Marketing Mix
Components of Marketing Mix
Meaning:
According to Stanton, ‘marketing-mix is a combinl, pricing structure, distribution system, and promotional activities used to satisfy the needs of an organisation’s target market (s) and, at the same time, achieve its marketing objectives.
The elements or variables mixed with the marketing-mix have been developed to a lengthy inventory. Several scholars have classified the varied elements of marketing-mix.
In order to satisfy the needs and wants of its customers, a business enterprise must develop an appropriate marketing mix.
Components of Marketing Mix: Product, Price, Place and Promotion
Components of Marketing Mix – Classified by Scholars
The elements or variables mixed with the marketing-mix have been developed to a lengthy inventory. Several scholars have classified the varied elements of marketing-mix. The scholars are not of uniform opinion in this regard.
The particular elements incorporated under these variables can be made ex-facie through the following:
Component # 1. Product:
Following factors are taken into account for outright development of product in the market:
i. Product Planning – (a) Selection of product-line (b) Addition or subtraction of product-line.
ii. Branding
iii. Packaging
iv. Standardisation and Grading:
Ten factors are taken into account for the outright development of a product market. These are — product planning, variety of product, consistency of product, style, brand, packaging, assurance, and level of service, standardisation, and other services. Products of different kinds influence the different kinds of consumers. Hence, Product Differentiation and Market segmentation are necessary to consider in order to frame influencive marketing programme.
a. Product Differentiation:
A producer/manufacturer does efforts to develop differentiation in the product either produced by itself or by other firms/competitors. The marketing programmes are improved and the improved products are launched for it.
Product differentiation is widely used for those products, advertised in the wide field and bought by a large number of customers. For example, eatables, cycles, industrial production, cigarettes, soap and cosmetics.
b. Market Segmentation:
The base of market differentiation is the demand part of market under which production and marketing efforts are adjusted by keeping in mind the necessities of the customers. Market segmentation helps small manufacturers attaining the status of semi monopolistic.
For example, the television and motor car manufacturers in India took over the market of lower income and medium income consumers by manufacture of cheap T.V.’s and motor cars.
c. Market Segmentation and Product Differentiation:
An example of Tata Group of Company can be given in this regard. It produces cosmetics under Tata brand name for the low income group while it produces cosmetics under name of Lakme Industries Ltd. for the middle and affluent class.
d. Packaging:
Packaging protects the product and increases its sale too. Modification in packaging helps for coping with the competition of products. For example, Hindustan Lever Company had to cope with the rival firms by modification in packaging of Lux and Lifebuoy, toilet soaps.
e. Brand:
Brand is the name, symbol, design or position of an item or the mixture of them. It identifies with the particular products and services of manufacturer/seller and these are separated from the competitive firms. An objective of brand is to ascertain the marks by which the customers may raise their demands for that particular item/product which one has satisfied them.
For example, the Philips Company in India has acquired its brand image and loyalty both for radio/transistors.
In brief, the seller should focus on product lines, market segmentation, product differentiation, packaging, branding and standardisation under product planning so that consumers may be satisfied with maximum profit earning.
Component # 2. Place:
A problem of submitting the appropriate products in proper market is included under the location. Following things are included in its scope-distribution field, medium of distribution, location of medium, sales province, transportation, bearer, inventory level and storage. These sub-functions provide with the ownership utility, time and the place.
The distribution channel may be direct from manufacturer to the consumer or there may be some mediators between a manufacturer and consumer such as- wholesaler, retailer etc. Distribution channel depends on several factors like size of company, size of market, scope and nature of competition, several markets, and conditions of atmosphere and the nature of product being sold.
For example, – (i) Direct Marketing takes place in distribution of heavy machines and capital goods. There are no mediators in it. (ii) Consumer goods – For example, mediator’s participation is made in distribution of cosmetics and the textiles. No mediators participate in it. (iii) Pure drinks – It accesses to consumers through the retailers.
The medium of distribution in modern era is made for the transfer of goods from manufacturer to the ultimate consumer.
The principal mediums are as under:
a. Producer → Consumer
b. Producer → Retailer → Consumer
c. Producer → Wholesaler Retailer → Consumer
d. Producer → Agent -> Retailer → Consumer
e. Producer → Agent → Wholesaler → Retailer Consumer
f. Producer → Selling association → Consumer.
Component # 3. Promotion:
A product manufactured by an institution cannot be sold if the product is not promoted by the managers. Promotion is made for more and more sale. Advertisement, personal sale and popularity are resorted for this all.
(i) Advertisement is meant for providing the customers more and more information. Newspapers, magazines, radio, cinema, and television etc., are used for advertisement.
(ii) Personal sale – It is inseparable part of marketing-mix. Personal sale is the best for promotion of heavy machines, capital goods, instruments and capital assets. The problems and doubts faced by customers are removed immediately through it.
Component # 4. Price:
Fixing of price for the items/products and services depends on the self-desire of the institution. Pricing policy for a product should be made by keeping in mind the objectives of the institution.
The objectives related to the pricing policy of an institution include the following – pricing policy, pricing strategy, production costs, conditions of credit, concessions and discount etc. The pricing policy should be determined only when complete information regarding these factors is obtained. Thus, there are a number of elements of marketing-mix.
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