Do you know the marketing mix? And no it's not a candy mix. Yet it can be described as a bag of mixed goodies that can create sales for your business and value for your customers.
We'll explore that in this guide, where you can learn more about the marketing mix model.
The marketing mix - also known as the parameter mix - in most contexts contains what are called the 4 Ps. These are 4 parameters that describe a company's product or services. In broad terms, the 4 parameters are mainly about the buttons that a company can turn and adjust.
The 4 P's of a marketing mix consist of:
With the 4 Ps, you as a company can turn up and down factors that differentiate you from your competitors and make you most attractive to your customers. So you can't avoid the 4 Ps when you talk business strategy.
Foto: <a href="https://webamp.dk/academy/marketing-mix-de-4-per/">Webamp: Marketing mix - De 4 P’er</a>
The internal factors are the strengths and weaknesses of the company, which are areas under its control. It is a good idea to define these, as it makes it possible to determine whether, for example, a company is able to cope with a possible crisis or whether it should seek to create new assets and competences that will enable it to continue to grow.
The Product parameter will usually be the first P you look at in its parameter mix, as it is the foundation of your business - and therefore your business strategy. A product can also be a service, but for service companies it will also make sense to define their marketing mix based on the extended "7 Ps" model(more on this model later in the guide).
The purpose of the product parameter is to describe your product (or service) and how it can meet your customers' needs and requirements. Start by defining basic elements such as:
It may be worth considering the production cost of the product, as this may affect whether or not you need to adjust for a better product. It is also important to define how the product solves your customers' problem - in other words: What is the benefit?
Here, the FFU/EFU model is useful because it helps to define how features/characteristics of a product or service contribute to benefits and, in particular, to customer value. Functions/features describe what something is, benefits describe what it does, and benefits describe how the product makes a difference to the customer.
Once you have defined your product, you can start looking at prices. Among other things, you can take into account:
When explaining your pricing, it is useful to assess whether your prices are comparable to those of your competitors. This is particularly true for companies operating in a price homogeneous market - especially if your prices are significantly higher than the average of your competitors.
It should also be worthwhile for your customers to choose your product, so if your price is higher than your competitors', there should be a good reason for this - for example, exceptionally high quality or exceptional customer service that comes with the product.
The Place parameter could also usefully be called the Distribution parameter, as it looks at sales channels and distribution. However, it has been given the name 'place', as it deals with, among other things, where the product is sold (oh, and it would also go beyond the red thread to throw a D into the 4 P's); is it sold in a physical store, in a webshop, via partners or somewhere else?
Here it's important to consider your target audience - for example, whether your core customers are digitally mature enough to find you if you run a webshop. It's also important to consider both your prices and your customers' perception of value. For example, if your prices are high because your products are very exclusive and of particularly high quality, they probably shouldn't be on the shelves down at the local REMA 1000.
The fourth P deals with your promotional activities - how you market your products. This can be through classic offline analogue marketing, through PR or through online marketing such as SEO, Google Ads, Facebook advertising and other forms of SoMe marketing.
It will almost always pay to use multiple channels, as different channels will appeal to customers at different points in the sales funnel. Finally, it also pays to consider your costs for the different marketing activities - in other words, it should pay to focus on certain promotional activities.
As mentioned, for service companies it will also pay to define their marketing mix based on the extended model of the "7 Ps". The model also deals with the 4 Ps but is an extension of traditional marketing mix that also looks at 3 additional parameters - namely:
These are particularly relevant to look at for service companies that do not have a physical product. We look at these in more detail below.
Foto: <a href="https://webamp.dk/academy/marketing-mix-de-4-per/">Webamp: Marketing mix</a>
The relationship between people is in many ways the core of a service company's marketing mix. Because who do customers meet in their interaction with your company's service, and how do they perceive that interaction?
This is particularly important to define for service companies, because the customer's perception of your company will largely depend on whether they experience value from the interaction. Therefore, recruitment and onboarding are in many ways the foundation for success in the People parameter, as it is people who must ensure a good customer experience.
It may sound a bit paradoxical that a service company should deal with physical evidence - a service is not tangible. But it can still be part of your marketing mix. Examples might be:
In short, it's about making your service tangible for customers.
The seventh and final parameter of the extended marketing mix looks at how your service is delivered in practice - and not least how this affects the customer experience and your business. For example, many customers will often save time by using self-service and it will also reduce staff costs.
We hope you've learned more about the 4 (and 7) Ps in our little guide to marketing mix. If you want help defining your marketing mix and playing the right horses, feel free to contact Webamp. We are a digital marketing agency specialising in marketing companies in all parts of the sales funnel.
The marketing mix - also known as a parameter mix - is a model that, by considering the 4s (Product, Price, Place and Promotion), helps a company define its business strategy.
The 4 P's stand for Product, Price, Place and Promotion and are elements that a company can examine when planning a business strategy. For service companies, it may be worthwhile to use the extended model 'the 7 Ps', which also deals with People, Physical evidence and Process.
Whether you're a generalist or a marketing specialist, our specialists have put together some great advice for you on our blog.
Learn more at Webamp Academy.