marketing mix nel business plan

Marketing Mix: The 4 Ps of Marketing & How to Use Them?

Appinio Research · 06.08.2024 · 35min read

Have you ever wondered what makes a marketing campaign successful and why some products seem to fly off the shelves while others gather dust? The answer often lies in the marketing mix, a concept that combines several key elements to create a winning strategy. Understanding the marketing mix is crucial for any business looking to meet customer needs, stay competitive, and achieve long-term success. This guide will delve into the essential components of the marketing mix—Product, Price, Place, Promotion, People, Process, and Physical Evidence—providing you with practical insights and examples to help you develop an effective marketing strategy. By mastering these elements, you can tailor your marketing efforts, optimize resources, and drive business growth. Let's explore how each aspect of the marketing mix plays a vital role in crafting a strategy that resonates with your target audience and elevates your brand.

What is Marketing Mix?

The marketing mix is a foundational concept in marketing that refers to the combination of factors a company can control to influence consumers to purchase its products. Coined by Neil Borden in the 1950s, the term initially referred to the 4Ps: Product, Price, Place, and Promotion. These elements work together to create a strategic approach to market a product or service effectively. Each component must be carefully considered and balanced to meet the target audience's needs and achieve the company's marketing objectives.

Importance of Marketing Mix in Business Strategy

The marketing mix is critical in shaping a company's overall business strategy. Here's why it is so important:

• Customer Satisfaction : By tailoring the marketing mix elements to meet customer needs and preferences, businesses can enhance customer satisfaction and loyalty.
• Competitive Advantage : A well-crafted marketing mix helps differentiate a company's products from competitors , creating a unique selling proposition that attracts customers.
• Resource Optimization : Effective use of the marketing mix ensures that resources are allocated efficiently, maximizing return on investment.
• Market Adaptation : The flexibility of the marketing mix allows businesses to adapt to changing market conditions, consumer behavior , and competitive pressures.
• Strategic Alignment : Aligning the marketing mix with overall business goals ensures that marketing efforts support the company's long-term vision and objectives.
• Increased Sales and Profitability : By optimizing each element of the marketing mix, businesses can drive higher sales and profitability through targeted and effective marketing strategies.

Overview of the 4Ps of Marketing

• Product : Refers to what the company is selling, including the quality, design, features , branding, and packaging of the product. It's essential to ensure that the product meets the needs and expectations of the target market.
• Price : Involves determining the right pricing strategy for the product, considering factors such as production costs, target market, competition, and perceived value. Pricing decisions directly impact the demand and profitability of the product.
• Place : Focuses on how the product is distributed and made available to customers. This includes choosing the proper distribution channels, managing logistics, and ensuring the product is accessible where and when customers need it.
• Promotion : Encompasses all the activities and tactics used to communicate the product's benefits and persuade customers to purchase. This includes advertising, sales promotions, public relations, personal selling, and direct marketing.

Understanding and effectively managing these 4Ps allows businesses to create a balanced and integrated marketing strategy that drives growth and meets business objectives.

A product is any good or service that can satisfy customers' needs or wants. It's the cornerstone of your business because it's the primary reason customers engage with your brand. A well-defined product meets customer expectations, solves problems, and provides value. Your product's significance lies in its ability to fulfill market demands and create a loyal customer base.

Product Life Cycle

The product life cycle describes the stages a product goes through, from its introduction to the market to its eventual decline. Understanding this cycle helps in strategic planning and maximizing the product's profitability.

• Introduction : The product is launched, and awareness is built. Marketing efforts are high, but sales growth is typically slow.
• Growth : The product gains market acceptance, and sales increase rapidly. Profits rise, and competitors may enter the market.
• Maturity : Sales growth slows as the product reaches market saturation . Competition is intense, and efforts focus on differentiation and maintaining market share.
• Decline : Sales and profits decline due to market saturation, technological advancements, or changing consumer preferences . Decisions need to be made about discontinuing or rejuvenating the product.

For example, consider the lifecycle of smartphones. When a new model is introduced, it's heavily marketed. As it gains popularity, sales soar. Eventually, sales stabilize as the market becomes saturated, and finally, older models are phased out as new technology emerges.

Product Differentiation and Positioning

Differentiation and positioning are crucial for making your product stand out in a competitive market.

• Product Differentiation : This involves adding unique features or benefits to your product to distinguish it from competitors. It could be through innovation, quality, design, or customer service. For instance, Tesla differentiates its cars using advanced technology and sustainable energy solutions.
• Positioning : Positioning is about creating a specific perception of your product in the consumer's mind. It involves identifying your product's key benefits and associating them with the target market's needs. For example, Volvo positions itself as a leader in vehicle safety, appealing to consumers who prioritize this aspect.

Product Line and Portfolio Management

Managing a product line involves offering a range of related products that cater to different customer needs and preferences. Effective product portfolio management ensures a balanced mix of products that contribute to the overall profitability of the business.

• Product Line : A group of related products marketed under a single brand, catering to different segments or price points. For example, Nike's product line includes running shoes, basketball shoes, and casual footwear.
• Portfolio Management : This involves analyzing the performance of each product and making decisions about product additions, modifications , or discontinuations. Tools like the Boston Consulting Group (BCG) matrix help evaluate products based on market growth and market share to make strategic decisions.

Price is the amount customers must pay to acquire your product or service . It directly affects your revenue and profitability. Setting the right price is crucial because it influences customers' purchase decisions and perceptions of your brand. An optimal pricing strategy balances affordability for customers and profitability for your business.

Pricing Strategies

Effective pricing strategies help you set prices that attract customers and achieve your business goals. Here are some standard methods:

Cost-Based Pricing

Cost-based pricing involves setting prices based on the cost of producing the product plus a markup for profit. This method ensures that all costs are covered and a specific profit margin is achieved.

Price = Cost + Markup

For example, if a product costs $50 to produce and you want a 20% profit margin, the price would be:

Price = $50 + (0.20 * $50) = $60

Value-Based Pricing

Value-based pricing sets prices based on the perceived value to the customer rather than the cost of production. This strategy works well when your product offers unique benefits that justify a higher price.

For instance, a luxury brand like Rolex can charge premium prices because customers perceive high value in the brand's craftsmanship, prestige, and exclusivity.

Competition-Based Pricing

Competition-based pricing involves setting your price based on what competitors are charging. This strategy is helpful in markets with similar products where price differences can significantly impact customer choices.

For example, airlines often adjust ticket prices based on competitor pricing to remain competitive and attract price-sensitive customers.

Factors Influencing Pricing Decisions

Several factors influence your pricing decisions, and understanding them helps you set effective prices:

• Cost of Production : To ensure profitability, direct and indirect costs associated with creating your product must be covered.
• Market Demand : Understanding how much customers are willing to pay for your product helps in setting a price that reflects its value.
• Competition : Analyzing competitors' prices ensures your pricing is competitive and can attract customers.
• Economic Conditions : Inflation, purchasing power, and the overall economic environment can affect how much customers are willing to spend.
• Regulatory Environment : Laws and regulations regarding pricing, such as minimum pricing laws or price controls, need to be considered.

Psychological Pricing Techniques

Psychological pricing techniques leverage human psychology to make prices more appealing and encourage purchases. Here are a few effective methods:

• Charm Pricing : Setting prices slightly below a round number (e.g., $9.99 instead of $10.00) makes the price seem lower.
• Price Anchoring : Showing a higher-priced item first makes other options appear more affordable. For example, a high-end product listed alongside a more reasonably priced one can make the latter seem like a better deal.
• Bundle Pricing : Offering multiple products together at a lower combined price can encourage customers to buy more. For instance, a meal deal at a fast-food restaurant bundles a burger, fries, and a drink at a lower price than buying each item separately.

By understanding and applying these concepts, you can create a pricing strategy that not only covers your costs but also aligns with your overall marketing strategy and business objectives.

Place (Distribution)

Distribution, or place, is about making your product available to customers in the right location and at the right time. It's a crucial aspect of the marketing mix because even the best products won't sell if they're not accessible to the target market. Effective distribution ensures that customers can easily find and purchase your product, which can significantly impact your sales and customer satisfaction .

Distribution Channels

Distribution channels are the pathways through which products travel from the manufacturer to the end consumer. These channels can be direct or indirect, and choosing the right one depends on your business model, product type, and target market.

Direct vs. Indirect Channels

• Direct Channels : Selling directly to consumers without intermediaries. This can be done through online stores, company-owned retail outlets, or direct sales teams. Direct channels provide greater control over the customer experience and margins but can be resource-intensive.
• Indirect Channels : Utilizing intermediaries such as wholesalers, distributors, or retailers to reach the end consumer. Indirect channels can expand market reach and reduce operational burdens but often involve sharing profits with intermediaries.

Online vs. Offline Channels

• Online Channels : E-commerce websites, online marketplaces, and social media platforms. These channels offer convenience, broader reach, and lower operational costs. They are especially effective for tech-savvy and geographically dispersed customers.
• Offline Channels : Physical stores, pop-up shops, and traditional retail outlets. These channels provide a tangible customer experience and immediate product availability, which can be crucial for specific product categories.

Logistics and Supply Chain Management

Logistics and supply chain management are critical components of effective distribution. They involve the planning, implementation, and control of the movement and storage of goods from the point of origin to the point of consumption.

• Warehousing : Efficient storage solutions ensure products are readily available for distribution. Strategic placement of warehouses can reduce shipping times and costs.
• Inventory Management : Maintaining optimal inventory levels to meet customer demand without overstocking or stockouts. Techniques like Just-In-Time (JIT) inventory can enhance efficiency.
• Transportation : Selecting the suitable transportation methods (e.g., trucks, ships, planes) to balance cost, speed, and reliability. Ensuring timely and safe delivery is crucial to customer satisfaction.

Selecting the Right Distribution Strategy

Choosing the right distribution strategy involves considering several factors:

• Intensive Distribution : Placing products in as many outlets as possible (e.g., FMCG products).
• Selective Distribution : Using a limited number of outlets in a particular market (e.g., electronics).
• Exclusive Distribution : Limiting distribution to a single retailer or a few outlets (e.g., luxury goods).
• Cost : Balancing the cost of distribution with potential sales revenue. High-margin products may justify higher distribution costs.
• Control : Determining the level of control needed over the distribution process. Direct channels offer more control but require more resources.
• Customer Preferences : Understanding where and how your customers prefer to shop. This can vary significantly across different demographics and product categories.

Promotion is the aspect of the marketing mix that involves communicating the benefits and value of your product to the target audience. Effective promotion helps increase brand awareness , generate interest, and ultimately drive sales. It's about telling your brand's story in a compelling way that resonates with your audience.

Elements of Promotional Mix

A comprehensive promotional strategy incorporates various elements, each serving a unique purpose in reaching and engaging with customers.

Advertising

Advertising involves paid promotions through different media channels such as TV, radio, print, online ads, and outdoor billboards. It's designed to reach a large audience and build brand awareness . Advertising can be highly targeted and customized to specific segments.

Sales Promotion

Sales promotions are short-term incentives aimed at encouraging immediate purchases or temporarily boosting sales. They can include discounts, coupons, contests, and special offers. Sales promotions are effective in attracting new customers and retaining existing ones.

Public Relations

Public relations (PR) involves managing your brand's image and building positive relationships with the public. PR activities include press releases, media relations, community engagement, and corporate social responsibility initiatives. Effective PR can enhance brand credibility and reputation.

Personal Selling

Personal selling is a direct approach where sales representatives interact with potential customers to persuade them to purchase. It's particularly effective for high-value or complex products that require detailed explanations or demonstrations.

Direct Marketing

Direct marketing targets specific individuals with personalized messages through channels like email, mail, and telemarketing. It allows for precise targeting and measurable results, making it a cost-effective promotional tool.

Integrated Marketing Communications (IMC)

Integrated marketing communications (IMC) ensure that all promotional activities are aligned and deliver a consistent message across all channels. This creates a unified brand image and maximizes the impact of your marketing efforts. IMC involves coordinating various elements of the promotional mix to provide a seamless experience for the customer.

Digital Promotion Strategies

In the digital age, online promotion strategies are essential for reaching and engaging customers. These strategies leverage digital channels to create targeted and interactive marketing campaigns.

• Content Marketing : Creating valuable and relevant content to attract and engage your target audience. This includes blog posts, videos, infographics, and eBooks.
• Social Media Marketing : Using social media platforms to connect with your audience, share content, and promote products. Engaging with followers through posts, stories, and live sessions can build a solid online community.
• Search Engine Optimization (SEO) : Optimizing your website and content to rank higher in search engine results, increasing organic traffic.
• Pay-Per-Click (PPC) Advertising : Running paid ads on search engines and social media platforms where you pay each time someone clicks on your ad. PPC allows precise targeting and quick visibility.

By integrating these strategies into your promotional mix, you can effectively communicate your brand's value, reach a wider audience, and drive sales.

Extended Marketing Mix (7Ps)

The traditional 4Ps of marketing (Product, Price, Place, Promotion) have been extended to include three more critical elements: People, Process, and Physical Evidence . These additional components are especially important for service-based businesses and help create a more comprehensive marketing strategy.

People play a crucial role in the marketing mix, particularly in service industries where customer interactions can significantly impact the overall experience.

Role of Employees in Marketing

Employees are the face of your brand and directly influence customer perceptions. Their behavior, attitude, and competence can make or break a customer's experience. Investing in employee training and development is essential to ensure they represent the brand positively and deliver exceptional service.

For example, Ritz-Carlton is renowned for its exemplary customer service, which is largely attributed to its well-trained and empowered staff, who are encouraged to go above and beyond to meet guests' needs.

Customer Service and Experience

Customer service is a vital component of the overall customer experience. It encompasses every interaction a customer has with your company, from initial contact to after-sales support. Providing excellent customer service can lead to higher customer satisfaction, loyalty, and positive word-of-mouth .

Strategies to enhance customer service include:

• Training employees to handle various customer scenarios effectively
• Implementing customer feedback systems to continually improve service
• Ensuring quick and efficient resolution of customer issues

A real-world example is Zappos, which is famous for its customer-centric approach and generous return policies, creating a loyal customer base.

Processes refer to the procedures and activities that ensure the efficient delivery of your product or service. They play a crucial role in maintaining quality and consistency.

Importance of Efficient Processes

Efficient processes streamline operations, reduce costs, and improve the overall customer experience. They help ensure that products and services are delivered promptly and consistently, which can significantly impact customer satisfaction and loyalty.

Key areas to focus on include:

• Standardizing procedures to ensure consistency
• Using technology to automate and streamline processes
• Continuously monitoring and refining processes to improve efficiency

For example, McDonald's has perfected its food preparation processes to ensure fast, consistent service across all its locations worldwide.

Process Improvement Strategies

Continuous improvement strategies help identify and eliminate inefficiencies in your processes. Techniques like Lean, Six Sigma, and Total Quality Management (TQM) focus on enhancing process efficiency and quality.

Lean focuses on minimizing waste and maximizing value, while Six Sigma uses data-driven methods to reduce variability and defects. TQM emphasizes company-wide quality improvement. Toyota is a prime example of a company that has successfully implemented Lean and Six Sigma principles to streamline its production processes and enhance quality.

Physical Evidence

Physical evidence refers to the tangible elements that customers can see and interact with, which can influence their perceptions of your service.

Tangible Aspects of Service Delivery

Tangible elements include the physical environment where the service is delivered, as well as any materials used in providing the service, such as brochures, signage, and uniforms. These elements help customers form their perceptions of your brand and can significantly impact their overall experience.

Creating a Positive Physical Environment

Creating a positive physical environment involves designing spaces that are aesthetically pleasing, functional, and aligned with your brand image. This can improve customer satisfaction and encourage repeat business. Strategies include:

• Ensuring the physical space is clean, organized, and welcoming
• Using branding elements consistently across all physical touchpoints
• Incorporating sensory elements like lighting, music, and scent to enhance the atmosphere

Starbucks, for instance, creates a cozy and inviting atmosphere in its coffee shops , encouraging customers to spend more time there and enjoy their products.

Integrating these additional elements into your marketing mix can create a more holistic and effective marketing strategy that enhances customer satisfaction, loyalty, and overall business success.

How to Develop a Marketing Mix Strategy?

Creating a marketing mix strategy involves carefully analyzing each component of the 7Ps (Product, Price, Place, Promotion, People, Process, Physical Evidence) and how they interact to meet your business objectives. A well-crafted marketing mix strategy aligns with your overall business goals, targets the right audience, and leverages your unique selling points effectively.

1. Understand Your Market and Target Audience

The first step in developing a marketing mix strategy is understanding your market and identifying your target audience. This involves conducting thorough market research to gain insights into customer needs, preferences, and behaviors. Understanding your competitors and market trends is also crucial.

• Market Research : Use surveys , focus groups , and data analysis to gather information about your potential customers. Identify their pain points, preferences, and purchasing behaviors.
• Competitive Analysis : Study your competitors to understand their strengths and weaknesses. Identify opportunities to differentiate your product or service.

2. Define Your Unique Selling Proposition (USP)

Your USP is what makes your product or service stand out from the competition. It's a unique benefit you offer that is valuable to your target audience. Clearly defining your USP helps craft messages that resonate with your customers and highlight why they should choose your brand over others.

For example, TOMS Shoes' USP is its "One for One" model, where they donate a pair of shoes for every pair purchased, appealing to socially conscious consumers.

3. Develop Your Product Strategy

Your product strategy should focus on delivering value to your customers. This involves decisions about product features , design, quality, and packaging. Consider how your product meets the needs of your target audience and what enhancements could increase its appeal.

• Product Features : Identify which features are most important to your customers and focus on developing these.
• Quality : Ensure your product meets high-quality standards to build trust and satisfaction.
• Packaging : Design packaging that is not only attractive but also functional and environmentally friendly.

4. Set Your Pricing Strategy

Your pricing strategy should reflect the value of your product while being competitive in the market. When setting prices, consider your costs, target market, and competition.

• Cost-Based Pricing : Ensure your prices cover your production costs and provide a reasonable profit margin.
• Value-Based Pricing : Set prices based on the perceived value to your customers. Customers may be willing to pay a premium if your product offers unique benefits.
• Competitive Pricing : Analyze your competitors' pricing strategies and position your prices to attract your target market without eroding your profits.

5. Choose Your Distribution Strategy

Your distribution strategy ensures that your product is available to customers where and when they want it. This involves selecting the proper distribution channels and managing logistics effectively.

• Distribution Channels : Decide whether to sell directly to consumers, use intermediaries, or a combination of both. Consider online and offline channels based on where your customers prefer to shop.
• Logistics : Develop efficient logistics and supply chain processes to ensure timely delivery and reduce costs. Optimize your warehousing, inventory management, and transportation strategies.

6. Plan Your Promotion Strategy

Your promotion strategy involves communicating the value of your product to your target audience. It includes advertising, sales promotions, public relations, personal selling, and direct marketing.

• Advertising : Choose the best media channels to reach your audience, such as TV, online ads, social media, or print. Create compelling messages that highlight your USP.
• Sales Promotions : Use discounts, coupons, and special offers to drive short-term sales and attract new customers.
• Public Relations : Build positive relationships with the public and media to enhance your brand's reputation.
• Personal Selling : Train your sales team to communicate your product's benefits and close deals effectively.
• Direct Marketing : Use personalized marketing techniques, such as email campaigns, to target specific segments of your audience.

7. Integrate People, Process, and Physical Evidence

These additional elements ensure that your marketing mix is comprehensive and customer-centric.

• People : Invest in training and developing your employees to provide exceptional customer service. Ensure that your team embodies your brand values.
• Process : Streamline your processes to deliver a consistent and high-quality customer experience. Use technology and continuous improvement strategies to enhance efficiency.
• Physical Evidence : Create a positive physical environment that reflects your brand. This includes the design of your stores, website, and any other touchpoints where customers interact with your brand.

8. Monitor and Adjusting Your Strategy

Finally, continuously monitor the performance of your marketing mix strategy and make adjustments as needed. Use key performance indicators (KPIs) to measure success and gather customer feedback to identify areas for improvement.

• KPIs : Track metrics such as sales volume, market share, customer satisfaction, and return on investment (ROI) to evaluate your strategy's effectiveness.
• Customer Feedback : Use surveys, reviews, and direct customer interactions to gather insights and make informed adjustments to your strategy.

By carefully developing and continuously refining each element of the marketing mix, you can create a robust strategy that effectively meets your business goals and delights your customers.

How to Measure and Evaluate Your Marketing Mix?

Understanding how well your marketing mix strategy is performing is crucial for making informed decisions and optimizing your efforts. Measuring and evaluating your marketing mix involves tracking key metrics, using analytical tools, and continuously refining your approach to improve results.

Key Performance Indicators (KPIs)

Key Performance Indicators (KPIs) are measurable values that help you gauge the effectiveness of your marketing mix strategy. Selecting the right KPIs depends on your business goals and the specific aspects of the marketing mix you want to evaluate. Here are some essential KPIs to consider:

• Sales Volume : Tracks the number of units sold over a specific period. It helps assess the effectiveness of your product and pricing strategies.
• Revenue : Measures the total income generated from sales. It provides insight into the overall financial health of your marketing efforts.
• Market Share : Indicates the percentage of total market sales your product accounts for. It helps evaluate your competitive position in the market.
• Customer Acquisition Cost (CAC) : Calculates the cost of acquiring a new customer. It includes expenses related to marketing and sales efforts.
• Customer Lifetime Value (CLV) : Estimates the total revenue a customer will generate over their relationship with your business. It helps you understand the long-term value of your customers.
• Return on Investment (ROI) : Measures the profitability of your marketing activities by comparing the revenue generated to the costs incurred.
• Conversion Rate : Tracks the percentage of prospects who take a desired action, such as making a purchase or signing up for a newsletter.
• Customer Satisfaction and Loyalty : Assessed through surveys and feedback to understand how satisfied customers are with your product and service, and their likelihood of repeat business.

