2) Marketing mix helps in New product development. While designing an existing product, there are any number of ideas which can come up for a related product that can be designed by the company. The pricing, place and promotions might be different for such a product.
The competitor might have poor placement of products or he might have the wrong process or the wrong people in place. All this can be improved upon giving you a better marketing mix and therefore a competitive advantage in the market.
Hence, marketing mix is an excellent guide if someone wants to improve their business and is doing gap analysis. When you analyse the marketing mix of Competitors, there are many different ways that you can differentiate yourself from the competitor.
We also encourage all small business owners and strategy makers to start planning their strategy with a look at the Marketing mix of brands. There are many reasons that justify the importance of marketing mix. Marketing mix constitutes of the 4 P’s in case of products – Product, price, place and promotion.
Global Marketing combines the promotion and selling of goods and services with an increasingly interdependent and integrated global economy. It makes the companies stateless and without walls. The 4P's of Marketing − product, price, place, and promotion − pose many challenges when applied to global marketing.
Culture can differentiate a standardized product from an adapted one. Making cultural changes in product attributes is like introducing a new product in your home country. The product should meet the needs, tastes, and patterns that are permitted by the market culture.
In order to be successful in a global market, a marketer must make its products and accessible to customers at all costs. Distribution channels make up the "place" in the 4 P’s of the marketing mix (along with Product, Price, and Promotion).
Pricing is a crucial part of the marketing mix for international firms. Pricing techniques play a critical role when a company wants to penetrate into a market and expand its operations.
A global marketer can consider budgeting rules such as percentage of sales (creating budget as a percentage of sales revenues), competitive parity (taking competitor’s ad spending as a benchmark), or objective-and-task (treating promotional efforts to achieve stated objectives).
The diverse demand for products and services in the era of globalization is mind-blowing. Presence of industrialized and emerging markets, increasing purchasing power, and the growth of Internet has made the customers aware , smart, and more demanding. The result is a greater competition between firms.
Traditionally, import-oriented distribution structures relied on a system where importers controlled a fixed supply of goods. The marketing was based on the idea of limited suppliers, high prices, and smaller number of customers. Today, the import-oriented model is hardly used. Channel structures have become more advanced with overall development.
The following points explain the importance of marketing mix. 1) It helps in a clean mix creation. 2) Marketing mix helps in New product development. 3) Marketing mix helps increase the product portfolio. 4) It is a guide to improve a business. 5) It helps in differentiation. 6) Finally, it helps you in being dynamic.
3) Marketing mix helps increase the product portfolio. Whenever you want to increase the product depth or product line and length, you have to make minor changes to the product. In essence, you are making minor changes in the marketing mix itself. You are making changes to the product features, to its pricing and possible to its promotions.
Marketing mix constitutes of the 4 P’s in case of products – Product, price, place and promotion. In case of services it constitutes of 3 more P’s – People, process and Physical evidence. Furthermore, in recent years, Packaging is also considered as an important P and is said to be the 5th P of the Marketing mix.
A company which is well prepared is also prepared when disaster strikes. During recession or during a poor business environment, a company should be ready to respond. At such times, the company needs to be dynamic in nature. Such a company needs to understand its product, processes, people, promotions and all other P’s better. If it understands them, it will respond with a better agility.
The pricing, place and promotions might be different for such a product. Nonetheless, it can be classified as a new product and hence while designing the marketing mix, the company can come up with good ideas for NPD as well.