A set of procedures by which the business generates value for customers and makes strong relationships in order to capture market shares that satisfy the individuals and organizational objectives.
The marketing mix is a combination of different tools of marketing that is helpful in determining the role of each tool in promoting of goods and services offering by companies and delivering those (goods and services) to the customers. It is a long-term roadmap that helps us understand what kind of strategies that may be adopted for establishing a new marketing place. The market mix is all about product/services, place, pricing, and promotions. It is better known as 4 Ps. Here we discuss 4Ps (product/services, place, pricing, and promotion) in details:
It is the essential part of marketing mix because the products and services are representing the organization and generating goodwill for the holding company. Well-known businesses try to design the products/services keeping in mind the customer’s preference.
Companies also design their products/services by analyzing the buying behavior and preferences of their consumers like affordability, durability, religion, uniqueness, quality, designing, availability, and vice versa.
The success of brands is highly dependent on the products and services offered by companies for their targeted consumers, geographical locations, religions, etc. These are the crucial factors that provide the power to maintain the survival of existing in the marketplace.
According to this fraction, companies have to retrieve their product line and get along their long-run goals of the organization. Through this methodology, the organization turns into a customer-oriented one and can keep their long-run survival possible.
Pricing is the second component of marketing mix which gives you the competitive edge as compared to your competitors in the same market. It is the worth of your product or service on which the consumers agree to buy the offering goods/services.
Prices always fluctuate with different time or seasons, thus companies need to evaluate the traditional and environmental changes of the country where they would like to initialize their products and services. Although keeping other facts in mind in respect of pricing like purchasing power, quality, accessibility etc. Marketers are trying to keep the customers at any cost because it is a natural phenomenon that customer is your ultimate God.
Placing is another important factor of marketing mix through which the businesses evaluating the right product at the right price, at the right place, at right time. The place is usually concerned with accessibility because the consumers and users of that product and services easily getting satisfied with little traveling. Companies are brainstorming for reaching the best locations where they are establishing their branches and getting maximum profitability. It’s also beneficial for the relations between the companies and its customers.
Promotion is the only key by which the consumers getting information about products/ services specifications. Companies adopting different promotional companions for creating awareness to the welfare of general public.
Advertising is a fast medium of exchange ideas that grab the attention of customers towards the products and services. It also builds a relationship between companies and consumers and exchange ideas between both parties to have a positive impact on sales, profits and business objectives.
Types of pricing strategies:
Here we discuss some kinds of pricing strategies:
In this type of pricing, the organization sets a low price to increase the sales and trying to capture maximum market share. Once the company has successfully maintained the maximum share of the entire market then the price rises gradually.
The marketing brains introduce a product at a high price and coming downwards to the low price within the specified time duration. The objective of this strategy is to skim the profits from the market layer by layer. The company has three options in settlement of pricing which are low pricing, same level, high pricing as compared to the competitors.
The business offers a bundle of different products at a low price generally known as buy one and get one free.
Premium pricing means products and services offered at a comparatively high price to reflect the exclusiveness of the products /services.
Cost Base Pricing:
In this strategy, the price of product and services decided on the base of cost and distribution in which a nominal profit is also considered and after that they decide a final price.
Cost Plus Pricing:
The pricing in which the firm adds a cost percentage merged with a little profit for the decision of final price of respected product or service.