7 Marketing Mix Strategies that Businessmen Must Know!

Marketing mix strategy – After successfully identifying your target audience and business competitors, the next thing you need to do is develop a marketing mix. Every business needs its own marketing mix to attract customers.

Are you just starting a business or are you already running a large corporation? The importance of an effective marketing strategy cannot be overlooked. If you are a marketing researcher, you have probably heard of the marketing mix, also known as the marketing mix .

Simply put, the marketing mix is ​​all about getting the right product in the right place, at the right time, and at the right price. It includes everything a business can do to create demand for its products/services, using a set of tools to plan and execute direct targeted marketing activities

The marketing mix usually consists of four variables known as the 4Ps of marketing. This concept is designed to meet the company’s marketing goals by providing value to customers at all stages of the 4Ps of marketing. The marketing mix or marketing mix was originally introduced by Neil H. Borden in the late 1940s and has become one of the most popular marketing strategies in the business world.

Definition of Marketing Mix

Marketing or marketing is a business process that is influenced by various factors including social, cultural, political, economic and managerial factors. In an effort to achieve marketing objectives, it is necessary to have marketing aspects (marketing mix) known as the four marketing mixes, namely: product, price, promotion, and place.

The four mixtures form a single unit that cannot be separated. It can be said that the marketing mix is ​​a set of marketing tools that companies use to mark the long term.

The marketing mix is ​​a series of actions taken by the company to build and market its products or services to its customers. This strategy helps ensure that you can provide the right customer with the right product at the right time, in the right place, and at the right price.

Initially the marketing mix was achieved through the 4P marketing, namely product, price, place and promotion. Along with the development of the marketing strategy to date, this concept has been expanded into 7P, namely with the addition of people, process, physical evidence. 

Developing the right marketing mix for a product/service starts with understanding the 4Ps of marketing. Let’s discuss the 4Ps and 7Ps of marketing in more detail in implementing the right marketing strategy for your company’s products or services.

Marketing Mix Strategy

1. Product _

Products are anything that can be brought to market and can satisfy consumer needs. Consumer satisfaction refers not only to the physical appearance of a product, but also a series of satisfactions obtained when buying a product. This satisfaction is an accumulation of physical, psychological, symbolic satisfaction and services provided by producers.

In competitive conditions, it is very dangerous for companies to rely only on existing products without making special efforts to develop them. Therefore, to maintain and increase sales and market share, every company must make efforts to improve and improve manufacturing products in a better direction, in order to further increase efficiency, satisfaction and attractiveness.

Product strategy in this case is to determine how and deliver the right product to the target market, so as to satisfy its customers, while increasing the company’s profits in the long run by increasing sales and share growth.

Product decisions include determining the physical delivery of the product in the form of merchandise, the branding that must be attached to the product, the features that are given to the product related to the product, the product packaging, its arrangement, and the services provided in product delivery.

The product selection decision is the first step that must be determined by a company in order to continue to grow. After the product is identified, the next step is to make a decision regarding the price, location and promotion to be taken.

In the marketing mix, product strategy is the most important factor, because it can affect other marketing strategies. The selection of the types of products to be produced and marketed will determine the necessary promotional activities, as well as pricing and distribution methods.

Product strategies that can be carried out include decisions about product references or mix, trademarks (brands) , how to package products (product packaging) , quality levels or product quality, and services (services) provided.

To plan product offerings, marketers need to understand product tiers, as follows:

  1. The main product (core benefit) is a benefit that is really needed and will be consumed by customers from each product.
  1. Genetic product , which is a basic product capable of carrying out the most basic functions of the product (minimum product design to carry out this function).
  1. Expected product is the final product offered with different characteristics and conditions that are generally expected and agreed to be purchased.
  1. Complementary Products , namely different attributes of a product that add or add different benefits and services to provide additional satisfaction and differentiate it from other competing products.
  1. Potential Products, namely the types of additions or modifications that might be developed.
See also  This is the Function and Role of Students in Society

2. Price ( Price)

After the product has been successfully made with all its attributes, the next step is to determine the price of the product. The definition of price is the amount of value (in the form of money) that must be paid by consumers to buy or enjoy certain goods or services.

