Marketing mix: the concept and characteristics

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2018-04-01 02:40:20

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You know, drawing up organizational plans for the production and marketing of products for the future strategic and operational Department, responsible for the marketing mix at the enterprise. In fact, this complex will be the main topic of the article.

Definition of marketing

First off, the scientific definition of "marketing". Marketing – multi-component system of approval of the structure of production and further marketing of products (sale of goods and rendering of services), which is based on the satisfaction of consumer demand through the foresight of the preferences of potential buyers. Enterprises today are developing in difficult conditions of market economy. It is quite natural that the market determines a range of problems and issues that firms need to find the answer.

Marketing agreement

The Main questions of the market economy to producer members are the following:

  • What to produce?
  • Quantity required to produce?
  • How to effectively organize in-house planning and management of the production process?
  • Who will buy the products?
  • What is the way of survival in a competitive market environment would be most effective?
  • How to work out the best way to distribute goods among potential buyers?

If you do not like scientific definitions, just remember these questions, because in essence, marketing is responsible for them.

Production and sales plans

The Plans referred to above include the predictions about future market conditions, short - and medium-term objectives of the enterprise activities. In addition, the plans include the development of the marketing mix (kind of PR company): strategy and tactics of the enterprise in the conditions of the market, its price, a commodity orientation and the politics of marketing and advertising or communication course of action.

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Definition of the marketing mix

The marketing mix is the combination controlled by the fickle marketing factors that are used primarily in order to ensure the interest and positive response of the target audience of the market.

Otherwise, this complex is called marketing-mix. The marketing function of "mix" is the creation of a set of elements of the marketing mix. Complex, not just meet the needs of the target audience of potential consumers, but also leading to maximum efficiency of the organization.

Email marketing

"Marketing mix" is mainly applied for the solution of some in the marketing policy of the economic entity on a specific task during the development of complex market segment.

Brief history of the marketing mix

The First attempt of systematization of disparate marketing tools were done in the middle of the last century. The term "marketing mix" appeared in the article George. Culliton. It was like the author decided to produce some recipe for the effective solution of marketing problems.

Albert Frey who first suggested the idea that marketing variables have to be divided into two main groups:

  • Make offer (brand, packaging, price, product, service);
  • Shape the ways and means (advertising, distribution channels, PR, sales promotion, personal selling).

Model 4P, classics of marketing proposed by American Jerry McCarthy in 1964. It was a marketing mix of special components: product, price, place, promotion. By happy coincidence, all the elements began to R (not established, to the author picked them intentionally). Actually, in this odious manner, and formed chassis today, the name of the model 4P. The name has become a fundamental factor for the popularity of this marketing model due to the fact that it was simple and easy to remember. For the first time the concept McCarthy called 4P was shown to the audience 1965, the presentation was organized by the author with information about 4P Neil Boden. Paradoxically, such a long-standing marketing model really was (and still is) accepted, while innovative and revolutionary models of modernity are unable to repeat or even come close to its success.

Marketing mix

More reasonable experts recognize the model, developed by Boom and Bitner in 1981. The authors of the new concept added to the four P's three more: process, people, physical evidence (for example, the justification of the provision of services). For a long time over the name Bitner and Bums thought, deciding that 7R - quite a original and acceptable. (More on that later.)

One of the most revolutionary marketing models suggested Bob Lamborn in 1990. The author decided to speak at a scientific conference, outlining in his report the main principles of constructing the model 4C. (More on this concept see below.)

Dev and Schultz created in 2005, the model SIVA, innovation classics 4P reflecting eyesconsumer. That year in General was rich in marketing the revolution: Otlacan model was proposed 2P + 2C + 3S (information about both models in this article.)

General characteristics of marketing

Marketing is designed so that the whole system is based on the availability of the product directly. There is no product, no marketing. However, just to find a product is not enough, it must have some value (utility) for the consumer. Product deals must be available to the consumer who is interested in buying it, otherwise the sentence makes no sense. With the existence of at least two parties interested in exchanging with the opposite participant of the economic relations between them must be any means of interaction. In fact, the solution of these problems and is engaged in marketing.

Value that identifies the consumer consciousness, sounds like "price - quality". The buyer always sets the product rating is based on the amount of costs that is spent on its purchase. The above ratio can be given as a variant of "price - usefulness": the consumer examines, how useful can it be purchase, and what price he is willing to pay for this utility.

Another element of the marketing mix - communication. Otherwise, how does the manufacturer know about the consumer. The parties to the transaction will certainly communicate, otherwise it would be very difficult to solve the tasks.

Basic elements

Distinguish classical and non-classical variants of the marketing mix.