Tools and Techniques for Analysis

To effectively measure and evaluate your marketing mix, you need to use various tools and techniques that provide detailed insights and actionable data. Here are some commonly used tools and techniques:

• Google Analytics : A powerful tool for tracking and analyzing website traffic, user behavior, and conversion rates. It provides valuable data on how customers interact with your online presence.
• Customer Relationship Management (CRM) Systems : Tools like Salesforce or HubSpot help manage customer interactions, track sales activities, and analyze customer data to improve relationships and drive sales growth.
• Marketing Automation Platforms : Solutions like Mailchimp enable you to automate marketing tasks, track campaign performance, and analyze customer engagement.
• Surveys and Feedback Tools : Platforms like Appinio help collect customer feedback and measure satisfaction and loyalty. They provide insights into customer preferences and areas for improvement.
• Social Media Analytics : Tools like Hootsuite and Sprout Social offer detailed analytics on your social media performance, including engagement, reach, and sentiment analysis.
• A/B Testing : This technique involves comparing two versions of a marketing asset (e.g., a web page, email, or ad) to determine which one performs better. It helps optimize marketing materials and improve conversion rates.
• Heatmaps and Session Recording : These tools provide visual insights into how users interact with your website. They show where users click, scroll, and spend the most time, helping you optimize user experience and design.
• Competitive Analysis Tools : Tools like SEMrush and Ahrefs allow you to monitor competitor activities, track keyword rankings, and analyze their marketing strategies to identify opportunities and threats.

Using these tools and techniques, you can gather comprehensive data on your marketing mix performance. Regular analysis and interpretation of this data enable you to make informed decisions, adjust your strategies, and continuously improve your marketing efforts. Remember, the goal is to create a dynamic and responsive marketing mix that evolves with changing market conditions and customer needs.

Conclusion for Marketing Mix

Crafting an effective marketing mix is all about understanding and balancing the key elements that influence customer decisions. By focusing on the 7Ps—Product, Price, Place, Promotion, People, Process, and Physical Evidence—you can create a comprehensive strategy that meets your customers' needs and sets your business apart from the competition. Each component plays a unique role in shaping the customer experience and driving sales. Whether it's designing a product that solves a specific problem, setting a price that reflects its value, ensuring it's available where customers shop, or promoting it in a way that captures attention, every decision counts. Integrating these elements thoughtfully can lead to improved customer satisfaction, stronger brand loyalty, and increased profitability. As markets evolve and consumer preferences shift, it's crucial to continuously evaluate and adjust your marketing mix. Use the tools and techniques outlined in this guide to measure performance, gather feedback, and refine your approach. Stay agile and responsive to changes in the market, and don't hesitate to experiment with new strategies to see what works best for your business. Remember, the goal is to create a marketing mix that not only meets immediate objectives but also positions your brand for long-term success. By keeping the customer at the center of your strategy and making data-driven decisions, you can build a resilient marketing plan that adapts to challenges and seizes opportunities, ensuring your business thrives in a competitive landscape.

How to Enhance Your Marketing Mix Strategy?

Developing an effective marketing mix strategy requires timely and accurate consumer insights, and Appinio is the ideal platform to achieve this. As a real-time market research platform, Appinio revolutionizes the way companies gather and utilize consumer data. By providing rapid, actionable insights, Appinio empowers businesses to make data-driven decisions with confidence and speed.

Our platform handles all the technical and research complexities, allowing companies to focus on what truly matters—crafting a marketing mix that resonates with their target audience and drives success. With Appinio, market research is no longer a daunting or expensive task; it's an exciting and intuitive process seamlessly integrated into everyday decision-making.

• Real-Time Insights : Get from questions to insights in minutes, ensuring your marketing mix decisions are based on the latest consumer data.
• User-Friendly Platform : Designed for ease of use, Appinio's platform is so intuitive that anyone can conduct market research without needing a PhD.
• Global Reach and Precision : Define the right target group from over 1,200 characteristics and survey respondents in over 90 countries, with an average field time of under 23 minutes for 1,000 responses.

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What Is Marketing Mix? How It Drives Sales and Profits

In this post

• What are the four P's?

How to implement the marketing mix?

• Seven P's of marketing
• Four C's of marketing

Marketing mix benefits

Marketing mix vs. marketing strategy.

Profitable businesses invest in the marketing mix to get the best bang for their buck.

The marketing mix's lasting popularity throughout the years is because the mix encompasses every type of tactic and technique that a marketer needs to bring an offer to the market successfully.Think of the marketing mix as a toolbox that marketing strategy agencies use to accomplish their marketing objectives.

If you’ve ever taken an entry-level marketing class, you have probably heard the term marketing mix come up enough times to recognize it as an essential term to know. It is such a heavily covered topic because, without the marketing mix, marketers would have no guidelines in the strategy or execution of bringing a new product or service to market. It’s every marketer’s starting point.

What is a marketing mix?

A marketing mix refers to a set of controllable variables that a company strategically chooses to influence the target buyers’ responses. The elements of a marketing mix include four P’s, i.e., product, price, promotion, and place. These elements work in conjunction to help brands create brand positioning, marketing plan, and advertising strategy.

Professor Neil Borden first used the term ‘marketing mix’ during his presidential address to the American Marketing Association in 1953. However, in his book Basic Marketing: A Managerial Approach , E. Jerome McCarthy was the first to propose four P's within a managerial approach.

What are the four P’s?

The four P’s , i.e., product, price, place, and promotion, have become the most popular elements that marketing teams choose to implement today. Its extreme popularity explains why so many professionals use the marketing mix and the four P’s of marketing interchangeably. The marketing mix elements have remained relevant even as the marketing industry has evolved.

This phase is about more than the physical product you're selling. In the product stage, you have to determine your audience, test your product, decide where it fits within the marketplace, and so much more. Before you begin to think about marketing your product, you have to understand your product extensively. You probably know it like the back of your hand. All products go through a product lifecycle , and it’s easy to overlook the simple stages that ask questions like:

• Who uses it?
• What need will it satisfy for customers?
• How will it differ from your competitors?

Before you dive in any deeper, you’ll want to be sure you’re completely confident on the above. The next step is to determine if your offering is a new or existing product. If you revamped your products recently, it’s crucial to perform a competitive analysis. What makes your product any better than others of its kind? Is it cheaper? Is it better quality? The answers to these questions will help you determine the features you’ll highlight throughout the promotional step. Next, you’ll need to perform user segmentation to identify and locate your target market. Is there a matching market fit with your product? Utilizing a focus group can provide vital feedback. Offer consumers who fit your target market the opportunity to use and test out your product. The insights they provide will guide your decisions when strategizing price.

Now you’ll need to choose how much you want your product to cost. Selecting the correct price is critical for business success. It's important not to get your pricing strategy wrong the first time because too high or low of a price may have an irreversible effect. Pricing your product too low doesn't necessarily make your consumers see it as the best value on the market. While this may work in some cases, more often than not, consumers will think of it as cheap than its competitors. However, pricing your product too high can be just as crippling. It's easy to overprice, especially with a new product, thinking you have to start seeing profit quickly to balance the high cost of developing and launching a new product . And while that's true, you won't see any profit if no one is willing to spend money on your product. Just like the product stage, research is imperative at this point too. Understand what your competitors are offering, administer audience analysis surveys, and conduct general industry research that can help you decide what an appropriate price range is.

The place is about selecting a distribution channel to reach your customers, whether it's an actual physical store or not. It is essential to understand where you're most likely to find your customer when determining the place. A place can be an e-commerce website, a catalog, or a magazine. It can also be selling directly to consumers or relying on a retailer to distribute your product. The market research you previously conducted about your customer's shopping habits is critical in determining the distribution channel that will work for you.

4. Promotion

Promotion refers to marketing communications. In this stage of your marketing mix, you'll develop and execute any promotional strategies that will help kick start your product launch and entice your target audience. The tactics you choose to implement at this stage are dependent on your product, price, and place. For example, coupons could be a successful promotional tactic if your offering is a convenience good available at various grocery stores. On the other hand, if you're trying to market a luxury handbag, coupons likely won't cut it. That customer is looking for exclusivity, and promotional coupons make products more accessible to the masses and less expensive, losing the essence of unattainability.

How to create a marketing mix for your business?

Creating a marketing mix is key to developing a customer base and targeting them with marketing campaigns. Follow these steps to create a compelling marketing mix that smoothens how you reach customers, make sales, and boost profit.

• Create goals and objectives that you want to achieve within a timeframe.
• Develop a marketing budget to research consumers, products, and run sales promotions.
• Find the right unique selling point (USP) that sets you apart from competitors.
• Identify your target audience to zero in on communication and marketing channels.
• Ask customers for advice on product, pricing, and service quality.
• Implement customer feedback analysis to improve your product features and promotional activities.
• Identify distribution channels to push products via customers’ preferred outlets.
• Create a pricing strategy to differentiate your product from the competition.
• Choose promotional techniques such as direct marketing, public relations (PR), personal selling, and advertising to boost brand awareness and promotion.
• Develop an inbound marketing strategy to reach customers on digital channels.

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The four P's are a tried and true way of covering all of your bases and taking a new product to market. It is also a helpful way to improve your existing marketing strategy. If your product is premature and you realize your current marketing mix is not cutting it, the four P's can take you back to the basics and carve a more defined path in a new direction. Starting with your product, the obvious goal in this stage is to determine whether or not your offering fills your customers' needs. How does your product compare to its competitors? What makes it so unique? Once you have a firm understanding of your product and how it compares to its competitors, you're ready to move on to the next stage. To examine your pricing model, make sure you consider your profit margins, overhead costs, and anticipated supply and demand. To make it easy, imagine you are the customer buying your product. Would you, as a customer, consider this price to be fair compared to equal competitors? Once you've determined your product and pricing strategy, you'll move on to the third P: place. Is your ideal customer able to easily find your product? Think about their typical shopping patterns. Where do you have to place your product to make it easy for a potential customer to become a customer? If you believe you have decided on the best distribution channel, you are ready to embark on the final P: promotion. It's a simple fact – you won't see any success from your promotional efforts if it never reaches your target market. There are two essential questions to answer in this stage: Are you promoting your product through a channel commonly used by the target customer? Do the promotional tactics match the type of product you're selling? For example, let's say you're trying to sell a trendy new shoe to millennials, buying a full-page newspaper ad will hardly do you any good. Think about how your audience consumes information. Is it through the television, on popular social network platforms , listening to the radio, or reading the newspaper? It's crucial to understand these consumption habits to target your audience effectively. The best thing about your marketing mix is that it's flexible. If you notice industry or customer changes that no longer align with your strategy, you can better evolve your four P's to suit the fast-paced change. Completing a yearly or even quarterly touch base can help ensure your marketing strategy remains relevant.

Seven P’s of marketing

Although the four P's of marketing constitute the gold standard for marketing mixes, they've still had their criticisms. Bernard H. Booms and Mary J. Bitner came up with the seven P's in 1981. These two marketers recognized that the four P's ignored customer service, which they considered essential to any marketing strategy. The bonus P's are as follows.

This element refers to all of the parties present throughout the purchase cycle and the interactions they have together. People represent the company in some form or fashion, including both employees and customers. The interactions customers have with one another and the employees are essential here. It is vital to provide excellent customer service skills to ensure all communication surrounding your brand is positive.

The process phase is the flow of activities in service delivery. If you're selling your product in a retail store, this process begins the second your customer steps foot into your store and ends at their last interaction. That may be their purchase, but it also could be a potential return or a future shopping trip. Remember, the process focuses on the customer's experience while shopping for the product and the interactions with people.

7. Physical evidence

Physical evidence refers to the environment in which service occurs. In this case, it’s not just where the product is physically distributed to customers, but also the place where customers and employees interact with one another. If you distribute your product via e-commerce platforms , this could be as simple as customer service emails. Or, it could refer to an in-person interaction at the shopping mall.

Four C’s of marketing

The four C’s of marketing, consumer wants and needs, cost, convenience, and communication, adapt their related P’s. Robert F. Lauterborn created this method in 1990 as a customer-centric alternative to the four P’s of marketing. He insisted that since marketing is about the customer, the marketing mix shouldn’t focus on the brand but rather the people who buy the product or service.

1. Consumer wants and needs

This element is very similar to the first P, i.e., product. The most significant difference here is that Lauterborn believed that extensive consumer research is essential to understand a need or demand for this new product and how the product or service will best serve it. The wants and needs of customers should drive the creation of a new product or service.

Lauterborn believed the word "cost" should replace price, insisting that the dollar amount isn't the only cost a consumer worries about when making the purchase. Cost is not just the product's price but also the opportunity cost, the loss of a potential gain from an alternative, or even the customer's time spent to obtain the item.

3. Convenience

Choosing convenience over place further emphasizes Lauterborn's commitment to the customer. A customer's effort to purchase a wanted or needed product should be little to none. There should be multiple points of offer visibility to ensure that a company caters to a customer in the best way.

4. Communication

In Lauterborn's opinion, promotion is manipulative while communication is cooperative. An honest dialogue between the brand and consumer is the best, as opposed to traditional marketing strategies that only highlight a product's best qualities which can sometimes be deceiving. This communication promotes constructive feedback, questions, and user-generated reviews .

A marketing mix helps marketing managers and business owners measure marketing effectiveness, discover future trends, manage budgets, improve market share, and maintain data quality. Marketing mix also:

• Improves market and product lifecycle planning with predictive analytics
• Impacts brand authority by establishing strong USPs that beat the competition
• Increases customer demand and loyalty with improved product value perception
• Creates successful product offerings with effective marketing and distribution strategies
• Maximizes customer satisfaction and business profitability with optimal resource allocation

A marketing mix has four elements, i.e., product, price, place, and promotion. These components help you define product features, set up pricing points, discover distribution channels, and create effective marketing strategies. A marketing strategy considers the surrounding competitive environment to set directions for marketing activities. Such strategies attempt to evaluate the competition and make decisions on how to win customers smartly. The difference between a marketing strategy and a marketing mix is that a marketing strategy considers the overall competition, whereas a marketing mix revolves around a company's products.

Learn the importance of marketing objectives in steering your team towards the same marketing goal. 

Hannah is a former content marketing associate at G2. She graduated from the University of Missouri with a degree in Journalism. In her free time, Hannah enjoys running with her dog, Teddy, traveling to new and exciting places, and capturing the beautiful places she travels to with her DSLR camera. (she/her/hers)

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What Is a Marketing Mix?

What are the 4 ps of a marketing mix, what are other marketing tools, what are the four elements of a marketing mix, what are the 7 ps in a marketing mix, what is the purpose of a marketing mix, the bottom line.

• Marketing Essentials

Marketing Mix: The 4 Ps of Marketing and How to Use Them

Investopedia / Mira Norian

A marketing mix includes multiple areas of focus as part of a comprehensive marketing plan . The term often refers to a common classification that began as the four Ps : product, price, placement, and promotion.

Effective marketing touches on a broad range of areas as opposed to fixating on one message. Doing so helps reach a wider audience, and by keeping the four Ps in mind, marketing professionals are better able to maintain focus on the things that really matter. Focusing on a marketing mix helps organizations make strategic decisions when launching new products or revising existing products.

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Key Takeaways

• A marketing mix refers to a framework that uses the four Ps of product, price, placement, and promotion.
• This concept traces back to 1960, when marketing professor E. Jerome McCarthy first published it in a book entitled Basic Marketing: A Managerial Approach.
• The different elements of a marketing mix work in conjunction with one another with the ultimate purpose of generating higher sales.
• In addition to the 4 Ps, three approaches can also be integrated that include people, process, and physical evidence to reinforce a consumer-centric type of marketing strategy.
• This type of strategy extends beyond a product-focused marketing approach.

The four Ps classification for developing an effective marketing strategy was first introduced in 1960 by marketing professor and author E. Jerome McCarthy. It was published in the book entitled Basic Marketing: A Managerial Approach. Depending on the industry and the target of the marketing plan, marketing managers may take various approaches to each of the four Ps. Each element can be examined independently, but in practice, they often are dependent on one another. 

This represents an item or service designed to satisfy customer needs and wants. To effectively market a product or service, it's important to identify what differentiates it from competing products or services. It's also important to determine if other products or services can be marketed in conjunction with it.

The sale price of the product reflects what consumers are willing to pay for it. Marketing professionals need to consider costs related to research and development, manufacturing, marketing, and distribution—otherwise known as cost-based pricing. Pricing based primarily on consumers' perceived quality or value is known as value-based pricing .

Value-based pricing plays a key role in products that are considered to be status symbols.

When determining areas of distribution, it's important to consider the type of product sold. Basic consumer products, such as paper goods, often are readily available in many stores. Premium consumer products, however, typically are available only in select stores.

Joint marketing campaigns are called a promotional mix. Activities might include advertising, sales promotion, personal selling, and public relations. One key consideration is the budget assigned to the marketing mix. Marketing professionals carefully construct a message that often incorporates details from the other three Ps when trying to reach their target audience . Determination of the best mediums to communicate the message and decisions about the frequency of the communication also are important.

Not all marketing is product-focused. Customer service businesses are fundamentally different than those based primarily on physical products, so they often will take a consumer-centric approach that incorporates additional elements to address their unique needs.

Three additional Ps tied to this type of marketing mix might include people, process, and physical evidence. "People" refers to employees who represent a company as they interact with clients or customers. "Process" represents the method or flow of providing service to clients and often incorporates monitoring service performance for customer satisfaction. "Physical evidence" relates to an area or space where company representatives and customers interact. Marketers take into consideration elements such as furniture, signage, and layout.

Additionally, marketers often study consumers in order to refine or update strategies related to services or products. This requires a strategy for communicating with consumers in order to obtain feedback and define the type of feedback being sought.

Traditionally, marketing commences with identifying consumers' needs and ceases with the delivery and promotion of a final product or service. Consumer-centric marketing is more cyclical. Its goals include reassessing customers' needs, communicating frequently, and developing strategies to build customer loyalty .

The four primary elements of a marketing mix are product, price, placement, and promotion. This framework aims to create a comprehensive plan to distinguish a product or service from competitors that creates value for the customer. Often, these elements are dependent on each other.

Product refers to a good or service that meets a customer's needs. Here, companies focus on features that differentiate it from its competitors. An organization may also consider complementary products that fit within its suite of product or service offerings.

Price represents the price point or price range for the product or service. Ultimately, the goal is to maximize profit margins and return on investment while considering the price that customers are willing to pay.

Placement refers to distribution channels. Specifically, where is this product being promoted, and how can you get it in front of your target audience?

Promotion focuses on creating brand awareness around your product or service. Importantly, it looks at how utilizing certain channels can drive sales.

Sometimes, the marketing mix can extend beyond the classic four Ps of product, price, placement, and promotion established by professor E. Jerome McCarthy in 1960. These additional categories include people, physical evidence, and process.

In this way, people represent the employees who interact with customers. A company may consider company culture as it relates to its brand strategy. This may include customer relationship management (CRM) , which aims to increase brand loyalty among customers.

Physical evidence might include the packaging or the layout of a physical store, which can reinforce a brand and create more value to the customer.

Finally, the process identifies areas, often from a logistical standpoint, that enable the customer to have the most seamless experience possible with a product or service. This may include everything from delivery logistics and shipping to managing third-party retailers.

At its core, a marketing mix is focused on promoting a product or service to generate revenue for a company. On the whole, it integrates key marketing strategies that create brand awareness, build customer loyalty, and drive product sales.

The development of a comprehensive, effective marketing plan takes into consideration a marketing mix that includes several areas of focus. Typically, the marketing mix refers to the four Ps: product or service, its price, placement, and promotion. This concept was developed in 1960, when marketing professor E. Jerome McCarthy first published it in a book entitled Basic Marketing: A Managerial Approach.

However, because not all marketing is focused on products, customer-service businesses rely on other marketing tools that might include three additional Ps: the people who interact with customers, the process that creates a seamless customer experience, and physical evidence, or the area where customers and company representatives interact.

All of these tools are used to promote a product or service and build brand awareness and customer loyalty in order to generate revenue for a business.

E. Jerome McCarthy. " Basic Marketing: A Managerial Approach ," Page vi. R.D. Irwin, 1960.

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Marketing Mix Examples: The Building Block of a Successful Brand

Learn about marketing mix and its examples through advertising campaigns of various leading brands..

• overview#goto" data-overview-topic-param="what">What is marketing mix?
• overview#goto" data-overview-topic-param="origination">Origination of the 4P's
• overview#goto" data-overview-topic-param="important">Why is marketing mix important?
• overview#goto" data-overview-topic-param="examples">Examples of marketing mix
• overview#goto" data-overview-topic-param="7">7P's of marketing mix
• overview#goto" data-overview-topic-param="why">Why is it important?
• overview#goto" data-overview-topic-param="write">Best practices to write marketing mix

Marketing mix can make or break a product’s success. We have put together the best marketing mix examples of leading brands for your understanding and a guide to help you craft an effective marketing mix strategy for your brand.