Pricing is an important aspect of the marketing mix. Price is a very important thing to note because price is one of the drivers of the behavior of the product or service provided. Pricing errors will greatly affect the products offered and will result in unsold products.

Price is the amount required to obtain a certain amount of a combination of goods and services. Valuation is always a dilemma for every business because valuation is not the absolute power or authority of an entrepreneur. By setting prices, companies can generate sales revenue from the products they manufacture and market.

The role of valuation will be very important, especially in the context of increasingly fierce competition and limited development demands. In increasingly fierce competition, especially in the market, the role of price is very important, especially in maintaining and increasing the company’s position in the market which is reflected in the company’s market share, as well as increasing the company’s market share in selling and making profits.

Fixed price setting must be adjusted to the company’s goals. The purpose of pricing in a company in general is as follows:

A. To survive

If the company’s goal in pricing is to survive, then pricing is done at the best possible price. The goal is for the product or service to be offered for sale in the market at a low price but still profitable.

B. To maximize profits

Pricing aims to increase sales so that profits are maximized. Pricing can often be done at a low price or a high price.

C. Expand market share

To expand market share, the goal is to expand or increase the number of customers. Setting a low price will increase the number of customers and competitors’ customers who will switch to the product offered.

D. Product quality

The purpose of product quality pricing is to create the impression that the product or service offered is of high quality or superior to competitors. Usually the price is set as high as possible because there is always an assumption that a quality product is one that costs more than competitors.

E. Due to competitors

Pricing by looking at competitors’ prices with the aim that the prices offered are more competitive than the prices offered by competitors. That is, it may exceed competitors’ prices for some products, or vice versa, it may be lower.

3. Place

Choosing the right location means finding the location that can have the greatest positive impact on the organization and avoiding as many negative impacts on the company as possible. If the company has determined the location of the business, the location of the business will determine the costs incurred and it is difficult to minimize them.

Location decisions often depend on the type of business. For industrial location decisions, the strategy used is usually a cost minimization strategy, while for goods or services business operations, the strategy used is to focus on access to the target market.

In general, the purpose of the location selection strategy is to maximize the benefits to the organization and minimize the costs incurred by the organization’s business. Choosing the wrong location affects the maximization of organizational profits.

The mistake of an organization when it is established without considering the selection of an appropriate location, then some time after business operations, several problems will arise such as:

labor issues, production costs and target markets. Errors like this can make the organization less effective. So, the main cause of differences in location selection is the different needs of each business.

Good position is a personal matter. This is often referred to as the situational approach. In his book, Hani Handoko mentions the factors that often need to be considered when choosing a business location, as follows:

A. Community environment

The willingness of the people in an area to accept all the consequences, both positive and negative, of establishing a factory in that area is an important requirement. Companies must pay attention to environmental and ecological values ​​where they will carry out their business, because factories often produce waste in the form of water, air or solid waste which is contaminated and often causes noise.

On the other hand, society needs industry or business because it provides jobs and money that industry brings to society. A fun community environment for employees and managers to live in also helps them work better. The availability of school facilities, recreational, cultural and sporting activities are important factors in this decision.

B. Proximity to the market

Proximity to the market will allow companies to provide better service to customers and often reduce distribution costs. It is also important to determine whether the company’s market is large or serves only a small segment of the population, whether the product is perishable, the weight of the product, and the ratio of distribution costs of finished products per product. Large companies with broad market reach can place factories in many places to access the market.

C. Labor

Wherever a business is located, it must have a workforce, which is why it is important to provide adequate manpower. For many companies, the habits and attitudes of prospective workers in a field are more important than skills and education, because it is rare for companies to find new workers who are willing to work, have various jobs and have very high levels of expertise.

