So, the basic components of the marketing mix today are considered to be 4P: Product, Price, Place, Promotion.
The first element ("Product") contains information about a set of product properties that fully meet the needs of the target audience. The second component ("Price") tells about the correct formation of cost and calculation of profitability. "Place" is the choice of the distribution model, and "Promotion" is the methods of informing consumers about the product. Next, we will analyze each component separately.
Elements of the 4P Marketing Mix
Product
A product can be any physical amazon database product or service provided by a company. An example of the former is a McDonald's signature cheeseburger, while the latter is cargo delivery from Delovye Linii. In both cases, the basic needs of the target audience must be met. It is also necessary for the product to be in demand among consumers and compete with others in its market niche.
The 4P model requires:
identifying product features that distinguish it from competitors;
determining the main need that the product must satisfy;
development of ways to increase the attractiveness and demand for this product.
An integral element of the brand is the product packaging. Therefore, special attention should be paid to its design.
From the point of view of the 4P marketing strategy, the product combines:
logo and brand symbols;
product appearance;
functional characteristics;
quality level;
range of models;
customer service;
guarantees.
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Price
This component examines ways to influence sales using price regulation. A striking example here is the Black Friday sales. Thanks to a set of such events, sellers can significantly increase revenue and attract many new customers. Discounts are set for a specific product, a product line, or the entire range.
The following are taken into account:
advertising costs (added to the cost price, as well as to the costs of storage and delivery);
marginality (the average discount size is determined);
demand for the product (to promote a little-known brand, so-called hook products are used, which are more popular among the target audience).
In this marketing mix strategy, the price is formed taking into account the following factors:
possibility of adjustment due to changing market situation;
price competitiveness;
the ability to sell goods at current prices without significant loss of income.
In this case, you should decide on:
appropriate policy at the start of sales;
cost across different sales channels (for example, for retail and wholesale);
retail value depending on the selling price;
availability of discount promotions;
price range for selling an entire category of products;
various features of marketing campaigns (regularity, duration, maximum discounts).