Basics - Kotler Philip

Development of a marketing mix

Having made a decision regarding the positioning of its product, the company is ready to start planning the details of the marketing mix. The marketing mix is ​​one of the basic concepts of the modern marketing system. We define it as follows:

Marketing mix - a set of variable marketing factors that can be controlled, the combination of which the company uses in an effort to elicit the desired response from the target market.

The marketing mix includes everything that a company can do to influence the demand for its product. Numerous opportunities can be combined into four main groups: product, price, distribution and incentive methods 4. (A detailed analysis of these marketing variables is given in chapters 8-16.)

The four components of the marketing mix

Fig. 11. The four components of the marketing mix

A product is a set of “products and services” that a firm offers to a target market. So, the new Helene Curtis painkiller may turn out to be a “product” in the form of 50 white tablets in a dark green bottle with a cap that children cannot open, with a three-year shelf life, the brand name “Deliverance” and a money back guarantee in case of customer dissatisfaction.

Price - the amount of money that consumers must pay to receive the goods. Helen Curtis offers retail and wholesale prices, preferential prices and discounts, and credit sales. The price set by the company must correspond to the perceived value of the offer, otherwise buyers will purchase competitor goods.

Methods of distribution - all kinds of activities, thanks to which the product becomes available to target consumers. So, “Helen Curtis” selects wholesalers and retailers, convinces them to pay more attention to the product and take care of its good layout, monitors the maintenance of its stocks and ensures efficient transportation and storage.

Incentive methods - all kinds of activities of a company to disseminate information about the merits of its product and to convince target consumers to buy it. So, “Helen Curtis” pays for advertising, hires sellers, promotes goods with the help of various kinds of special events, and organizes its propaganda.

All decisions regarding the components of the marketing mix largely depend on the firm’s specific product positioning. Suppose that Helen Curtis decided to release a Cadillac-class vintage painkiller for a segment of consumers who prefer a high softness. Such positioning suggests that a firm's brand drug should be at least as soft in action as tylenol, or and softer. The company must use high-quality packaging for it, and the branded product itself should be offered to the market in several different packaging. Its price should be higher than that of tylenol. It should be sold in reputable retail stores. The allocation for advertising should be large. Ads should include wealthy consumers who need the best headache medication available on the market. In relation to this brand, price reductions and sales promotion measures that could belittle its image should be avoided. From all this it becomes clear that the decision to position the product on the market is the basis for developing a targeted marketing mix.