marketing mix.docx - 20 MARKETING MIX MODULE-5 Marketing...

Notes
Marketing
101
Business Studies
MODULE-5
20
M
ARKETING
M
IX
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.
I
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.
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

Notes
Marketing
Senior Secondary
102
MODULE -5
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.