Digital marketing has become a hot topic these days. Many young people want to start their careers as digital marketers and many business people are competing to apply various types of digital marketing to their businesses.
Because indeed, along with the rapid advancement of digital technology and increasingly touching business opportunities in the pandemic era, many parties have tested their luck by launching a product (service or goods) to enter the market.
Today's modern digital marketers are flocking to implement several Digital Marketing Strategies for products, such as video marketing, Facebook Ads, or content marketing. But for novice business people who are starting a business with minimal capital, you don't need to worry because you haven't been able to hook a digital marketing expert to support business progress.
Because you can implement a conventional marketing strategy but have proven to be efficient in developing a business since ancient times. This strategy is known as the “Marketing Mix”.
Marketing Mix or Indonesian people often call it the "Marketing Mix" is indeed an important foundation in running a business. At least novice business people are not required to fully understand digital marketing. But they are mandatory and must fully understand the Marketing Mix.
Therefore, the following will explain the concept of Marketing Mix starting from its meaning, function, to purpose. Come on, see more below!
What are Marketing Mix?
What is meant by Marketing Mix? This question has at least once landed on the heads of people who just want to learn about business strategy. The definition of Marketing Mix is plain and simple.
The marketing mix is all about getting a product in the right place, at the right time, and at the right price. If explored in more detail, Marketing Mix is a concept of a business marketing strategy to increase the attractiveness of potential customers to products by using four main factors that are interconnected with one another, namely Product, Price, Promotion, and Place.
The marketing strategy that applies the principles of product, price, place and promotion is known as the "Marketing Mix 4P". Indeed, basically, Marketing Mix is associated with several aspects, namely the 4P's of marketing, the 7P's of service marketing, and the 4C's theories which were first introduced in the 1990s.
Marketing Mix 7P is the development of Marketing Mix 4P with the aim of conducting a more in-depth analysis of the actual market conditions. But if Erzedka Friends is currently just entering the initial stage of starting a business, implementing the 4P Marketing Mix is actually enough. Because the elements of the 4P Marketing Mix are the most basic and are used as a basis for optimizing profits and maximizing a business so that it remains stable or even continues to grow over a period of time.
What are the functions of marketing mix?
Without a marketing strategy that is mature and on target, it will be difficult for a product to sell, even if the quality of the product is very good. Everyone often buys a product not only because it's good, but because they feel the function of the product matches the solution they need.
Therefore, formulating a target market is something very important. Our products can reach the appropriate target customers is the first step to determine the next marketing strategy. Well, it is in these conditions that the Marketing Mix plays a role.
The main objective of the Marketing Mix is to assist business people in reviewing and formulating marketing strategies that are efficient and right on target.
In addition, other functions of the Marketing Mix are assisting in formulating an analysis of the company's budget, formulating the division of company resources so that it plays an optimal role in the success of marketing campaigns, assisting in understanding consumer behavior, and simplifying marketing campaigns so that they are not over-budgeted and more effective.
What is Marketing Mix Strategy?
As previously discussed, the Marketing Mix consists of two components. The first component of the Marketing Mix is the 4Ps. While the other is Marketing Mix 7P.
1. Marketing Mix 4P
The 4P Marketing Mix was first coined and introduced in the 1960s by a world economist from America, namely E. Jerome McCarthy.
The theory of the 4P Marketing Mix continues to develop and is used throughout the world by novice and experienced business people. The 4P Marketing Mix components consist of product, price, place, and promotion.
a. Product
Products to be sold by a company may have a form (goods) or intangible (services or services). The position of a product in a business is like the foundation of a house. Without a strong and accurate foundation, the house will easily falter and fall.
Likewise for a business, without a product that is mature and on target, the business will easily fall. Therefore, the product development phase must receive extra attention from business people. Deep research needs to be done on the product cycle you want to create.
So, during the product development phase, it's best for Erzedka Friends to make a list of questions that will be answered through the product being developed.
- What do customers want and need through the products you make?
- How do customers use the product?
- Where exactly will the customer use the product?
- What is the name of the product to be developed?
