Question

Long answer type questions.

What is marketing mix? Explain the elements of marketing mix.

Answer 1

Marketing mix refers to the set of marketing tools that are used to achieve the various objectives of marketing. In the process of marketing, market offering plays an important role. That is, for effective marketing, an organisation must decide the various features of a product such as its size, quality, location of sale, etc. Such decisions are affected by a large number of factors. Some of them are controllable by the firm. For example, decisions regarding packing, branding, pricing, advertising, etc. are within the control of the firm. However, there are certain non-controllable factors as well that affect the decision making by a firm. For example, government policies, credit policies of the banks are beyond the control of the firm. Such a set of marketing tools used by the firm to achieve the desired objectives of marketing is known as marketing mix.

The following are the elements of marketing mix.
i. Product: A product refers to any good or service that offers value and satisfies needs of a customer. In marketing, a product relates not just to the physical product but it also includes the satisfaction of various needs and utilities of the customer. For example, consumption of a product benefits a consumer in the form of satisfaction of consumers’ functional needs, social needs and psychological needs.

ii. Price: Price refers to the money paid by the customers to obtain a product. Price of a product affects its demand. As the price of a product increases, its demand falls and vice versa. The marketers must analyse properly the various factors that determine the price and decide a suitable price for the product.

iii. Place: Besides the product decisions and pricing decisions, a firm must also take decisions regarding the availability of the product to the target customers. A firm must appropriately decide the dealers or intermediaries for the distribution of the goods.

iv. Promotion: Promotion comprises of those activities that communicate customers regarding the availability of a product, its features, qualities, etc. so as to influence the customers to purchase the product. Organisations undertake various promotional activities such advertising, sales techniques, personal selling, etc.