Marketing mix refers the total market programs of a firm it involves division with regards to product, price, places, and promotion.
According to Philip kotler ” The term marketing mix as the set of contralable variables that the firm can useful influence the puyers response.
Elements of marketing mix :
Product : A product is any goods and services that customer wants.
Price : The money value of product.
Promotion : promotion involves decision with respect to advertising personal, selling and sales promotion.
Place : place where product are to be display.
Pricing : cost to profit.
Pricing may be defined as the exchange of goods and services in terms of money.
Objectives of pricing :
* Return on investment
* Meeting competition
* Market share
* To maximise the profit.
* To capture the market.
* Customer ability to pay
* Price stability.
Pricing policy :
• cost oriented pricing policy.
• demand oriented pricing policy.
• competition oriented pricing policy.
Kinds of pricing :
• Odd pricing.
• psychological pricing.
• customary pricing.
• pricing at the prevailing prices.
• prestige pricing.
• Geographic pricing.
• Dual pricing.
• Monopoly pricing.
• Administrated pricing.
• Skimming pricing.
• Penetration pricing.
• Negotiate pricing.
• customer oriented pricing.
• sealed bid pricing.
• Mark up pricing.
Factors affecting pricing :
• legal and government.
• distribution channel.
• marketing mix.
Price: refers to the value that is put for a product. It depends on costs of production, segment targeted, ability of the market to pay, supply – demand and a host of other direct and indirect factors. There can be several types of pricing strategies, each tied in with an overall business plan. Pricing can also be used a demarcation, to differentiate and enhance the image of a product.
Product: refers to the item actually being sold. The product must deliver a minimum level of performance; otherwise even the best work on the other elements of the marketing mix won’t do any good.
Place: refers to the point of sale. In every industry, catching the eye of the consumer and making it easy for her to buy it is the main aim of a good distribution or ‘place’ strategy. Retailers pay a premium for the right location. In fact, the mantra of a successful retail business is ‘location, location, location’.
Promotion: this refers to all the activities undertaken to make the product or service known to the user and trade. This can include advertising, word of mouth, press reports, incentives, commissions and awards to the trade. It can also include consumer schemes, direct marketing, contests and prizes.