A marketing mix strategy consists of four different items: price, place, product, and promotion. Each marketing mix plan typically has some element of each of these features in it. In many cases, the most successful mix includes all four as a company can dominate the marketplace through each item. A company may need to create a more focused marketing mix strategy, however, if it is not strong enough to dominate. When this occurs, the marketing mix will result in a niche market of consumers for the company’s goods or services.
Price is the hinge on which free market economies swing. Companies cannot succeed very well if they overcharge consumers for a product. In turn, low prices may undersell competition but not leave enough profits for the company to survive on. The best marketing mix strategy has a price point that is both attractive and sustainable. Though subjective in many ways, the right price can mean a world of difference in the marketing mix.
Choosing the best marketing mix strategy often starts with place. It begins by selecting a specific channel for selling goods and services. The most common sales types include direct means or indirect, such as distribution or wholesaling. These channels are often all options in a market, available if a company looks hard enough into the different channels. Direct sales tend to require more marketing and shifting of consumer preference from one product to another.
Product tends to be the biggest focus of a company’s selection in a marketing mix strategy. A product must often differentiate itself from those on the market in order to gain consumer loyalty. These can be either new products or similar products that simply carry fewer features at lower prices. Companies must often review the product life cycle when choosing this marketing mix. For example, long-lasting products tend to not have many repeat customers; this situation demands new growth through more markets that have new consumer bases.
Promotion is the true marketing aspect of a marketing mix strategy. Companies must have a way to inform potential consumers about the product and its usefulness. The inputs into promotion vary widely based on the company, operating industry, product, and consumer in a market. Selecting the best marketing or advertising campaigns can be difficult here as trial and error may be necessary prior to finding the best method. The selection of the best marketing mix may be the result of following a successful strategy or doing the complete opposite in order to capitalize on an underserved market base.