The marketer E. Jerome McCarthy proposed a four Ps classification in 1960 .
Marketing is integral to the success of a business, large or small, with its primary focus on quality, consumer value and customer satisfaction. A strategy commonly utilized is the “Marketing Mix”. This tool is made up of four variables known as the “Four P’s” of marketing.
Marketing mix is the combination of different marketing decision variables being used by the organization to market its goods and services. After identifying the market and gathering the basic information about it, the next step is the direction of market programming, is to decide upon the instruments and the strategy to meet the needs of the customers and the challenge of the competitors. It offers an optimum combination of all marketing ingredients so that companies can realize goals for example profit, sales volume, market share, return on investment etc.
The marketing mix is grouped under four elements i.e., Product, Price, Place, Promotion. A profitable formula of marketing operations is that mostly marketing mix changes as per marketing conditions and also with changing environmental factors. The marketing mix is a set of controllable variables that the company can use to influence the buyers responses. Thus marketing manager decides the level of marketing expenditure in order to achieve marketing objectives of the firm and after finalizing the market budget it is decided that how to divide total marketing budget among various tools in the marketing mix.
Product: The goods and service combination the firm offers to the target market, including variety of product mix, features, designs, packaging, sizes, services, warrantees and return policies.
Price: All aspects regarding pricing. The price consumers are willing to pay. Retail price/wholesale, discounts, trade-in allowances, quantity discounts, credit terms, sales and payment periods.
place is in regards to distribution, location and methods of getting the product to the customer. This includes the location of your business, shop front, distributors, logistics and the potential use of the internet to sell products directly to consumers.
Promotion refers to the act of communicating the benefits and value of your product to consumers. It then involves persuading general consumers to become customers of your business using methods such as advertising, direct marketing, personal selling and sales promotion.