Marketing Mix: The Four Most Important Marketing Instruments Explained

“Marketing” is an exaggerated term that may relate to many people, but still do not know which sub-regions fall under it. Is this primarily just about advertising? Or are sales channels the most decisive? What do I need to consider in order for my marketing strategies to be fully successful? These questions are of course asked by founders who now want to market their products or services. Thus, in this article, we explain exactly what the marketing mix is, what marketing tools it includes, and how you can use it.

Definition and objectives of the marketing mix

The marketing mix describes all the activities and measures implemented to achieve marketing goals. The mix is ​​divided into four sub-categories: product policy, pricing policy, distribution policy, and communication policy. The goal is to coordinate these four marketing tools with each other so that more goals can be achieved together. Once the goals have been defined, you need to determine what marketing tools you can use to achieve them. Thus, the instruments and systems used can differ significantly from company to company if they set different goals. Because of the sub-areas in English Product, Price, Place, and promotion, the marketing mix is ​​also known as the “4Ps”.

Marketing mix: the 4Ps explained

To give you more detailed insights into the individual sub-fields, we would like to present them separately from each other. It is important that you always remember that all Ps are interrelated and interdependent.

PRODUCT POLICY

It’s about the product or service you want to sell or offer. Product policy directly affects all decisions and activities related to the product. It’s all about choosing your product or service and making it better. Thus, it influences the decision about the design, quality, functionality, quantity, and basically the type of product. At this point, you need to ask yourself the following questions: How does my product differentiate itself from others? Can I show innovation? What products to look for? What is my brand and how is my service? What are the benefits for my target audience? What does the packaging look like? Does the product represent a lifestyle? Since these are fundamental questions, product policy is seen as the most important pillar of the marketing mix.

PRICING POLICY

Another important sub-area is price policy. It’s about the value and value of money. Price is the amount a customer pays to purchase a product or service. So at the moment, you have to decide how much you want to earn, but the customer thinks they are paying a fair price. There are several approaches that you can use for this. It is up to you to offer the lowest possible price with penetration strategy, offer the highest possible and exclusive price with skimming strategy, or calculate different prices including price difference strategy. Above all, this decision should be in line with your product policy. The following questions arise here: At what price will I sell my product or service? What are the terms of delivery and payment here? Do I want to activate the discount campaign?

DISTRIBUTION POLICY

The third pillar of the marketing mix and an essential marketing tool is the distribution policy. Because at this point you determine how your customers will be able to buy your product or service. Here, too, you have several options and should choose one that fits perfectly with your product and price. Will the customer be able to buy your product directly from you and without intermediaries? Or is it a good idea to manage your product through intermediaries so that you can focus only on production? But the multi-channel structure can also be interesting to you, where you have used several channels and thus have an idea of ​​direct and indirect paths. The central question is therefore as follows: Can I save my product easily and simply? Which channel is suitable for my target group? Does my product need explanation and therefore should be displayed by qualified staff? Which sales channel does the competition use?

COMMUNICATION POLICY

We come to the last pillar of the marketing mix: communication policy. Just because you’re listed last doesn’t mean it’s trivial. Conversely, because your customers should ultimately find out about your product or service. And that’s exactly about it: How do you communicate with your product? Because you should never view communication as a one-way street, but as a potential exchange. And for that, you need to think of a suitable medium of communication that in turn matches the rest of the marketing materials and above all your target group. And with that in mind, be sure to consider the issue of internal communication as well. Therefore, the question arises at this point, such as: How can I reach out to all stakeholders? Do I want to send a message? Which channel is suitable for which message? And on which channel is my target group active? What do I want to achieve through my communication?

In terms of communication policy, for example, your own website that presents all your products to your customers is appropriate. Marketing expert Eric Kaiser, managing director of the online marketing agency We Like Social Media, confirmed the strategy: “Websites are your company’s virtual business card and your online shop window. Because customers no longer look for you on the phone — they’re Google. And when they find your website, that’s the key to selling. “So it is very important that your website looks professional and satisfies your customers.”

Expansion of the marketing mix

Over the years, the Basic Marketing Mix model has changed somewhat, adding more Ps. To give you a detailed picture, we will also explain the following marketing tools.

PERSONNEL POLICY

Employee Policy (People) focuses on your employees, who create a direct connection between the manufacturer and the customer. So they are the people who have the most contact with the customers and so they play a key role. As a result, they represent your company to a certain extent and can not only explain your products to customers with their expert knowledge but also influence them to a certain extent. So you should take time for your staff and invest in more training systems. To make them feel that they are doing the important thing they are doing. If your employees are happy, your customers are more likely to be happy too.

LITIGATION POLICY

Process policy is primarily concerned with the customer experience and a customer-oriented process. On the other hand, it also applies to general process management, including the technical process of product production. Who does what when? And at what stage does the customer join the process? These questions will help you make your processes as efficient as possible and increase customer satisfaction through the improvement process. Because here too a perfect customer experience is your goal.

EQUIPMENT POLICY

Equipment policy (physical proof) means, for example, the equipment and design of a salesroom or company. It includes all the equipment features of your company that can have a definite impact on the customer. So, this marketing tool is only important if you communicate with your target group in one place. If you have several branches or shops, an attractive interior design or staff “matching outfit” may not be the only eye-catching one. They can have a special effect on the customer.