The marketing mix: the winning recipe for defining your marketing strategy?
The marketing mix is a concept developed during the "Trente Glorieuses", inseparable from the notion of the "P's" (4P, 5P, 7P, etc.).
If it serves as a framework for the development of a marketing strategy and the deployment of related operational actions, is it still relevant in the face of new business challenges?
This is the question we will attempt to answer by defining the marketing mix, its various components and their evolution. We'll also use a concrete example to help you understand how to use the marketing mix to build a solid, coherent marketing policy.
Marketing mix: definition
The marketing mix is defined as a system whose aim is to :
- analyze the market in order to determine how to address it ;
- articulate marketing decisions and actions around a set of essential components (the famous "P's");
- Ultimately achieve your sales objectives using a structuring methodology.
Why use the marketing mix?
When it comes to establishing a marketing strategy, every company is faced with the problem of where to start.
That's where the marketing mix comes in:
- The marketing mix provides a framework. It ensures the coherence of strategy and action through :
- analysis of the pillars on which they are based (product, distribution, communication, etc.). We'll take a closer look at each pillar below;
- the interdependencies between these pillars, the aim being for them to work in total synergy.
- A marketing mix strategy is always built with a specific market in mind. As a result, it helps to meet the expectations of the target audience, since each component is carefully studied in line with their needs.
- Last but not least, the marketing mix is an effective tool for differentiation in the marketplace. By studying how the competition responds to issues linked to each aspect of its strategy (its pricing policy, for example), we obtain a more detailed analysis of how to stand out from the crowd.
But we've seen that the marketing mix is inseparable from the notions of 4P, 5P or even 7P. What lies behind these curious names?
The components of the marketing mix: what are the 4Ps of marketing?
Behind this name we find a formidable mnemonic for understanding and remembering the 4 fundamental pillars on which any marketing strategy must rest.
☝️ Let's not forget that they are interdependent, and are designed to suit a specific market and target.
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P for Product
This refers to the product policy implemented, the term "product" including, of course, the sale of services.
Different considerations emerge:
- What does the product promise?
- What value proposition will set it apart from the competition?
- How does it meet the needs of its target audience?
But defining a product policy also leads to questions about more "material" aspects:
- packaging,
- its characteristics,
- design, etc.
P for Price
In marketing, defining the selling price of products and services is not something to be taken lightly.
Pricing is built in correlation with :
- the product's value,
- the expectations of its target audience, since any pricing policy says a lot about the positioning of a brand or chain. For example, gaining credibility in the luxury market implies a relatively high price (provided, of course, that the quality is up to scratch!).
There are other parameters to consider when establishing a pricing policy, such as promotional strategy.
P for Place
By "Place" we mean the product's distribution policy.
A host of possibilities are possible:
- mass distribution,
- specialized boutiques,
- e-commerce and marketplaces, etc.
How should brands think about this?
- Which distribution channel is best suited to bringing their product into contact with the target audience, based on the latter's consumption habits?
- How to mix approaches with multi-channel.
☝️ Note that there are other aspects to consider, particularly logistics and distribution channels.
P for Promotion
Last but not least, every company needs to think about how it intends to promote its products or services.
- What communications strategy should be implemented?
- Which channels should be favored (paid advertising, social networks, etc.)?
In short, it's all about finding the right recipe to bring the product and its audience together.
The evolution of the marketing mix: 5P, 7P then 10P
What are the 5Ps of marketing?
The 4P model is often called into question, or at least supplemented.
In fact, we often come across the notion of the 5P, born of the realization that consumer satisfaction, through loyalty, is an essential component.
The 5P concept takes up the 4P concept, with the addition of " People".
It implies :
- That employees are also a showcase for the company they work for. Like brand ambassadors, they have a duty to strive for maximum customer satisfaction.
- Consumers are becoming increasingly sensitive to who sells the product they want. They are more interested in buying "ethically", and in the values reflected by brands.