What is Marketing Mix?

Let's start with the Marketing mix definition before moving on to the guide.

A marketing mix is a blend of business strategies brought into execution that make up the overall marketing strategy for a product.

Typically, marketing mix collectively includes the 4 Ps of marketing: product, price, place, and promotion.

With dynamic changes in the business environment, these four Ps were further expanded into the 7 P's of marketing mix to include: people, process, and physical evidence. 

The intersection of these factors leads to the formation of a distinct marketing strategy that is tailored for a brand. Having a marketing mix that is compatible with your brand values is crucial for the success of a company. 

Origination of the 4 P's of Marketing Mix

Prof. James Culliton was the first one to mention the marketing mix in the late 1940s. Later his colleague, Neil Broden published an article - The concept of the marketing mix .

Jerome McCarthy first introduced the concept of the 4 P's of marketing mix in his book “Basic marketing: A managerial approach”.

Why is Marketing Mix important?

Imagine if Tiffany diamonds were sold in Walmart.

Or McDonald’s was located in remote locations.

Or Red Bull was advertised on a kid’s Television channel.

Or an artist was the brand ambassador of Nike.

This would have gone terribly wrong, and these brands might not even be in the market today. 

The slightest angle change in a marketing mix can tremendously impact the market you are targeting. Every element must be selected carefully after rigorous market research and analysis.

A right marketing mix ensures you are -

creating a product that solves a problem

selling it at the correct price

promoting it to your target customers

distributing it at a place easily accessible by the consumers

All these factors need to work in tandem to ensure the creation of a well-oiled marketing engine.

Is Marketing Mix rigid in nature?

The marketing mix isn’t set in stone. It ebbs and flows in alignment with the dynamic changes in the business environment and company growth. Often a company might test various combinations of the marketing mix elements to settle on marketing tactics that give the highest returns.

With that let’s dive into the world of marketing mix with marketing examples from leading brands around the world to give you a practical understanding.

4 P's of Marketing Mix with Examples

A marketing plan must be based on thorough market research and analysis of the many factors of marketing. A marketing design without a solid blueprint is like aiming in the dark, you’ll never hit the target. Understanding the 4 P’s of marketing is crucial for devising a marketing scheme that hits home.

Here are the 4 P's of marketing mix with examples.

Product Marketing Mix

Product is at the core of all marketing strategies. The product attributes don’t only refer to tangible goods but also intangible service products and ideas. It is what a company has to offer to its customers.

A great product is at the center of a brand’s success. Noteworthy marketing tactics can get the product in front of the target customers and get them to try it once, but after that, the product is on its own. The product must have the potential to survive and thrive in the market.

The product must solve customers’ problems efficiently, and better than others in the market, otherwise, customers won’t buy it. The question is, what’s in it for them?

Product marketing refers to product benefits, market research, product features, design, quality, technology, and warranties.

To develop a product mix, a marketing manager takes into consideration the following questions:

Who is your target market?

What are their pain points or problems?

What quality product are they looking for?

What is your competitor’s offering?

How can you gain a competitive advantage over them?

How large is the target market?

What pain point are you solving?

Which product features and benefits solve that problem?

Apart from the above checklist, feedback from the customers about what they like or dislike about the product is taken further to mold the product to suit their needs.

This will help you craft customer-centric marketing instead of product-centric.

Product Marketing Mix Example

Apple 's unique selling proposition is its product marketing mix by producing products with innovative features, advanced technology, and sleek design. From their iconic iPhones to their ingenious MacBooks, Apple’s products are the perfect combination of form and function. Apple’s product mix includes more than just hardware. Their services and add-ons make their products irresistible. Customers have access to the world of entertainment and convenience with iTunes, iCloud, and Apple Music.

Apple treats its customers like a kind by providing a simple user interface, exceptional support, and warranty claims. Apple is a legendary marketing example everyone must take notes from.

Source: Apple Website

Source: Unsplash

Price Marketing Mix

Price is the money paid by the customers to own, access, or avail of your product. Pricing strategies must be profitable to the company. Prices are determined based on the cost incurred, the expected profit margin, and how much the customers are willing to pay.

Does your product solve a problem better than others, is it sold for an appropriate price, and is it worth the price? Based on your business strategy, product prices can be luxury, premium, or bargain price.

Price marketing mix elements include pricing strategy, payment terms, credit policy, discount, allowances, and payment mode.

To develop a pricing strategy, the marketing manager first determines:

The income range of their target consumer

Brand’s value perception by the customer

How much are they willing to pay?

How much do their competitors charge?

Do you want to adopt a luxury, bargain, or premium pricing strategy?

How will your price portray your brand?

Premium prices give the impression that the brand must be superior. The right price is the one that meets your profit margins and keeps more customers happy, a win-win situation.

Price Marketing Mix Examples

Coca-Cola uses a competitive pricing strategy for penetrative marketing. It is a pricing expert such that it matches the competitor’s prices head-on combined with a value-based pricing approach to push discounts for stimulating higher sales. The business is adaptable and it also changes its prices to meet local laws and market conditions.

Another example is Walmart which uses Everyday Low Prices (EDLP) pricing strategy that entails selling products at a low price to attract more customers, higher sales volume, and increase profits. Walmart does this by buying products in massive quantities from all over the world and use economies of scale to sell products at high discount rates depending on the demand.

Source: Walmart Website

Source: Tech Crunch

Place Marketing Mix

The third P, Place refers to the chain through which the products go from manufacturer to customer. This chain is determined based on who is the target audience, where will you find them, and how will you reach your product to them.

The quicker the goods travel from production to point of sale, the higher customer satisfaction.

Place mix determines the distribution channels and place where the product will be sold like online/eCommerce stores, physical locations like retail, wholesale, convenience stores, brand owned outlets. It is significant to research where your customers will be looking for your product and how to best serve them.

Place marketing mix elements include warehouse, transport, distribution channel, inventory control, and areas covered.

To determine the place marketing mix strategy, marketing managers find the answers to the following questions:

Where will your customers find your product?

Where will you sell your products?

Will they be available in eCommerce stores, retail stores, or brand store chains?

A well-optimized distribution channel is even more important for retail businesses. You can read our marketing mix case studies on Costco , Pepsi , or Airbnb to get more perspective on how they manage their distribution.

Place Marketing Mix Examples

McDonald’s has more than 36,000 franchises and company-owned outlets all across the globe. It also has drive-ins, online ordering through its app, and food delivery partners. Consumers can either dine at the restaurant itself or get a takeaway at their convenience. McDonald’s is located in easily accessible locations providing its customers serving tasty food quickly at low prices.

Source: McDonald's blog

Tiffany & Co is a high-end luxury jewelry brand. It sells its signature Tiffany True only in its stores creating exclusivity and an elite user experience.

Source: Harpers Bazaar

Promotion Marketing Mix

Promotion defines the strategies to make your potential customers aware of your brand. Simply put, how to get the word out about your product to your potential customers. Promotion marketing mix advertises, differentiates your product in the target market, and convinces your ideal customers to buy your product.

Promotional mix elements in the digital age include television ads, publicity, sales promotion, digital marketing, social media ads, personal selling, direct marketing, public relations, print advertising, search engine marketing, and online marketing.

Questions marketing managers ask when devising a promotion marketing mix strategy:

Where do your customers hang out online & offline?

Where will you promote your product?

What promotion tactical marketing tools will you use?

One needs to perform a lot of trial and error in devising promotional channel strategies. You can read this book to know many possible growth channels - Traction by Gabriel Weinberg

Promotion Marketing Mix Example

Red Bull spends extensively on promotions to stay at the top of its consumer's mind. 'Red Bull gives you wings' tagline has made a home in people’s minds. It’s impossible to plainly say it without dragging out the wings in a high-pitched voice. Red Bull promotes itself as a high-energy drink for intense activity. Its promotion strategy includes creative ads, digital marketing, content marketing, and sponsorship of extreme sports events .

Nike’s target buyers are athletes and people seeking a sporty and healthy lifestyle. It collaborates with high-profile sportspersons to promote its product line and maintain its brand image of being a premium sportswear brand. Michael Jordan, Serena Williams, and Kobe Bryant are a few of Nike’s brand ambassadors. Managers must study Nike's marketing example to devise their promotion strategy.

Source: Footwear News

Source: WWD

The 4 Ps of marketing work in unison to create a brand’s marketing strategy. It’s like a four-legged chair. If one leg is of the wrong height or broken, the chair won’t stay upright.

As businesses became more dynamic, more elements were added to the 4 Ps of marketing to derive an effective marketing plan to meet today’s business needs. 

What are the 7 P’s of Marketing Mix?

The 4 Ps were expanded into the 7 P's of marketing mix to keep up with the modern business environment. The additional P’s are Physical evidence, people, and process.

Let’s learn about each one of them with marketing examples.

Physical Evidence Marketing Mix

It is the look and feel of your product and brand. It includes exterior design, interior decor, ambiance, atmosphere, furnishing, packaging, employee appearance, and overall experience. 

Physical Evidence Marketing Mix Example

Starbucks serves exquisite coffees in a soothing ambiance. It positions itself as a place where you can work, interact, or hang out in a peaceful atmosphere with utmost ease. The experience Starbucks offers is what makes users choose it over others.

Paperboat’s packaging is vibrant and colorful with unique shapes and sizes because its consumers are children. Kids are attracted to colorful things that catch their eye in an instant. This way Paperboat distinguishes itself in a sea of competitors.

Source: Elephant design

People Marketing Mix

People marketing mix refers to the people involved in the development, distribution, and selling of the product. Personnel is the backbone of a company because they represent the company in front of its consumers and leave an impression. Hiring the right people, and training them thoroughly to match the quality of your brand is crucial for a brand’s success. The people marketing mix includes employees, service providers, sales executives, delivery staff, and work culture.

People Marketing Mix Example

Taj is a world leader in hospitality. It keeps customer satisfaction at the forefront. They train their personnel, right from the front desk to managerial staff, rigorously to provide the best customer experience.

Source: Taj Hotels

Process marketing mix

The process consists of the direct and indirect activities involved in the manufacturing, delivery, and consumption of the product. It also includes customer feedback to solve any inconvenience and give consumers what they need. The efficiency of the process decides the performance of a product.

Process Marketing Mix Example

Starbucks holds customer feedback in high esteem to refine its product offering. Starbucks' “My Starbucks Idea” platform was in operation for nearly 10 years before being retired. It provided consumers with a better way to share their concerns and submit requests. The aim was to give consumers exactly what they want while building a relationship and a loyal customer base.

Source: Braineet

Marketing mix elements work in agreement with each other to formulate the right marketing design for a brand. You cannot focus on a single element and call it a day. If there are internal discrepancies between the elements then those must be eliminated to provide the best value to the customer.

Why should you care about Marketing Mix?

The marketing mixes work in unison aiding each other. They are interrelated like the tires of a car, driving the company forward.

A correct marketing mix ensures you target the right buyers, make them aware of your product, position yourself distinctly, and offer a product they want, at a price they are willing to pay, and at a place easily accessible to them.

Each element decides the strategy for other elements. For example, a luxury product with a premium price cannot be sold at indie shops that follow cost-sensitive pricing strategies.

Best Practices to write a Marketing Mix Strategy

Use these best practices to write an effective marketing mix strategy for your product:

Clear, measurable, time-specific and stretch goals for a marketing campaign improve marketing success rate as one works towards a defined outcome. Is your aim to attract more customers, get more sales, differentiate yourself from competitors, enhance brand image, or increase brand awareness?

Perform Market Research

Market research gives a direction and validation to your marketing mix as to whom you need to sell in the first place. It helps define a target audience, finalize product's features, get inspired from competition's promotion tactics, etc. The result is a customer-centric product stand that has a distinct unique selling proposition backed by research.

Incorporate customer feedback

Are your product's benefits truly aligning with your customer's expectations? What is the perceived value of your product in front of your potential customers ? Can you increase your product pricing? Should you invest in search engine marketing?

All such present and future product decisions can be made by actively taking customer feedback. You also get a clear data if your marketing mix work on your target audience as strategized.

Get started with your brand's marketing strategy today

The marketing mix is crucial to successfully market your product and achieve marketing goals. Effective marketing mix results in higher customer satisfaction, larger market share, increased sales, and finally soaring profit margins. Now that you have a clear understanding of the marketing mix, it’s time for you to devise a marketing mix plan for your product and achieve those banger sales and profit goals.

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Marketing Mix: definitions, analysis examples [Complete Guide 2023].

The marketing mix aims at making your  marketing positioning  concrete . Often associated with the term “ 4Ps “, the objective of the marketing mix is to make your positioning tangible each time your brand is in contact with the consumer (the so-called “touchpoints”).

This article explains the  difference between 4P and 7P , explains each facet of the marketing mix with  numerous examples , and ends with a  detailed case study .

To go even further, we suggest you consult our  online resource , where we detail and illustrate all the factors to study for each of the 7Ps. We have also published case studies analyzed according to the 7Ps:  Rimac electric car ,  high-end watchmaking ,   fruit juice , cosmetics .

Finally, don’t miss our free pdf marketing mix guide with tons of exemples. It’s free to download.

• The 4P: definition
• Difference between 4P and 7P
• P1: Product
• P3: Promotion
• P6: Process
• P7: Physical Evidence
• Complete case study (Ryanair)
• Marketing mix guide (free download)

Marketing mix: what are the 4Ps?

The term “marketing mix” is often associated with another acronym: the 4Ps. The two have become almost interchangeable since Philip Kotler popularized the concept. “4Ps” is the English acronym for the 4 operational facets of marketing  that make your company’s positioning a reality. They all begin with the letter “p” in English:

• “Product” : all aspects related to the product (the Product Policy)
• “Price” : the price positioning of your product concerning its competitors (the Price Policy)
• “Promotion” : the aspects related to promotion such as advertising or the ways to make people aware of the existence of the product (the Communication Policy)
• “Placement” : aspects related to the distribution of your product (the Distribution Policy)

If Kotler popularized the 4Ps, its paternity goes to  E. Jerome McCarthy (1960) . The latter’s genius was to summarize these 4 facets in the form of an acronym that has now become part of everyday marketing language. Since the 1970s, however, marketing has evolved considerably. The 4Ps have become, if not obsolete, at least seriously incomplete. In the 1980s, marketing theorists called for a revision of the 4Ps, leading to  the birth of the 7Ps .

History: how the marketing mix went from 4Ps to 7Ps

• In 1960, McCarthy invented the 4P model (Product, Price, Place, Promotion)
• In 1987, Judd proposed a “human” component in the form of a fifth P (“people”).
• In 1986, Kotler added “political power” and public opinion (“public opinion formation”)
• It was in 1980 that the 7Ps took shape. Booms and Bitner proposed to add three “P’s”: “people” (to cover the human aspects of relationship marketing), “physical evidence” (a material component of the service), and the “process” part (interaction with the service user).

Marketing mix: what is the difference between the 4Ps and the 7Ps?

Digitalization has made the 4P’s seriously outdated. The 4Ps were indeed well adapted to a “physical” world but much less to e-commerce. They have therefore been supplemented by 3 new “P’s”:

• People : aspects related to human interactions through the multiple channels available today (primarily digital)
• Process : the processes put in place to guide interactions, especially those related to services.
• Physical Evidence: the tangible elements put forward to convince the customer (sales outlet layout, customer reviews, etc.)

To help you implement the marketing mix, we have prepared a detailed example  at the end of this article.

A recent example (2023): the collaboration between Yayoi Kusama and Vuitton

The famous Japanese artist collaborates once again in 2023 with Louis Vuitton. This collaboration allows us to illustrate several facets of the marketing mix:

• Physical evidence : the Vuitton flagship store, already famous for its spectacular window displays , is adorned with a unique ephemeral decor. The facade is studded with round motifs, symbols of Yayoi Kusama’s work, and a huge inflatable effigy in her image.
• Product : the collaboration is realized through a special edition of the famous Vuitton bag. The monogrammed canvas is adorned with round patterns. This is not the first time that Vuitton has carried out this kind of collaboration. We will remember, for example, the one conducted with the article by Jeff Koons.
• Promotion : this collaboration is making news, which results in a spectacular staging of the sales outlet on the Champs-Elysees and a limited edition product. This operation can, therefore, also be analyzed from the perspective of the Promotion P.

Vuitton’s flagship store on Avenue des Champs Elysées in Paris, photographed in February 2023 during the collaboration with Yayoi Kusama.

The P in “Product” (Product Policy)

The first of the 7Ps is, of course, the  product . The term product does not mean only a physical object. It can also be a service.

The chocolate maker Pierre Marcolini had materialized its collaboration with Kistuné by very original packaging.

To cover this first “P,” you will have to describe the product’s characteristics (design, packaging, functionalities), its place in the range, as well as the services that are attached to it (after-sales service, repair, end-of-life recycling).

Try to explain the characteristics of the product that make it different, unique, and that are part of its identity.

Also, think about the packaging, which is often an integral part of the  customer experience , as it is at Apple.

The P in “Price” (Pricing Policy)

In the marketing mix of luxury watch brands, the pricing strategy is “value-based.” The price is determined according to the value perceived by the customer and is not the sum of the price of the components used.

The second of the 7Ps is central since it is about price.

Here, the aim is to describe  how the company manages the different facets of “price” in its market . This starts with a description of the pricing strategy adopted by the company. The most well-known are the following:

• costs + margins: you add a margin to your production costs
• value-based: the price is determined according to the consumer’s perception of value
• competitive: you realize using the  competition research  and fix your price according to one of your competitors

The pricing strategy, once determined, will have to be declined in a “ price tactic .” The  pricing tactic is the operational extension of the pricing strategy. It describes how, in concrete terms, the pricing strategy is applied in the field. In this respect, the strategy of Swiss watchmakers is fascinating. They create a shortage that supports demand by voluntarily limiting production and choosing to whom they want to sell. Some, like Patek Philippe, also support the price level by buying back their older models at a high price to increase their desirability. The price of the products then soars on the parallel market, creating speculative bubbles like the one we described in this survey. The graph below shows the effect of the pricing tactics of Rolex, Audemars Piguet, and Patek Philippe on the price of their men’s watches.

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Once the overall strategy is described, you will need to describe  the other aspects of the marketing mix that depend on price:

• the pricing policy towards your intermediaries
• the discount policy towards your customers
• the payment policy and possible facilities offered to your customers to acquire your products

The P of “Promotion” (Communication Policy)

The third “P” is “Promotion.” It covers the aspects related to the company’s communication and the strategies used to make itself known on the market. The result is measured by the  notoriety  of the company among its target customers.

Electric hypercar manufacturer Rimac promotes its Nevera model by using YouTubers. Here Many Koshbin tries the vehicle in one of his YouTube videos (YouTube screenshot)

It is helpful to start by describing, in broad lines, the communication strategy followed by the company. What is the company’s position on advertising, and does it realize using advertising? Are specific media used (sponsoring, influencers, etc.)? If so, which channels are favored (digital, radio, TV, press, Out-Of-Home), and according to what logic are these channels selected?

When advertising investments are made, the repetition of messages plays a role in the persistence of the information in the consumer’s mind. Therefore, the analysis should try to clarify which repetition is aimed at, which will make it possible to deduce the advertising pressure that the company wants to impose and the importance of advertising in its global strategy.

In addition to advertising, the company can also promote itself through  inbound marketing . It is, therefore, a matter of attracting prospects naturally. Inbound marketing is a tactic that materializes in the digital space. The goal is to improve natural referencing (SEO) to capture the attention of Internet users and attract them to the company’s website. It is, therefore, necessary to analyze whether the company invests in content marketing and, if so, which online media are privileged.

The P of “Place” (Distribution Policy)

The fourth “P” concerns the distribution policy (“Place” or “Placement” according to the 4P terminology). In this part, we analyze how the product or service is distributed. There are three main distribution strategies:

• direct distribution
• distribution via a third-party network
• hybrid (a mix of the 2 previous ones)

Perugina commercializes its “Baci” in large-scale distribution but also has some stores of its own (here the one in Perugia)

Nespresso  distributes its coffee capsules through its own stores (direct distribution). Most food manufacturers sell their products through third-party networks (retailers). However, some of these manufacturers invest in their own stores ( Perugina , Lindt, M&M, ….). This is a hybrid strategy.

Once the broad lines have been drawn, the analysis of the marketing mix requires going into detail. It is advisable to study the opportunity of franchising, especially when the ambitions are high in terms of the geographical distribution of products. Covering a large territory requires significant resources. Therefore, a start-up with a product in high demand may have to turn to the franchise model to accelerate its deployment. This is a widespread model in the fast-food industry.

The Printemps store in Paris offers visibility to many brands and attracts foreign tourists. Crédits : gibs02 via Flickr.

Outsourced distribution  (via a franchise network or third-party distributors) also has marketing coverage advantages. Some brands may naturally attract customer segments that could represent additional sales for your company. Regardless of the distribution strategy chosen, careful consideration must be given to  the location of sales outlets (in the case of physical sales). The research on implementing physical commerce is of particular importance because of the  decline in the number of visitors to physical sales outlets . Over the last 10 years, city centers have lost 50% of their pedestrian traffic, which inevitably affects profitability.

If the company opts for e-commerce (which seems essential), particular attention must be paid to the logistical aspects. In particular, request what logistical processes need to be implemented to meet customer expectations regarding product availability and delivery times. Customer requirements are constantly increasing. They are shaped by  the delivery policies of the industry’s giants  (Amazon and others), whose logistical excellence allows them to shorten delivery times even further. For SMEs that lack operational excellence, the use of third-party fulfillment services can be an enjoyable (but costly) alternative to compete with the giants.

