The Marketing Mix
Nama : Muhammad Firmansyah
NIM : 06.3.78002
Jurusan : Teknik Informatika
The marketing mix is generally accepted as the use and specification of the 4 Ps describing the strategic position of a product in the marketplace. One version of the origins of the marketing mix starts in 1948 when Culliton said that a marketing decision should be a result of something similar to a recipe. This version continues in 1953 when Neil Borden, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term ‘Marketing-Mix’. A prominent person to take centre stage was E. Jerome McCarthy in 1960; he proposed a four-P classification which was popularised. Philip Kotler describes the concept well in his Marketing Management book (see references below)
The model was developed by Neil Borden who first started using the phrase in 1949. “An executive is a mixer of ingredients, who sometimes follows a recipe as he goes along, sometimes adapts a recipe to the ingredients immediately available, and sometimes experiments with or invents ingredients no one else has tried.” (Culliton, J. 1948)
According to Borden ,”When building a marketing program to fit the needs of his firm, the marketing manager has to weigh the behavioral forces and then juggle marketing elements in his mix with a keen eye on the resources with which he has to work.” (Borden, N. 1964 pg 365).
Jerome McCarthy (McCarthy, J. 1960), was the first person to suggest the four P’s viz price, promotion, product and distribution which constitute the most common variables used in constructing a marketing mix. According to McCarthy the marketers essentially have these four variables which they can use while crafting a marketing strategy and writing a marketing plan. In the long term, all four of the mix variables can be changed, but in the short term it is difficult to modify the product or the distribution channel.
Another set of marketing mix variables were developed by Albert Frey (Frey, A. 1961) who classified the marketing variables into two categories: the offering, and process variables. The “offering” consists of the product, service, packaging, brand, and price. The “process” or “method” variables included advertising, promotion, sales promotion, personal selling, publicity, distribution channels, marketing research, strategy formation, and new product development.
Recently, Bernard Booms and Mary Bitner built a model consisting of seven P’s (Booms, B. and Bitner, M. 1981). They added “People” to the list of existing variables, in order to recognize the importance of the human element in all aspects of marketing. They added “process” to reflect the fact that services, unlike physical products, are experienced as a process at the time that they are purchased.
Although some marketers have added other Ps, such as personnel, typically the 4 Ps, or marketing mix refer to:
Product – Although this typically refers to a physical product, it has been expanded to include services offered by a service organization. The specification of the product is one of the variables that a marketer has at his/her control. For example, the product can include certain colors (or not), certain scents (or not), certain features (or not). Lastly, in the broadest sense when a consumer purchases a product it also includes the post-sales relationship with the company. The post-sales relationship can include customer service and any warranty.
Price – The price is the amount paid for a product. In some cases, especially in business-to-business marketing this can also include the total cost of ownership (TCO). Total cost of ownership may include costs such as installation and other products required to deliver a complete functional solution.
Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.
Promotion – Promotion represents all of the communications that a marketer may insert into the marketplace. This can include TV, radio, and print advertising, as well as coupons, direct mail, billboards, and online advertising. One of the less well-defined areas in promotion is the role of a human sales force. Are the messages the sales person provides to a consumer a component of the promotional mix, or is it part of the product? On the other hand, consumers may rather purchase the product only when sold through the support of a known salesperson. In this case, the service, perceived or real can be defined as a feature of the product (see Product above).
Broadly defined, optimizing the marketing mix is the primary responsibility of marketing. By offering the product with the right combination of the 4Ps marketers can improve their results and marketing effectiveness. Making small changes in the marketing mix is typically considered to be a tactical change. Making large changes in any of the 4Ps can be considered strategic. For example, a large change in the price, say from $129.00 to $39.00 would be considered a strategic change in the position of the product. However a change of $129.00 to $131.00 would be considered a tactical change, potentially related to a promotional offer.
Marketing Mix Model
Marketing Mix Modeling (MMM) is an analytical approach that use past data (Syndicated Point-of-sale data and companies’ internal data) to quantify the sales impact of various marketing activities. Mathematically, this done by establishing a simultaneous relation of various marketing activities with the sales, in the form of a linear or a non-linear equation, through the statistical technique of regression. MMM defines the effectiveness of each of the marketing elements in terms of its contribution to sales-volume, effectiveness (volume generated by each unit of effort), efficiency (volume generated by each rupee spend) and ROI (rupee generated by each rupee spend). These learnings are then adopted to adjust marketing tactics and strategies, optimize the marketing plan and also to forecast sales while simulating various scenarios.
Elements in MMM
This is accomplished by setting up a model with the sales volume/value as the dependent variable and independent variables created out of the various marketing efforts. The creation of variables for Marketing Mix Modeling is a complicated affair and is as much an art as it is a science. Once the variables are created, multiple iterations are carried out to create a model which explains the volume/value trends perfectly. Further validations are carried out, either by using a validation data, or by the consistency of the business results.
The output can be used to analyze the impact of the marketing elements on various dimensions. The contribution of each element as a percentage of the total plotted year on year is a good indicator of how the effectiveness of various elements changes over the years. The yearly change in contribution is also measure by a due-to analysis which shows what percentage of the change in total sales is attributable to each of the elements. For activities like television advertising and trade promotions, more sophisticated analysis like effectiveness can be carried out. This analysis tells the marketing manager the incremental gain in sales that can be obtained by increasing the respective marketing element by one unit. If detailed spend information per activity is available then it is possible to calculate the Return on Investment of the marketing activity. Not only is this useful for reporting the historical effectiveness of the activity, it also helps in optimizing the marketing budget by identifying the most and least efficient marketing activities.
