What is Evolution of Marketing Mix?

Marketing Mix is the actions taken by a company to promote its brand and product in the market. It is required to help a business determine the suitability of a product or service for a particular target consumer base. The scope of the marketing mix is planning, branding, packaging, finance, advertisement, sales management, after-sales service, distribution channel, etc.

As with many things invented more than 50 years ago, the Four Ps have also been updated to reflect the needs of modern businesses. Instead of a total focus on products, the new Eight Ps are flexible enough to include the role of customer service and adapt to businesses which sell services instead of products. Let us consider the original Four Ps first, and then we will explore the "new Four Ps."

1. Product

The core of any marketing effort, the product must be something customers desire. The best marketing in the world will have difficulty selling a product for which there is no demand. Therefore, the marketing manager must understand how the product helps the customer solve a problem or achieve a goal. The marketer must also understand the product's relationship in the market -- how is it superior to the competition?

One of the most helpful tools available at this stage is product testing. There are different types of product testing. Placing a product into the hands of the customer allows you to gain insights unavailable any other way.

What does the customer believe the product will do for them? How do they see your product in relation to the competition? Remember that "the customer is always right" -- what they believe is what they will use to choose what to buy -- and it's easy to understand how this information is more valuable than anything said in a meeting or boardroom.

2. Price

Contrary to popular opinion, price is not the main reason customers buy. An inappropriate price can still cost you a great deal of money, though -- whether it's in lost sales or in "money left on the table." Therefore, check that prices of products and services are appropriate both to the reality of the market and the cost of delivering them.

Often, changing the terms of sale or combining products together may create a negligible effect on the cost while creating a tremendous effect on the perceived value. These "extra bonuses" may cost next to nothing while making your prices instantly far more attractive. 

3. Promotion

Promotion is the heart of what most people think of as "marketing." Promotion encompasses every aspect of packaging, advertising, sales methodology, and salespeople. Promotions may use small items or contests to induce the customer to engage with the brand or the product.

Small changes to promotion may produce dramatic changes in your profits. A tiny tweak to your advertising, for example, can easily double your sales. As you work, keep in mind that no marketing works forever. Stay prepared to develop new approaches, strategies, and offers on an ongoing basis in order to keep ahead of the market's changing tastes.

4. Place

Where the customer meets the salesperson is the "place." Direct sales methods put the place in the customer's home or office, with a salesperson personally going out to talk with the prospect. Online stores replace the salesperson with a website.

Other companies use retail establishments or trade shows as their "place." In many instances you'll find that a combination of these methods produces the best results.
Now, let's look at the "New Four Ps," which extend this model to service-based businesses and a customer-service oriented world.

5. People

Selecting, recruiting, hiring, and retaining the people who will do the job that needs to be done is among the most important parts of business. Remember the people in your organisation also market your business and brand.

6. Process

As tempting as it is to think of process in terms of your needs, to marketers process is in fact what your customers experience. The process issues that are most annoying for a customer are the process elements which put the provider's convenience ahead of the customer's. Therefore, design your process to maximise the customer's enjoyment throughout.

7. Physical evidence

All the visible and tangible traces of your business that a customer encounters prior to buying are the physical evidence. Advertising, signage, your reception area, your corporate brochure, even staff clothing are part of the physical evidence of your business. Use physical evidence to stand out from the competition and create a strong brand image.

8. Productivity

As with process, this is less about your internal productivity than your ability to deliver to your customers. Productivity in this regard is always combined with quality - you supply the best quality every time.