The combination of variables chosen by a firm to prepare its market offering is also called marketing mix. Elements of Marketing Mix: The marketing mix consists of various variables, which have broadly been classified into four categories, popularly known as four Ps of marketing. These are:
(i) Product,
(ii) Price,
(iii) Place, and
(iv) Promotion.
(i) Product
(a) Product means goods or services or 'anything of value', which is offered to the market for exchange.
(b) The concept of product relates not only to physical product but also the benefit offered by it from customer point of view such as handling complaints, after sale services.
(c) The important product decisions include deciding about the features, quality, packaging, labeling and branding of the products.
(ii) Price:
(a) Price may therefore be defined as the amount of money paid by a buyer (or received by a seller) in consideration of the purchase of a product or a service.
(b) As, we know consumers are highly price sensitive, that is why, it is considered as very crucial element of marketing mix.
(c) Price mix refers to important decisions related to price of a product such as objectives of price setting, factors affecting price, etc.
(iii) Place:
(a) Place or Physical Distribution include activities that make firm's products available to the target customers.
(b) The two major decision areas under this function are:
• Decision regarding channels of distribution (like wholesalers, retailers) to be used.
• Physical Distribution means physical movement of the product from the place of production to the consumers for 'their consumption or use.
(iv)Promotion:
(a)Promotion of products and services include activities that communicate features, merits, etc. of the products to the target customers and persuade them to buy it.
(b) The four important tools of promotion are advertising, personal selling, sales, promotion and public relation.
