Successful business people always apply the marketing mix concept in their business. They believe that the marketing mix is an important concept or foundation for the success of a business.
Has your company implemented the elements of the marketing mix? If not, read this article to learn more about the concept and application of marketing mix in your business.
Definition of Marketing Mix
Marketing mix is a set of variables or elements that are useful to achieve marketing goals and reach target customers. The elements of the marketing mix are combined to achieve satisfactory results in marketing activities.
Neil Borden was the initiator of the marketing mix in 1964. The marketing mix originally consisted of 12 aspects and was then simplified into four main aspects, namely the 4Ps (product, price, place, and promotion) by Jerome McCarthy (1968).
In 1981, the marketing mix began to evolve into 7Ps and added three more main aspects, namely people, process, and physical evidence. This 7P aspect has become a popular marketing mix element and is implemented in many companies today.
Benefits of The Marketing Mix
Why is the marketing mix considered key to a successful corporate marketing strategy? The reason is that many benefits can be derived from implementing the marketing mix. Here are many reasons:
- Analyze finances and know the outflow of expenses and operating income.
- Allocate limited resources appropriately so they are used as effectively as possible.
- Facilitate the communication process between business departments regarding duties and responsibilities that need to be executed.
- Simplify marketing activities into one so the process is easier to execute.
- Assign responsibilities or tasks to employees based on their skills and abilities.
Marketing Mix Elements
The important elements in the marketing mix include seven business aspects known as the 7Ps. See the full explanation of each of these elements.
1. Products
Products are production outputs that have functional value and are capable of satisfying the needs of people, especially the target market. Usually in the form of goods and services, but also includes digital products such as websites, applications, or software. Products must be produced according to market demand and be able to solve their problems.
2. Price
Price (price) in this context means the nominal money customers are willing to pay to obtain the product. Customer interest decreases if product prices are too high. On the other hand, prices that are too low can hurt a company. The solution, you need to determine the break-even price (BEP).
3. Place
The place is where your business operates, or the distribution channel to reach target customers. This is not only about physical places like stores, stores, warehouses or headquarters but also virtual places like marketplace websites and social media.
4. Promotions
Sales promotion, namely activities to increase brand awareness and product sales of a company. Before the development of the Internet, advertising was done through traditional media such as newspaper ads, television, billboards, or flyers. Now, promotions can be launched online through a digital marketing strategy.
5 People
People (People) are Human Resources (HR) who carry out the operational activities of the company, starting from management to employees. HR can determine the progress of a business, so you need to choose the right people to work with.
6. Process
Process (Process) is a mechanism, procedure, or flow of production and distribution of products to consumers. Every company must have clean procedures for handling consumer requests. Businesses can serve consumers in unique ways, for example, restaurants with open kitchens so consumers can see the food processing.
7. Physical Evidence
Physical evidence, also called physical proof, is any tool that proves the existence of your business. Physical evidence is not only in the form of products, but can also be in the form of logos, events, employee uniforms, or souvenirs. Businesses need physical evidence to build customer trust.
How to Implement The Marketing Mix In The Company
The above elements of the marketing mix must be implemented effectively in your business. Follow these tips to make the most of the 7P elements.
1. Select Products That Are Needed By The Target Market
Conduct market research before you produce a product so that you can find out the needs or problems of the target market. The results of this research can help you develop a potentially profitable product. Products also need to be unique and creative to be attractive in the eyes of customers.
2. Set The Price According to BEP
Break Even Price (BEP) is the lowest price that can be set for a product without causing a loss to the company. In short, BEP is the safest price point to get customers interested in buying your product. Once you have your BEP number, you need to add some numbers to keep your business profitable.
3. Choose an Ideal Business Location
The ideal business location is determined by your target market. Make sure they can reach your business in a strategic location. You can open an online store on a marketplace website or social media so you can reach more buyers and not have to worry about permits for the location.
4. Design a Promotional Strategy
There are so many ways to promote products. However, you need to design a good advertising strategy so that the results will be targeted. Determine the channel you want to use, the target market, and the content design that will attract the attention of your target audience.
5. Recruit Employees
It is very important to keep the recruitment process and candidate selection as rigorous as possible. Employees with good skills and performance can contribute to company productivity. It is easier for companies to achieve goals when employees want to work together to achieve them.
6. Establish Business SOP
For process elements, you need to create a standard operating procedure (SOP) that is systematic and easy to understand. SOPs are useful as work guidelines for employees when manufacturing or distributing products. You must also ensure that each business process operates according to the established SOP.
7. Provide Evidence of The Existence of a Business
Products alone are not enough to prove the existence of a business. You need to put your business identity on the product label or company headquarters. In this fast-growing digital age, you can create a website as a means of product promotion and marketing.