Marketing mix is one of the major concepts of marketing. According to the traditional base, there are 4Ps of marketing. These are referred to as the marketing mix. But in the modern use of the term, many more Ps have been coated. People have found six, seven even eleven Ps of marketing. In this article we will talk about the 4Ps and 6Ps.
The four Ps of marketing mix consist of Product, Price, Place and Promotion. Product means the thing that you are selling. It can also be a service like the tourism industry.
Price means the rate at which the product is being sold. A number of factors are involved in determining the price of a product. These include competition, market share, product identity, material costs and the value customers perceive of a product. In fact prices are also determined by competitor's products. If the competitors have the same product, then the price of a product will go down.
Place referers to the real or virtual place from where a product can be bought by a consumer. Another name used for place is called "distribution channel". Promotion is the way that a product will be communicated to the general public. There are four distinct ways in which this might be done- 'point of sale', 'word of mouth', public relations and advertising.
Somewhere down the line people felt that four Ps were not enough for marketing mix. It had to face a lot of criticism mainly on the grounds that it was extremely product focused. This was not enough for the economy which is based on lot on services as well nowdays.
Another criticism that marketing mix has to face is that it does not have a 'purpose'. So it should be looked upon as a tool that sets marketing strategy. Another criticism of marketing mix is that it does not discuss customers. This is why the concept of Six Ps of Marketing mix has achieved relevance.
The six Ps contain all the four Ps of marketing – product, price, place and promotion. In addition, it contains, two new Ps, namely People and Performance.
People include the potential and current customers of the business and how they make their purchase decisions. Market segmentation is also a part of this. It contains the features of market segmentation and the most attractive segments of this market.
The next P is Performance. This exemplifies the performance of the business. The financial and strategic objectives of the business are deal with here. It is also seen whether these objectives are achievable and realistic or not. The metrics of financial performance are also seen and appropriated in this division.
The six Ps of marketing mix help to overcome the criticisms of the four Ps. Here the 6Ps serve to be a better alternative as compared to the 4Ps of marketing mix.