The marketing mix: the winning recipe for defining your marketing strategy?
The marketing mix is a concept developed during the "Trente Glorieuses", inseparable from the notion of the "P's" (4P, 5P, 7P, etc.).
While it serves as a framework for developing a marketing strategy and deploying related operational actions, is it still relevant in the face of new business challenges?
This is the question we will attempt to answer by defining the marketing mix, its various components and how they are evolving. We will also use a practical example to show how the marketing mix can be used to build a solid, coherent marketing policy.
Marketing mix: definition
The marketing mix is defined as a system whose aim is to :
- analyse the market in order to determine how to address it ;
- articulate its marketing decisions and actions around a set of essential components (the famous "P's");
- to achieve its commercial objectives over time, using a structured methodology.
Why use the marketing mix?
When it comes to establishing a marketing strategy, every company is faced with the following problem: where should it start?
This is where the marketing mix comes in:
- The marketing mix provides a framework. It ensures the coherence of its strategy and actions through :
- analysing the pillars on which they are based (product, distribution, communication, etc.). We will go into more detail on each of these below;
- the interdependencies between these pillars, the aim being for them to work in complete synergy.
- A marketing mix strategy is always built with a specific market in mind. As a result, it helps to meet the expectations of the target audience, since each component is carefully studied in line with their needs.
- Finally, the marketing mix is a good tool for differentiating yourself in the market. By studying how the competition responds to the issues associated with each aspect of its strategy (its pricing policy, for example), we can obtain a more detailed analysis of how to stand out from the crowd.
But we have seen that the marketing mix is inseparable from the notions of 4P, 5P or even 7P. What lies behind these curious names?
The components of the marketing mix: what are the 4Ps of marketing?
Behind this name we find a formidable mnemonic device for understanding and remembering the 4 fundamental pillars on which any marketing strategy must rest.
☝️ Let's not forget that they are interdependent, and are designed in line with a specific market and target.
Digitiz
P for Product
This is the product policy put in place, the term "product" including, of course, the sale of services.
A number of questions then arise:
- What does the product promise?
- What value proposition will set it apart from the competition?
- How does it meet the needs of its target audience?
But defining a product policy also means looking at more "material" aspects:
- packaging
- its characteristics
- design, etc.
P for Price
In marketing, defining the selling price of products and services is not something to be taken lightly.
Pricing is based on :
- the value of the product
- the expectations of its target audience, since any pricing policy says a lot about the positioning of a brand or company. For example, gaining credibility in the luxury market implies a relatively high price (provided, of course, that the quality is there!).
There are other parameters to consider when establishing a pricing policy, such as promotional strategy.
P for Place
By "Place" we mean the product's distribution policy.
There are a host of possibilities:
- mass distribution,
- specialist shops
- e-commerce and marketplaces, etc.
How should brands think about this?
- Which distribution channel is best suited to bringing their product into contact with the target audience, based on the latter's consumption habits?
- How to combine multi-channel approaches.
☝️ Note that there are other aspects to consider, particularly logistics and distribution channels.
P for Promotion
Finally, every company needs to think about how it intends to promote its products or services.
- What communications strategy should be put in place?
- Which channels should be favoured (paid advertising, social networks, etc.)?
In short, it's all about finding the right recipe to bring the product and its audience together.
Developments in the marketing mix: 5P, 7P then 10P
What are the 5Ps of marketing?
The 4P model is often called into question, or at least supplemented.
In fact, we often come across the notion of the 5Ps, which was born out of the realisation that consumer satisfaction, through building consumer loyalty, was proving to be an essential component.
The 5P concept is based on the 4P concept, with the addition of " People".
It implies :
- That employees are also a showcase for the company they work for. Like brand ambassadors, they have a duty to work towards maximum customer satisfaction.
- Consumers are becoming increasingly aware of who is selling the product they want. They are more interested in buying 'ethically', and in the values reflected by brands.
