Marketing Mix History

Marketing mix is one of the important topics in marketing. The idea of this term is generated back in 1948 by James Culliton he said marketing decision should be the result of something like recipe. It analogues to the restaurants offer same recipe but customer always go for tasty one. The idea of recipe was further  refined by Neil Borden and coined the term ‘Marketing Mix’. In 1960’s E.Jerome McCarthy elaborate in more details by classifying the term into  4Ps concept are product, price, place and promotion.

What is Marketing Mix?

Marketing mix is the decision which came out as the result of blending 4P’s to stimulate the demand of firm produtd and services. Marketing mix can be also defined as  tactical,strategic and controllable marketing tool contain product, price, place and promotion use by the firm to generate response from target market.

Marketing Mix Variables

Product

Products are goods and services offered by company to the target market.Marketing mix use in a variety of ways by firms to pursue customer to buy and use their products. The variety of options that firm can adopt came out from only four variable product, price, place and promotion. Some firms like to focus on their products so they will spend more on product packaging, quality, design, features, brand name and service, to offer  high brand products and services to target market. Such as Mercedes Benz is an expensive car  but have its own niche market people feel proud to buy and drive the car just because of the product is completely differentiated from their competitors having numerous features.

Price

Price is a amount which customer pays to buy the products and services.Price can also attract customer towards firm products and services such as Southwest Airlines offer low price services to their customers by offering normal service. It means they want to capture the target market on cost differentiation not on product differentiation.The price variables encompassed the following factors such list price,discount,allowances,payment period and credit terms.

Place

Place are the set of activities which allow the firm to spread their availability of the products and services for the customers. Physical existence is not the only criteria of place but virtual firms like amazon,eBay is also the part of third P(place). Wal-Mart with the huge number of retail outlets around the world move them to the number one company in the world.