The P of “People” (Relationship policy)

Starbucks had set up a co-creation platform allowing customers to propose ideas to the company. Customer interaction was also possible.

The relational policy (the fifth “P”) is part of the 3 new “Ps” proposed by Booms and Bitner in 1981. The recognition of the role of the human being coincides with the emergence of relational marketing . We understand that the human component can contribute positively to the quality of service and customer satisfaction/loyalty.

In this part of the marketing mix, we will focus on understanding how its marketing positioning can be materialized through its human component. We will study the human part in the success of the company, and the satisfaction of the customer, as well as the role, played by the employees to transmit the values of the brand.

In the digital era, the relational policy is no longer only in B2C. It also materializes through C2C (Consumer To Consumer) interactions. Customers become ambassadors for the company and sometimes even play essential roles. Ryanair, for example, has set up a  customer advisory board . Hollister, a medical equipment manufacturer, has created its Vivre+ network to create links between patients through activities organized throughout France. The customer thus becomes an essential component of the marketing strategy. They become a full-fledged player, just like the employee.

The P of “Process” (the processes related to the service)

This part of the marketing mix is about describing and analyzing the processes surrounding the service. To make your analysis enjoyable, you should focus on the most distinctive elements of the processes.

Processes are a central component in the success of Ryanair’s low-cost business model.

In the case of a low-cost airline (see case study), we will look at  the role of processes in the business model’s success .

When the marketing positioning is the opposite (luxury), the sales processes play a significant role. The attitude, gestures, and behavior of salespeople are codified to align with the values embodied.

Your marketing mix analysis can quickly skim over certain aspects and should go into detail when justified.

The P of “Physical evidence”

Abercrombie & Fitch used to emphasize the plastic qualities of its salespeople to attract customers.

The last of the 7Ps is called “physical evidence.” In the spirit of the marketing mix, it is the tangible elements with which the customer is in contact when he buys the product .

These elements can be linked to the sales outlet itself (its design, its layout, the sound/smell / visual atmosphere), the objects found there, or the employees themselves (specific clothes, for example). The brand  Abercrombie & Fitch , for example, became famous for the olfactory and sound ambiance of its sales outlets. Its employees, chosen for their “visual” qualities, worked shirtless.

The brand Archiduchesse sends its products accompanied by some “goodies” (candies, stickers, key rings)

If we immediately think of the attributes of the sales outlet, we must not forget the digital space. Online reviews are now part of the “proof” that the customer integrates before making a decision. The delivery can also be an important moment to comfort the customer in his choice. In this article , we have given 3 examples of companies that use delivery as an emotional touchpoint with the customer: the wine estate Le Cazal that adds a sprig of wild thyme to its deliveries, Coolblue that sends a personalized postcard, and Archiduchesse that completes its orders with some “goodies.”

Case study: analysis of Ryanair’s marketing mix

In this research we propose to analyze the marketing mix of Ryanair, the Irish low-cost airline which is today the n°1 airline in Europe .

Marketing Mix guide (free download)

• Market research methodology

20 February 2022

Amazing stuff. I really found this article very interesting and helpful. The case study at the end of the article really helped to drive home the points raised in each of the elements of the 7 Ps. I say a big thank you to Dr Pierre-Nicolas S. Merci beaucoup.

21 February 2022

You’re welcome. THank you for your kind words. You can find even more here : https://www.intotheminds.com/blog/en/marketing-mix-guide/

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The Leading Source of Insights On Business Model Strategy & Tech Business Models

What Is Marketing Mix And Why It Matters In Business

The marketing mix is a term to describe the multi-faceted approach to a complete and effective marketing plan. Traditionally, this plan included the four Ps of marketing : price, product, promotion, and place. But the exact makeup of a marketing mix has undergone various changes in response to new technologies and ways of thinking. Additions to the four Ps include physical evidence, people, process, and even politics.

Table of Contents

Understanding marketing mix

While many understand marketing as “putting the right product in the right place, at the right price, at the right time,” few know how to implement this in practice.

Identifying the individual elements of a marketing mix and then creating robust plans for each allows a business to market accordingly.

It also allows a business to market to its strengths while minimizing or eliminating its weaknesses. 

At the very least, a marketing mix should include the four Ps of marketing :

This can include a tangible good or an intangible service.

Businesses must understand their product or service in the context of the problem that it aims to solve.

If the product does not seem to address any problem, then the potential profitability of the product should be re-analyzed.

The target audience, or those who will buy the product, must also be identified.

Price has a direct impact on how well a product will sell and is linked to the perceived value of the product in the mind of a consumer.

In other words, price is not related to what the business thinks the product is worth.

Thus, it is important to know what the consumer values and price it accordingly.

To a lesser extent, price may also be influenced by rival products and value chain costs.

Promotion includes all marketing communication strategies, such as advertising, sales promotions, and public relations.

Irrespective of the channel, communication must be a good fit for the product, price, and target audience.

Place describes the physical location in which a customer can use, access, or purchase the end product.

Determining where buyers look for a product or service may seem simplistic, but it has implications for marketing and product development.

For example, place determines which distribution methods are most suitable.

It also dictates whether a product needs a sales team or whether it should be taken to a trade fair to be sampled and advertised.

Other elements of an effective marketing mix

Conventional marketing mixes are product-centric, but services and other intangible goods are also commonplace for many businesses.

People, process, and physical evidence are three more Ps that these businesses should implement.

People refers to the staff who are directly and indirectly involved in marketing the brand.

Employing the best people for the job is crucial since people shape the direction of the brand and therefore the goals and values of the business.

Process covers the interface between business and consumer, otherwise known as customer service.

Process is important because customers often give feedback on their service, which enables a business to improve its systems across the board.

Effective processes should make purchasing pleasing and simple while simultaneously increasing brand equity.

• Physical evidence

Physical evidence describes anything that consumers see when interacting with a brand. Physical evidence can take the form of packaging, branding, and even the physical layout and design of retail spaces and shop fronts.

Physical evidence also extends to how staff dress and interact with customers and the possible impact that this has on sales.

Principles of the Marketing Mix:

• Alignment: The elements of the marketing mix should be aligned with the overall marketing and business objectives.
• Customer-Centric: The marketing mix should be designed with a deep understanding of customer needs and preferences.
• Adaptation: It may need to be adjusted over time to respond to changes in the market, competition, and consumer behavior.
• Integration: The elements of the marketing mix should work harmoniously to create a consistent and compelling marketing strategy .

Advantages of the Marketing Mix:

• Strategic Planning: It provides a structured framework for developing marketing strategies.
• Customization: The marketing mix allows businesses to tailor their approach to specific target markets.
• Market Expansion: It facilitates entry into new markets and the launch of new products or services.
• Competitive Advantage: Effective use of the marketing mix can create a competitive edge in the marketplace.

Challenges of the Marketing Mix:

• Complexity: Balancing and optimizing the four elements can be complex, especially in dynamic markets.
• Changing Consumer Behavior: Consumer preferences and behaviors may evolve, requiring adjustments to the marketing mix.
• Resource Allocation: Effective use of the marketing mix often involves resource allocation decisions.
• Global Considerations: In the case of international markets, cultural and regulatory differences may impact the marketing mix.

When to Use the Marketing Mix:

• Product Development: During product development, the marketing mix helps define the product’s features and positioning.
• Market Entry: When entering new markets or launching new products, it guides market entry strategies.
• Competitive Response: In response to changing competitive dynamics, businesses can adjust their marketing mix to maintain or gain market share.
• Strategic Planning: The marketing mix is a central component of strategic planning for businesses of all sizes.

What to Expect from Using the Marketing Mix:

• Market Responsiveness: Effective use of the marketing mix can lead to improved responsiveness to market demands.
• Customer Engagement: It enhances customer engagement by delivering products and services that meet their needs.
• Revenue Growth: A well-implemented marketing mix can contribute to revenue growth and market expansion.
• Brand Building: The marketing mix plays a significant role in building and strengthening brand identity.

Long-Term Impact of the Marketing Mix:

• Sustainable Growth: Businesses that consistently adapt and optimize their marketing mix are better positioned for sustainable growth.
• Competitive Edge: A strong marketing mix can provide a sustained competitive advantage.
• Brand Equity: Over time, the marketing mix contributes to the development of brand equity and customer loyalty.
• Innovation Culture: A focus on the marketing mix fosters a culture of innovation in product development and marketing strategies.

Key highlights

• Marketing mix refers to a suite of actions that a business uses to promote its products or services in the market.
• Marketing mix should as a minimum have strategies devised for product, price, promotion, and place.
• Service-oriented businesses should adopt a broader marketing mix, otherwise known as the seven Ps of marketing.

What is marketing mix modeling and why it matters to understand how to balance your marketing mix?

Marketing mix modeling (MMM) is a statistical method for evaluating marketing campaign effectiveness.

The method quantifies the impact of multiple marketing inputs on market share or sales which then determines how much to spend on each.

Understanding marketing mix modeling

Marketing mix modeling uses statistical analysis to analyze the past and future impact of different marketing tactics on sales or profit.

The approach is based on the popular 4 Ps marketing mix theory.

In essence, the purpose of MMM is to measure the past performance of a campaign and improve future marketing return on investment (MROI).

Conclusions drawn from the statistical analysis then determine how resources can be better allocated across various tactics, products, segments, and markets.

Marketing mix modeling utilizes the multi-linear regression (MLR) statistical technique to assess the relationship between dependent and independent variables.

The dependent variable is normally market share or sales, while the independent variable could be price, distribution, or ad spend for different channels.

The four phases of marketing mix modeling

Each MMM project has four distinct phases that we have explained in detail below.

Phase 1: Data collection and integrity  

In the first phase, the business collects data on the products to be analyzed, the desired timeframe, and the markets to be modeled.

The sales performance metric should also be quantified at this point.

Will it be volume, units, sales, or some other metric?

Brand margin rates and marketing spend should also be determined so that the MROI can be calculated later on.

MMM also requires the business to use data that will yield the best results. In other words:

• Has the best available data been incorporated? 
• Is the data consistent over the entire life cycle?
• Are there multiple years of data to account for factors such as seasonality?

Before moving to the next phase, key project stakeholders should also hold a review session to ensure data integrity.

In some cases, data will have to be aggregated or cleansed before moving forward. 

Phase 2: Modeling

In the second phase, brand managers must collaborate with their internal analytics staff to discuss statistical details, specifications, and methods.

We noted earlier that a multi-linear regression is commonly used, but other methods such as time-series regression are also used. 

Ultimately, the method chosen will depend on the organization’s goals, data quality, and in some cases the entity providing the statistical analysis on behalf of the client.

Phase 3: Model-based business measures

Once the statistical analysis has been performed, it will produce output data that measures how each tactic impacts sales.

The data must also answer or address the overarching purpose of the project, with many organizations choosing to frame project purpose as questions such as:

• What is the best marketing plan to maximize future net profits with respect to the current and future budget?
• For a particular demographic, what are the most efficient or effective marketing tactics?
• What is the impact of advertising on consumer price sensitivity?
• Which competitor advertising campaign is having the most negative impact on sales?

Most MMM projects will also feature a pie chart showing the decomposition of sales where sales volume is broken down according to each tactic.

These charts separate two types of tactics:

• Core tactics – or those not controlled by the marketing team such as seasonality, distribution, weather, and competitive trade. Core tactics can also encompass the sales that would occur in the total absence of any promotional effort.
• Incremental tactics – or those that are controlled by the marketing team.

Once a decomposition of sales has been performed, the organization can calculate three important metrics:

• Effectiveness – which is determined by dividing the number of incremental sales by each marketing effort.
• Efficiency –  where incremental sales are divided by the expenditure of each tactic. This is normally the total media spend, and
• Marketing return on investment – the MROI can be calculated by dividing the gross profit of each tactic by its total spend.

Phase 4: Optimization and simulation

In the final phase, MMM outputs are transformed into inputs for future marketing campaigns. 

Simulations help the organization model the impact of a new tactic before it is used in a real-world scenario.

They also enable teams to determine the best combination of tactics that will enable them to achieve campaign goals.

Marketing mix modeling examples

In the past few decades, marketing mix modeling has been adopted by several Fortune 500 companies such as Kraft, The Coca-Cola Company, Pepsi, AT&T, and Proctor & Gamble.

While there has been particular interest from consumer packaged goods (CPG) companies, others now use MMM because of the increased prevalence of companies providing these specialist services.

Indeed, marketing mix modeling is popular in the retail and pharmaceutical industries because firms like Nielsen can provide syndicated data on stores, product categories, geographic markets, and distribution channels .

What’s more, the increased availability of time-series data has also seen MMM incorporated into industries such as telecommunications, financial services, hospitality, and automotive.

However, in these industries, it is acknowledged that marketing mix modeling is still in its infancy and will require further standardization to be effective.

MMM case study for Facebook advertisers

Facebook (now Meta) is one of several modern platforms that offer a family of services and apps that have dynamic and nuanced advertising needs.

Since consumer preferences are in a constant state of flux, this makes it difficult for brands to assess the impact of Facebook advertising compared to traditional channels such as television and print.

A standard marketing mix modeling project assesses data from two or three years. But for online social platforms, data over this time span may become outdated.

To counteract this tendency, Facebook recommends advertisers analyze data over a 6 to 12-month period.

They should then adjust their methods to account for the statistical power that is sacrificed when analyzing a shorter time frame. 

Professional services company Accenture ran multiple MMM analyses in 2021 for disruptor brands requiring a reliable and cost-effective system to optimize their promotional efforts and produce actionable and granular results.

How was this achieved?

Tailored data was first sourced from Facebook, Instagram, and Audience Network, which considered standard engagement metrics such as clicks but also paid impressions.

Data were then integrated with machine learning techniques such as the Bayesian belief network to analyze potential synergies between multiple channels.

This involved analyzing the relationship between six independent variables (video, display, Facebook app, organic search, Instagram, and paid search) and their dependent online and offline channels.

The results of the analysis showed how various marketing channels could drive impacts across other channels. A few of the more significant results are listed below:

• Drivers of paid search – paid search (78%), offline drivers (10.9%), and organic search (5.5%).
• Drivers of Facebook app – Facebook app (87.6%), offline drivers (7.4%), and display (4.0%).
• Drivers of Instagram – Instagram direct (87.9%), video (6.0%), and Facebook app (3.7%).

In summary, Accenture found that disruptor brands that focus their resources on social, organic search, and offline channels could better impact paid search and, ultimately, increase their web traffic.

Key highlights on marketing mix modeling

• Marketing mix modeling uses statistical analysis to analyze the past and future impact of different marketing tactics on sales or profit. The approach is based on the popular 4 Ps marketing mix theory.
• Each marketing mix modeling project should have four distinct phases: data collection and integrity, modeling, model-based business measures, and optimization and simulation.
• MMM is popular among consumer packaged goods companies such as Kraft, The Coca-Cola Company, Pepsi. It is also useful for brands advertising on social media platforms such as Facebook where markets and consumer behavior are more dynamic.

Amazon marketing mix case study

How does Amazon balance product, price, promotion, and place to create and sustain its competitive advantage?

Let’s delve into Amazon’s marketing mix below.

Amazon offers a diverse selection of products to maintain its status as the foremost company in online retail.

These products support the  company’s mission and vision  and, thanks to continued expansion, can now be found in industries such as cloud infrastructure, database services, content production, artificial intelligence, gaming, and pharmaceuticals.

Amazon’s core product remains its eCommerce platform where the company sells private-label and third-party items to consumers across categories such as consumer electronics, art, home appliances, sports and outdoors, car accessories, jewelry, and home improvement. 

Through its highly successful Amazon Prime membership program, the company offered free expedited delivery and discounted priority and residential express delivery.

Prime members also receive access to exclusive discounts and Amazon’s video, music, and e-book platforms.

Amazon primarily uses market-oriented pricing to attract customers to its eCommerce platform.

Prices for the company’s private label Amazon Basics range are based on similar products sold by competitors. 

As a retailer with a near-global presence, Amazon also uses the price discrimination strategy to vary prices for identical products according to region.

For example, the price of a Samsung television in Spain may be different to the price offered to consumers in the USA.

This enables the company to adjust prices based on local market conditions, consumer preferences, and perceived product value. 

More generally speaking, Amazon uses technology to set and adjust prices based on the time of day, season, and competitor activity.

It also cleverly prices its Prime membership option to attract customers who want to take advantage of deals and discounts.

In addition to marketing to broader audiences, Amazon also markets to individuals by analyzing their shopping habits and purchase behavior.

Using this information, it strives to turn one-time visitors or buyers into repeat, high-value, long-term customers.

To attract repeat purchasers, the company frequently promotes its fast delivery.

Amazon promotes is various products and services with ads on other websites, newspapers, billboards, television, and social media.

The Amazon Affiliate Program – one of the largest in the world – is also a vital promotional channel for the company with around  1.235 million affiliate sites  advertising or reviewing products on the Amazon website.

Amazon is primarily an online business that reaches customers on Amazon.com and its various region-specific derivatives. 

However, the company does operate in the real world to some extent. Its acquisition of Whole Foods Market in 2017 allowed it to establish a bricks-and-mortar supermarket presence.

Amazon also operates several Amazon Fresh and Amazon Go stores, with the latter a chain of convenience outlets without cashiers where consumers pay for goods using an app.

In August 2021, Amazon announced it would open several new physical retail stores  to extend its reach across electronics, home goods, and clothes.

Many see this move as a way for the company to own as much of the retail industry as possible.

Case Studies

• Product: High-quality smartphones, laptops, and wearables with sleek designs.
• Price: Premium pricing strategy for a perception of exclusivity.
• Place: Apple Stores, authorized retailers, and online store.
• Promotion: Creative advertising campaigns and product launches.
• Product: A menu of burgers, fries, and beverages.
• Price: Value meals, combo pricing, and occasional promotions.
• Place: A network of drive-thru outlets, dine-in restaurants, and delivery services.
• Promotion: Television ads, social media campaigns, and Happy Meal toys.
• Product: A range of vehicles from compact cars to SUVs and hybrids.
• Price: Competitive pricing with options for customization.
• Place: Dealerships, showrooms, and online configurators.
• Promotion: Television and digital advertising, sponsorships, and test drive events.
• Product: Trendy clothing and accessories for men, women, and children.
• Price: Competitive pricing with seasonal sales and discounts.
• Place: Brick-and-mortar stores in prime locations and an online store.
• Promotion: Seasonal fashion shows, social media marketing, and email newsletters.
• Product: A range of banking services including checking accounts, savings accounts, loans, and credit cards.
• Price: Fee structures, interest rates, and introductory offers.
• Place: Physical branches, ATMs, and online banking platforms.
• Promotion: Advertising financial products, referral programs, and online tutorials.
• Product: Various types of accommodations from luxury resorts to budget-friendly hotels.
• Price: Room rates, loyalty programs, and seasonal discounts.
• Place: Hotel locations, booking websites, and travel agencies.
• Promotion: Online advertising, partnerships with travel websites, and loyalty rewards.
• Product: Software suites for productivity, collaboration, and communication.
• Price: Subscription-based pricing models and one-time purchases.
• Place: Online stores, authorized retailers, and corporate licensing.
• Promotion: Product demos, webinars, and advertising tailored to specific business needs.
• Product: A wide range of beverages including carbonated soft drinks, juices, and bottled water.
• Price: Various pricing strategies, including premium pricing for specialty products.
• Place: Distribution through supermarkets, convenience stores, and vending machines.
• Promotion: Extensive advertising campaigns, sponsorships, and product placements.
• Product: Comprehensive medical services, research, and patient care.
• Price: Transparent pricing for medical procedures and insurance coverage.
• Place: Hospitals, clinics, telehealth platforms, and partnerships.
• Promotion: Healthcare seminars, educational content, and patient testimonials.
• Product: An extensive online marketplace offering a wide range of products.
• Price: Competitive pricing, discounts, and subscription services (e.g., Amazon Prime).
• Place: Online platform accessible worldwide.
• Promotion: Personalized recommendations, customer reviews, and Prime Day sales events.

Key Highlights:

• The marketing mix encompasses a comprehensive strategy for effective marketing planning.
• Traditionally, it consisted of the four Ps: Product, Price, Promotion, and Place.
• Additional elements have been introduced, including Physical Evidence, People, Process, and even Politics.
• A well-rounded marketing mix involves creating plans for each element to address strengths and weaknesses.
• It ensures that marketing efforts align with the target audience and the problem the product or service solves.
• Product: Tangible goods or intangible services that address specific problems and target audiences.
• Price: Directly affects sales and is linked to perceived value in the consumer’s mind.
• Promotion: Includes marketing communication strategies like advertising, sales promotions, and public relations.
• Place: Refers to the physical location where customers can access or purchase the product.
• People: Refers to staff involved in marketing the brand, influencing its direction and values.
• Process: Encompasses customer service and ensures effective interactions and purchasing experiences.
• Physical Evidence: Anything consumers see when interacting with the brand, including packaging, branding, and more.
• Marketing Mix Modeling (MMM) is a statistical method to evaluate marketing campaign effectiveness.
• It quantifies the impact of various marketing inputs on market share or sales to optimize resource allocation.
• MMM involves four phases: data collection and integrity, modeling, model-based business measures, and optimization and simulation.
• Facebook used MMM to analyze its advertising impact compared to traditional channels.
• Analyzing 6-12 months of data, Facebook adjusted methods to account for the dynamic nature of social media.
• Accenture ran MMM analyses, integrating data from Facebook and other channels to optimize promotional efforts.
• Product: Amazon offers a wide range of products and services, including eCommerce, cloud infrastructure, content production, and more.
• Price: Utilizes market-oriented pricing and price discrimination based on regions and market conditions.
• Promotion: Targets individuals by analyzing shopping habits and uses ads, promotions, and affiliate programs.
• Place: Primarily operates online but also has physical retail presence, such as Whole Foods and Amazon Fresh stores.

