When developing a product marketing roadmap, the first thing you should consider during a product launch is something called the marketing mix.
The marketing mix is like a compass for all your product marketing decisions down the path.
What separates successful business owners and marketers from mediocre ones is how they include the marketing mix in their decision-making.
In this article, we will touch on the definition of the marketing mix and take a deeper dive into the components of this framework and how it can affect a product launch.
What is Marketing Mix Easily Defined?
The marketing mix is a series of four decision points that allow you to formulate a marketing strategy.
The four considerations in the marketing mix (also known amongst marketers as the “4 P’s of Marketing”) are as follows:
- Product
- Price
- Promotion
- Place (Distribution)
If you go into a product launch without considering the marketing mix; you will risk having a disorganized marketing campaign that will not yield the expected results.
Each of the factors in the marketing mix is reliant on one another.
You cannot consider only one aspect of the marketing mix without affecting the others.
A Deeper Dive into the Components of The Marketing Mix
Product
The first component of the marketing mix is the product.
No product or service means you will not have anything to market.
The core idea behind the product is determining if your product solves the problems of your ideal customer.
If you create a product that does not solve problems, no one will buy it.
Case Study: Quibi – A company that did not focus on the Product portion of the Marketing Mix
A great example of a product marketed that did not solve a problem was the short-lived video platform, Quibi.
The idea behind Quibi was to be a platform that broadcasts television shows in 10 minutes or less.
Quibi set its sights on capturing the attention (or lack of attention span) of young people.
Ultimately, this company failed because it did not solve a problem for that audience.
Younger people already have Netflix, Hulu, YouTube, and TikTok which allow them to consume and pause their media and resume it whenever they want.
Quibi poured so many advertising dollars into getting the platform to work but was doomed from the start and was eventually purchased by Roku.
Key things to consider about your product before advertising
The first thing to consider when advertising your product is if there is a need for the product.
You then have to account for how your product or service differentiates itself from the competition.
For example, Pepsi and Coca-Cola are both competitors in the soft drink industry but do not have the same exact product.
One brand tastes different from the other. This allows for a customer to have a preference.
Other things to consider while about the product are:
- Product Quality – ex. Red Wing Shoes – Their brands make high-quality footwear that is marketed to “stand the test of time”.
- Accessories – ex. GoPro – GoPro is known for its action cameras, but also sells camera mounts, batteries, etc.
- Branding – ex. Manscaped – Manscaped products male grooming products. Their branding is geared around “burly” men. Product names are Weedwacker and Lawnmower.
- Product Lines – ex. Apple – Every year Apple comes out with a new iPhone or iPad.
Price
There is a lot to consider when developing a price of a product or service.
As a marketer, you need to take a step back and decide what price structure you want to consider utilizing with your product launch.
There are two ways you can approach pricing your product or service.
Cost-based pricing
Cost-based pricing can be defined and is more commonly known as markup pricing.
You can consider all the costs associated with the product from start to final rollout.
These costs include:
- Product research and development
- Manufacturing
- Marketing
- Product Distribution
You combine these costs together and then you add a markup or margin to cover them.
For example, if you have a piece of software that costs $100 to develop, build, market, and distribute, you would sell the product for $125 for a 25% markup or profit margin.
Value-based pricing
Value-based pricing is pricing your product or service based on perceived value.
The best application of value-based pricing would be sporting or entertainment events.
For example, a ticket value will raise based on the event’s importance, who a sports team is playing, etc.
The value-based pricing strategy is also used when a product is considered scarce.
Luxury car brands might make a certain number of cars per year which people will pay top dollar to have.
The downside to value-based pricing is that sometimes people behind the product might perceive the value of the product to be higher than what a customer would be willing to pay for.
If you price your product too high, no one will want to buy it.
Place (Distribution)
Product distribution is deciding where your customers can expect to find your product and how you will get your product to the customer.
There are several ways you can get your product to its final selling location:
- Distributors – These are manufacturers of the product. Buying from a distributor is the cheapest option because you do not have to pay a wholesaler. You can charge the lowest price and still make a profit. Ex – Buying Coca-Cola from the Coca-Cola factory.
- Wholesaler – Wholesalers buy large quantities from distributors and intend to sell at a slightly inflated price. Commonly known wholesalers are Costco, BJ’s, and Sam’s Club. Ex – Purchasing Coca–Cola from Costco.
- Retailer – Retailers buy products in smaller quantities from distributors or wholesalers. To make a profit, retailers charge the most a customer is willing to pay for that product. Ex – Purchasing Coca-Cola from 7/11.
Once you figure out how your product distribution strategy, you then can think about where you will sell your product.
- Intensive – You sell your product in as many places as you can. Ex – McDonald’s or Starbucks are found just about everywhere in the United States.
- Selective – Your product is sold in specific locations. Ex – Tim Hortons is located in the Northeast portion of the United States near the Canadian border.
- Exclusive – The product is ONLY found in a handful of places. Ex – A Tesla or Rolls Royce car dealership is ONLY found in affluent areas.
Deciding on your distribution strategy and product location is important to marketing because you have to maximize the chance a person from your target audience will find and purchase your product.
If you sell limited-release luxury cars, advertising in a poor neighborhood will not do well because your prices will be too high for that audience.
If you are selling coffee, it may be worthwhile to buy coffee beans directly from a distributor instead of a retailer so you can pay the lowest amount and make the most profit.
Promotion
Promotion is all about getting the word out about your product.
If you do not promote your product, no one will have the opportunity to know about it and buy it.
However, there are many ways a brand can go about promotion.
- Digital – internet, social media, inbound, etc.
- Offline – Newspapers, magazines, direct mail, radio, billboards, trade shows, panels, showcases, outbound.
- Guerilla – Unconventional marketing like stunts for publicity.
Some promotional methods work better for certain brands than others.
Use Starbucks as an example.
When was the last time you saw a Starbucks employee on the streets passing out flyers asking you to try their coffee?
They are a multi-million dollar company that can afford to spend more on advertising.
Starbucks can afford promotion techniques that will give them more reach like television commercials and radio ads.
For someone who is running a yard sale, they may opt to staple a flyer with pull-off address strips to a telephone pole in the middle of town.
You will not want to use a television commercial to promote the yard sale because it is grossly out of your budget.
When selecting a promotion, you have to account for where to find your audience and meet them there.
Why is the Marketing Mix Important?
The marketing mix is important because it forces you to take a step back and analyze the situation.
The four considerations all rely on each other.
Every marketing decision related to your marketing plan needs to consider the marketing mix.
Abiding by the four P’s of the marketing mix when making strategic decisions allows you to make more sound choices, regardless of the medium.
If you understand your product inside and out, it increases your ability to properly market it.
Conclusion
Understanding the marketing mix will benefit you tremendously when marketing your products. The four P’s each play a factor in the decision-making when formulating a marketing plan. If you neglect one of the factors, your chances of marketing a product successfully decrease.
