At first Prof. Neil H. Borden of Harvard Business School had named 'Marketing Mix'. However, Prof. Jerome McCarthy of Michigan State University presented marketing mix as four 'Ps" in his book ' Basic Marketing' published in 1960. Under these four 'Ps' include Product, Place, Price and Promotion. According to him, the components of marketing mix or four Ps are as follows:
* Product
* Place
* Promotion
* Price
So, marketing mix = Product mix + Place mix+ Promotion mix+ Price mix.
Product is the mist important component of marketing mix. Product means goods, materials, services and even ideas. in marketing the word 'product' does not indicate only physical goods or materials. It also indicates quality, price, brand, color, packaging, seller's service, goodwill, reputation, guarantee and warranty of goods with which the customers can get satisfaction. So, product mix is the important component. It includes product planning, development, standardization, grading, branding, packaging etc.
The another important component of marketing mix is place mix. This is also called distribution mix. In this include two components- selection of distribution channel and physical distribution of products.
The means or medium used to carry products to the ultimate consumers is called distribution channel. The business firm, which can select proper channel to deliver goods to the customers at right place at right time, can get success. The selection of distribution channel is affected by the nature of product, distribution cost, financial position of the firm, market situation, market competition etc.
Physical distribution works for carrying finished products to the consumers and supplying necessary raw materials to the manufacturing company. Physical distribution helps to supply products in right quantity to right place at right time at lower cost. Under this include the activities such as management of necessary means of transportation, warehouse for storing, inventory control, material handling, order processing, place analysis etc. Among them, management of transportation and warehouse are the most important. These create place utility and time utility of products.
3. Promotion Mix
Promotion mix includes the activities such as personal selling , advertising, sales promotion, publicity and public relations etc. Promotional activity becomes very important in attracting customers towards the products and creating demands by giving information and message about the products. Today's tough competition and complex market situation have made promotional activities more challenging. Success can be achieved in business only through proper promotional policy and proper use of means and resources. So, a good business entrepreneur should make proper promotional policy and implement.
4. Price Mix
Price is very sensitive component of marketing mix. In it, decision on selling price, discount, commission etc. are taken. While taking decision on price, reasonable return of the investment of the firm and customers' services should be considered at a time. While determining price of the product, production cost, demand situation, competition, possible sale expenses, expected profit etc should be carefully analyzed.
1. Product Mix
Product is the mist important component of marketing mix. Product means goods, materials, services and even ideas. in marketing the word 'product' does not indicate only physical goods or materials. It also indicates quality, price, brand, color, packaging, seller's service, goodwill, reputation, guarantee and warranty of goods with which the customers can get satisfaction. So, product mix is the important component. It includes product planning, development, standardization, grading, branding, packaging etc.
2. Place Mix
The another important component of marketing mix is place mix. This is also called distribution mix. In this include two components- selection of distribution channel and physical distribution of products.
i. Selection Of Distribution Channel
The means or medium used to carry products to the ultimate consumers is called distribution channel. The business firm, which can select proper channel to deliver goods to the customers at right place at right time, can get success. The selection of distribution channel is affected by the nature of product, distribution cost, financial position of the firm, market situation, market competition etc.
ii. Physical Distribution
Physical distribution works for carrying finished products to the consumers and supplying necessary raw materials to the manufacturing company. Physical distribution helps to supply products in right quantity to right place at right time at lower cost. Under this include the activities such as management of necessary means of transportation, warehouse for storing, inventory control, material handling, order processing, place analysis etc. Among them, management of transportation and warehouse are the most important. These create place utility and time utility of products.
3. Promotion Mix
Promotion mix includes the activities such as personal selling , advertising, sales promotion, publicity and public relations etc. Promotional activity becomes very important in attracting customers towards the products and creating demands by giving information and message about the products. Today's tough competition and complex market situation have made promotional activities more challenging. Success can be achieved in business only through proper promotional policy and proper use of means and resources. So, a good business entrepreneur should make proper promotional policy and implement.
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4. Price Mix
Price is very sensitive component of marketing mix. In it, decision on selling price, discount, commission etc. are taken. While taking decision on price, reasonable return of the investment of the firm and customers' services should be considered at a time. While determining price of the product, production cost, demand situation, competition, possible sale expenses, expected profit etc should be carefully analyzed.
Product, place, promotion and price are very important and useful for a product- oriented company. Some scholars have suggested that service-oriented firms should add the components such as process, people and physical evidence to 4ps to make 7ps and integrated in marketing mix.
