The 4 Elements of the Marketing Mix Model

Marketing Mix Model for Planning and Strategy Development

The marketing mix model is a process for planning and strategy development that involves four elements within your control.  These are: 

·         Product

·         Price

·         Place

·         Promotion 

It was a 1964 article published by Neil H. Borden, called “The Concept of the Marketing Mix” that popularized the marketing mix model term.  In this article, Borden based this term on the “mixer of ingredients” expression used by James Culliton in his description of a marketing manager in the 1940’s.   Borden picked up those words at that time and worked them together to call them the marketing mix.  When the ingredients of the mix were all combined – that is, the branding, fact finding, product planning, personal selling, pricing, advertising, distribution channels, packaging, promotions, physical handling, display, and analysis – they become the marketing mix model, which was broken down into its four primary elements by E. Jerome McCarthy that are well recognized today. 

These four marketing mix model elements, also known as the “four P’s”, are the factors that are controllable by a marketing manager.  They are also subject to the external and internal limitations of the environment in which the marketing is taking place.  The purpose of the marketing mix model elements is to create a focus on the target market customers so that a positive response is generated through the perception of value. 

Marketing Mix Model Element 1: Product 

The “product” element refers to the decisions that are made regarding both the products and services that are available from your company and that are being marketed.  Some examples of product decisions that may be made include: 

• Quality
• Functionality
• Styling
• Safety
• Brand name
• Warranty
• Accessories and services
• Repairs and support

Marketing Mix Model Element 2: Price 

There are many different types of decisions that can be made about products and services that are offered by your company.  These decisions can include: 

• Suggested retail price
• A full pricing strategy, including the skim, penetration, and other factors
• Discounts for cash payments or early payments
• Discounts for volume, such as wholesale pricing
• Bundling or package pricing
• Flexibility of pricing
• Price discrimination
• Seasonal pricing

Marketing Mix Model Element 3: Place 

The “place” element of the marketing mix model refers to the distribution decisions that are made.  This has to do with the way that the products and services are brought to the customers.  Some examples of the place or distribution decisions for products and services include: 

• Specific channel members
• Distribution channels
• Management of inventory
• Coverage of the market, such as distribution that is selective, inclusive, or exclusive
• Distribution centers
• Warehousing
• Processing of orders
• Transportation
• Reverse logistics

Marketing Mix Model Element 4: Promotion 

Within the marketing mix model context, the promotion decisions have to do with the different levels of marketing communication.  This refers to the way that your company’s message is conveyed to the potential customer.  It must include information about your product or service that will generate a positive response from the customer.  Some of the decisions that can be made regarding the promotional marketing communications include:

• Advertising
• Sales promotions
• A push or pull promotional strategy
• A sales force for personal selling
• The budget for marketing communications and promotion
• Publicity and public relations

The Marketing Mix Model Limitations 

Though the marketing mix model has shown itself to be a positive, steady framework for use over the years, it must be acknowledged that its primary use was in the youth of marketing as a concept, when marketing was still quite primitive and when the most significant part of the economy was based upon physical products.  In today’s economy, however, businesses are faced with a much broader spectrum of both products and markets.