Good marketing is never a coincidence. The effectiveness of marketing is directly proportional to sufficient research and planning. Bringing together the right elements might sound like a simple task, however, it’s not the case when one dives into setting a befitting framework. Marketing mix modelling and choosing the right one can help steer your brand towards efficiency and achieving its goals!
What Is A Marketing Mix?
The term “marketing mix” was first coined by Neil Hopper Borden. According to Neil, the most unique elements of a brand that differentiate it from the other brands and that play a crucial role in brand promotion framed the marketing mix. With the increasing popularisation of the term, Edmund Jerome McCarthy proposed the concept of 4Ps marketing mix, which comprises of the base elements for marketing mix modelling.
These 4 Ps or the base elements of the marketing mix are:
Although this was a widely accepted concept, with the constant evolution of the marketing world, contemporary elements have been introduced, which keep up with the present-day trends. These elements are the 4 Cs:
While the 4Ps have been formulated keeping the business in mind, the 4Cs put forth a customer-centric approach.
What Is The Importance Of Marketing Mix?
A right marketing mix will determine the success or failure of a service or a product in the market. These elements, when combined in different ways, produce different results as required by the business goals. One can strategize and create the right mix of these fundamental elements to influence the target audience. These elements will also help a brand understand and set a great framework for successful marketing and brand communication. To create an effective marketing mix, one needs to have a good comprehension of the metrics involved.
Understanding The Base Elements Or The 4Ps
These elements help evaluate a company from a business perspective.
Today, a product could mean something tangible or it could also mean a service offered. For example, one could be selling clothes or e-commerce applications for the retail industry. The key to introducing effective products into the market is to have the right one at the right time – one that satisfies the customers’ current requirements.
The price of your product or service is the second important element that has to be continuously assessed. This is to be in line with the current market rates. An overpriced product could lose its market and under-valuing your product can also have a negative impact on the business. To peg down the right price requires adequate analysis of competitor products. If there is any resistance in sales and marketing, it probably is time to consider repricing the product or service.
This element is often forgotten when setting strategies for branding and marketing. However, to erect an effective marketing framework, this is a crucial element. The placement of the product or service determines its accessibility to potential customers. This requires a deep understanding of the business’s target audience. The better one understands the target market, the better can they place the products and services in the market. This, in turn, will lead to a successful marketing campaign.
This is one of the most essential elements for marketing mix modelling. Promotions include all types of communication that let the target customers know about the products and services. These could include advertising on multiple mediums, PR activities, on-going offers and more. Even a small change to the promotional strategy can cause a snowball effect on sales of the product. It is also important to keep in mind that a promotional strategy should continuously evolve to be at par with the marketplace changes.
While these 4 elements were initially the only consideration for creating a marketing mix model, companies today are revamping their marketing and branding strategy. This leads to the 4Cs which are taken into account for bossing the efficiency of marketing.
Understanding The 4Cs
The 4Cs help a business evaluate itself from a customer’s point of view.
The first C is, of course, customers themselves. It is essential to understand the customers, find out their wants and needs, and figure out the relation between customers’ requirements and the products or services. The company or the business needs to understand how the customer can gain value from its products or services offered. It is also essential to understand the value of the products to the customers. Once the understanding is gained, the company can fine-tune the marketing strategies to target a specific audience.
While cost and price might sound synonymous, in the business world, it is not sufficient to look at just the cost of the product or the amount a customer might be paying for it. While pricing the product or service, it is important to consider the benefits a customer will gain using the product as opposed to the risks of using it. It is also necessary to look at the existing pricing figures of similar products in the market. One also needs to estimate the total amount a customer might be paying, which includes the cost of shipping, taxes, etc. Finally, the company should also evaluate the profit it will gain post the product pricing.
Communicating to the target audience is a focus area today among companies while creating a marketing mix model. Empathetic communication is imperative. Connecting with customers in a meaningful way creates a bond of trust and encourages customer loyalty. Using the language of the customer will help them understand the brand better and make the marketing mix model more efficient.
The final C is offering convenience of sales to the customer. With ever-improving technology today, customers choose how and when they spend their money. A customer might choose to swipe their cards instead of paying with notes. Another customer might choose to shop online rather than buying from a physical store. It is up to the company or the business to provide convenient and simple ways to purchase the products or services by negating any barriers the customers might face.
The Advantages Of Choosing The Right Marketing Mix Model
Considering the multiple choices available to the business and using the 4Cs or 4Ps or a combination of both is vital in determining the effectiveness of the branding and marketing strategy.Efficient and productive marketing mix modelling for your brand requires extensive research and analysis. One needs to consider many factors, both from the business’s perspective as well as the customer’s perspective. One can use the regression technique can be used to predict the most efficient elements and hence build a successful marketing mix model. Some of the advantages of choosing the right model are explained below.
- Once a market mix model is framed, a company can appropriately allocate resources to various departments. A strong model will act as a strong foundation to strategize and develop successful marketing solutions to meet business goals.
- While building a marketing mix model, a company can also evaluate the factors of product development with a better understanding of pricing strategies, product placements, promotions and sales process.
- A model that incorporates physical evidence – evidence that the product exists in the market – can help enhance customer loyalty. It is beneficial to managing how the product is perceived by the customers.
- A good model will assist in creating value that a company can sell to its customers. A customer will want to buy a product that offers the best value for the price. Value creation can be achieved by implementing unique marketing campaigns and incorporating discount pricing strategies.
- A brand can stand out in the crowd with a great marketing mix model. To set a model, the company is required to study its competitors. This can, in turn, be used for better product placement and brand promotion strategies, thereby differentiating themselves from the rest.
- A strong marketing mix model can deliver clarity to customers. It is all about sending out the right message, to the right place at the right time. A company can evaluate the best format of messages with the right emotions and the best mediums to communicate and thereby create a trust-based relationship with the target audience. The better the clarity a customer has, the more likely he is to make a purchase.
Companies’ marketing strategies are not some guesswork. Finding that perfect marketing mix model is crucial to any company’s success. While building the perfect model, one should also be mindful of using outdated methods and be open to changes considering the evolving trends in the marketplace. At Digital X, we ensure the concoct the perfect marketing model for your brand and digitally transform your business for a successful run moving ahead.