Marketing mix is a set of tools and processes that determine a company's positioning in the market. The marketing mix characterizes a company's marketing strategy. Through it, a business forms its public image, gains identity, and organizes marketing activities. In the classic format, the marketing mix is presented in the 4P model, which consists of four components:
- Product — the goods that the company offers to customers and everything related to it. This component covers any points of interaction between the consumer and the product. For example, the range of products, consultation in product selection, quality, warranty service, returns and exchanges, and repairs;
- Price — the company's pricing policy. It takes into account the prices of competitors and suppliers, the margin of goods, cost, discounts, and installment terms. It helps to form attractive prices for buyers and profitable for the seller;
- Place — the company's sales channels and methods of implementing the product. It takes into account all processes related to sales organization;
- Promotion — the promotion of products in the market. It determines the company's communication with customers, informing the audience about products, methods of promotion, and types of advertising.
Companies that work on each of the components in a complex way form their values and identity that distinguish them from others. Customers see the coordinated work of the company and get the best user experience. No matter how customers interact with the company, they always see a certain standard of work that does not change depending on the process. Thanks to this, the business gains an advantage over competitors who work chaotically.
If a company provides services rather than selling goods, its marketing mix changes. In addition to the four classic components of the 4P model, three more are added:
- People — the people who use the services and interact with the company;
- Process — the scheme for providing services. It describes how the company provides the service and what customers receive;
- Physical Evidence — the conditions under which customers receive the service. It determines the convenience of customers and creates an atmosphere.
Companies can also define their own marketing mix components that are not included in the classic model. It all depends on the niche in which the company operates and the characteristics of the target audience.