What is marketing mix? What are its main elements? Explain.

Meaning: It refers to the aggregate of decisions taken with a view to successfully completing different marketing activities.

Components: Marketing decisions are mainly in respect of four variables, viz., product, price, promotion and place or physical distribution. These variables are called elements of marketing mix.

All four elements of marketing mix are described as under:

(i) Product Mix: It refers to the combination of all decisions relating to product. These decisions are mainly with regard to dimensions of the product (Product line, Product width, Line length, Product depth and Product consistency), its branding, packaging, labelling, colour, design, quality, size, after sale service, its weight etc. These decisions play an important role in attracting the customers to the product.

(ii) Price Mix: It refers to all those decisions which are concerned with the price fixation of any product or service. Determination of fair price of the product is a very important but difficult function of marketing manager. Fair price is that price which is acceptable both to the customers as well as producers. Price is one of the major factors which contribute a lot to finalise the deal between buyer and seller. Under price mix, besides fixing the price of the product or service, decisions regarding credit sale, discount, etc. are also included.

(iii) Promotion Mix: It refers to informing the customers about the product, persuading them to purchase these products. This job is done by the company through the medium of advertisement, personal selling, sales promotion and publicity. Decision with regard to all these factors directly influence the sale of the product.

(iv) Place Mix: It refers to the combination of all decisions relating to make products available to consumers. If the product is not available on right time, in right quantity and at right place then consumer will not be able to buy it. In such a situation, all activities of Marketing Mix will turn futile. So to make Marketing Mix a success, Place Mix is very important. To make the product reach the consumers the decisions regarding the following are included in ‘Place Mix’:

(a) Channels of Distribution: It refers to that path through which products reach consumers. In this path many people and firms participate.

(b) Physical Distribution: It involves decisions relating to the transportation, inventory, warehousing and order processing of goods.