Extended marketing mix: the 7Ps...
But in light of the social upheavals of recent years, particularly the rise of digital technology, the marketing mix framework has been expanded to include even more "P's".
© Coveto
- Process 👉 this component highlights the fact that clear, well-constructed processes also guarantee a brand's success. They enable teams to structure their work more effectively in order to :
- constantly increase customer satisfaction,
- optimize costs.
- Physical Evidence 👉 This concept, which translates as " material proof", answers the following question: how can we prove to consumers that a particular product or service is really satisfactory?
Here, we're thinking primarily of customer reviews, which have proliferated in tandem with the development of online commerce. The bottom line is that customers now have the means to find out more before they buy, and to compare offers. The marketing mix must adapt!
... followed by the 10Ps
Finally, we come to the 10Ps of the marketing mix. They include, in addition to the previous pillars:
- Permission marketing 👉 yet another example of how the marketing mix adapts to changing consumer aspirations. The term "permission marketing" covers the following reality: customers like to go to a brand on their own. The whole raison d'être of inbound marketing is based on this observation. Intrusive marketing, on the other hand, is increasingly disliked.
- Partnership 👉 the partnership between two brands promotes the development of their respective brand awareness. These partnerships are achieved through :
- the development of new products, services or concepts by two different entities (co-branding) ;
- communication initiatives. Example: GoPro and Red Bull target the same young, sporty audience. As a result, they have built communication campaigns together, including parachutist Felix Baumgartner's memorable jump from space:
- Purple Cow 👉 Finally, behind this amusing name of " purple cow" lies a most pertinent concept, developed by Seth Godin: in a meadow of cows, all appear to look alike. But if one of them is painted purple, that's the only one you'll notice.
Moral: the product or service developed by a brand must prove sufficiently remarkable to touch consumers' emotions, and become memorable as a result.
Marketing Mix: a concrete example
Finally, to further illustrate what we've just said, let's focus on a concrete example. Let's take a look at the Starbucks marketing mix, using the traditional 4Ps.
Pixabay/denniskendall
- ☕ Product: Starbucks' bet? Focus on :
- quality products, through a demanding policy of ;
- innovation. The broadening of the product ranges on offer enables Starbucks to evolve with the tastes of its target audience, or to adapt to seasonality;
- experience. The brand has established itself in the market by offering each customer a unique experience.
At the same time, as coffee is a perishable commodity, the brand ensures that each stage of production runs smoothly, buying the beans and then roasting them in its own factories.
- 💰 Price: the relatively high price of Starbucks products reflects two realities:
- the quest for quality (meticulous selection of coffee beans, for example),
- the justification of the experience. The brand has gambled on consumers' tendency to associate high quality with high prices.
- 🏪 Place: Starbucks products are mostly distributed in their own cafés. Consequences:
- the brand benefits from a direct supply chain from producers to consumers;
- it has greater control over customer relations and the consumer experience with its products, enabling the introduction of best practices (personalization, with the famous name on the cup, for example).
In addition, sales outlets number in the thousands (more than 29,300 in 2018), and are opening in strategic locations (shopping malls in particular) to become more integrated into the daily habits of their target.
- 🎤 Promotion: Starbucks has not invested heavily in advertising, unlike other competing brands. Since it's the experience that counts, the company has banked on the idea of belonging to a community. As a result, loyal customers became true brand ambassadors, and word-of-mouth was able to take hold.
The marketing mix: a framework to make your own
How far will the marketing mix develop? How many more "P's" will the various professionals in the field come up with?
In reality, it's easy to question the extended marketing mix: many will say that the new components were already included in the original 4Ps. "People" or "Physical Evidence", for example, fit perfectly into "Promotion".
But never mind! The main thing to remember is that the marketing mix is the basis on which each brand can cook up its own miracle recipe. And like any methodology, it's always open to change, adaptation and reinvention.
Article translated from French