See also  Understanding Conduction: Characteristics, Processes, Types, and Examples

So the company must organize a special training program for new workers. People in one region may make a better workforce than those in another, as evidenced by their varying levels of absenteeism and morale. In addition, it is necessary to pay attention to the withdrawal of labor, quantity and gaps, salaries, as well as competition between companies in fighting for a quality workforce

D. Proximity to raw materials and suppliers

If the raw materials are heavy and shrinkage is high during production, the company should be located near the sources of raw materials, for example cement, wood, paper, and steel factories. But if the finished product is heavier, larger, and of lower value, choose another location.

Also, if the raw material spoils quickly, such as a canned fruit company, it is better to stay close to the raw material. Being closer to raw materials and suppliers allows companies to get better service from suppliers and save on material sourcing costs.

4. Promotion (Promotion)

Promotion is one of the most important variables of the marketing mix which is carried out to open new market share or expand the marketing network. Hurriyati said promotion is a marketing activity that aims to disseminate information, influence/persuade or remind the target market about the company and its products, which are ready to accept, buy and be loyal to the products offered by the company.

In modern marketing, producers are not only responsible for creating attractive products, but also must be able to communicate with consumers who are expected to become long-term consumers. In this case, what is called marketing communication is needed.

With marketing communications, manufacturers will not lose market share to be able to increase sales of the goods they produce. Like the other elements of the marketing mix, promotion includes support for marketing a product or service. In this case the combination of promotional elements

5. People

HR is a key component of the 7p marketing mix strategy. The human resource factor determines the success or failure of a company. It is undeniable that this factor plays an important role in the growth or even decline of a business.

This element refers to people, customers or employees who are directly related to your company’s products/services. Indeed, you should research your target market to understand if they need the type of product you offer. However, you also need to hire the right people so that you can do your best to build your future business.

This is why companies compete with each other to find the best candidates, they are even willing to pay more to hire freelancers who are experts in finding candidates for the company. .

Related questions, employees with high performance or vice versa, employees who are loyal or vice versa, employees who are able to serve consumers well or vice versa, will contribute to the success of service business companies in the market.

Another important factor in HR is the attitude and motivation of employees in the service sector. Attitudes can be implemented in a variety of ways, such as an employee’s physical appearance, tone of voice, body language, facial expressions, and words. While motivation will determine how much the employee wants or likes the work to be done.

6. Process

Systems and processes play an important role in creating and delivering quality services to your customers. Ensure secure processes to reduce unnecessary costs associated with implementation throughout the process. You can record steps throughout the process and analyze them to identify where you need to improve.

The process here includes how the company meets the needs of each customer, starting from the customer placing an order until finally getting what he wants.

Some businesses often have a unique or special way of serving customers. As in restaurants, many restaurants offer “show kitchen” facilities where consumers can watch every dish being prepared. This way of presenting is an example of implementing a marketing mix strategy in the food business.

7. Physical Evidence (Physical Appearance)

Physical Evidence refers to what customers see when consuming your company’s products/services. This includes your brand, your packaging, the environment in which you sell your products, and more. Ensuring all physical aspects related to products/services are in prime condition,

The appearance of the business location will explain how the business building is arranged. The company has unique use of interiors, attractive lighting systems, attractive room designs, etc.

Business people will definitely realize that the layout of a building in a business will definitely affect the mood of its visitors. An interior design that looks messy will definitely make consumers a little uncomfortable with the business situation.

Buildings must be able to create a pleasant atmosphere, in order to provide a visitor experience and added value. The visual component is very important in the marketing mix.

Author: Ziaggi Fadhil Zahran

Also read other articles:

Concepts and Examples of 4P Marketing Strategy Implementation

Differentiation Strategy: Definition, Aspects, and Types!

13 Promotional Goals and Powerful Ways to Realize Them

Marketing Mix: Definition, Origins, Concepts, Purpose, Functions, and Benefits

Personal Selling: Definition, Approach, Characteristics, Purpose, Process, and Others