Lately the term marketing mix is increasingly being heard in everyday life. You may have heard about it in seminars, television, or on social media. Marketing mix is one of the terms familiar to business people.
Marketing mix can be defined as a marketing strategy that combines several elements in an integrated manner to achieve a targeted market marketing objective. An expert named Buchari Alma interprets marketing mix as a form of strategy in combining various kinds of marketing activities to create a maximum combination, so that the most satisfying results will appear.
Marketing mix or what is known in Indonesian as the marketing mix is the foundation of the basic model of a business. This term was first introduced by a Harvard marketing professor named Neil Borden in 1948 who was inspired by the journal of his colleague, Prof. James Culliton.
One of the most widely known developments in the marketing mix concept is the 7P marketing mix . This concept was introduced by Booms and Bitner which contains four 4P elements plus three new elements, namely physical evidence, people , and process . The marketing mix concept can not only be used to promote old businesses, but also to develop new businesses.
The following is a summary of the history, understanding, concepts, goals, functions, and benefits obtained from the marketing mix , quoted from the Maxmanroe and Bachelor of Economics pages , Tuesday (14/6/2022).
Definition of Marketing Mix
The term marketing mix was first used by Neil Borden (1964) who was inspired by the ideas of James Cullington (1948). The idea is that a business executive acts as a mixer of ingredients . Borden (1964) compiled a list of marketing mix elements consisting of 12 aspects. The list was then simplified and popularized by Jerome McCarthy (1968) into four main aspects, namely product, price, place and promotion, which became known as the 4Ps.
Criticism of the 4Ps has prompted a number of marketing experts to propose a new marketing mix model, including the 7P Service Marketing Mix model (Booms and Bitner, 1981) and the holistic marketing mix model (Kotler and Keller, 2006).
Until now, the 4P model is still the most popular and a key element in most of the marketing literature. The marketing manager will take an approach depending on the industry and target marketing plan.
Marketing mix or what is known in Indonesian as the marketing mix is the foundation of the basic model of a business. Marketing mix can be defined as a marketing strategy that combines several elements in an integrated manner to achieve a targeted market marketing objective.
The Origins of the Marketing Mix
In 1948, Professor James Culliton of Harvard Business School wrote an article entitled The Management of Marketing Costs. Cullington asserts that a business executive is:
“ Decider,” an “artist”—a “mixer of ingredients,” who sometimes follows a recipe prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe to the ingredients immediately available, and sometimes experiments with or incest ingredients no one else has tried” (Cullington, 1948).
A business executive is said to be a mixer of ingredients , who sometimes follows other people’s recipes, sometimes prepares his own recipe, sometimes adapts the recipe to the ingredients available, and sometimes experiments with or finds ingredients that have never been tried.
Neil Borden was captivated by this idea and then adapted it in the context of a marketing executive as a mixer of ingredients who must always be creative in managing a mix of marketing procedures and policies in order to generate profits for the company.
In his article entitled The Concept of the Marketing Mix , published in 1964, Borden compiled a list of the elements of the marketing mix consisting of 12 aspects, namely:
- Product Planning.
- Channels of Distribution.
- Personal Selling.
- Physical Handling.
- Fact Finding and Analysis.
Marketing Mix concept
1. Marketing Mix 4P
The 4P model was popularized by Jerome McCarthy (1968) who put forward four elements of the marketing mix including product, price, promotion, and place ( distribution ).
Place in the marketing mix is basically a form of distribution channel that refers to the location of a product available and can be sold and purchased. Distribution channels in the marketing mix include product completeness, location, inventory, storage facilities, distribution and transportation.
This concept focuses on the place or location of your company. The more strategic your business location, the greater the profit the company will get. With a strategic location, consumers or potential customers can more easily find and reach your business, so that sales transactions occur more easily.
How to determine the exact location? What you can do is find and determine sales locations that suit your target market, whether it’s for the bottom, middle, or up .
A product is something that has functional value and can be used by the customer to achieve something. Products in the marketing mix include variety, quality, design, features, brand name, packaging, size, service, warranty, and returns.
In theory, products are all forms of business results offered to the market for use or consumption, so that they can meet the needs and desires of society. If you want to be successful in carrying out a marketing mix strategy , you must be able to create and produce a product or service with its own quality and uniqueness.
That way, your product or service can automatically increase your competitiveness in the market. Products have two elements that need attention, namely quality and visuals. You have to ensure the quality of your product properly. Apart from that, consumers must also feel the need to buy your product or service, not just being interested.
An easy way that you can do is to determine your target market through a small, structured research. Research conducted on the marketing mix strategy can include information on market response, consumer desires, and so on. Through the information we get from research, we can compare your product/service with competitors, find out the advantages and disadvantages of your product.
After that, you can carry out evaluations to improve the quality of your products and services, match products with the wants and needs of consumers, and provide an overview of product prospects in the future.
Promotion in the marketing mix is a strategy implemented by marketers to make customers aware of the existence of their product or brand. Sales promotion includes advertising, personal selling, public relations, and direct marketing.
This marketing mix strategy focuses on business promotion issues, such as how to market products, what media to use, and so on. Promotion is a marketing strategy that has objectives, including:
- Identify and attract new consumers.
- Communicate new products.
- Increase the number of consumers for products that are widely known.
- Inform consumers about product quality improvement.
- Invite consumers to come to the place where the product is sold.
- Motivate consumers to choose or buy a product.
Basically, promotion is an information dissemination activity that is to persuade, influence and remind the market that your product is ready to be sold and bought by them. One of the things you can do is to advertise.
