Marketing mix: definition, 4ps and 7ps, elements and examples

What is a marketing mix?

Elements of the marketing mix: 4ps and 7ps

Product

  • Does the product satisfy the customers’ needs?
  • What makes it different from the competitors on the market?
  • What makes it unique?
  • How would your customers benefit from using the product?
  • How would it make their lives better?
  • How are you going to promote the product on the market?

Price

  • What is the lowest price at which you would offer the product?
  • What is the highest price at which the customers can afford to buy your product?
  • How price-sensitive are the consumers?
  • What are the current market leaders’ prices in your niche?
  • Is there a defined approach to pricing for this type of goods or service?
  • What is the difference between your price and the prices charged by competitors?
  • What kinds of discounts should you provide to business customers or other specific market segments?

Place

  • Where do potential customers go to find your goods or services?
  • Which online and offline stores sell your product?
  • What can you learn from your competitors about the physical presence and distribution of their goods or services?
  • Do you sell directly to your customers, or do you have to go via intermediaries?
  • What are the best ways to find suitable distribution channels?

Promotion

  • What channels does your target audience prefer to get information from?
  • What kind of messaging works best when promoting your products?
  • When is the best time to advertise your product?
  • Is the market sensitive to seasonality?
  • How do your competitors promote their products?

People

  • What are the necessary skills for the marketing specialists to implement your strategy?
  • What are the features of your brand personality?
  • What values, goals, and attitudes does your company culture include?
  • How can you increase customer loyalty and create genuine connections?

Process

  • Is your primary distribution channels’ logistics cost-effective?
  • What is the state of your delivery and scheduling?
  • Do you have enough employees to cover peak periods?
  • Is it safe to order from your website?
  • Will your third-party vendors run out of supplies at critical moments?
  • Do you receive recurring complaints from your customers at specific points of interaction?

Physical evidence

  • Do your packaging, branding, and interior design convey your brand personality?
  • What kind of impression the physical environment where you provide the product or service makes on your customers?
  • Does the physical environment satisfy customer expectations?
  • Does your website design reflect the image of your business?
  • Is your website easy to navigate?

Marketing mix examples

Apple marketing mix

  • Product. The company is best known for iPhone, iPod, and Macbook with a large selection of additional accessories. Apple’s guiding principles include creativity and innovation, so the company creates easy-to-use and stylish products and constantly improves them. The product design is kept secret, and the customers usually expect fresh and exciting solutions.
  • Price. The company established its image as a premium and luxury brand, so the prices are above average. As Apple invests in R&D and owns the software used in the products, the expenses for production constitute a major part of the budget. The company charges a high initial price for the products and lowers it overtime to reach the price-sensitive segment of the target audience.
  • Place. To maintain control over distribution, the company keeps strict standards for the shops allowed to sell their products. Apple distributes the products at Apple Stores, official websites, and via third parties such as authorized and telecommunication sellers.
  • Promotion. Apple avoids information overload, extensive product feature lists, and distracting effects. The company emphasizes the unique value proposition and rarely shows the price of the products.
  • People. Apple seeks people with enthusiasm and idealism and employees who want to do the impossible until they discover a way. The company’s customer service applies the A-P-P-L-E formula:
    Approach with a personal greeting;
    Probe gently about the customer’s wants;
    Present the solution the client can use right away;
    Listen to concerns and issues;
    End with a warm goodbye and an invitation to come back.
  • Process. The company makes the purchasing process very easy due to the simple navigation on their website and friendly customer support team.
  • Physical evidence. Apple stores are welcoming and minimalistic to provide a personalized experience. The packaging is visually appealing and creates an impression of the premium brand.

