Thinking about the Essence of the Marketing Mix #53

One of the representative frameworks for thinking about marketing strategy is the “Marketing Mix.” The marketing mix is generally referred to as the 4Ps.


ProductPrice
Place
Promotion
It is an acronym taken from the first letter of each.
However, the most important thing here is not just "knowing the 4Ps."

Rather, what is important is why it is called a "marketing mix."
Instead of thinking about the four elements individually, you align each one with the value provided to the customer to create an optimal combination.
That is where the essence of the marketing mix lies, and I believe it is also an important aspect of marketing itself.

■ The 4Ps of the Marketing Mix

First, let's organize the four Ps.

1. Product—"What are you providing?"
Product is the product/service strategy.
Specifically, you consider functions, design, quality, variety, features, name, size, packaging, and so on.
What is important here is not just "what to sell."
It is important to consider what kind of value you are providing to the customer.
From this perspective, you need to design the product or service itself.

For example, even with the same product called "coffee,"
"coffee that is easy to drink,"
"coffee to enjoy high-quality beans,"
"coffee to refresh yourself for a short time during work,"
the value provided to the customer is different.

2. Price—"At what price will you provide it?"
Price is the pricing strategy.
You consider not only the selling price but also discounts, sale prices, payment terms, transaction conditions, rebates, pricing structures, and more.
Price does not just influence sales and profits.
It is an objective numerical representation of the value of that product or service, and it also influences customer perception.

For example, if you sell a luxury brand product at a significant discount, sales might increase in the short term.
However, it could also damage the "luxury" brand image.

In other words, price is not just a "number."
It is important how you express the value of the product as a price.

3. Place—"Where and how will you deliver it?"
Place is the distribution strategy.
You consider the path until the customer purchases the product or service.
In other words, this includes stores, e-commerce sites, sales representatives, agents, wholesalers, delivery, inventory, logistics, etc.

No matter how attractive a product you develop, it is meaningless if the customer cannot purchase it.
Conversely, by providing a place or method that is easy for the customer to purchase, you can also increase the value of the product.

For example, for a customer who "wants it right away," you provide a mechanism where they can purchase it immediately at a store.
Or, for a customer who "wants to choose carefully at home," you sell it on an e-commerce site with abundant information.

In this way, it is important to think about Place from the perspective of "how to deliver it to the customer," not "where to put the product."

4. Promotion—"How will you communicate the value?"
Promotion is the promotion strategy.

Representative examples include advertising, sales promotion, public relations, exhibitions, sales activities, websites, social media, events, etc.
No matter how excellent a product is, if the customer does not understand its existence or value, it will not become an option.

That is why you need to think about "what to communicate," "who to communicate to," and "what method to use to communicate."

■ The most important thing in the marketing mix is the "mix"

We have looked at the 4Ps one by one so far.
However, in understanding the marketing mix, the most important part starts here.

That is, you must not think about the 4Ps separately. For example,

"making a good product,"
"setting an appropriate price,"
"increasing retail stores,"
"running advertisements,"
thinking about each of these independently cannot be called a marketing mix.
What is important is that each is aligned to realize a single customer value.

■ Thinking about a "luxury product" using the 4Ps

For example, suppose you are selling a "high-quality luxury watch."

For Product, you design:
* High-quality materials
* Precision mechanism
* Sophisticated design
* Luxurious packaging
and so on.

For Price, you set it in a high price range that matches the value of the product.

For Place, you do not make it available everywhere, but select specific stores or sales channels that match the brand image.

For Promotion, I think it becomes important to communicate the value of the product, such as "quality," "tradition," "craftsmanship," and "status," rather than messages like "cheap" or "good deal."

Looking at these 4Ps,
・ Product = Luxury
・ Price = High price
・ Place = Limited/selected channels
・ Promotion = Appealing to quality and brand value
there is consistency.
This is the "mix."

■ Think of the 4Ps as "multiplication," not "addition"

When thinking about the marketing mix, I believe it is important not to view the 4Ps as simple addition.

As an image, it is
Product × Price × Place × Promotion.
Even if only the Product is excellent, if the Price does not match the customer's perception of value, it may not lead to a purchase.

Even if the Product and Price are appropriate, if the Place is inconvenient for the customer, you may lose the opportunity for a purchase.
Furthermore, even if the Product, Price, and Place are in order, if the value is not correctly communicated through Promotion, there is a possibility that it will not be chosen by the customer.
In other words, more than each one being excellent, it is important that the four mesh together to enhance the synergistic value.

In that sense, after examining each P, you need to review the overall consistency once more.
At that time, you do not necessarily have to think in order from Product.
Depending on the case, I think it is fine to start from the P with the highest influence and work toward alignment.

The marketing mix is not a task of filling in the correct answers in order.
It can be said that it is a task of searching for the combination with the highest synergistic consistency while going back and forth between the four elements.

■ Thinking with "7Ps" for services

For reference, in the marketing mix for services, there is also a concept called 7Ps, which adds three elements to the 4Ps.

5. People—Human elements
These are the people who provide the service, including employees, sales staff, customer service representatives, and others who have contact with customers.
Especially in the case of services, "who provides it" can itself become the customer value.

6. Process—Process
This is the business/sales process until the service is provided.
You consider the series of flows that the customer experiences, such as reservations, orders, provision, payment, and after-sales follow-up.

7. Physical Evidence—Physical evidence
Because services are intangible, "clues" that allow customers to judge quality become important.
Physical elements that make one feel the quality of the service, such as stores, facilities, websites, brochures, and uniforms, fall under this category.

When it becomes 7Ps, the elements to consider increase.
However, the basic way of thinking does not change from the 4Ps.
What is important is not to optimize the seven elements individually, but to align all elements toward a single goal of "what kind of value to provide to the customer."

For example, if you are thinking about high-quality hotel service, you should not just make the Product high-quality, but design it as a consistent experience, including:

People—Response of customer service staff
Process—Flow from check-in to check-out
Physical Evidence—Atmosphere of facilities and guest rooms
Price—Pricing
Place—Location and reservation channels
Promotion—Advertising and brand communication

■ The marketing mix is a "combination that realizes value"

There is no universal correct answer for the marketing mix.
This is because if customers, competitors, or the market environment change, the optimal combination of price, promotion, distribution, etc., will also change.

That is why it is important not to just decide once and be done with it, but to continuously verify, "Is this combination truly valuable to the customer?"

The marketing mix is not just about memorizing the 4Ps.
Starting from the value you want to provide to the customer, it is important to see if elements such as product, price, distribution, and promotion are aligned as a single strategy.

By optimizing the "combination" according to changes in the market and customers, I believe you will get closer to the goal of marketing, which is a "mechanism that is naturally chosen."