Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. Those tools are classified into four groups, called the four P’s:
A product is an item that is offered in a market to satisfy a specific need. A product may be physical but also maybe a service.
The price is a characteristic of a product. For that reason, the price element cannot be considered separately from the element of product. The key objective of using a price is obviously to generate and maximize revenues.
- Place (Channel, Distribution)
The distribution forms the physical connection between the company and the final users of the product. Having a good distribution is very important and may even produce a sustainable competitive advantage. The main objective of a distribution is to decide to what extend and where should be the product available that the target audience is able to obtain it.
- Promotion (Marketing Communication)
Promotion consists of communication and “actions” (promotions). Communication involves informing and convincing the target audience of certain characteristics of the brand; therefore, it has not only short-term goals but also long-term goals. Actions (sales promotion) refer to all short-term efforts to achieve more sales by making temporary changes in the four P’s.
The particular marketing components and marketing-mix decisions under each P are presented below.
Source: self-study, based on: Philip Kotler, "Marketing Management", Prentice Hall, Millennium Edition, 2000