Tesla marketing mix

  • Product. The company sells top-quality and highly differentiated products with practical design under five categories serving as product lines. This allows customers to choose the most appropriate products with unique features.
  • Price. Tesla sells products at a higher price than its competitors. Thus, the price compensates for a larger number of features. The company also invests in R&D to improve the efficiency, safety, and convenience of automobiles and other products.
  • Promotion. Tesla uses the website, social media, and strategic locations of its stores to promote the products. In addition, due to the sustainability of the products, the brand gets considerable media coverage. The network of Supercharger stations creates an additional presence for the company and serves as a competitive advantage, as no other electric vehicle company has anything similar.
  • Place. Tesla’s automobiles are marketed and sold directly to customers through its global network of stores and galleries owned by the company. The vehicles are presented at limited markets due to the premium pricing and unique concept that is not suitable for everyone.
  • People. Direct sales create a better customer experience. The consumers communicate only with the sales team and customer service representatives. The company collects customer feedback at the stores, social media pages, and helpline to improve the services.
  • Process. To ensure that the items are constantly available in retail locations, Tesla has installed systems that alert retailers when inventory levels are low.
  • Physical evidence. In the stores, the company strives to create “the feel of an Apple store, a Starbucks, and a good restaurant”, which is a tremendous competitive advantage. Tesla offers the customers to spend time in a comfortable lounge, have a coffee and a snack. There is also an opportunity to make a free international call or consult the technician assigned to a certain car. In contrast, the other automobile companies often have no place to sit unless the clients are ready to sign the contract.

McDonald’s marketing mix

  • Product. Thecompany has created a menu for customers with specific preferences and of different ages, such as a vegetarian menu and Happy Meal. The diversity of product lines, including burgers, salads, chicken and fish, snacks, beverages, and desserts, attracts various customer groups.
  • Price. McDonald’s pricing strategy is aimed at increasing sales volume and profit margins. The company uses a combination of bundle pricing strategy and psychological pricing strategy. McDonald’s offers product bundles for lower prices compared to buying each product separately. According to the psychological approach, the prices are perceived by the consumers as more affordable.
  • Place. The company builds restaurants in neighborhoods, airports, malls, tollways, and colleges to provide convenience to the customers. McDonald’s states that consumers can find the restaurant practically everywhere they go. The company also provides an online delivery service via website and mobile app, which has increased sales and profit margins.
  • Promotion. The company uses various tactics for product promotion, including advertising, public relations, direct marketing, and sales promotions. The most frequently used tactic is advertising on TV, newspapers, magazines, and the Internet.
  • People. Every year the company spends £43 million on employee training and development in the United Kingdom only. The major company’s goal is to address problems that impact both customers and employees. If employees are unhappy, they will provide lousy customer service.
  • Process. The food preparation process is transparent and entirely visible to customers. The company also optimized the processes related to placing orders and waiting for them.
  • Physical evidence. McDonald’s interiors are appealing, and the restaurants are usually kept clean. The packaging design is simple, stylish, and convenient.

Netflix marketing mix

  • Product. Netflix offers three categories of content: the movies and documentaries that were previously shown on other platforms, the content demonstrated for the first time but created by other companies, and original content created by Netflix.
    Every week the service adds new content to satisfy consumer demands.
  • Price. The platform provides three subscription plans, including basic, standard, and premium, to target different customer groups.
  • Place. One of the most significant service advantages is availability. The customers can watch movies from various devices from anywhere in the world at any time.
  • Promotion. Netflix communicates with its target customers across practically all media channels, such as social media, word of mouth, print media advertising, and others. The additional way to promote the platform is the original content generated by Netflix, such as The Queen’s Gambit, The Crown, Stranger Things, and Money Heist. Future customers may learn about it from sources unrelated to Netflix, but then sign up for the service, as that would be the only way to watch it.
  • People. The company prioritizes employing talented individuals from a variety of cultures with different backgrounds. According to CNBC, Netflix became the top company in the world where people wanted to work.
  • Process. The service provides convenience. For new Netflix subscribers, the first 30 days are free. If the customers are satisfied with the platform, the subscription is automatically extended. In the other case, they can unsubscribe anytime.
  • Physical evidence. Netflix provides an incredibly user-friendly website as well as a mobile application.

How to define your marketing mix?

  1. Define clear goals.
  2. Make a financial plan.
  3. Determine the unique selling proposition and target market.
  4. Conduct market research.
  5. Consider the distribution channels.
  6. Develop your pricing strategy.
  7. Select the promotional methods.

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