Marketing Mix : Business Mix

1229 Words Oct 28th, 2015 5 Pages
What is the marketing mix?

Marketing mix is originating from the single P (price) of microeconomic theory (Chong, 2003). Marketing mix is not a scientific theory, but merely a conceptual framework that identifies thee principal decision making managers make in configuring their offerings to suit consumers’ needs. The tools can be used to develop both long-term strategies and short-term tactical programs (Palmer 2004).

As Drucker puts it “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself”. In order to achieve this company’s must understand “what does the customer buy” and “what is value to the customer.”

Directed by the marketing strategy, the company designs an integrated marketing mix made up of factors under its control- product, price, people, process, physical evidence, placement logistics and promotion.

One of the advantages of the marketing mix is that it allows firms to look at the different marketing considerations with an outlook of how to best allocate limited resources. For example, a firm might focus its marketing efforts on TV, radio and the Internet. Determining the running cost and planning a budget for the marketing process allows the firm to allocate funds accordingly.

The marketing mix allows firms to efficiently promote their products and services within their selected segments. Promotional practices may include price reductions of products for a limited time, free sample offers…
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