What are the 4 types of marketing mix?

The four main elements of the marketing mix are:

What is 7 P's marketing mix?

The 7 P’s marketing mix is an extension of the traditional marketing mix. In a 4 Ps marketing mix, you get Product, Price, Promotion, and Place. In a 7 Ps marketing mix variation, you get three other elements:

Why is marketing mix important?

A marketing mix is critical as it enables companies to structure an effective marketing strategy by understanding the main channels that can be leveraged to build a viable business.

In some instances, some channels will be more critical in a marketing mix strategy .

Over time, it will be critical to balance out various channels as part of the marketing mix to build a solid business model.

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How to use the 7Ps Marketing Mix

What is the 7Ps Marketing Mix and how should it be used?

The marketing mix is a familiar marketing strategy tool, which as you will probably know, was traditionally limited to the core 4Ps of Product, Price, Place and Promotion. It is one of the top 3 classic marketing models according to a poll on Smart Insights.

It's an essential part of a marketing plan structure that defines the tactics to be used to implement the marketing strategy.

The traditional 7Ps of marketing consist of:

• Physical evidence

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Who created the 7Ps marketing mix model?

The 7Ps marketing model was originally devised by E. Jerome McCarthy and published in 1960 in his book  Basic Marketing. A Managerial Approach. 

We've created the graphic below so you can see the key elements of the 7Ps marketing mix. More details are provided in the next visual.

The 4Ps vs The 7Ps

The 4Ps marketing mix was designed at a time when businesses were more likely to sell products, rather than services. The 4 Ps represented an early focus on product marketing, when the role of customer service in helping brand development wasn't so well known.

Over time, Booms and Pitner added three extended ‘service mix P’s' : Participants or People, Physical evidence, and Processes. Later 'Participants' was renamed as 'People' - the marketing mix covering marketers, customer service reps, recruitment, culture, training and remuneration.

Today, it's recommended that the full 7 elements of the marketing mix are considered when reviewing competitive strategies - across product, customer service and more.

The 7Ps helps companies to review and define key issues that affect the marketing of its products and services. A popular marketing model, the marketing mix is can also be referred to as the 7Ps framework for the digital marketing mix.

In Dave Chaffey's book: Digital Marketing: Strategy, Implementation and Practice , this model was refreshed and applied to online channels to give a practical approach which works well for multichannel businesses. An eighth P, ‘Partners’ is often recommended for businesses to gain reach online (first mentioned in Digital mMarketing Excellence by Dave Chaffey and PR Smith although some would argue it's part of Place). 

How can I use this marketing model?

Although it's sometimes viewed as dated, we believe the 4Ps are an essential strategy tool to select their scope and is particularly useful for small businesses. For startups reviewing price and revenue models today, using the Business Model Canvas for marketing strategy is a great alternative since it gives you a good structure to follow.

Companies can also use the 7Ps model to set objectives, conduct a SWOT analysis and undertake competitive analysis. It's a practical framework to evaluate an existing business and work through appropriate approaches whilst evaluating the marketing mix elements.

What are the 7Ps of marketing?

• Products/Services:  How can you develop your products or services
• Prices/Fees:  How can we change our pricing model
• Place/Access: What new distribution options are there for customers to experience our product, e.g. online, in-store, mobile etc
• Promotion: How can we add to or substitute the combination within paid, owned and earned media channels
• Physical Evidence: How we reassure our customers, e.g. impressive buildings, well-trained staff, great website
• Processes:  Are there internal process barriers in the way to delivering the best customer value
• People:  Who are our people and are there skills gaps
• Partners: Are we seeking new partners and managing existing partners well?

An example of a company using the 7Ps marketing mix in their strategy

Take a look at HubSpot as an example, which was founded in 2006; Hubspot now boasts over 86,000 total customers in more than 120 countries. Comprised of Marketing Hub, Sales Hub, Service Hub, CMS Hub, and a powerful free CRM, HubSpot adds value for customers in every aspect of the 7Ps.

What does an example of a successful marketing mix look like?

This is a top-level overview; you would take this into greater detail and ask the following questions:

1. Products/Services:  Integrated toolset for SEO, blogging, social media, website, email and lead intelligence tools.

2.  Prices/Fees:   Subscription-based monthly, Software-As-Service model  based on number of contacts in database and number of users of the service.

3. Place/Access: Online! Network of Partners, Country User Groups.

4. Promotion: Directors speak at events, webinars, useful guides that are amplified by SEO. Social media advertising, e.g. LinkedIn.

5. Physical Evidence: Consistent branding across communications.

6. Processes: More sales staff are now involved in conversion.

7: People : Investment in online services.

8. Partners: Hubspot looks to form partnerships with major media companies such as Facebook and Google plus local partners including Smart Insights who it is collaborating with on research in Europe.

What to watch for

When using the 7Ps as a model to conduct a marketing audit, I look at each of the Ps. It’s unwise to ignore an area unless it is completely outside your control.

We are now seeing AI and machine learning techniques informing more developed Marketing Mix Modeling techniques such as regression and forecasting. Note that this is different to the different elements of the marketing mix described in this article and focuses more on the mix of budget investment in different media.

9Ps of marketing?

As the scope of marketing continues to develop, so does the marketing mix. Since 2007, Larry Londre's 9Ps of marketing has included:

• Planning, Process or Marketing Process
• People/Prospects/Potential Purchasers/Purchasers (Target Market)
• Price/Pricing
• Place/Distribution
• Partners/Strategic Alliances
• Presentation

Original References and sources of 7Ps marketing mix

Bitner, M. J. and Booms, H. (1981). Marketing Strategies and Organization: Structure for Service Firms. In Donnelly, J. H. and George, W. R. (Eds). Marketing of Services, Conference Proceeding s. Chicago, IL. American Marketing Association. p. 47- 52.

McCarthy, E. J. (1964). Basic Marketing . Richard D. Irwin. Homewood, IL.

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What Is A Marketing Mix? The 4 Ps of Marketing Explained

Developing a strong marketing strategy is key to long-term, sustainable success for any business, and a marketing mix serves as an important part of this strategy. A marketing mix is a combination of elements that serve as the foundation for every single form of marketing or promotion your business engages in.

In this article, we’ll explain the elements that make up a marketing mix, the roles they play and how you can create an effective marketing mix as part of a broader marketing strategy.

Marketing Mix Explained

A marketing mix is a framework that companies can use to market their product or service more effectively. It serves to provide focus and direction to a marketing strategy, with four key elements serving as pillars. The key elements of a marketing mix are:

• Promotion. 

These elements are known as the 4 Ps of Marketing and are the centre of any marketing mix. Over time, however, the 4 Ps of marketing have evolved significantly – something that we will also delve into later on.

Why Is A Marketing Mix Important?

By incorporating a marketing mix into their overall strategy, businesses can:

• Align their marketing efforts with their long-term objectives more clearly
• Better understand and cater to customer needs
• Understand how to differentiate themselves from competitors
• More easily adapt to dynamic market conditions
• Optimise resource allocation and decision-making

All in all, a marketing mix is a holistic approach that enables all your marketing decisions to be grounded in logic and planning. This ultimately nurtures long-term success.

Marketing Mix vs. Marketing Plan vs. Marketing Strategy

The terms marketing mix, marketing strategy and marketing plan can get confusing – they’re related but distinct marketing concepts. It’s important to have all three in place for sustainable business development. We’ve already defined a marketing mix, but here’s what a marketing plan and marketing strategy mean:

Marketing Strategy

A marketing strategy helps clarify the necessary steps to achieve your marketing goals and effectively promote your business. It establishes the long-term framework that shapes: 

• How you define your value proposition  
• Your company’s brand positioning 
•  How you intend to reach your target market 

Marketing Plan

On the other hand, a marketing plan focuses on the shorter-term aspects of marketing efforts, such as specific campaigns. It serves as the execution of the overall marketing strategy.

Best marketing practice is to develop your marketing strategy first, define your marketing mix and then create your marketing plans. If you’d like to learn more, we have a handy guide on creating a marketing strategy .

The Origin of Marketing Mixes

The concept of a marketing mix and the 4 Ps of marketing dates back to the 1960s, when professor Jerome McCarthy popularised it in his 1960 book ‘Basic Marketing: A Managerial Approach.’ Although the term marketing mix had been gaining traction since the 1940s, McCarthy was the one to clearly define the pillars of a marketing mix with the 4 Ps of marketing.

In ‘Basic Marketing: A Managerial Approach’, McCarthy put the concept simply: “Marketing mix is a combination of all of the factors at the command of a marketing manager to satisfy the target market.”

The concept quickly caught on and marked a notable shift in marketing strategies – shifting the focus from individual tactics to a more holistic and strategic viewpoint. By clearly defining each element of the marketing mix, businesses could create a cohesive strategy that addressed the complexities of the market and consumer behaviour.

How Marketing Mixes Have Evolved Over Time

It’s been over 60 years since the concept of marketing mixes was introduced – since then, the business market has changed significantly with globalisation and the rise of digital marketing. The access to analytics and better tools and resources has also driven a more data-driven approach to marketing.

Marketing mixes have had to adapt accordingly – marketing experts have now expanded the initial 4 Ps into ten key elements. The modern 10 Ps of marketing are:

• Physical evidence
• Positioning
• Personalisation

The 10 Ps OF Marketing, A Break-Down

Now that we’ve given you plenty of context, here’s what each of the 10 Ps of marketing means:

Effective marketing starts with a deep understanding of what it is you’re offering your target market. A product can be tangible, like a piece of apparel or equipment, or intangible, like a service or subscription. What matters most for successful products is that they fill a market gap and are unique enough to stand out.

To define the first P in your marketing mix, you need to ask yourself:

• What need does your product or service meet for your target market?
• How is it different from your competitor’s product?
• Where does your product stand in the market? Is it a high-end luxury brand, a niche offering, or widely accessible to appeal to a broad audience?

Your Unique Value Proposition

Ultimately, ‘Price’ in a marketing mix aims to clearly define your Unique Value Proposition (UVP) and answer the fundamental question, ‘Why should potential customers choose you?’ Your UVP should be at the core of all your marketing communications.

Price refers to the monetary value customers are willing to pay for your product or service. Much consideration and research needs to go into defining your Price – it directly influences your product’s perceived value and positioning in the market. Choosing the right price significantly impacts your business’s revenue, profitability, and market share.

You have to consider things like production costs, how much your competitors are charging, and how much you can afford to mark down your product during sales promotion periods.

The Different Pricing Strategies

Additionally, price refers to the pricing models and strategies you choose. Common pricing strategies include:

• Penetration Pricing: Setting a lower price initially to gain a large portion of the market share quickly.
• Skimming: Setting a high price initially to recoup launch costs and increase perceived value.
• Value-Based Pricing: Setting prices based purely on the customer’s perceived value to increase customer loyalty.
• Dynamic Pricing: Adjusting prices based on real-time market conditions like demand surges or dips.
• Geographic pricing: Your prices vary based on location to maximise profits in different target markets.

The Different Pricing Models

Once you choose a pricing strategy, you have to decide on your pricing model – how you’ll charge your customers. This is especially relevant if you’re selling a service or software. Here are some common price models:

• Freemium: This is a popular subscription-based model popular among software as a service (SaaS) companies. It means offering a basic version of your product for free, hoping customers will eventually pay to access more features.
• Hourly Pricing: Commonly used by freelancers or contractors. This means you charge hourly for your labour. The downside is that it requires documentation to justify and a high level of trust from the client.
• Fixed Pricing: This means charging a flat fee per project instead of a direct exchange of money for time.

Place in a marketing mix refers to how your customers will get your product and your chosen distribution channels. Here are some key factors you have to consider when defining ‘place’:

• Will your product be available in a physical location, like retail stores?
• Will your product be available from third-party retailers?
• Will you sell product or service online?
• What do delivery logistics look like?
• Where is your target audience most likely to shop?
• Is your product available locally, nationally or internationally?

Place encompasses all things distribution: The idea is to determine how you’ll make your product available to your target market in the right place, at the right time, and in the right quantity. To do this effectively, you need to understand your target market and how to best reach them and be aware of any limitations you might face because of supply chain issues or logistics.

4. Promotion

Promotion refers to how you plan to successfully market your product to your target consumers and generate interest from potential customers. Promotion covers:

• The marketing tools you’ll use
• Your plan for online marketing campaigns
• How you’ll handle public relations
• Who’s in charge of your marketing communication
• How to drive traffic to your retail locations

Essentially, this stage is when you decide your promotional mix and how you’ll communicate your marketing messages. In the digital age, your options are almost limitless. There’s email marketing, search engine marketing, social media marketing, television commercials – it can be overwhelming trying to choose.

The key is to conduct target market analysis and only choose to market on the channels that will resonate with your target audience most effectively. This will ensure you spend your money where it matters most and don’t spread yourself too thin.

The Extended Marketing Mix

Product, price, place and promotion are the original marketing mix. However, as we explained above, marketing science has evolved a lot over the past 60 years, and so have the key elements of a marketing mix. Here are the six additional Ps of marketing that marketing experts have put forward:

In an extended marketing mix, People refers to the human side of your business: the employees and sales force that make up your business. Defining how you want your employees to present and act is especially important if you have a physical store where the customer experience your employees provide is everything.

Here’s what People defines in the extended 10 Ps of Marketing:

• Customer service: The behaviour, attitudes and policies you have in place for your customer service team.
• Employee Behaviour: How employees present themselves and their behaviour during customer interactions. This includes factors like professionalism, communication skills, and the overall demeanour of staff members.
• Company culture: The culture and values that influence how employees approach their work and interact with customers. A positive company culture can contribute to a customer-centric mindset among employees.
• Employee satisfaction: How you plan to keep your employees satisfied and motivated in their work through employee satisfaction initiatives. 

Process in the expanded marketing mix refers to the systems, procedures, and methods you’ll institute to promote and deliver your product to your target audience. Having well-defined processes in place helps ensure you can consistently deliver your product at a high level. 

These processes might include: 

• Quality Assurance: The processes and mechanisms you have in place to ensure the product you deliver is consistently high quality.
• Efficiency and Productivity: How you plan to optimise efficiency, both internally and in delivering your product.
• Technology Integration: The tools and software you’ll use for smoother processes, like booking software and staff scheduling platforms.
• Feedback Mechanisms: How you’ll receive feedback from your target customers, whether it’s through surveys, reviews or another form of communication.

7. Physical evidence

Physical evidence refers to the tangible touch point a potential customer encounters before choosing to buy your product. Physical and sensory evidence can make all the difference to the customer’s perception of your business and product. Here are the things to consider:

• Store presentation: The layout, cleanliness and overall feel of your physical stores.
• Branding and signage: How you’ll ensure consistent and memorable branding across your physical assets.
• Employee presentation: The uniforms, name tags, style, and any other visual cues that impact the customer’s perception of professionalism and competence.

8. Packaging

Packaging refers to the box or wrapping your product comes in. While it may seem like an inconsequential detail when compared to the product itself, the packaging of your product can hugely influence a customer’s confidence in your product and their decision to buy. Packaging is more than just a box, however. It also refers to: 

• The overall presentation of your product
• The visual merchandising of your product
• The sustainability of your physical packaging
• How well the packaging protects your project during transport

Packaging also includes any visual assets used to convey your branding, like business cards, your website, and staff presentation. Consistent and visually appealing branding across anything that packages information or products will increase brand memorability and help you stand out.

9. Positioning

Positioning refers to where your brand stands in the market compared to your competitors. It involves strategically creating a unique image and identity for your brand in the minds of your target audience. You can achieve positive positioning by establishing a distinct position from your competitors, emphasising the specific attributes or values that set your product apart.

Is your product more eco-friendly than most? Is it cheaper? Do you offer a higher level of customer service? By answering these questions, you can position yourself in the market and create a unique image for your brand that resonates with your target audience.

10. Personalisation

Personalisation refers to how you plan to tailor your marketing to individual sectors of your target market and buyer personas to resonate with them more effectively. 

In the digital age, personalisation in marketing has become easier than ever. Most search engines and social media platforms allow you to target your advertising to specific demographics, meaning you can tailor your messaging to different target audience segments.

You can also personalise your marketing messages by tailoring them to potential customers at different stages of the buying cycle, increasing your chances of conversion. For example, you can leverage email marketing and website analytics to reach out to customers who have abandoned their shopping carts and offer them a discount code.

The Value of A Marketing Mix

Clearly outlining your marketing mix through these ten elements will serve as a handy anchor to your business’s essential values and goals when developing your marketing strategy. The 10 Ps of marketing are also highly valuable if you plan on out-sourcing any of your marketing efforts or you need to pitch to investors – the 10 Ps can clearly convey the direction you want to take and how you plan to get there to any external parties.

Canberra Marketing Agency

At Futuretheory, a Canberra digital marketing agency, we’ve helped over 100 clients reach more people and drive more conversions through our website, marketing and design services. 

We pride ourselves on our strategy-backed, data-driven approach to marketing that consistently delivers tangible results to our clients across Australia. Our experienced team can take the hassle out of marketing, whether it’s through logo design, branding, SEO, copywriting, or advertising.

We also offer a comprehensive range of website services, including web design, development, hosting, and maintenance. If you need help growing your business online, defining your marketing strategy or reaching more people, contact us today.

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What is a marketing mix? Definition and examples

A marketing mix is a planned mix of elements that make up the marketing plan of a product or service. There are typically four elements: P roduct, P rice, P lace, and P romotion. They all start with the letter ‘P.’ Hence, we can say the marketing mix or the 4Ps . Some people also call the mix the 4Ps Strategy or the 4Ps Marketing Matrix .

It should be noted that sometimes ‘Presentation’ substitutes ‘Product’ in the first ‘P.’

Companies adjust the 4Ps until they find the combination that is just right for the product. In other words, the marketing mix that generates the most profit and also satisfies customers’ needs, wants, and expectations.

Some marketing executives refer to the marketing mix of the 4Ps as the  marketing principles . We use the marketing principles for the successful promotion of either goods or services.

Philip Kotler, an American marketing author, consultant, and professor, once said:

“The marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market.”

Prof. Kotler is the S. C. Johnson Distinguished Professor of International Marketing at the Kellogg School of Management at Northwestern University.

Marketing tools are tools that businesses use to promote their products and services. They also use them to determine what new products to develop and how to improve their existing ones.

Marketing and the marketing mix

Marketing is a management process through which goods and services move from concept to the final consumer , i.e., the end user. It includes the identification of a good or service, determining demand, deciding on a price, and choosing distribution channels.

It also includes the development and implementation of a promotional strategy. As a business strategy, marketing has been around for thousands of years.

Marketing theory, on the other hand, emerged at the beginning of the last century. The contemporary marketing mix of the 4Ps emerged in the 1960s. It has become a dominant framework for marketing management decisions (see the end of this article for the 7Ps) .

4 elements of the marketing mix

Below is an explanation of the four elements of the marketing mix – they all start with the letter ‘P’:

This term refers to an item that satisfies the needs or wants of the consumer. The word products , in this context, also includes services .

It, therefore, includes tangible items, i.e., goods, and intangible items, i.e., services, experiences, or ideas. If something is tangible, you can touch it, i.e., it is a physical item. The word intangible refers to something we cannot touch; it is abstract (not physical).

Typical product marketing decisions include branding, product range/mix, product lines, and packaging and labeling. It also includes guarantees, warranties, returns, and managing products through the life-cycle.

This term refers to how much buyers pay for the product. It may also refer to the sacrifice customers are prepared to make to purchase a product. Sacrifice includes, for example, time and effort.

This element of the marketing mix is the only one that has implications for revenue and profit margins. It also includes considerations of customers’ perceived value.

Typical marketing decisions include price strategy, price tactics, and price setting. They also include discounts for customers and payment terms.

Place is all about where the manufacturer makes and sells the product. In other words, the products’ place of origin and the provision of customer access.

Location can affect customer service as well as how rapidly the seller can respond to orders and requests.

Typical marketing decisions include where best to sell the product and where consumers are likely to look for it. They also include how to get the product to where consumers are.

Is it a B2B, B2C, or B2G business?

• B2B stands for business-to-business – in other words, the company’s customers are other companies.
• B2C stands for business-to-customer , i.e., the company sells to individual consumers (retail).
• B2G stands for business-to-government . Defense contractors, for example, are B2G – their customer is the government (mainly).

This element of the marketing mix is all about telling consumers about the product. In other words, marketing communications. Promotion may consist of public relations (PR), direct marketing, advertising, and sales promotion.

Marketing decisions include determining what promotion mix is best as well as the message strategy. They also include determining channel/media strategies and message frequency.

If the product is seasonal, for example, getting the timing of the promotional activities right is crucial.

