What are the four marketing mix, and why are they important?

Updated: Feb 22

The four (4) marketing mix are

  1. Product

  2. Price

  3. Place

  4. Promotion

Product


"Product" involves designing and developing the product. It is the first stage of any business, whereby ideas and concept of the product or service is determined. Each product goes through a product life cycle beginning with "Launch", "Growth", "Maturity", "Decline" and "Extension".


Price


"Price" determines the price of the product that the target customers would be willing and able to pay for the product or service. Pricing strategies used to determine a product price are;

  1. Cost-based pricing

  2. Competitive pricing

  3. Destruction pricing

  4. Price wars

  5. Demand-based pricing

  6. Price skimming

  7. Penetration pricing

  8. Psychological pricing

  9. Promotional pricing

  10. Dynamic pricing

Pricing strategies are influenced by the price elasticity of demand (PED) of the product.


Place


"Place" refers to distribution channels. They are different from a business location, where it is determined by how accessible it is by their target customers. Distribution channels describe how products are being transferred from producers to consumers. There are 4 channels of distributions.


  1. Producers ⇒ Consumers