question_answer 22)

What is marketing mix? What are its main elements? Explain.

Answer:

Marketing mix refers to the combination of four basic elements known as four P's — Product, Price, Promotion and Place. The various components of marketing mix are (i) Product Mix Product mix basically concerns with the features related to a product e.g., range, quality, size, labeling, packaging, branding etc. All products must satisfy consumer needs and expectations. It aims at providing good quality products at fair prices. (ii) Price Mix It includes decisions relating to price determination, discounts and allowances credit terms. It covers pricing objectives and pricing policies. Price should cover not only cost of production and selling expenses but also a reasonable profit margin. The price policy adopted by the enterprise should not only be cost based but also demand based and competition based. (iii) Place Mix place mix links the seller and buyer. The choice of channels of distribution and transport are the two major issues here. There are various factors which help in deciding the channel e.g., the time and the place, where the goods have to reach or transportation. It is the nature of goods, place of destination, cost and availability etc. (iv) Promotion Mix It refers to all marketing activities to increase the volume of sales of the product of an enterprise. It consists of means of marketing communication with a view to informing and persuading the prospective buyers to buy a certain product. It includes advertising^ personal selling, publicity and sales promotion.