Promotion Strategy Marketing Mix – One of the first things you learn in your Intro to Marketing class is that marketing can best be explained using the marketing mix—also known as the four Ps. They are—and say them with me, because if you’ve been in this course, you know these four words by heart: Product Price Place Promotion However, once you are in your first marketing internship or job, you learn that marketing involves much more than can be simplified into a four-section marketing mix matrix. Yet there is an undeniable benefit to marketing teams organizing their work within the marketing mix. When you stray too far from the four Ps, it can be easy to lose focus on your goal as a trader. Marketing is really about teams and individuals working together to promote a product in the right place at the right price. Efforts outside of this scope are essential, but they all flow from this foundation of the marketing mix. Here we will dive into what the marketing mix is and how to develop a successful marketing mix strategy for your own company. What is marketing mix? The marketing mix refers to the actions a company takes to market its products and/or services. It usually acts as a framework to separate the four key components of marketing – product, price, place and promotion. The marketing mix helps companies organize their marketing initiatives by tasks and departments for more process-driven and impactful marketing campaigns. This framework has its roots in the 1940s and has been evolving ever since. Although some elements have been added or changed over the years—most notably for today’s digital age—the core elements of the marketing mix (i.e., the four Ps) have remained consistent for decades. Recommended Resource: Marketing Mix Templates Need a way to visualize your marketing mix to share with your employees or investors? Use these four marketing mix templates to organize your initiatives and activities into the right section. Click here to download them now. Elements of the Marketing Mix When refined and synchronized, the basic elements of the marketing mix provide a well-rounded approach to marketing strategy. 1. Product Product refers to what your business sells – product(s), service(s) or both. Most of the work in this element is usually done by product marketing or managers. Anchoring the product element of the marketing mix means doing extensive research and development, understanding the need for the product, developing a product launch plan and timeline, and educating customers and employees—especially salespeople—about the product’s purpose. 2. Price Price refers to the price point at which you will sell your product(s)/service(s) to consumers. Achieving this dollar amount requires consideration of multiple pricing strategies, analysis of similarly priced products in your market, and consumer insights through surveys and focus groups. Price speaks to your market positioning, the speed at which you want to penetrate your market, and your company’s revenue and profit margin goals. 3. Place In the marketing mix, place refers to where your product or service will be sold. For physical products, this will include physical locations, such as your own store or retailer, where your product will be resold. It may also include other methods by which your products can be purchased, such as online or over the phone. 4. Promotion Promotional activities are those that make your target market aware and excited about what you are selling. While this includes paid initiatives such as advertisements and commercials, promotion also includes organic initiatives such as word of mouth marketing, content marketing and public relations. Other Elements While the marketing mix can often be simplified to the 4 Ps, the expansion of marketing in recent years has resulted in more Ps being added to the list. For example, Smart Insights includes the following elements in its definition of marketing mix: A process or major internal initiatives undertaken to support a product launch, such as involving marketers in setting goals. People who can relate to your buyer, market and target audience or your internal launch team. Partners or who you will work with outside of your company, such as distributors or co-marketing partners. Some of the other P’s may include: Payment or how transactions will be held and processed. Physical evidence or something tangible related to your product or service, such as any materials needed to complete your service or deliver your product. Packaging, or anything related to the physicality of your product, such as how it looks or how it’s packaged. These other elements of the marketing mix should be used as you see fit for your projects. However, any good marketing mix must rely on a thorough study of these first 4 P’s. Featured Resource Marketing Mix Templates Fill out the form to get your templates Marketing Mix Examples from Real Businesses Product Mercaris Fintech companies are everywhere, but how many of them focus on organic and non-GMO farming? As sustainable agriculture becomes more popular, brands like Mercaris help support agricultural companies that want to stay ahead of the market. Besides providing a service, the company identified a niche and started a business with few direct competitors. They offer a monthly subscription-based service that arms agricultural companies with the market intelligence needed to compete in the space. This includes detailed reports on food production, commodity prices and market changes. Noirbnb Shortly after Airbnb launched, users filed complaints of racism from their hosts and expressed reluctance to use the platform’s services. The company has taken steps to allay these concerns. It did, however, draw attention to an important issue. It is this uncertainty that allowed Noirbnb to enter the market. The brand tapped into the desire of people of color to feel safe and welcome in their temporary home while traveling – they then used that as their Unique Selling Position (USP). The brand even used the Airbnb name – which is now commonplace – to indicate that they offer a similar service that is adapted to serve travelers of color. Price Warby Parker This online retailer of prescription and sunglasses is known for its stylish yet affordable eyewear. Warby Parker’s pricing, which starts at $95, undercuts many of its competitors, making it a popular outlet for consumers. A brand’s pricing strategy is based on public perception. In interviews, the founders revealed that they were originally going to price their frames at $45. However, after considering how low prices for items like glasses could be perceived as low quality, they doubled the price to settle on a number that was still competitive. A brand’s pricing strategy can have an important role in how it is perceived in the market. So it’s important to consider what that perception is and whether it’s one you want to put out there. Canva When Canva entered the market, it was every small business owner’s dream. You could design any marketing materials you want for FREE, what more could you ask for? Eventually, the brand introduced premium versions of its platform. Serving businesses ranging from small to enterprise, they’ve added features like high-quality stock previews, social media posting tools, marketing campaign management, and extensive cloud storage. Placement Hu Hu, short for “Return to Human,” is a dessert company that specializes in producing organic, paleo chocolate bars without the unnecessary ingredients found in name-brand products. The brand carries its products at numerous major retailers, including Walmart, Target and Whole Foods. They also have a virtual storefront on Amazon. If there ever runs out of stock, you can always purchase their products through their website. Hu has made its product available through multiple channels, maximizing its profit potential while expanding its brand awareness. The Lip Bar Promotion Vegan beauty brand The Lip Bar uses influencers and celebrities to promote their products and increase brand awareness. The brand recently partnered with beauty influencer Raye Boyce to announce its expansion into Walmart stores and its nine newest products. The Lip Bar puts women of color at the center of its products, and collaborating with a black influencer known for her love of lipstick is a perfect fit with the brand’s identity. Apart from a robust social media presence, the company also has content on its website that engages the audience in the buyer’s journey. Vanguard Vegan Some brands launch a product then advertise, while others advertise and then launch. Avant-Garde Vegan, an online brand created by UK-based chef Gaz Oakley, has grown its business on social media – namely YouTube. Oakley gained popularity publishing recipes for healthy, vegan meals and soon became a resource for new and established vegan consumers. Eventually, Oakley launched its first product, a cookbook. The brand now sells both cookbooks and merchandise. The reason this strategy works particularly well is because it focuses on adding value instead of selling. Oakley has earned the trust and loyalty of its audience through consistency and quality
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