The Classic elements of the marketing mix:

  • The Product. This term includes both goods and services: packaging and design, technical specifications, range and its definition, level of quality and many others.
  • Price. The next element has the value of determining such characteristics as the rate of profit, cost, discounts for the consumer price, the value of a product in consumer perception and so on.
  • Distribution (dokhozhdeniem product to the instance of the consumer). In this case it is about choosing a point of sale (retail outlets), intermediaries in the transaction, channels and methods of distribution of products and so on.
  • "Promotion" of the product. Under the promotion of the product on the market is the work on the establishment of an effective public relations and personal selling, and advertising mechanisms, stimulate product sales, and the like.
model 4 P

It is Not necessary to separately say that between all the marketing elements established channels of communication. Thus, the qualitative characteristics of the product and its functionality (features) rightly affect the formation rates of the goods. This particular example is that the consumer (often intuitively) puts the estimate your purchase on one single criterion- the ratio of price and performance (usefulness). That is, the buyer unconsciously compares the price of goods with the set of benefits that this products can offer.

4P

The Classic structure of the marketing mix is a concept of 4P: product, price, place, promotion. Actually, all the model elements described in detail above. Marketing complex 4P determines the policy of the organization in the areas of commercial implementation, price characteristics, distribution, and establish communication links. However, the most important in determining the direction of any enterprise is directly sales. In the process may change the elements of the marketing mix. Permutations in this case means a more effective impact on consumers is possible under existing organization resources. In this case, there is a real possibility of "betrayal" of the company itself, so it is essential to maintain your own understanding of marketing and to follow a special marketing track.

Modern models

In modern conditions there is continuous development and consequently the increasing complexity of the competitive component of the market. In this regard, the improvement of the marketing complex new elements are added, forming the concept of the 5P - 12P, 4S and others. However, the increase of components of the concept "marketing mix" are not at all experts is the rapid positive response.

model 7 P

The Main reason for dissatisfaction allocated by the opponents of the idea of extending the range, is, in their opinion, the violation and deformation of the concept of marketing as such, transfer of the role of additional elements of the management of plane of marketing. It is also important that the four basic components can actually be thoroughly studied and controlled by marketers that it is difficult to say about the extension elements.

7P

The Most successful of all options to expand the model 4P specialists recognize 7R. To four R, mentioned earlier, are added:

  • People (people) all who are related to the sale.
  • Process (the buying process) - active choice by user to the right product.
  • Physical Evidence (physical attribute) - a material object that satisfies the client as confirmation that the service has been provided and is completely legitimate.

Model family R was originally created for marketing services, but nowactively used in commodity option.

Other

Criticism of experts is exposed and the main marketing complex 4P for orientation to the micro level or the fact that affect is only the seller. The extension of this concept increases the number of R in the Economics of marketing.

  • Purchase (purchase) - causes and consequences of purchase.
  • Package (package) is not only a prerequisite to the implementation of the purchase, but also the consequences.
  • Profit (profit).
  • Physical Surround (environment) - updated terms of efficiency, introduced by the manufacturer.
  • PR (public relations) - creates a positive representation of the consumer about the organization.
Cut prices

4C

It is a bold attempt to shift the focus on the consumer - model formulation 4C. Its main drawback, which does not allow the concept to function effectively - an absolute rejection of the R-components.

This marketing package includes:

  1. Customer needs and wants (needs and desires).
  2. Cost to the customer (consumer costs).
  3. Communication (exchange of information).
  4. Convenience (the convenience of the user).

All the constituent model components clearly demonstrate the attempt of shift from producer to consumer in all stages of production and subsequent sale of goods. There is a desire to create antagonist four p. But the author apparently didn't think that the classic elements of the marketing mix is also somehow take into account the needs of the buyer. When using the 4P concept no one will take from the analysis of customers expectations, other research in the field of marketing. Moreover, in addition to producers and consumers, in a model 4P are considered competitors, and suppliers.

Model SIVA

SIVA

A Relatively new alternative traditions (SIVA have been published in the journal of Marketing Management 2005). No wonder we use the definition of "alternative". In this embodiment of the marketing mix to each component of the classical conception of 4P selected placeholder SIVA. Presents classics like "from the inside" - the eyes of the consumer.

The Ratio of 4P and SIVA looks like this:

  • PRODUCT - > SOLUTION (solution).
  • PROMOTION - > INFORMATION (info).
  • PRICE -> VALUE (value).
  • PLACE - > ACCESS (access).

And now more about each of the four item SIVA:

  • Solution (solution). The most reasonable solution to fully meet the needs of the buyer.
  • Information (info). Who should apply to the consumer the information about the product and how to do it, to ensure the sale of goods.
  • Value (value). On the costs and benefits of the buyer, his loss and compensation.
  • Access (access). In what sources, the buyer should look for help in resolving how easy it is to find or buy a particular source.
Digital marketing

2P + 2C + 3S

Model Otlacan applies only to electronic marketing, representing the marketing mix of services and suzannet. Actually, this is a major disadvantage of the concept. And now we will specify all the elements of the model:

  • 2P - Privacy (confidentiality), Personalization (personalization).
  • 2C - Community (community), Customer Service (customer service).
  • 3S - Sales Promotion (sales promotion), Security (security), Site (site).

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