Once the final model is ready, the results from it can be used to simulate marketing scenarios for a ‘What-if’ analysis. The marketing manager can reallocate this marketing budget in different proportions and see the direct impact on sales/value. He can optimize the budget by allocating spends to those activities which give the highest return on investment.
Peter Doyle (Doyle, P. 2000) claims that the marketing mix approach leads to unprofitable decisions because it is not grounded in financial objectives such as increasing shareholder value. According to Doyle it has never been clear what criteria to use in determining an optimum marketing mix. Objectives such as providing solutions for customers at low cost have not generated adequate profit margins. Doyle claims that developing marketing based objectives while ignoring profitability has resulted in the dot-com crash and the Japanese economic collapse. He also claims that pursuing a ROI approach while ignoring marketing objectives is just as problematic. He argues that a net present value approach maximizing shareholder value provides a “rational framework” for managing the marketing mix.
Against the four Ps, some claim that they are too strongly oriented towards consumer markets and do not offer an appropriate model for industrial product marketing. Others claim it has too strong of a product market perspective and is not appropriate for the marketing of services.
Kotler, Philip, Keller, Lane (2005) “Marketing Management”, Prentice Hall, ISBN 0131457578.
Barlon, K. (2006) “The concept of the marketing mix” Presentation on marketing management, vol 1, September, 2006, pp 2-7-Oulu university -Finland – The same article can also be found in: Schwartz, G. (ed), Science in Marketing, John Wiley, New York, 1965, pp 386-397 – and also in: Enis, B. and Cox, K. (1991) Marketing Classics, A selection of influential articles, Allyn and Brown, Boston, 1991, pp 361-369.
Doyle, P. (2000) Value based marketing, Wiley, Chichester, 2000.
Hammer, M. and Champy, J. (1993) Reengineering the Corporation: A Manifesto for Business Revolution, Harper Business Books, New York, 1993, ISBN 0-06-662112-7
Hughes, M. (2005) “Buzzmarketing: Get People To Talk About Your Stuff”, Penguin/Portfolio, New York, 2005 Website
Lauterborn, R (1990) “New Marketing Litany: 4 Ps Passe; C words take over”, Advertising Age, October 1, 1990, pg 26.
Pemasaran adalah sebuah proses dalam memuaskan kebutuhan dan keinginan manusia. Jadi, segala kegiatan dalam hubungannya dalam pemuasan kebutuhan dan keinginan manusia merupakan bagian dari konsep pemasaran. Pemasaran dimulai dengan pemenuhan kebutuhan manusia yang kemudian bertumbuh menjadi keinginan manusia. Contohnya, seorang manusia membutuhkan air dalam memenuhi kebutuhan dahaganya. Jika ada segelas air maka kebutuhan dahaganya akan terpenuhi. Namun manusia tidak hanya ingin memenuhi kebutuhannya namun juga ingin memenuhi keinginannya yaitu misalnya segelas air merek Aqua yang bersih dan mudah dibawa. Maka manusia ini memilih Aqua botol yang sesuai dengan kebutuhan dalam dahaga dan sesuai dengan keinginannya yang juga mudah dibawa. Proses dalam pemenuhan kebutuhan dan keinginan manusia inilah yang menjadi konsep pemasaran. Mulai dari pemenuhan produk (product), penetapan harga (price), pengiriman barang (place), dan mempromosikan barang (promotion). Seseorang yang bekerja dibidang pemasaran disebut pemasar. Pemasar ini sebaiknya memiliki pengetahuan dalam konsep dan prinsip pemasaran agar kegiatan pemasaran dapat tercapai sesuai dengan kebutuhan dan keinginan manusia terutama pihak konsumen yang dituju.
Dalam pemasaran terdapat empat prinsip dasar yang terdiri 4 P
Metode ini yang dikenal dengan Bauran Pemasaran (Marketing Mix).
Pemasaran lebih dipandang sebagai seni daripada ilmu, maka seorang ahli pemasaran tergantung lebih banyak pada ketrampilan pertimbangan dalam membuat kebijakan daripada berorientasi pada ilmu tertentu.
Pandangan ahli ekonomi terhadap pemasaran adalah dalam menciptakan waktu, tempat dimana produk diperlukan atau diinginkan lalu menyerahkan produk tersebut untuk memuaskan kebutuhan dan keinginan konsumen (konsep pemasaran).
Metode pemasaran klasik seperti 4P di atas berlaku juga untuk pemasaran internet, meskipun di internet pemasaran dilakukan dengan banyak metode lain yang sangat sulit diimplementasikan diluar dunia internet.
Beda Marketing Mix dengan Mix Promotion dalam Pemasaran
Marketing Mix terdiri dari product, price, place and promotion. Jadi Marketing Mix itu memiliki elemen yang sering disebut 4P.
Didalam promotion juga terdapat sub-elemen lagi yang sering diistilahkan sebagai promotion mix yang terdiri dari advertising, sales promotion, public relation, personal selling dan direct marketing. Jadi kalau kita mau melakukan promosi, maka ada alternative pilihan startegi yang bisa digunakan yang dikelompokan dalam promotion mix seperti advertising dsb.
Anief, Moh. 2000. Prinsip dan Dasar Manajemen: Pemasaran Umum dan Farmasi. Yogyakarta : Gadjah Mada University Press.
Bovée. 1986. Contemporary Advertising. Illinois:Richard D. Irwin, Inc.
Rothschild, Michael L.. 1987. Advertising. Canada: D. C. Heath and Company