- Does the product have a unique selling point that differentiates it from competitors?
- What are the advantages of the product?
b. Price
Price is an example of the 4P Marketing Mix which is also included in the 7P. Price and product are inseparable. In order to get high profits, a company cannot immediately set a fantastic price. Because potential customers will definitely compare prices with competitors before deciding to buy a product.
If the price set does not match the purchasing power of your target customers, then you can be sure that the product being developed will not last long on the market.
Here are some product pricing strategies:
- Market penetration pricing (setting the initial product price low enough).
- Market skimming pricing (setting a high price at the start of a new product launch).
- Neutral pricing (setting product prices according to market standards and paying attention to prices offered by competitors).
During the initial product pricing phase, it is advisable for Erzedka Friends to make a list of questions such as the following:
- Will charging a lower price on a product significantly increase market share?
- Can the currently installed product prices offset product prices from competitors?
c. Place
In addition to products and prices, strategies for product placement or distribution are also things that need to be considered. Erzedka Friends must be able to distribute the product in a suitable place and if it is easily accessible to potential customers.
The following will provide several product distribution strategies:
- Intensive distribution (placing the product in as many small and large stores as possible in order to reach a wide market).
- Exclusive distribution (selling products through official distributor services).
- Selective distribution (selling products in certain places that have been agreed upon).
- Franchising (selling products through cooperation with other parties and sharing profits according to the portion and previous agreement).
During the initial phase of determining a product distribution strategy, it is best for business people to be able to answer the following questions:
- Where can potential customers find your product?
- What types of stores do potential customers frequent? Do they shop at malls, grocery stores, markets, supermarkets, online shops, or e-commerce?
- How is your product distribution strategy different from competitors?
- Does the product being sold also need to be distributed through exhibitions or trade fairs which are attended by many people?
- Does the developed product need to be marketed online (online shop and e-commerce)?
d. Promotions
The final component of the 4P Marketing Mix is promotion. Just like product, price, and place, promotion also plays an important role in a marketing strategy. Promotion has several important elements, namely sales organization, public relations, advertising, and sales promotion.
With the rapid development of digital technology, marketing strategies are shifting more online. Online marketing strategies must at least pay attention to the Marketing Funnel so that the promotions carried out can be right on target and in accordance with the habits of prospective customers in buying products.
In order to create an appropriate and effective promotion strategy (both offline and online), Erzedka Friends needs to answer the following questions:
- When is the right time to promote your product?
- Can social media be the right choice to maximize product promotion?
- What promotion strategies are used by competitors?
2. Marketing Mix 7P
Apart from the product, price, place and promotion described in the previous section, the 7P Marketing Mix also has other components such as physical evidence, people and process.
a. Physical Evidence
The physical evidence referred to in the Marketing Mix is product packaging, logos, brochures, souvenirs, events, corporate social media, official websites, even employee uniforms. Even though it has the title "physical" which refers to physicality, the physical evidence referred to in the 7P Marketing Mix is not always limited to physical products.
b. People
Even though technology is currently developing and becoming more sophisticated, the role of humans as the company's main resource is still needed. There are many aspects of the company that cannot be replaced by machines, so that it continues to require human labor. Likewise when implementing a marketing strategy.
The ideas, concepts, sharp instincts, and roadmaps run by the company's employees play an important role in carrying out the 7P Marketing Mix. Therefore, Human Resources (HR) is the most important asset in running a business and ensuring that the business continues to grow over time.
c. Process
In the 7P Marketing Mix strategy, the process is defined as a mechanism, flow, or procedure in carrying out a marketing strategy so that it is easier for potential customers to reach the products being sold.
In simple terms, the process is the path of the prospect's journey from the beginning of knowing the product to deciding to buy it. The initial stage of this process begins when potential customers see product advertisements on social media, websites, or others. While the final stage of the process is when the customer has successfully bought the product and used it.
The most important thing from a process is consistency. Display, description, and product claims in advertisements must match the reality of the actual product. If there is an inconsistency, it can cause dissatisfaction with customers and a decrease in the rating of the product.
What is an example of marketing mix?
