The product is basically what the company offers to the market and the consumer. The product can be either a physical product or a service. Product – is the first thing, with which work begins on marketing mix. Symbolism of the brand (name, logo, corporate identity); product functionality is the necessary and unique properties of a product or service; appearance of the product – style, design, packaging; variability or product range – these are all solutions that should be reflected in the marketing strategy at the “product” level:
Another important element of the marketing mix is the price. It is responsible for the final profit from the sale of the goods. The price is determined on the basis of the perceived value of the goods by the consumer, the cost of the product, the prices of competitors and the desired rate of return. As well as the product it also includes some solutions that can be reflected in the marketing strategy at the “price” level: pricing strategy for entering the market; retail price – it is necessary to relate the selling price to the desired retail price, if the company is not the last link in the sales chain; availability of seasonal discounts or promotions; the policy regarding promo-events (conditions for granting discounts, maximum and minimum levels of discounts, the frequency of promotional events, etc.); the possibility of price discrimination.
Next important element of the marketing mix, the place of sale, ensures the availability of the product for the target market and means that the goods of the company must be present in the market in the right place (where the target consumer can see and buy it) at the right time (when the target consumer needs to buy it).
It is also important to mention that in the context of marketing mix, last element of the marketing mix, promotion, is understood as all marketing communications, which allow to attract the consumer’s attention to the goods, to form knowledge about the product and its key characteristics, to form a need for purchase of goods and repeat purchases. Promotion includes such marketing communications as: advertising, promotions in points of sales, search engine optimization, PR, direct marketing and others.
As it has already been stated, the main components of the marketing mix (4P): Product, Price, Place, Promotion can be used by any company. The new three elements are included in the 7P model: Process, People and Physical Evidence, which are more suited to the B2B business-to-business market and are suitable for a marketing mix in the services market.
Modern markets are characterized by high dynamics. Current buyers’ needs, competitors’ activity indicators and applied technologies are rapidly increasing and developing day by day. Firms-pioneers of the market should bear in mind that the advantages they have achieved are of a short-term nature, since newcomers of the market can take advantage of the provided opportunities for the attack on the leader. Frontal attack against a successful leader rarely leads to a positive result. Success is determined by the non-standard approach to identification of new market segments and additional qualities of the goods, which the leader still did not use. The development of the market is accompanied by