MARKETING MIX (ACTION) VARIABLES (4 Ps)

The marketing mix and the 4Ps of marketing are often used as synonyms for each other. In fact, they are not necessarily the same thing.
"Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The 4Ps is one way – probably the best-known way – of defining the marketing mix, and was first expressed in 1960 by E J McCarthy.

The 4Ps are: Product (or Service), Place, Price and Promotion.

Product: a product is seen as an item that satisfies what a consumer demands. As the product is the item being sold to the customer, the thing that will bring in money, its features and design need careful consideration. Whether the firm is manufacturing the product or purchasing the product for resale, they need to determine what product features will appeal to their target market. When an organization is considering introducing a product into a market, they should ask themselves the following questions: Who is the product aimed at; what benefit will customers expect from it; what will be its advantage over competitor products? Or its unique selling point; How does the firm plan to Position the product within the market; The answers to these questions will help a firm design, package and add value to its products. 

Price: the amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival. There are lots of different pricing strategies but every strategy must cover at least your costs unless the price is being used to attract customers to the business (loss leader pricing). A product is only worth as much as people are prepared to pay for it. The amount your target market is prepared to pay for your products/services depends on product features and the target market's budget. You will also need to consider competitor pricing and factors within your marketing environment. Effective pricing involves balancing several factors, to find out more about pricing including example pricing strategies click here. 

Promotion: all of the methods of communication that a marketer may use to provide information to different parties about the product. A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. Promotion is any activity to raise awareness of a product or to encourage customers to purchase a product. Advertising is a form of promotion but not all promotions are advertisements.

Promotional activities for consumer sales will be different to promotional activities for business to business sales. The following things will influence how a firm chooses to promote its product: Promotional campaign purpose; the budget for the promotional campaign; legal rules about what you can promote and how; the target market for the product; the marketing environment in which the firm operates.

Distribution (Place): refers to providing the product at a place which is convenient for consumers to access. The Place element of the marketing place is about where the product is made, where is it stored and how is it transported to the customer. The place for each of these things should ensure that the product gets to the right place at the right time without damage or loss. The ideal place will be: convenient for the customer and the business; accessible for the customer if it is the place where the product is sold; low cost or free for the customer if it is the place where the product is sold; reasonable cost to the business.

Our group takes McDonald's as a case. As the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 35,000 outlets, McDonald’s has many competitors such as KFC, Pizza Hut, Taco Bell, Starbucks, etc. In order to beat all the competitors, McDonald’s needs to choose the right Marketing Mix, which includes the 4Ps introduced above. 

In products McDonald’s chooses the method called “market segmentation”. McDonald’s considers three factors when selling its products: geographical factors, demographic factors and psychological factors. 

In the area of price, it sets the products at a relative low price. As we all know, the customer’s perception of value is an important determinant of the price charged. In some places McDonalds classifies its products into 2 categories namely the branded affordability (BA) and branded core value products (BCV). The BCV are more expensive and the BA are relatively cheaper. 

In promotion, the company has spent lots of money and time on advertisements. Also, sales promotions are usually implemented to attract new customers in order to maintain market occupation. What’s more important is the public relationship with customers and the society, only the society and people take McDonald’s as granted so that more and more customers will like McDonald’s. 

As for distributions, McDonald’s chooses fast-food restaurant in big cities. In stations, schools, shopping centers and exhibition places there are McDonald’s. It is convenient for people to get into the restaurant and enjoy the time in McDonald’s. 

References
E. Jerome McCarthy. (1975). Basic Marketing: A Managerial Approach. Fifth edition, Richard D. Irwin, Inc., p.37.



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