The following will explain a case study in designing business products using Marketing Mix. Come on, see more in the explanation below!
1. Brainstorm Product Ideas to Develop
A local cosmetic brand wants to launch a new lipstick product that is environmentally friendly, durable and transferproof. The marketers from the company also tried to compile a number of questions related to the product to be developed and answered them according to the agreed product design.
- What do customers want and need through the products you make? Cosmetic waste is mushrooming so that it has the potential to damage the environment. In addition, during a pandemic like now where people always wear masks, women need lipstick that doesn't stick to masks easily when used.
- How do customers use the product? How to use the product is the same as using lipstick in general.
- Where exactly will the customer use the product? Customers will use the product on their lips. However, because the product to be developed is organically based which is environmentally friendly, lipstick can also be used as a blush on the cheeks.
- What are the advantages of the product? The advantages are transferproof and multifunctional.
- Does the product have a unique selling point that differentiates it from competitors? Yes, the product has a USP which is eco-friendly, multifunctional, and transferproof.
2. Determining the Right Place to Do Promotion and Selling
According to a research report conducted by Napoleon Cat in May 2021, Instagram social media users in Indonesia are dominated by women at 52.6%. While the remaining 47.4% are men.
Based on these facts, cosmetic brands decided to make social media, especially Instagram, the main selling place for lipstick products to be released. Considering that the target consumers of lipstick products are women, Instagram with a large number of female users can certainly be a suitable and profitable place to sell.
3. Develop Product Promotion Strategy
Because the target market for this lipstick product is women, especially the younger generation (age range 18-35 years), the cosmetic brand has designed a promotional strategy that can reach young women easily.
The main promotion strategy planned is to use Instagram Ads advertising services and work with several celebrities and influencers who have a large number of female followers with demographics under the age of 35 on Instagram.
Through the intensive promotion strategy of Instagram Ads and endorsements, it is hoped that when the launch of the newest lipstick product can attract the attention of many people to buy it. The costs required to use Instagram Ads services are the same as Facebook Ads costs, which are quite pocket-friendly.
4. Presenting Physical Evidence
The physical evidence owned by the cosmetic brand is the lipstick product itself. In addition, there are also brand logos, official websites, brochures, souvenirs, and official social media accounts.
5. Finding the Right Human Resources (HR).
The next step to fulfill the Marketing Mix strategy is to place job vacancies to assist cosmetic brands in producing lipstick and marketing it.
Vacancies that will be opened include cosmetologist, quality control team, product design team, chemist as a team for compiling cosmetic ingredients, office operations team, finance team, marketing team, social media admin, and customer service team.
6. Creating Brand SOPs
The Standard of Procedure (SOP) is the final step to complete the Marketing Mix strategy planning process so that it runs optimally. SOP is really needed to ensure that the planning to the lipstick production stage can run smoothly. The SOP is also used as a reference and standard for all brand employees at work.
Conclusion
Marketing Mix is a concept of a business marketing strategy to increase the attractiveness of potential customers to products by using four main factors that are interconnected with one another, namely Product, Price, Promotion, and Place. Marketing Mix has two concepts, namely 4P and 7P.
The 4P Marketing Mix consists of Product, Price, Place, and Promotion. While the 7P Marketing Mix includes four components in 4P plus Physical Evidence, People, and Process. The main objective of the Marketing Mix is to assist business people in reviewing and formulating marketing strategies that are efficient and right on target.
In addition, other functions include assisting in formulating an analysis of the company's budget, formulating the division of company resources so that it plays an optimal role in the success of marketing campaigns, assisting in understanding consumer behavior, and simplifying marketing campaigns so that they are not over-budgeted and more effective.
One example of the steps for implementing the Marketing Mix in the study case of the product manufacturing process is brainstorming product ideas to be developed, determining the appropriate product selling price, determining the right place for promotion and selling, developing a product promotion strategy, presenting physical evidence, seeking appropriate human resources (HR), and compiling work SOPs.
Well, that's enough discussion this time about Marketing Mix. Hopefully this will be useful for Erzedka Friends, OK!