Marketing mix – 7Ps

There is another marketing mix that has seven elements. We call them the 7Ps because they all start with the letter ‘P.’ The seven Ps are P roduct, P lace, P rice, P romotion, P eople, P hysical Environment, and P rocess.

Regarding the 7Ps marketing mix, P rofessional Academy says:

“ Though in place since the 1980’s , the 7Ps are still widely taught due to their fundamental logic being sound in the marketing environment and marketers abilities to adapt the marketing mix to include changes in communications.”

Social media, for example, is one of the changes in communication.

Compound phrases with ‘Marketing Mix’

The term ‘Marketing Mix’ is a 2-word compound phrase. From this term we can make many 3-word compound phrases. Let’s have a look at 5 of them:

• Marketing Mix Analysis – Reviewing the strategies in the marketing mix.
• Marketing Mix Modeling – Using statistics to forecast marketing outcomes.
• Marketing Mix Optimization – Adjusting the marketing mix for best results.
• Marketing Mix Strategy – Integrating the four Ps for marketing goals.
• Marketing Mix Adaptation – Tailoring the marketing mix for different markets.

Video – What is a Marketing Mix?

This video, from our sister channel on YouTube – Marketing Business Network , explains what a ‘Marketing Mix’ is using simple and easy-to-understand language and examples.

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How to Develop an Effective Marketing Mix | What are the Marketing Mix Elements

Updated on: 5 January 2023

Once you have identified your target audience and the competition, the next thing on your to-do list should be developing a marketing mix.

Every business needs its very own marketing mix to appeal to its customers. In this post, we will discuss the marketing mix definition, its importance, the elements of marketing mix and how to develop an effective marketing mix for your product or service.  

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What is a Marketing Mix?

Marketing mix is a set of actions a business takes to build and market its product or service to its customers.

It helps to make sure that you are able to offer your customers the right product, at the right time and at the right place for the right price.

Whereas traditionally the marketing mix was executed through the 4 Ps of marketing , nowadays 3 more  additional tools have been added to the mix, making it the 7 Ps of marketing. Businesses use a blend of these marketing mix elements to generate the response they want from their audience.

Importance of Marketing Mix

There are several benefits of the marketing mix that makes it important to businesses;

• Helps understand what your product or service can offer to your customers
• Helps plan a successful product offering
• Helps with planning, developing and executing effective marketing strategies
• Helps businesses make use of their strengths and avoid unnecessary costs
• Helps be proactive in the face of risks
• Help determine whether your product or service is suitable for your customers
• Helps identify and understand the requirements of customers
• Helps learn when and how to promote your product or service to your customers

What are the Elements of Marketing Mix

Developing the correct marketing mix for your product or service starts with understanding the Ps of Marketing.

The 4 Ps of Marketing Mix

Product is a good (such as music players, shoes etc.) or service (such as hotels, airlines, etc.) that is offered as a solution to satisfy the needs of your customer.

When developing the product , you need to consider its life cycle and plan for different challenges that may arise during the stages of it. Once the product reaches its final stage (sales decline phase), it’s time to reinvent the item to win the demand of the customers again.

The next element of the marketing mix is the price your customer is willing to pay for your product. This helps determine the profit you will be able to generate.

When setting a price for your product, consider how much you have spent on producing it, the price ranges of your competitors, and the perceived product value.

This is about the distribution center of the product and the methods used in distributing it to the customer.

Wherever this is, it should be easily accessible to the customer. For example, if you have a physical store, it should be located in a place that can be easily discovered by the customer. If you own a website to market your product, make sure it is easily navigable.

Promotion refers to the methods a business uses to gain the attention of the customers to their product. These includes sales promotions, customer service, public relations, advertising etc.

When creating your promotion strategy, consider the tactics used by your competitors, the channels that are most effective in reaching your customers, and whether they match the perceived value of your product.  

The AIDA model is a principle widely used in marketing and advertising. It describes the stages an individual goes through during the buying process to become a customer.

The 7 Ps of Marketing Mix

7 Ps of marketing mix is an extended, modified version of the 4 Ps of marketing. This model is widely used in the service industry. It adds 3 more elements to the 4 Ps discussed above.

This refers to the people – both your customers and employees – who are directly related to the product or service.

While you need to study your target market to understand whether they are in need of the type of product you are offering, you need to hire the right people who are capable of giving their best to build it.

Systems and processes play an important role in building and delivering a quality service to your customer.

Make sure that you process is free of bottlenecks and blockers in order to reduce the unnecessary expenses associated with executing the service.

You can use process maps to map process steps and analyze them to identify where you need to make improvements.

Physical Evidence

Physical evidence refers to what the customers see when consuming your product or service. This could include your branding, packaging, the physical environment where you are selling your product etc.

Make sure that all physical aspects associated with your product or service adhere to its values.

How to Develop a Marketing Mix

Define your goal and set a budget.

Developing an effective marketing mix starts with setting the right goals. Establish what you want to achieve with your marketing plan; is it to grow sales? Acquire more customers? Build brand awareness?

Once you have set realistic and measurable goals, determine how much you are willing to spend on achieving your objectives.

Study Your Target Customer

In order to build a product or service that your customers would want to buy, you need to know who they are.

Find different segments in your target audience and create separate customer profiles for each. Refer to these when you are developing your strategies.

Identify Your Unique Selling Proposition

Clarify what your unique selling proposition is through customer surveys, interviews, focus groups etc.

Here you will identify the benefits your product or service will bring to your customer, and how you are better than anyone else in s olving their problems.

Understand Your Competition

Carry out a competitor analysis to understand the different strategies and tactics used by your competitors. This knowledge will be especially helpful when you are creating your pricing strategy.  

Record important information about your competitors on a competitor profile like the one below

Learn how to conduct an effective competitor analysis .

Identify the Unique Features of Your Product

List down the unique qualities and the value of your product. You can build on these when you are marketing it to your customers.

You can use the mind map below when you are identifying the unique features of your product.

Create a Pricing Strategy

Using the competitor research you have done, build a pricing strategy. Make sure that you have not overpriced or underpriced your product.

Choose Your Distribution Channels & Promotional Methods

Choose the channels you will be distributing your product through based on the type of your product or service and your target customer.

And select the promotional techniques you want to choose based on your budget, and again the customer and your product.

Create your promotion campaign with this editable mind map template ,

Edit the Promotional Campaign Template

What are Your Thoughts on Developing an Effective Marketing Mix?

We’ve covered everything you need to know about a marketing mix and developing an effective one for your business.

What are your experiences in selecting the correct marketing mix for your business? Share your thoughts with us in the comment section below.

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An important part of developing a marketing plan is identifying the ideal marketing mix. As a small business owner, you need to choose the right marketing mix so you can win early sales and sustain your business as you build your customer base. The marketing mix is defined as the “4 Ps” of marketing: product, price, place and promotion. An extension of the “4 Ps” is positioning, people and packaging.

Write a one- or two- sentence description of your ideal customer. If you’re targeting consumers, base the profile on key demographics; if you’re targeting businesses, then list specific types along with size and location. Use this target audience profile to pinpoint your target market and to help you as you evaluate each potential marketing tactic.

Outline your goals and budget. Use your goals to evaluate what results you’ll need in order to achieve success and to determine how many leads you’ll need to generate to meet sales goals. Make a short list of measurable marketing goals, such as “generate 30 leads a month,” that are tied to your marketing tactics and goals.

Choose one or more tactics that will directly reach your target audience and will help you achieve your marketing goals with little waste. Also, select your tactics based on your budget, short-term and long-term goals. Identify the media your prospects look to for information about your type of products or services; this way, you can use the appropriate advertising, PR, or social networking to reach them.

• Entrepreneur: 3 Steps to the Right Marketing Mix
• Customer research is a key element in building an effective marketing mix because your knowledge of your target market and competitors will help you offer a product that will appeal to customers and avoid costly mistakes.
• Research the “4 Ps” for your own business by analyzing your products, price, place and promotion. Look at the products you produce, how they are different from your competitors' products, and each one's stage in the product life cycle. Marketing strategies will be developed based on the type of product and its life cycle stage.
• Research best pricing based on perceived price, competitors’ pricing, demand elasticity, pricing objectives and profit margins.
• For the “place,” consider everything that relates to the physical location as well as the methods of distribution.
• Identify at least one promotion tactic based on the best ways to reach your target market and affordability when money is tight. You can always expand or add on more tactics as the business grows.

Ivy Liu graduated from New York University Stern School of Business with a Master of Business Administration in marketing and a Bachelor of Science in information systems and finance. With more than a decade of writing experience, Liu has written for hundreds of websites and publications on business, travel and many other topics.

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What is the marketing mix and how can you use it?

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The marketing mix is a strategy for considering the different elements that go into promoting a brand and its products. 

It offers broad guidelines for putting the right products in the right place, at the right time, and price. 

Originally comprised of 4 key basic marketing categories known as the 4 “P”s (product, place, price, and promotion), it lays out the foundation needed for marketers to determine a brand’s place within the market, and build out the best marketing strategies from there.

How the marketing mix has changed

The marketing mix, now more than ever, is rooted in a deep understanding of your target audience .

The explosion of digital marketing and the rapid rate at which consumer trends now change has transformed the face of social media and marketing efforts.

Modeling your business using consumer insights ensures you deliver at each stage of the marketing mix.

This has spurred the creation of an extended 7 (and even 8) “P” system, founded on a deeper understanding of the consumer processes and the trends that shape their behaviors, attitudes and perceptions.

Let’s dig down into the 7 “p”s of the marketing mix .

Question to consider:

• How will the product help your consumer achieve their goals? Are they aspirational? Status-seekers? Family-oriented? Do they seek value over quality?

Finding the answer:

• Look to concept testing with  survey data to assess the reaction to your product or concept before going to market.

• What income bracket does your customer sit in? Are they affluent consumers or students, for example?
• Start by creating your audience, adding all the relevant attributes to paint a clear, defined picture of who these people are, and their spending habits.

• What online channels and social media are your target market using the most? Where are they engaging with similar brands?
• Gathering data from your own onsite and social media marketing analytics and combining that with regional behavioral and psychographic data builds a picture of what your target market does online, whilst highlighting key trends.

4. Promotion

• How do people expect to be approached on the channels you’ve identified? How can you speak to them in a way that resonates?
• It starts by creating detailed audience segments , and digging down into each to cross-examine what motivates your customer – not just to purchase products – but in daily life. Identifying the lifestyle indicators and broader perceptions of each segment is key to unlocking the marketing plan that will deliver results.

Question to consider

• What kind of marketing people would best align with your consumer’s values and realize the vision?
• Deep dive into how your customer sees themselves in relation to brands. Running a custom survey will identify their personal perceptions, specifically the ones you as a brand can appeal to, and help you determine the right kind of people to deliver your message.

6. Processes

• How can you increase brand equity at every stage of the buying process, from brand awareness to product delivery?
• Making the purchase journey as swift and pleasing as possible, again, means delivering on consumer demands while maintaining a profitable process. Start analyzing the purchase journey touchpoints within the platform to get a better understanding of what marketing tactic works best for your target consumer at every stage. 

7. Physical Evidence

• What kind of content do my target consumers best respond to?
• Discover what motivates consumers to build long-term relationships with brands by analyzing brand loyalty and brand trust data points.

Example: Anytime Fitness’s marketing mix

With over 5,000 locations in 50 countries, Anytime Fitness has gained a huge market share with three hundred thousand people joining clubs each year.

Let’s look at how their business model fits into the 7p’s marketing mix.

They offer a no frills approach with use of the gym equipment, classes and facilities. 

The equipment is basic but plentiful, making the time spent in the gym practical and efficient for customers with little extra incentive to do anything other than exercise.

Anytime Fitness is certainly competitive in the low price gym market – typically costing $41 a month. 

It’s able to charge slightly more costly because of its plentiful locations, making it a more convenient option for customers. They also use a dynamic pricing strategy depending on the affluence of location.

You’d find Anytime gyms across the US and because of its no frills approach, it’s able to set up shop in a variety of buildings. 

With no swimming pools or sports pitches to take up space, it can use old offices in dense urban areas at lower pricing.

Research revealed that consumers found typical gym sales promotion centered on physically fit, attractive models to be intimidating. This isolated less fit consumers who actually make up the majority of the population. 

Anytime Fitness adopts a more personal selling tone, featuring people of more shapes and ages than other gyms, urging them to improve their health through exercise. 

Paradoxically, Anytime Fitness found its niche amongst the majority of the population by being attentive to their opinions and offering a safe space for anyone to exercise, not just the very fit.

Anytime Fitness employs very few people to help deliver their product, especially when it comes to the day-to-day running of the gyms. The majority are freelance personal trainers who generate revenue from customers that request their services. This helps keep the business model lean. 

By employing fitness professionals, they ensure the continuity of their health and fitness message throughout all arms of the business, whilst giving consumers something to aspire to

It’s a frontrunner in the digitization process, making signing up, booking exercise classes, and contacting staff simple through their app. Customers are given autonomy over their memberships, with the flexibility to cancel and freeze with the possibility of re-opening at any time.

Physical Evidence:

Being a high street-based service, Anytime Fitness has a strong physical presence, coupled with the on-brand personnel who help deliver the service. Combining this with the wealth of digital media creates a more rounded experience for the customer.

Key takeaways

Today’s consumers are more empowered than ever, with greater expectations for brands to meet their requirements with relevant, easy-to-use content, and to provide a product offering that meets expectations.

The marketing mix breaks down what’s needed to make a business work, but success isn’t attributed only to modeling theory templates like this one. It’s attributed to the depth of consumer insights used to develop each stage. 

Businesses that can deliver on what their consumers truly want, and showcase how their brand will enrich their lives, will see the best results.

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10 Steps to Building the Perfect Marketing Mix for Your Business

The marketing mix is an essential tool in building and implementing an effective marketing strategy . It should be used to show prospects why your product or service is different and better than your competitors.

In this article you’ll learn what a marketing mix is, why it matters, and the 10 steps to follow for building the perfect marketing mix for your business.

What is a Marketing Mix?

The marketing mix refers to the various elements of your company’s offering in the market.

It is a varied “mix of ingredients” used by your business to achieve its objectives by marketing its products or services effectively to a particular customer group.

The marketing mix, also referred to as the 4 Ps, is comprised of four main pieces – Products, Price, Promotion and Place. The 4Ps describe what marketers can control and are the most critical elements when building your marketing strategy.

Image Source: bbc.co.uk

Product is concerned with developing the right product or service for your target market. Your product or service must satisfy a specific consumer need.

This first P is made up of two core components:

• Branding: The name, term, symbol and design used to identify your product. A good brand name can speed up shopping by helping customers identify the product they want.
• Packaging: This involves promoting and protecting the product. It can make a product more convenient to use or prevent it from spoiling or being damaged. Good packaging makes products easier to identify and promotes your brand.

Kaffeine , a London-based coffee shop, attracts customers by branding their business and products as hassle-free and friendly. They use their shop design of crumbling brick walls and comfy wooden crate benches to create an image visitors can easily align with their brand.

Image Source:  www.cosycoffeeshops.co.uk

When setting a price for your product, you must consider competition in your target market place, and the cost of the total marketing mix.

Also estimate customers’ reactions to possible product prices.

Thegymgroup.com offers a great pricing incentive. Unlike other gyms, they don’t bind you to an expensive contract and you receive 3 free training sessions.

Image Source: http://www.thegymgroup.com/

This involves all the decisions in getting the right product to your target market’s environment.

Placement decisions, such as accessing the right distribution channels, should take into consideration where customers would expect to find a product or service like yours.

Part of the place decision is also the layout of your store or shop. It should pull customers into your shop, making it easy for them to locate merchandise.

Nakedwines.com have created their whole marketing strategy around the element of place.

Customers can fund independent winemakers and receive exclusive access to wines at wholesale prices, and it’s all available online.

Source Image: https://www.nakedwines.com/

This is about telling your target market about your product or service. It involves direct communication between sellers and potential customers.

ITC Luxury Travel uses various means of communication with their customers and promotion for their services. They’realso active on social media sites, including Twitter, Instagram, Facebook and Google+. Their Newsletter sign-up offers yet another opportunity for product promotion.

Source Image: https://www.itcluxurytravel.co.uk/

If the 4Ps seem outdated to you, try R.F. Lauterborn’s 4Cs and decide if his take on the marketing mix is a better fit for your business.

The 4 Cs replace the 4Ps with:

• Cost: Price is not the only cost being incurred when purchasing a product. Lauterborn refers to the cost you incur to satisfy a customer, the cost of time to acquire the product, cost of conscience when it comes to consuming the product and the cost of selecting or not selecting an alternative.
• Consumer : The value you provide a customer determines your position in the market place. Like with your Unique Selling Proposition (USP), your value should be clearly communicated.
• Communication: Marketers should aim to create an open dialogue with potential customers based on their wants and needs. Customers want to be engaged with meaningful interactions.
• Convenience: You need to be aware of how your target audience likes to make their purchases in order to make it convenient for them to buy. Remove all barriers to entry. For example, don’t make customers sign-up for a loyalty card before they can make their first purchase.

Image Source: marketingmix.co.uk

Why is the Marketing Mix Important?

In your day-to-day business activities it’s difficult to turn your attention to the big picture, especially when you’re putting out fires left and right.

Your marketing mix provides a roadmap for your business objectives. It keeps you on track, while keeping your target market in the forefront of your mind.

Your marketing mix will help you make sure your business is marketing the right product, to the right people, at the right price and time.

10 Steps to an Effective Marketing Mix

Use these 10 steps to assist you in building your perfect marketing mix for a successful product offering.

Step 1. Goals and Objectives

To create the right marketing mix you must first clearly define what you want the end result to be – more customers, brand awareness, higher sales, etc.

Every marketing plan has its own marketing goals. Also ensure you have set a specific time frame in which to achieve your goals.

Step 2. Establish Your Budget

How much money are you willing to spend on product innovation, consumer research and product promotion?

Step 3. Determine Your Unique Selling Proposition (USP)

Describe the benefits users will experience from using your product or service.  What unique problem are you solving better than anyone else?

For example, Tom Shoes gives a new pair of shoes to a child in need for every pair you purchase.

Image Source: Toms Shoes

Step 4. Who is Your Target Market?

In order to communicate effectively with your audience, you need to know who they are and how they prefer to be communicated with.

Create an in depth profile of your ideal custome r. Make sure you’ve gathered enough consumer data to develop a complete picture of your ideal buyer.

Step 5. Ask Your Customers Advice

• What do they think of your product?
• How satisfied are they with the quality?
• Are the benefits apparent?
• How is your product effectively or not effectively meeting their needs?

Use their answers and the language they used in your marketing material. You’ll appear more relatable and approachable to your audience.

Step 6. Define Your Product in Detail

Take your time describing the specific qualities and value of your product. Look for the unique features that show your product’s worth.

Step 7. Know Your Distribution Channels

Identify the places your product will be marketed – which distribution channels you’ll make use of.

Your choice of distribution channel will influence your pricing and your promotion decisions.

Depending on your audience and product your main options will be:

• Selling to wholesalers who will sell to retail outlets, who will then sell to the consumer.
• Selling directly to the retail outlet.
• Selling directly to your customers.

Image Source: web-books.com

Step 8. Create a Pricing Strategy

You need to discover clever ways of differentiating your product on price. Research your competitors and make sure you’re not overcharging your customers.

You will also need to consider what your target audience might be willing to pay and what it costs to actually produce your product.

Step 9. Choose Your Promotional Techniques

Your target audience needs to be made aware of your product offering.

Successful promotion of your product includes various elements, like:

• Direct Marketing: Directly connecting with carefully targeted individuals to cultivate lasting relationships. For example, catalogues, telephone marketing, and mobile marketing.  Used for direct outreach to prospects in a database or sales list.
• Public relations: Press releases, exhibitions, sponsorship deals and conferences.   Used for getting newsworthy attention.
• Advertising: Television, radio and print media will be your offline focus.  Used for introducing your audience to new products and services.
• Personal selling: Personal presentation by your sales force. Demonstrating how your product works is key.  Used for selling expensive, specialised and technologically advanced products.
• Sales promotion: Short-term incentives to encourage a purchase. This includes discounts, promotions , and payment terms.  Used for getting people to use your product more often and to gain new customers.
• Word of mouth: Creating positive word of mouth via your sale staff, recommendations from buyers and social media.  Used for boosting brand awareness.

Step 10. Use Inbound Marketing

The 4Ps of marketing creates the basis of your marketing strategy, but inbound marketing also plays a vital role in developing your marketing mix.

An effective inbound marketing mix should include:

• Your Website: Customers today want to interact with your brand and newly developed products. Use your website to fulfil this need for interaction. Make sure your website is quick loading, impactful and easy to navigate.
• Search Engine Optimisation (SEO) : In order for customers to interact with your website, they must be able to find it first. Use descriptive keywords to help search engines, like Google, direct users to your website.
• Email Marketing: One of the quickest, most direct ways to communicate with leads and customers. You need to continually collect prospects and customer contact information to grow your database and follow-up on a regular basis.
• Social Media : Besides having a website, you should use popular social networking sites to distribute your message and create brand awareness. Twitter and Facebook are invaluable for describing existing products, introducing new products, offering promotions and announcing sales.
• Blogging : Blogging will help your business stay top of mind by putting out regular content. Host the blog on your website and write good content, making sure to respond to each blog comment.

Image source: marketectinc.com

A well-developed marketing mix will help you develop products and services that better serve the wants and needs of your target market.