Advertising can be done through media such as newspapers, electronics, brochures, banners, and social media. In the digital age like now, marketing strategies with promotions are very easy because there are lots of social media that will really help you.
Price is one of the most important elements in the marketing mix . Price is the value that will be obtained in exchange for the product. Prices in the marketing mix include catalogs, discounts, special discounts, payment periods and credit terms.
The price in question is the amount of money that must be paid by your user or client to get the product you are offering. In other words, someone will use the service or buy the product you offer, if the sacrifice incurred (ie money and time) is in accordance with the benefits he wants to get from the product or service offered by the company.
Regarding this point, your focus is on how to make potential customers or potential buyers feel that their expenses are in accordance with what they get. That way, the marketing mix strategy will be more optimal.
In determining the price of a product, you have to calculate it based on production costs, capital, and add a few percent profit. The selling price must be in accordance with market prices, not too high, and not too low.
This is to prevent bankruptcy of course. If you want to sell at a higher price, provide a striking difference compared to your competitors, such as quality and variants, so that consumers feel ” worth it ” at the price of the product.
2. Service Marketing Mix
In the context of service marketing, Booms and Bitner (1981) added three elements of the marketing mix besides the 4Ps, so they are also known as the 7Ps.
a. Participants (People Involved)
The aspect of people in question is not only consumers. However, all human resources (HR) are involved, including workers to the business team. Especially for this aspect is very important to note. HR is an important component in the marketing mix strategy . The HR factor really determines the progress or failure of a company.
We cannot deny that this factor plays an important role in making a progress or even a setback of a company. This is why various companies are competing to find the best job candidates, they are even willing to pay more to hire independent job seekers who are experts in finding job candidates for companies.
Related questions, whether the employee has high performance or vice versa, whether the employee is loyal or vice versa, whether the employee is able to serve consumers well or vice versa will help the success of a service company in the market.
Another important factor in HR is the attitude and motivation of employees in the service industry. Attitude can be applied in various forms, such as employee appearance, voice in speech, body language , facial expressions, and speech. The motivation will determine the extent to which employees want or like the work to be done.
The process aspect is a combination of all activities. All of these activities are related to the products produced and delivered to consumers. The process here includes how the company serves the demands of each customer, starting from the customer ordering ( order ) until they finally get what they want.
Certain companies usually have a unique or special way of serving their customers. Just like in a restaurant, there are several restaurants that provide ” open kitchen ” facilities, where consumers can see each process of making the food they order. This service method is an example of implementing a marketing mix strategy in a culinary business.
c. Physical Evidence (Physical Appearance)
Physical appearance is all the devices used to support the running of a business. The physical appearance of the place of business will explain how the company’s building is arranged. Does the company use unique interiors, attractive lightning systems , eye-catching room designs, and so on.
Companies will certainly realize that the arrangement of buildings in a company will certainly affect the mood of visitors. An interior design that seems messy will certainly make consumers feel a little uncomfortable with the situation at the company.
Buildings must be able to create a pleasant atmosphere, so as to provide an experience to visitors and can provide added value. The visual component is very important in the marketing mix strategy .
3. Marketing Mix in Holistic Marketing
Phillip Kotler and Kevin Lane Keller (2006) modified the 4P marketing mix elements and called them the evolution of marketing management which includes:
- People .
- Processes .
- Programs (including Product, Price, Place and Promotion ).
- Performance .
Marketing Mix Goals
Some of the objectives of the marketing mix include the following:
1. Direct Marketing
Direct marketing is a form of interactive marketing system in which one or more advertising media can be used to generate a measurable response or transaction at a location.
2. Advertising (Advertising)
Advertising is one of the most important forms of activity in the marketing mix . The main purpose of this advertising is to provide information about goods and services to target consumers in order to be able to increase sales.
3. Sales Promotion
Sales promotion is a collection of various intensive tools designed to encourage the purchase of a good or service.
Marketing Mix function
Some of the functions that can be obtained from the marketing mix include the following:
1. Physical Distribution Function
The physical distribution of a product can be done by transporting and storing the product.
2. Exchange Function
Consumers can buy products from manufacturers, either by exchanging money for products or by exchanging products for products for their own use or for resale.
3. Intermediary Function
Marketing mix is an intermediary medium for delivering products from producers to consumers that connects exchange activities with physical distribution.
Marketing Mix Benefits
Some of the benefits that can be obtained from the marketing mix include the following:
1. Able to Analyze Finance
Business people must know how the flow of costs and income according to the situation that occurs.
2. Wise Allocation of Resources
Resources are usually limited so they must be used as effectively as possible.
3. Facilitate the Communication Process
Able to allocate in the form of responsibility for each part of the division with the respective tasks that have been determined.
This concept can simplify and unify various forms of marketing activities into one so that the marketing department is easier to carry out and manage.
5. Allocation of Responsibilities
Businesses need a solid team, but businesses need to allocate responsibilities to each person according to their duties and abilities.
Book Recommendations & Related Articles
- Baker, M., Graham, D., and Harker, M. (1998). Marketing: Managerial Foundations . South Yarra: Macmillan Education Australia Pty Ltd.
- Cullington, JW (1948). The Management of Marketing Costs . Boston: Division of Research, Graduate School of Business Administration, Harvard University.
- Kotler, P. and Keller, KL (2006). Marketing Management. Upper Saddle River: Prentice Hall.
- McCarthy, JE (1968). Basic Marketing: A Managerial Approach . Homewood: Irwin.