The Manager's View

A successful marketing effort requires the creation of value for a company, its customers and its collaborators. The only way this value can be created is through the mix of the four marketing Ps. The mix that is successful provides a profit for the company and a product or service that is acceptable to a set of customers. The greatest creation of value to all concerned is based on the optimal value of the 4Ps used in concert.   The Marketing Mix Grid (Grid 1) below provides an approach to identify the optimal marketing mix. MARKETING MIX VALUE GRID – Grid 1 AREA ABOVE AND TO THE RIGHT OF THE DIAGONAL IN GREEN TYPE CREATES VALUE FOR COMPANY, AREA TO THE LEFT AND BELOW OF THE DIAGONAL IN RED TYPE CREATES VALUE FOR CUSTOMERS AND COLLABORATORS. Copyright GWR Research PRICE PLACE PRODUCT PROMOTION PRICE OPTIMAL PRICE 1B. PRICE CHARGED FITS WITH COSTS TO GET PRODUCT TO CUSTOMER LOCATION 2B. PRICE CHARGED PROVID

The marketing mix of Price, Place, Product and Promotion is essential in every marketing strategy. The emphasis on components will shift with the circumstance or objective. Getting the “right” marketing mix can be difficult but is easier to approach if the strategist recognizes that an increase in the value of one component affects the needed emphasis on the remaining components. Below are some examples of situations where each of the components of the marketing mix may assume the dominant role in developing a marketing strategy Product Some instances in which Product becomes the dominant P in the marketing mix can be: 1)    The introduction of a new product that is anticipated by the consumers (new restaurant opening, electronic devices such as the Ipad), 2)    When a new product is the basis of the organization’s success, for example for college education the curriculum is critical, 3)    When a product is unique and delivers uncommon value