Marketing basics - Marketing Mix (4P)

Marketing Mix (4P) is the fundamental of all marketing strategies tool. It is coined by Neil Borden in 1953. The mix consist of 4 main categorical variables that affects any marketing effort. Marketing managers will then look into these 4 categories to attempt to develop optimal solutions to each variables within each of the 4 main categories to create a sound marketing strategy. It must be noted that they are 'controllable' variables that marketers can actually manipulate and control by devising strategies or making decisions with good effect. Of course, like the dynamic nature of the market, Marketing Mix must be monitored consistently and alter if necessary. Elements of the marketing mix are as follow in order:

Product: Product refers to the end-product that customers receive; be it in tangible form (physical product) or intangible form (service, mp3 music, virtual goods etc). The common product decisions (variables) that should be considered will be: Branding, Features & benefits, warrenty, product support, R&D, products orientation, product differentiation etc.

Price: This category revolves around the price customer pays for the product. However, vital variables like transportation, mark-ups, strategic cost, operational cost, and a host pricing decision is involved in formulating the final price for customers. The common pricing decisions (variables) that should be considered will be: Pricing strategy (penetration, skimming, cost leadership etc), mark-ups, variant of pricing strategy like bundling pricing, retail pricing, premium pricing, Everyday Low Price tactics etc.


Place (Distribution): This category is about the path which products take to the final customers. It encompasses all tiers in the distribution channel where the products need to 'travel' through. The common place decisions (variables) that should be considered will be: Market coverage, inventory management, supply chain management, shelf space, logistics, value chain analysis etc.


Promotion: This category is a representation of all the communication touch-points that marketers can leverage on for its marketing purposes. This is usually the most 'creative' aspect of the entire marketing process. It is about delivering message and information to the target audience. The common promotions decisions (variables) that should be considered will be: Integrated Marketing Communications, eMarketing tools, target audience, different forms of marketing tools (PR, WOM, Advertising and promotion, personal selling etc.

The 4Ps forms the basis for all marketing strategies that are made up of essential variables. They must be all looked closely to create effective strategies. There are many strategies that can be utilized. Suffice to say, this introduction post will set you off. For more strategies, please visit all the relevant blog post of your choice for more information.