Extended marketing mix: the 7Ps...
But with the societal upheavals of recent years, particularly the rise of digital technology, the marketing mix framework has been fleshed out with even more "Ps".
© Coveto
- Process 👉 this component highlights the fact that clear, well-constructed processes are also a guarantee of a brand's success. They make it possible to structure the work of teams more effectively in order to :
- constantly improve customer satisfaction,
- optimise costs.
- Physical Evidence 👉 This concept, which translates as " material proof", responds to the following problem: how do you prove to consumers that a particular product or service is really satisfactory?
Here, we're thinking first and foremost of customer reviews, which have proliferated in tandem with the development of online commerce. The bottom line is that customers now have the means to find out more before making a purchase, and to compare offers. The marketing mix needs to adapt!
... followed by the 10Ps
Finally, we come to the 10Ps of the marketing mix. In addition to the previous pillars, these include:
- Permission marketing 👉 yet another example of the marketing mix adapting to changing consumer aspirations. The term "permission marketing" covers the following reality: customers like to go to a brand on their own. This observation underpins the whole raison d'être of inbound marketing. Intrusive marketing, on the other hand, is increasingly disliked.
- Partnership 👉 the partnership between two brands encourages the development of their respective brand awareness. These partnerships are achieved through :
- the development of new products, services or concepts by two different entities (co-branding) ;
- communication initiatives. Example: GoPro and Red Bull target the same young, sporty audience. As a result, they have built communication campaigns together, including the memorable jump from space by parachutist Felix Baumgartner:
- Purple Cow 👉 Finally, behind this amusing name of " purple cow" hides a most pertinent concept, developed by Seth Godin: in a meadow of cows, they all seem to look the same. But if one of them is painted purple, that's the only one you'll notice.
Moral: the product or service developed by a brand must be sufficiently remarkable to touch consumers' emotions and become memorable.
Marketing Mix: a concrete example
Finally, to further illustrate the above, let's focus on a concrete example. Let's analyse the Starbucks marketing mix, using the traditional 4Ps.
Pixabay/denniskendall
- ☕ Product: Starbucks' gamble? Bet on both :
- quality products, through a demanding policy ;
- innovation. Expanding the ranges on offer allows Starbucks to evolve with the tastes of its target audience, or to adapt to seasonality ;
- Experience. The brand has made its mark on the market by offering each customer a unique experience.
At the same time, as coffee is a perishable commodity, the brand ensures that each stage of production runs smoothly, buying the beans and then roasting them in its own factories.
- 💰 Price: the relatively high price of Starbucks products reflects two realities:
- the quest for quality (meticulous selection of coffee beans, for example),
- the justification for the experience. The brand has gambled on consumers' tendency to associate high quality with a high price.
- 🏪 Place: Starbucks products are mostly distributed in their own cafés. Consequences:
- the brand benefits from a direct supply chain from producers to consumers ;
- it has better control over customer relations and the consumer experience with its products, enabling the introduction of best practice (personalisation, using the famous name on the cup, for example).
In addition, the number of points of sale is growing by the thousands (over 29,300 in 2018), and they are opening up in strategic locations (shopping centres in particular) to become more integrated into the daily habits of their target customers.
- Promotion: Starbucks has not invested heavily in advertising, unlike some of its competitors. Since it's the experience that counts, the company has banked on the idea of belonging to a community. As a result, loyal customers became true ambassadors for the brand, and word of mouth was able to spread.
The marketing mix: a framework to make your own
How far will the marketing mix develop? How many more 'P's will the various professionals in the field come up with?
In reality, it is easy to question the extended marketing mix: many will say that the new components were already included in the initial 4Ps. "People" or "Physical Evidence", for example, fit perfectly with "Promotion".
But never mind! The main thing to remember is that the marketing mix is the basis on which each brand can cook up its own miracle recipe. And that, like any methodology, it is only too happy to be shaken up, adapted and reinvented.
Article translated from French