Marketing mix why is it important

Physical evidence was an important P in the service marketing mix. If a restaurant or an interior design business realises its important, then naturally they can act on it and improve the physical evidence of their business thereby bringing in more business. The importance of marketing mix is evident in more then a single P. People and process are important to the organization too and optimizing both can improve the overall working of the organization.

Hence, marketing mix is an excellent guide if someone wants to improve their business and is doing gap analysis. When you analyse the marketing mix of Competitors, there are many different ways that you can differentiate yourself from the competitor. The competitor might have poor promotions and by analysing them, you can create better promotions of your own product. The competitor might have poor placement of products or he might have the wrong process or the wrong people in place.

All this can be improved upon giving you a better marketing mix and therefore a competitive advantage in the market. A company which is well prepared is also prepared when disaster strikes. During recession or during a poor business environment , a company should be ready to respond.

At such times, the company needs to be dynamic in nature. If it understands them, it will respond with a better agility. Thus, there are many ways that marketing mix may be important to an organization.

The best part is, analysing and understanding the marketing mix is not a lengthy procedure and the ROI on the time spent is much higher. The price of your product essentially dictates how your company will promote it.

Adjusting the price of your product can have a huge impact on your marketing strategies as a whole. Companies that are newer to the market may charge lower prices, while established companies will charge higher prices. But consumers usually see cheaper goods as lower quality, so there has to be a happy medium.

In the end, it comes down to what a customer is willing to pay. Figure that out and price where it makes sense. Where do customers go to get your product? How is it distributed? This plays a critical role in your marketing mix as you have to be accessible to buyers. Knowing the right place depends on your understanding of your target market and customer persona.

Whether it's your retail store, your website, trade shows, etc. You have to choose a place to sell your product that makes sense based on the expectations of your customer base. Promotion is the bread and butter of your marketing mix. Promotion covers a wide range of activities that encompass sales , marketing, and public relations. This includes all of your digital marketing activities such as social media, content marketing, digital advertising, and online word-of-mouth marketing.

Promotion can also include things like co-marketing deals, seminars, conferences, and other events that you attend with the intention of promoting your product. A deep understanding of people is required to effectively market any product, both in terms of the target market that you are trying to reach and the people within your business.

Twitter is a popular social media platform. Identifying places where a brand focuses energy and resources is among the elements of a marketing plan. For, it may be more successful and profitable for one brand to focus energies on Twitter while a competitor uses another platform or decides to neglect social media altogether to meet its marketing goals.

Marketing mix variables should be defined per product; a strategy for selling smartphones is independent from one associated with canned fruit. However, methods, marketing channels, and messages may overlap. Similarly, a retail mix should differ from a marketing plan for wholesale goods. A product mix analysis helps differentiate and customise individual marketing plans for each product.

Some companies refer to sales history while others analyse the performance of competitors before developing a marketing plan and promotional strategies. Typically, shops use one of the following three methods of integrating their pricing and marketing information:. Although pricing is the 1 factor impacting online marketing results, it is still rarely used as input for marketing management.

The online marketing department will probably be satisfied with the performance in the periods of aggressive pricing strategy, but wonder why conversion rates dropped during the margin-focused periods. If you manage your pricing and marketing strategies separately, you can still use the pricing data as fixed input for the marketing department.

In the above examples of margin-focused and aggressive pricing strategies, the historical data shows how this product reacts to price changes. With this information, the marketing team can change bids to match new price levels, which will increase your ROIs.

For example, if the price ratio which is your price vs. When you fully integrate your marketing with Dynamic Pricing, the data becomes powerful. At this point pricing is not just a fixed input for marketing.

Instead, the selling price itself is also adjustable. With this dynamic input, you can find the perfect balance between pricing, marketing budget, and marketing efficiency. This ensures marketing is effective, but also creates enough margin to ensure a healthy marketing budget. To uncover that answer, we need to go one level deeper. It will get a little murky at first, but all becomes clear soon.

The combination of your marketing budget per product the CPA and the marketing effectiveness predict which CPC bid is still profitable to sell a single product. However, it does not yet predict the amount of traffic you expect to generate for a specific product over a given period.