Done right, your market mix will help your customers understand why your product or service is better than those of you competitors.

Although the 4Ps should remain core to your marketing mix, inbound marketing should also form part of your overall marketing strategy . Use these 10 steps to help you develop your perfect marketing mix.

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What Are the Elements of a Marketing Mix?

Definition and Examples of the Elements of a Marketing Mix

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The elements of a marketing mix are the aspects of marketing that a business will leverage to promote its goods or services. There are generally four main elements to consider: product, price, place, and promotion. However, this is often expanded to include a fifth crucial element, people.

Each of these components plays an important role in crafting a successful marketing strategy that meets consumer needs and drives business growth. By carefully balancing these elements, businesses can create a competitive edge in their respective markets.

Learn more about how these elements can help enhance the effectiveness of a business's marketing effort.

Effective, efficient marketing requires an understanding of several key concepts, and how to best use them to reach your target market . These concepts are part of the marketing mix.

Your marketing mix is the combination of elements that play a role in promoting and delivering your products and services to consumers or clients. In essence, it's about putting your product or service in the right place at the right time for the right price.

There are slight variations on what to include in the elements of a marketing mix. You may see some entities count the four P's of marketing. Others may count as many as seven P's. These include the aforementioned elements, as well as process (generally referring to the method of delivery) and physical evidence (what a customer sees and experiences when interacting with your business).

How Do the Elements of a Marketing Mix Work?

Similar to SWOT analysis and business plan writing, a marketing mix can often feel like an abstract business concept that is difficult to convert to everyday use. Rather than figuring out how to "correctly use" the five P's, think of them as reminders to encourage you to better research and plan your marketing strategy.

These are the products or services you offer to your customers, including their physical attributes, what they do, how they differ from your competitors, and what benefits they provide.

Beyond defining what you've got, pay special attention to the benefits your product or service offers, and who the best consumers to gain those benefits are. This means developing a unique selling proposition (USP) and defining your target market. For example, if you sell weight-loss services, what benefits will your customers gain (perhaps better health or more energy), and who are the ideal people to seek out these services (perhaps middle-aged people or new moms getting back into a workout routine)?

This element concerns how you price your product or service. A well-balanced price allows you to remain competitive while still creating a good level of profit. Pricing can be tricky because you need to estimate as accurately as possible the value of what you offer along with what it costs you in materials, time, and overhead to produce it.

As you consider those factors, think about what your market is willing and able to pay. You should consider whether or not customers think your product is worth what you're charging given the perceived value of your product, what competitors are charging for the product, and the alternative products available to satisfy the same needs and wants. You don't want to undercharge, but you also do not want to ask people to pay more than what your product or service is worth.

This is where your business sells its products or services and how it gets those products or services to your customers. It's also known as distribution.

Your place lets consumers know where they can find and receive your goods and services. This might seem basic, but you have to consider more nuanced aspects of this element, such as the specifics of your product or service, the broader market, and the cost of using a given place. For example, if your products are luxury items, you want to sell them in a place that reflects high standing and exclusivity—rather than cutting costs and devaluing the product.

Markets are moving, and online to offline (O2O) is more common. This means the combination of physical locations with online shopping. Businesses need to meet consumers where they are and now, more than ever, they are both offline and online. You should also consider emerging technologies. For example, virtual reality (VR) and augmented reality (AR) are making online a more feasible place for marketing since you can try, use, wear, and place products in an experience close to being in a store and touching the products in the real world.

These are the methods you use to communicate the features and benefits of your products or services to your target customers.

This is where you put all the information you've gathered to work. You know your product, who can benefit from it, the best price to sell it at, and where to sell it. Now, you have to get people to your "store," whether it's a brick-and-mortar or an online store.

Promotion is all about knowing where your market can be found, knowing how to craft a message to entice them to check out your product or service, and determining the best method for delivering that message (such as advertising, social media, or interviews with media outlets).

The most effective marketing is focused on message and location. For example, if you're selling weight loss products and your market is new moms, you'd want to have a message that talks specifically about losing baby weight and ensure those ads show up on mom blogs or some other place where new moms will see them. 

The "people" in this category aren't your customers, but your co-workers, colleagues, and yourself. This refers to how your level of service and the expertise provided by the people who work for you can be used to set you apart from your competitors.

You can master all the other elements of the marketing mix, but if you or your salespeople are rude, or your customer service systems fall short, it won't matter how good the other P's are. Consumers have a choice about who they do business with, and they prefer businesses that know their stuff, are willing to help, and are responsive.

This is where social media is so helpful—it makes it easier for businesses to build trust and rapport with consumers. However, social only works if you and your staff or contractors are polite, professional, genuine, and responsive.

Key Takeaways

• The elements of a marketing mix are the factors that businesses should consider when they form marketing plans.
• There are five main elements of a marketing mix, otherwise known as the five P's of marketing: product, price, place, promotion, and people.
• Careful consideration of these five elements will help a business better craft marketing plans that effectively reach its target audience.

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• How to create a winning marketing plan, ...

How to create a winning marketing plan, with 3 examples from world-class teams

A marketing plan helps leaders clearly visualize marketing strategies across channels, so they can ensure every campaign drives pipeline and revenue. In this article you’ll learn eight steps to create a winning marketing plan that brings business-critical goals to life, with examples from word-class teams.

To be successful as a marketer, you have to deliver the pipeline and the revenue.”

In other words—they need a well-crafted marketing plan.

Level up your marketing plan to drive revenue in 2024

Learn how to create the right marketing plan to hit your revenue targets in 2024. Hear best practices from marketing experts, including how to confidently set and hit business goals, socialize marketing plans, and move faster with clearer resourcing.

7 steps to build a comprehensive marketing plan

How do you build the right marketing plan to hit your revenue goals? Follow these eight steps for success:

1. Define your plan

First you need to define each specific component of your plan to ensure stakeholders are aligned on goals, deliverables, resources, and more. Ironing out these details early on ensures your plan supports the right business objectives, and that you have sufficient resources and time to get the job done. 

Get started by asking yourself the following questions: 

What resources do I need? 

What is the vision?

What is the value?

What is the goal?

Who is my audience?

What are my channels?

What is the timeline?

For example, imagine you’re creating an annual marketing plan to improve customer adoption and retention in the next fiscal year. Here’s how you could go through the questions above to ensure you’re ready to move forward with your plan: 

I will need support from the content team, web team, and email team to create targeted content for existing customers. One person on each team will need to be dedicated full-time to this initiative. To achieve this, the marketing team will need an additional $100K in budget and one new headcount. 

What is the vision?  

To create a positive experience for existing customers, address new customer needs, and encourage them to upgrade. We’ll do this by serving them how-to content, new feature updates, information about deals and pricing, and troubleshooting guides. 

According to the Sales Benchmark Index (SBI) , CEOs and go-to-market leaders report that more than 60% of their net-new revenue will come from existing customers in 2023. By retaining and building on the customers we have, we can maintain revenue growth over time. 

To decrease the customer churn rate from 30% to 10%, and increase upgrades from 20% to 30% in the next fiscal year. 

All existing customers. 

The main channel will be email. Supporting marketing channels include the website, blog, YouTube, and social media. 

The first half of the next fiscal year. 

One of the most important things to do as you create your marketing strategy is to identify your target audience . As with all marketing, you need to know who you’re marketing to. If you’re having a hard time determining who exactly your target audience is, try the bullseye targeting framework . The bullseye makes it easy for you to determine who your target audience is by industry, geography, company size, psychographics, demographics, and more.

2. Identify key metrics for success 

Now it’s time to define what key marketing metrics you’ll use to measure success. Your key metrics will help you measure and track the performance of your marketing activities. They’ll also help you understand how your efforts tie back to larger business goals. 

Once you establish key metrics, use a goal-setting framework—like objectives and key results (OKRs) or SMART goals —to fully flush out your marketing objectives. This ensures your targets are as specific as possible, with no ambiguity about what should be accomplished by when. 

Example: If a goal of your marketing plan is to increase email subscriptions and you follow the SMART goal framework (ensuring your objective is specific, measurable, achievable, realistic, and time-bound) your goal might look like this: Increase email subscription rate from 10% to 20% in H1 . 

3. Research your competition 

It’s easy to get caught up in your company’s world, but there’s a lot of value in understanding your competitors . Knowing how they market themselves will help you find opportunities to make your company stand out and capture more market share.

Make sure you’re not duplicating your competitors’ efforts. If you discover a competitor has already executed your idea, then it might be time to go back to the drawing board and brainstorm new ways to differentiate yourself.  By looking at your competitors, you might be surprised at the type of inspiration and opportunities you’ll find.

To stay ahead of market trends, conduct a SWOT analysis for your marketing plan. A SWOT analysis helps you improve your plan by identifying strengths, weaknesses, opportunities, and threats. 

Example: If your competitor launches a social media campaign identical to what you had planned, go back to the drawing board and see how you can build off their campaign. Ask yourself: How can we differentiate our campaign while still getting our message across? What are the weaknesses of their campaign that we can capitalize on? What angles did they not approach?

4. Integrate your marketing efforts

Here’s where the fun comes in. Let’s dive into the different components that go into building a successful marketing plan. You’ll want to make sure your marketing plan includes multiple supporting activities that all add up into a powerful marketing machine. Some marketing plan components include: 

Lead generation

Social media

Product marketing

Public relations

Analyst relations

Customer marketing

Search engine optimization (SEO)

Conversational marketing

Knowing where your consumer base spends the most time is significant for nailing this step. You need to have a solid understanding of your target audience before integrating your marketing efforts. 

Example: If your target audience is executives that spend a lot of time on LinkedIn, focus your social media strategy around placing branded content on LinkedIn. 

5. Differentiate with creative content

Forty-nine percent of marketers say visual images are hugely important to their content strategy. In other words, a clear brand and creative strategy is an essential component to every marketing plan. As you craft your own creative strategy, here are some tips to keep in mind: 

Speak to your audience: When defining your creative strategy, think about your audience—what you want them to feel, think, and do when they see your marketing. Will your audience find your creative work relevant? If your audience can’t relate to your creative work, they won’t feel connected to the story you’re trying to tell. 

Think outside the box: Find innovative ways to engage your audience, whether through video, animations, or interactive graphics. Know what screens your creative work will live on, whether desktop, mobile, or tablet, and make sure they display beautifully and load quickly across every type of device. 

Tie everything back to CTAs: It’s easy to get caught up in the creative process, so it’s important to never lose sight of your ultimate goal: Get your audience to take action. Always find the best way to display strong Calls to Action (CTAs) in your creative work. We live in a visual world—make sure your creative content counts.

Streamline creative production:   Once you’ve established a strong creative strategy, the next step is to bring your strategy to life in the production stage. It’s vital to set up a strong framework for your creative production process to eliminate any unnecessary back and forth and potential bottlenecks. Consider establishing creative request forms , streamlining feedback and approval processes, and taking advantage of integrations that might make your designers’ lives easier.

Example: If your brand is fun and approachable, make sure that shows in your creative efforts. Create designs and CTAs that spark joy, offer entertainment, and alleviate the pressure in choosing a partner.

6. Operationalize your marketing plan

Turn your plan into action by making goals, deliverables, and timelines clear for every stakeholder—so teams stay accountable for getting work done. The best way to do this is by centralizing all the details of your marketing plan in one platform , so teams can access the information they need and connect campaign work back to company goals.  

With the right work management tool , you can: 

Set goals for every marketing activity, and connect campaign work to overarching marketing and business objectives so teams focus on revenue-driving projects. 

Centralize deliverables for your entire marketing plan in one project or portfolio .

Mark major milestones and visualize your plan as a timeline, Gantt chart, calendar, list, or Kanban board—without doing any extra work. 

Quickly loop in stakeholders with status updates so they’re always up to date on progress. This is extremely important if you have a global team to ensure efforts aren’t being duplicated. 

Use automations to seamlessly hand off work between teams, streamlining processes like content creation and reviews. 

Create dashboards to report on work and make sure projects are properly staffed , so campaigns stay on track. 

With everything housed in one spot, you can easily visualize the status of your entire marketing plan and keep work on track. Building an effective marketing plan is one thing, but how you operationalize it can be your secret to standout marketing.

Example: If your strategy focuses on increasing page views, connect all campaign work to an overarching OKR—like “we will double page views as measured by the amount of organic traffic on our blog.” By making that goal visible to all stakeholders, you help teams prioritize the right work. 

See marketing planning in action

With Asana, marketing teams can connect work, standardize processes, and automate workflows—all in one place.

7. Measure performance

Nearly three in four CMOs use revenue growth to measure success, so it’s no surprise that measuring performance is necessary. You established your key metrics in step two, and now it’s time to track and report on them in step eight.

Periodically measure your marketing efforts to find areas of improvement so you can optimize in real-time. There are always lessons to be learned when looking at data. You can discover trends, detect which marketing initiatives performed well, and course-correct what isn’t performing well. And when your plan is complete, you can apply these learnings to your next initiative for improved results. 

Example: Say you discover that long-form content is consistently bringing in 400% more page views than short-form content. As a result, you’ll want to focus on producing more long-form content in your next marketing plan.

Marketing plan examples from world-class teams

The best brands in the world bring their marketing plans to life every day. If you’re looking for inspiration, check out these examples from successful marketing teams.

Autodesk grows site traffic 30% three years in a row

When the Autodesk team launched Redshift, it was initially a small business blog. The editorial team executed a successful marketing plan to expand it into a premier owned-media site, making it a destination for stories and videos about the future of making. 

The team scaled content production to support seven additional languages. By standardizing their content production workflow and centralizing all content conversations in one place, the editorial team now publishes 2X more content monthly. Read the case study to learn more about how Autodesk runs a well-oiled content machine. Trinny London perfects new customer acquisition 

In consumer industries, social media is crucial for building a community of people who feel an affinity with the brand—and Trinny London is no exception. As such, it was imperative that Trinny London’s ad spend was targeted to the correct audience. Using a work management tool, Trinny London was able to nail the process of creating, testing, and implementing ads on multiple social channels.

With the help of a centralized tool, Trinny London improved its ad spend and drove more likes and subscriptions on its YouTube page. Read the case study to learn more about how Trinny London capitalized on paid advertising and social media. 

Turn your marketing plan into marketing success 

A great marketing plan promotes clarity and accountability across teams—so every stakeholder knows what they’re responsible for, by when. Reading this article is the first step to achieving better team alignment, so you can ensure every marketing campaign contributes to your company’s bottom line. 

Use a free marketing plan template to get started

Once you’ve created your marketing strategy and are ready to operationalize your marketing plan, get started with one of our marketing templates . 

Our marketing templates can help you manage and track every aspect of your marketing plan, from creative requests to approval workflows. Centralize your entire marketing plan in one place, customize the roadmap, assign tasks, and build a timeline or calendar. 

Once you’ve operationalized your entire marketing plan with one of our templates, share it with your stakeholders so everyone can work together in the same tool. Your entire team will feel connected to the marketing plan, know what to prioritize, and see how their work contributes to your project objectives . Choose the best marketing template for your team:

Marketing project plan template

Marketing campaign plan template

Product marketing launch template

Editorial calendar template

Agency collaboration template

Creative requests template

Event planning template

GTM strategy template

Still have questions? We have answers. 

What is a marketing plan.

A marketing plan is a detailed roadmap that outlines the different strategies your team will use to achieve organizational objectives. Rather than focusing solely on the end goal, a marketing plan maps every step you need to reach your destination—whether that’s driving pipeline for sales, nurturing your existing customer base, or something in-between. 

As a marketing leader, you know there’s never a shortage of great campaign and project ideas. A marketing plan gives you a framework to effectively prioritize work that aligns to overarching business goals—and then get that work done. Some elements of marketing plans include:

Current business plan

Mission statement  

Business goals

Target customers  

Competitive analysis 

Current marketing mix

Key performance indicators (KPIs)

Marketing budget  

What is the purpose of a marketing plan?

The purpose of a marketing plan is to grow your company’s consumer base and strengthen your brand, while aligning with your organization’s mission and vision . The plan should analyze the competitive landscape and industry trends, offer actionable insights to help you gain a competitive advantage, and document each step of your strategy—so you can see how your campaigns work together to drive overarching business goals. 

What is the difference between a marketing plan and a marketing strategy? 

A marketing plan contains many marketing strategies across different channels. In that way, marketing strategies contribute to your overall marketing plan, working together to reach your company’s overarching business goals.

For example, imagine you’re about to launch a new software product and the goal of your marketing plan is to drive downloads. Your marketing plan could include marketing strategies like creating top-of-funnel blog content and launching a social media campaign. 

What are different types of marketing plans? 

Depending on what you’re trying to accomplish, what your timeline is, or which facet of marketing you’re driving, you’ll need to create a different type of marketing plan. Some different types of marketing plans include, but aren’t limited to:

General marketing plan: A general marketing plan is typically an annual or quarterly marketing plan that details the overarching marketing strategies for the period. This type of marketing plan outlines marketing goals, the company’s mission, buyer personas, unique selling propositions, and more. A general marketing plan lays the foundation for other, more specific marketing plans that an organization may employ. 

Product launch marketing plan: A product launch marketing plan is a step-by-step plan for marketing a new product or expanding into a new market. It helps you build awareness and interest by targeting the right audience, with the right messaging, in the right timeframe—so potential customers are ready to buy your new offering right away. Nailing your product launch marketing plan can reinforce your overall brand and fast-track sales. For a step-by-step framework to organize all the moving pieces of a launch, check out our product marketing launch template .

Paid marketing plan: This plan includes all the paid strategies in your marketing plan, like pay-per-click, paid social media advertising, native advertising, and display advertising. It’s especially important to do audience research prior to launching your paid marketing plan to ensure you’re maximizing ROI. Consult with content strategists to ensure your ads align with your buyer personas so you know you’re showing ads to the right people. 

Content marketing plan: A content marketing plan outlines the different content strategies and campaigns you’ll use to promote your product or service. When putting together a content marketing plan, start by identifying your audience. Then use market research tools to get the best insights into what topics your target audience is most interested in.

SEO marketing plan: Your SEO marketing plan should work directly alongside your content marketing plan as you chart content that’s designed to rank in search results. While your content marketing plan should include all types of content, your SEO marketing plan will cover the top-of-funnel content that drives new users to your site. Planning search engine-friendly content is only one step in your SEO marketing plan. You’ll also need to include link-building and technical aspects in order to ensure your site and content are as optimized as possible.

Social media marketing plan: This plan will highlight the marketing strategies you plan to accomplish on social media. Like in any general or digital marketing plan , your social media strategy should identify your ideal customer base and determine how they engage on different social media platforms. From there, you can cater your social media content to your target audience.  

Related resources

How Asana streamlines strategic planning with work management

Write better AI prompts: A 4-sentence framework

What is content marketing? A complete guide

Smooth product launches are simpler than you think

Monetization

How To Create a Business Plan for Your Digital Product Store (+ Free Template)

By kelsey mclellan · published aug 26, 2024.

From creating online courses to writing ebooks, selling digital products is quickly becoming one of the most popular — and profitable — ways for content creators and infopreneurs to earn a living today. Just check out the stats: by the end of 2024, the digital media market is set to reach a staggering $560B . That’s a massive pie!

Interested in earning your own slice and building your digital product business plan? Then read on and check out our Digital Product Business Plan Template . It includes step-by-step instructions, helpful writing prompts, and fillable tables that ensure you don’t miss a beat when it comes to creating a comprehensive business plan, so you earn the most out of your digital product offering. Get it for free!

Get Our Free Digital Product Business Plan Template

Your A-to-Z guide to building a super profitable digital product business, today.

How to create a business plan for your digital product store

• Define your digital product business
• Identify your target audience
• Determine the digital products you’ll sell
• Set up your online storefront
• Develop a marketing strategy
• Determine your operations and product development process
• Create a budget and pricing strategy

Step 1: Define your digital product business

Before you can start creating your digital products , you’ll need to cover the basics, which means defining your digital product business.

This crucial first step entails choosing your niche and defining your unique value proposition.

Choose your niche

First thing’s first, you’ll need to decide on your business’s niche. Why? Well, because your niche will dictate everything from what kind of digital products you’ll be selling to the type of customers you’ll be targeting.

From productivity to personal finance, there are seemingly infinite niches out there to choose from. Seriously, the amount of choice can be a little bit overwhelming. So, how does one “niche down” and decide on a single niche among the many?

Ultimately, the niche you choose will depend on your passions and your expertise (and the demands of the digital market — but we’ll get to that in a minute). When niching down, think about the topics that you’re interested in and knowledgeable about.

What topics do you love reading about or researching online? What topics do your loved ones ask you for advice on? Do you have a pile of self-help books a mile high? There’s on potential niche. Are your friends always asking you to give them an informal “Investing 101”? There’s another.

Once you’ve figured out the topics you’re passionate about, you’ll need to do some market research to determine whether your prospective niches can actually turn a profit. For this step, you’ll be conducting keyword research, using tools like Google Keyword Planner , to determine just how healthy and how competitive your niche’s market really is. If we go with the principles of economics (or just common sense), a profitable niche will be one with high demand and low competition. This means that there will be information gaps within your niche that are waiting to be filled.

Determine your unique value proposition

Next, you’ll need to define your business’s unique value proposition.

To get technical, a unique value proposition is a statement that expresses why your business and your digital products are better than your competitors’. Your UVP should be compelling, concise, and comprehensive, and should convey your digital products’ unique benefits and how they solve your audience’s problems.

