Identify the four elements of the marketing mix and be aware of their importance in developing a marketing strategy.

 

Summary

Marketing mix refers to the set of tactics and actions that a company uses or employs to promote its brand, product, or service in the market. The elements of a marketing mix include product, price, place, and promotion.

Step-by-step explanation

Explanation

Product

 Product refers to the item that is being sold in the market. A product must deliver a minimum level of performance; otherwise, even the best work of other marketing mix elements won't do any good. 

Price

Price refers to the value that is put on a product or service in the market. The price of a product depends on the cost of production. When the cost of production is high, the price for that product will be high. Moreover, the price of a product depends on the self-desire of the institution. An institution may price a product by keeping in mind the objectives of the institution. Also, the price for a product depends on the segment targeted and the market's ability to pay supply and demand. Pricing is used to differentiate and enhance the image of a product.

Place

Place refers to the place of sale. In every company, catching the consumer's eye and making it easy to buy the product is the main am of good distribution. Many retailers pay a premium for the right location because the location is important for the distribution of goods. The distribution channel may be direct from the manufacturer to the customers or some mediators between a manufacturer customer such as wholesalers and retailers.

Promotion

Promotion refers to all the activities taken to make a product or service known to users and trade. These include advertising, personal selling, sale promotion, and direct marketing. Advertising means providing customers with information about a product through newspapers, radios, television, and magazines. Personal selling is a face-to-face promotion where salespeople approach customers directly.

Importance of the four elements of the marketing mix in developing a marketing strategy

New product development help companies diversify their target customer range and expand into new market segments. When a company is ready to launch a new product, a marketing strategy helps the company connect the customer to the new product before it is distributed.

Price is important in developing a marketing strategy because price regulate demand and also the best determinant of profitability.

Place plays an important role in developing a marketing strategy because it provides a ground where goods will be accessible by the customer. A location for good should be reliable and accessible.

Promotion is important in developing a marketing strategy because promotion is used to inform, persuade, and remind people about a company's product and its image.