319EL20 - MODULE-5 Marketing Notes 20 MARKETING MIX I n the...

101
Business Studies
Notes
MODULE-5
Marketing
20
M
ARKETING
M
IX
I
n the previous lesson you learnt that marketing identifies consumers’ needs and supplies
various goods and services to satisfy those needs most effectively. So the businessman
needs to: (a) produce or manufacture the product according to consumers’ need; (b)
make available it at a price that the consumers’ find reasonable; (c) supply the product to
the consumers at different outlets they can conveniently approach; and (d) inform the
consumers about the product and its characteristics through the media they have access
to.
So the marketing manager concentrates on four major decision areas while planning the
marketing activities, namely, (i) products, (ii) price, (iii) place (distribution) and
(iv) promotion. These 4 ‘P’s are called as elements of marketing and together they constitute
the marketing mix. All these are inter-related because a decision in one area affects decisions
in other areas. In this lesson you will learn about the basic aspects relating to these 4‘P’s
viz., product, price, place and promotion.
O
BJECTIVES
After studying this lesson, you will be able to :
• explain the concept of marketing mix and its components;
• explain the meaning of product and its classification;
• state the various factors affecting pricing decisions;
• describe different methods of pricing;
• state the meaning of channels of distribution;
• identify the various channels of distribution;
• state the factors affecting choice of a channel of distribution; and
• explain the concepts of promotion and promotion mix.

Senior Secondary
Notes
102
MODULE -5
Marketing
20.1 C
ONCEPT AND
C
OMPONENTS OF
M
ARKETING
M
IX
Marketing involves a number of activities. To begin with, an organisation may decide on
its target group of customers to be served. Once the target group is decided, the product
is to be placed in the market by providing the appropriate product, price, distribution and
promotional efforts. These are to be combined or mixed in an appropriate proportion so
as to achieve the marketing goal. Such mix of product, price, distribution and promotional
efforts is known as ‘Marketing Mix’.
According to Philip Kotler “Marketing Mix is the set of controllable variables that the firm
can use to influence the buyer’s response”. The controllable variables in this context refer
to the 4 ‘P’s [product, price, place (distribution) and promotion]. Each firm strives to
build up such a composition of 4‘P’s, which can create highest level of consumer satisfaction
and at the same time meet its organisational objectives. Thus, this mix is assembled keeping
in mind the needs of target customers, and it varies from one organisation to another
depending upon its available resources and marketing objectives. Let us now have a brief
idea about the four components of marketing mix.