That’s a lot of words. To put it more informally, your UVP describes the “secret sauce” that sets your business and offering apart from the rest.

Mini-Course: Planning Your Digital Products

Learn how to research and plan which digital products to sell from creator Juan Galán.

Step 2: Identify your target audience

Now that you’ve determined your business’ unique value, it’s time to find your target audience .

Your target audience is the specific group of people who will most benefit from your digital products. Gaining a clear understanding of your target audience, from their demographics all the way to their pain points, is crucial to building your business plan. Why? Because these are the people that you’ll be tailoring your digital products and your marketing efforts towards.

In other words, if you want to earn the most out of your digital product business, you’ll need to create the digital products that will fulfill your target audience’s needs and solve their problems.

Conduct competitor research

To identify your target audience, you’ll need to conduct some market research — or, more specifically, some competitor research.

Here’s how it’s done. First, you’ll need to chart out your niche and compile a list of competing content creators. Next, you’ll do a deep dive into each of your competitors, scoping out their social channels and digital products offerings to gain an understanding of their product and marketing strategies . With all of this data,  you can begin to puzzle out your competitors’ unique value proposition and target audience. Finally, you’ll analyze your competitors’ strengths, weaknesses, and idiosyncrasies in all of these areas, and describe how you and your products are different — or better! 

An effective competitor analysis helps you understand which audiences competing creators are targeting and just how they’re going about it. The conclusions you draw during this research are useful to your digital product business for a few reasons.

First, they’ll open your eyes to any opportunities for differentiation, along with any potential gaps in the market that you can jump in to fill with your digital products. Secondly, they can help you identify (and, thus, target) audiences that you hadn’t previously considered, so you can expand your business’s reach — and grow your income.

Get Our Free Target Audience Templates Bundle

Learn more about your audience so you can build the digital products they want.

Create user personas

Keep in mind that your target audience represents only a segment of your niche’s larger target market. This means that you’ll need to get precise when defining it. And you can do that with the help of a user persona.

A user persona is a tool that can help content creators better understand their target audience. To get more granular, a user persona is a detailed profile of your ideal customer . When visualizing your user persona, it’s helpful to think of your ideal customers as semi-fictional characters and of your profile as a “portrait” that includes information about your user’s needs, goals, behaviors, and more.

To create a user persona, you’ll want to write a detailed narrative description of your user using the qualitative data you gathered during your market and competitor research. These descriptions will include elaborations on your users’ personality traits, habits, pain points, lifestyles, attitudes, decision-making processes, and more.

So, you might be wondering whether creating a single user persona is sufficient for your business plan. It’s important to note that a persona represents only a subset of your business’s target audience. Because a single user persona only represents a fraction of the audience you’re trying to reach, we recommend creating multiple personas, each representing a different segment of your ideal audience.

Get Our Free User Persona Template

Create user personas that will boost your marketing efforts — and earn you more.

Step 3: Determine the digital products you’ll sell

Now that you’ve defined your business and identified your ideal customers, it’s time to determine what kind of digital products you’ll be selling .

The type of digital products you’ll create depend on a few factors, namely the demands of your niche and the needs of your target audience. During this step, it might be helpful to think of your digital products as digital solutions that you’re providing to your customers. The most effective (and most profitable) digital products will always fulfill a need or solve a problem for your target audience, so keep their profile top of mind when plotting out your offering.

Of course, different digital products suit different niches. For example, templates (like to-do lists, planners, journals, and more) are the cornerstone of the productivity niche, as they’re designed to help users organize, manage, and implement tasks quickly and easily. On the other hand, educational products like mini-courses and tutorials suit the needs of niches like personal finance and personal development, where lots of complex information needs to be broken down and conveyed to an audience.

Today, there’s almost no limit to the kinds of digital products you can sell online. However, some are more profitable than others. Some of the most lucrative digital products are:

• Online courses
• Mini-courses
• Subscriptions and memberships

Want to create profitable digital products in minutes? You can with The Leap .

The Leap is an all-in-one creator store with features like an AI-powered digital product builder , a link-in-bio storefront, and a built-in email marketing suite . In other words, this platform enables you to build, sell, and promote your digital products from one place.

The Leap enables you to create a number of the best-selling digital learning products , including mini-courses, tutorials, guides, and challenges. Because it’s powered by generative AI, The Leap enables you to create these products (and put them up for sale) in just minutes.

The best part? It’s totally free to use . Try The Leap for free today .

Create and sell digital products in minutes using The Leap!

Step 4: set up your online storefront.

Now that you know what kinds of products you want to create, it’s time to set up your online shop . How else are you going to get those totally profitable products in front of your customers and flying off the (digital) shelves?

Luckily, you can build your online storefront easily with The Leap . Follow these steps to get started:

• Add your digital product to your store
• Edit your product landing page
• Set a price
• Customize your online storefront
• Share your online store

Step 1: Add your digital product to your store

When you use The Leap to create your digital products, the platform will automatically generate a sales page and add it to your online storefront. (How easy is that?)

If you have existing digital products or if you built your digital products on another platform, don’t sweat it. You can sell any digital download through your Leap storefront by simply pasting a link to the file, no matter where it’s hosted.

Step 2: Edit your product landing page

Creating a solid product landing page is crucial to making those digital product sales (and raking in that revenue). Why? Because, essentially, it’s your online storefront’s #1 sales tool.

Be sure to write compelling and informative digital product descriptions that really talk up your product’s unique selling points and benefits. You’ll also want to include eye-catching imagery that provides potential customers with a visual idea of your product’s look and UX.

Here’s an example of a product landing page from creator Kate Terentieva , who sells a mini-course on “How To Become a Creative Director.”

Step 3: Set a price

Determining the price of your digital products requires a little research and a lot of strategic thinking. We’ll get to that later in our guide.

For now, all you need to know is that your Leap storefront allows you to offer your digital products at three different price options, including:

• Lead magnet: Offer your product for free in exchange for your customer’s email address.
• Fixed price: Decide exactly how much you want to charge for your product.
• Pay what you want: Let customers decide how much they’d like to pay for your product.

Step 4: Customize your online storefront

The Leap provides you with a variety of customizable themes to choose from to give your online store a unique, on-brand look. You can also personalize your storefront by uploading your own profile picture and a cover image. To drive sales, you can even customize the button copy on your store cards.

Additionally, you can link out to your Instagram, TikTok, YouTube, LinkedIn, and more using built-in social media icons.

To get a visual on what your Leap storefront could look like (and to get that creativity flowing), check out this example from creator Kate Terentieva :

Step 5: Share your online store

Once you’ve finished building your Leap store, be sure to share your storefront link with your audience. That means adding your storefront link to your social media bio , content descriptions, and anywhere else your audience might find it.

Want to launch your online storefront today? Try The Leap for free now .

Step 5: Develop a marketing strategy

At this point, you’ve decided on your digital product offering and set up your online storefront. Next, it’s time to figure out how to promote your digital product business. And that means creating a marketing strategy.

From email marketing to social media marketing, there are lots of ways to promote your digital products online. Here are a few of the most popular methods:

Promote your products through content

Build your email list, try paid advertising.

If you’re a content creator, the easiest and most intuitive way to promote your digital products is through, well, content! This involves developing a solid social media strategy.

If you already have a following, then you already have a built-in pool of potential customers for your digital products — all you need to do is create the content that will catch their attention. Don’t have an audience just yet? Then you’ll need to choose a social media platform (or two! or three!) and start growing one organically.

The social media platform(s) you choose depend entirely on your target audience’s preferences and digital habits. In other words, you’ll want to choose the platform(s) where they hang out and consume content. And speaking of platforms, plural, a great social media marketing strategy typically involves a combination of platforms in order to reach a larger portion of a given target audience .

As you grow your audience, one thing to keep in mind is the importance of authenticity. Online audiences can sniff out inauthenticity from a mile away. And once they smell it, it can be hard to win their trust back. That’s why it’s crucial your promotional content doesn’t feel like an ad and, rather, feels as compelling, entertaining, and educational as your regular content .

So, what’s the secret to creating authentic-feeling marketing content? We suggest creating content that’s thematically similar to the digital products you’re promoting. Got an investing mini-course on offer? Consider creating a short-form video with an investing tip or two. From there, you can easily insert a subtle CTA telling your audience that they can access more of your expertise on the topic by purchasing your digital product. This method is effective because it gives prospective customers a taste of your product’s value, which gives them more incentive to smash that “Buy now” button.

Sure, social media marketing’s great and all, but did you know that the humble email newsletter still remains one of the most effective digital marketing strategies?

That’s right: on average, email marketing generates a ROI of $36 for every dollar spent . With that in mind, you’ll certainly want to leverage the power of email marketing in your digital product business plan.

Email marketing is a powerful way to convert your followers into paying customers. On top of that, email marketing also gives you more control over your business. While your social media following is at the mercy of social platforms and their fickle algorithms, your email list is an audience (and a marketing tool) that you 100% own. And nobody can take that away from you.

Before you can begin sending out newsletters, you’ll need to build out an email list , which is the list of subscribers who will receive your marketing emails. Luckily, in this day and age, there are tons of ways to capture your audience’s email addresses. These include adding opt-in forms to your link-in-bio landing page, website, and online storefronts, as well as giving away lead magnets and giving them away in exchange for your followers’ contact info.

Mini-Course: Building Your Email List

Join creator Millie Adrian as she teaches you what it means to own your audience by building an email list.

If you want to invest a bit of money into your digital product business, try advertising it. As a digital product seller, there are a couple of ways to approach your paid advertising strategy.

First, you can advertise your products on social media through sponsored ads. From Instagram to YouTube, every content platform has some way for you to advertise your digital products. And a single sponsored post can go a long way! We suggest approaching your paid advertising strategy as an experiment with a smaller budget. Look into commissioning an ad or two for your digital products and see where it takes you.

Secondly, you can try out Google Ads . These ads get displayed on Google search results, on websites and blogs, and in a ton of other locations around the net. This means that Google Ads have the potential to give your digital products a ton of visibility. Google Ads also have some of the best targeted advertising tech on the market, which means that your ads have a better chance of reaching the people who will want to buy them.

Step 6: Determine your operations and product development process

Getting your operations in order is crucial to setting a solid foundation or your digital product business. This process involves choosing the tools and software you’ll use to run your business and, most importantly, outlining your digital product creation process.

Hammering out your product development process is threefold and includes establishing processes for:

• Research and development
• Design and production
• Quality control and testing

Need help developing your digital product creation process? Our Digital Product Business Plan Template ensures you hit every mark when it comes to establishing your digital product creation process, while helping you organize the rest of your business operations.

Step 7: Create a budget and pricing strategy

In order to set your digital product business up for success, you’ll need to get clear on how much money you’ll be bringing in and how much you’ll be spending. In other words, you’ll need to create a financial plan for your digital product business.

This involves projecting the amount of revenue your digital products will bring in over time, as well as determining your business’s fixed and variable costs, and your break-even point.

You can’t calculate any of this, however, until you’ve come up with your digital product pricing strategy. Creating a pricing strategy that aligns with you and your audience’s needs takes some strategic thinking and market research. On one hand, you’ll want to make your products accessible to as many potential customers as possible, however, you’ll also want to ensure you’re pricing your products competitively and not selling all the work you put into them short.

When it comes to pricing your digital products , there are three popular strategies to choose from. They include:

• Value-based pricing: Pricing based on what your product offers.
• Cost-based pricing: Pricing based on what you paid to make the product.
• Competitor-based pricing: Pricing based on your competition.

Need help developing your digital product pricing strategy? In addition to guiding you through your business’s financial planning, our Digital Product Business Plan Template helps you manage your pricing strategy, from your competitor research to deciding on your price tag.

Why should I sell digital products?

It’s simple: Digital products are a powerful source of passive income .

Ever heard the saying “making money while you sleep”? Well, that’s passive income. This type of hands-off revenue requires little effort on your part. That means you can earn money while focusing on other things — like creating content or taking some well-earned R&R.

So, how do digital products enable you to earn a passive income? When customers purchase your digital product, what they’re really doing is downloading a copy of a digital file. This means that you only need to produce your digital product once. After that, you can sell endless copies without having to lift a finger producing new “stock.”

Digital products are also relatively inexpensive to create and maintain, compared to physical products. Because digital products exist online, you don’t need to invest in expensive real-world solutions like a brick-and-mortar store or a warehouse. Instead, you’ll be building and selling your digital products with digital tools, like authoring programs and online storefronts , at a fraction of the cost.

Launch your digital product business today

And there you have it: everything you need to build and launch a successful (read: lucrative) digital product business. Now, it’s time for you to get down to business putting this guide (and our handy template ) to good use and plotting out your roadmap to becoming a digital product mega-seller.

Build, market, and sell digital products all in one spot with The Leap!

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Further reading

• How To Sell Digital Products Online: A 6-Step Launch Checklist
• 15 Profitable Digital Products To Sell Online (+ Real Examples)
• 13 Best Examples of Digital Products Created on The Leap
• How To Promote Your Digital Products: 10 Ways To Boost Sales
• How to Write Digital Product Descriptions for Your Online Store (Tips + Free Template)

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Extended Marketing Mix: What It Is and Why It's Useful

Updated: July 30, 2021

Published: July 08, 2020

Cooking is my favorite pastime. It's so much fun to find new recipes and learn about new ingredients. Plus, (usually) the results are delicious. Finding new recipes and ingredients is nothing short of delightful.

One meal I love to make is grilled cheese — but not just any ole' grilled cheese. Instead, I use plant-based ingredients and add two condiments: butter, and mayonnaise (trust me).

If I were making grilled cheese for me, I'd have to add some things. First, all of my ingredients have to be plant-based due to my dietary restrictions. Second, I'd add two more condiments: butter and mayonnaise (trust me).

On its own, cheese and bread is a great duo. But with a few additions, a nice duo becomes an excellent mix — one that I'm always excited to eat.

Like a perfect sandwich, every marketing structure calls for good strategies, or "ingredients," that make it great. Those "ingredients" are generally referred to as a marketing mix, and can be summed up in four categories: Product, pricing, placement, and promotion.

While the marketing mix describes the basics for product marketing, it doesn't have room for services marketing. That's where the extended marketing mix comes into play. And, just like my vegan grilled cheeses, a few additional changes can elevate your service marketing structure to the next level.

Here, let's dive into what extended marketing mix means, and how it can help

Extended Marketing Mix vs. Marketing Mix

The marketing mix pillars work together to help you make business decisions that'll define marketing strategy and activities. Identifying these pillars points out what you need, where your company excels, and where it can improve.

The four pillars of the original marketing mix are as follows:

• Product — This is what your company sells.
• Place — This identifies how you will sell the product to customers in their preferred way to shop. For instance, will you sell your product on a website, or in a brick-and-mortar shop?
• Price — This determines how much money you need to sell your product for to hit revenue goals while remaining within price ranges determined by the industry at-large.
• Promotion — This is where you flesh out the methods you use to engage customers. Promotion, selling, PR, sales, and ads are how businesses commonly communicate with their target market.

Notice how the marketing mix naturally works together. Products need a price, place to be sold, and promotions to reach an intended audience. Promotions need a product, price, and place to make that messaging effective. Ultimately, any way you look at the mix, you'll find how the other three fit.

On the other hand, the extended marketing mix is just that — an extension of the original pillars. Instead of just four components, there's an additional three. These three allow for a more complete, updated mix.

The extended marketing mix came along when marketers noticed the original was outdated and needed a few extra pillars. With the additions, the marketing mix now allows for services marketing.

What is the extended marketing mix?

The extended marketing mix describes three more P's added to the original four. People, processes, and physical services make room for services marketing and round out a complete marketing mix method. Marketers can use the extended marketing mix to flesh out a structure if their business sells a service instead of a physical product.

• People — Describes the people behind the company. No matter the role, the people working with the product are as essential as customers. They advocate for the company and communicate the business' value to their customers.

Example: The baristas at my local coffee shop create an exceptional customer experience. Of course, the lattes are good, but my favorite barista greets me by name and knows my order, and that ultimately keeps me coming back. A company is only as good as the people behind the scenes.

• Processes — Identifies how you will meet customer expectations. Outline what you will do to deliver a fantastic consumer experience every time. Consider creating standard operating procedures (SOPs) to solidify processes.

Example: Let's revisit the coffee shop scenario. Baristas have a recipe to follow when making various drinks that make sure the customer gets their order the way they expect.

• Physical Evidence — Notes the physical elements needed to complete the mix. Even if a company provides services, there are physical aspects that companies use to delight customers and set themselves apart from competitors, like promotional materials.

Example: The coffee shop in my neighborhood thrives and defines itself with being a local business among the mass of coffee chains in my area. Everything is local — the beans, the mugs, and the decor comes from the Boston area — and that's how it's different from a massive chain.

The extended mix, like the original, works with the rest of the mix.

First, let's talk about how the three Ps can intertwine. People at your company have to follow the processes set in place, using physical evidence . We can also say the processes set in place define the role of people and physical evidence .

If we look at the both mixes, we see the same. Companies need the right people to execute promotion of the product or service. To put the connection between the mixes in a different way, the extended mix is a customer-facing toolkit for enhancing the marketing mix.

The extended marketing mix helps companies define their marketing strategy in a well-rounded system. Identifying each portion of the mix gets you one step closer to a functional, complete marketing plan .

Consider using the extended marketing mix to help you make business decisions that sets your company apart from competitors. For instance, fleshing out the tools needed for promotion involves coming up with an individualized marketing campaign audiences love.

Marketing mixes are considered a foundational part of any organization. If you are just starting to define a business plan , use this strategy to help with budgeting for marketing. The different elements of the mix helps figure out costs.

Every pillar, especially price and promotion, help you determine where to allocate your budget . For example, you have to determine a fair price for your product, and finalize how much you're willing to put towards other factors, such as promotion and physical evidence.

Now that you know a little more about the extended marketing mix, are you going to use it to figure out your next campaign's expenses? Remember, this strategy isn't just for start-ups. If you're struggling to define a successful strategy, identifying these pillars can be a helpful organizational tool.

Marketing mixes and their extension. Cheese and bread. Chai leaves and hot water. Duos are best when they work together — how are you going to make your marketing mixes work together for your company?

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3 Marketing Mix Tactics To Use For Event Planning

Savannah McIntosh

Jul 11th, 2019

Event Marketing

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A key component of preparing for your event is marketing it. There are dozens of marketing methods out there, and it may seem that every organization has a different promotion method. Yet, most event organizers realize they need a proven, well-rounded method of marketing as they have limited time to get results. One place to start is with your marketing mix. Here’s a look at what it is and three event planning marketing mix tactics to keep in mind.

What Is Marketing Mix?

The simple definition of marketing mix is that it’s the tactics or the actions you use to promote your event to the market. Rather than one single element, it is based on all the methods you use. Marketing mix isn’t a new term. We have used it since the 1950s. It’s still very much relevant, especially for those planning an event and looking for the right balance of marketing methods to reach their audience.

The 4 Ps for Event Planning

Marketing mix focuses on the 4 Ps: price, product, promotion, and place. In each area, you need to consider what’s right for your event. Here’s a closer look at each one.

Price:  The price you set for the event is critical, and it can define the marketing methods you use. You must understand what the customer is likely to spend on the event, based on how valuable it is to them. Lower prices mean more likely purchases, but it needs to be high enough to create a profit margin.

Product:  The product component of the marketing mix looks at the product you are offering, or the event you are planning. What is the event? What problems does the event pose? Are there any challenges to hosting the event?

Promotion:  This is the area most organizations focus on– the digital advertising online and offline, the public relations aspect of marketing your event. What type of media is right to reach your audience? Is print media beneficial, or should you focus on online ads?

Place:  The next consideration is the location of the event. Where will it be held, and why is this location ideal? You also need to consider factors such as parking, seating, the venue size , and the overall access to your likely attendees. 

Using these factors, you need to identify what your marketing mix is to reach your audience. Create a basic answer to each one of these questions. Using a bit more information, you will be able to create a plan for how to reach your audience and fill your event’s seats.

Identify Your Target Audience

Many of the decisions you will make here cannot be made until you identify your target audience. Who is the most likely person to attend your event? It becomes essential to consider this for several reasons. First, you need to learn who to market to; what are the demographics or shared features of the people that are likely to attend your event?

This may mean identifying who your previous investors were (who came to previous events you’ve held?) If this is your first event like this, it’s harder to pinpoint who the ideal audience is. However, use information about the area to help you.

Second, you need to determine where your audience is. The marketing methods you use need to be effective towards that group, but they have to be able to see it, learn about it, and embrace it. To do that, you need to get your marketing media in front of them. Is your audience online? Do they take public transportation? Are they more likely to be the people on a bus that are seeing a billboard or the digital ads?  To figure out your target market, check out this article to learn more. 

Set Your Goals and Budget for Your Event

Determine how much money you can put towards marketing, considering the 4 Ps and the target audience you plan to reach. You don’t have to have a huge budget to get good results, but you need to use those funds wisely.

Finally, create some goals . Once you establish a location and the event, consider other aspects of your marketing mix. What type of message do you want to use to attract your audience? Where will you place that message? Create goals on how many people you will reach with your marketing effort. For help with creating achievable goals, check out this article. 

Marketing mix is about creating a strategy that identifies who is right for your event and how you can reach those people to encourage them to attend. The more well-thought-out and planned your event is in these areas, the more likely you are to achieve your goals of filling the seats and hosting a must-see event.

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