The Marketing Mix

The Marketing Mix

There are many items or situations that require a well-balanced mixture in order to be successful. For instance, a cake mix requires a specified amount of each item, otherwise the cake might be too sweet or just not good at all if the ingredients aren’t mixed right. The same is true with marketing. Marketing requires a good mixture in order to be successful in the final sale of the product at a profit. The following will discuss what the marketing mix is and a brief history of the marketing mix. It will also discuss further in detail the four P’s of the marketing mix, as well as, show the relation of the marketing mix to a product offered by Verizon Communications.

The History of the Marketing Mix and the Four P’s

The term “marketing mix” has been dated to originate sometime in the late 1940’s. Neil H. Borden, a teacher at the time, began using the term after James Culliton had described the marketing manager as a “mixer of ingredients”. The term “marketing mix” gained its popularity in 1964 when Borden published his article, The Concept of the Marketing Mix. Borden’s original marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. The ingredients of Borden’s original marketing mix were later regrouped by E. Jerome McCarthy into what is known today as the 4 P’s of marketing: Product, Price, Place, and Promotion (NetMBA, 2006).

The product area is the emphasis in developing the right product or service for the target market. In the case of physical products, it also refers to any services or conveniences that are part of the offering (quickmba, 2004). In the product area of the marketing mix there are certain strategy decision areas that will need to be addressed. A company needs to decide what the physical good or service is. Once the general idea of the product is decided, the company will need to address other area such as: features, benefits, quality level, accessories, installation, instructions, warranty, product lines, packaging and branding (Perreault, 2004). These are all general areas that the company will need to address in order to meet the needs and expectations of the consumer.

The price of the product or service is the next P in the marketing mix. The pricing decisions should take into account profit margins and the probable pricing response of competitors (quickmba, 2004). Pricing decisions might include: pricing strategy, suggested retail price, volume discounts and wholesale pricing, and even cash and early payment discounts. There may even be a need to make seasonal pricing decisions, as well as, decisions in relation to bundling, price flexibility and price discrimination (NetMBA, 2006). Some strategy decisions involved with the pricing aspect of the product include: objectives, flexibility, and level over product life cycle, geographic terms, discounts, and allowances (Perreault, 2004).

When a product is desired by a customer, it is important that the product is available when and where the customer wants it. Strategy decision areas for place are: objectives, channel type, market exposure, kinds of middlemen, kinds and locations of stores, how to handle transporting and storing the product, service levels, recruiting middlemen, and managing (Perreault, 2004). Distributing the product to the consumer is a decision that may include one or more channels of distribution. According to Marketing Teacher, a channel of distribution comprises a set of institutions which perform all of the activities utilized to move a product and its title from production to consumption (Marketing Teacher, 2000). Depending on the product and the consumer, there are four different types of marketing channels that may be used. A direct channel of distribution involves the consumer receiving the product directly from the manufacturer or producer. This type of distribution is common in business markets and in the marketing of services. However, the uses of direct channels of distribution are becoming more common today due to the use of the internet (Perreault, 2004). The other three types of distribution channels involve an intermediary who might be a wholesaler,