The marketing mix consists of four elements: products, place, price, and promotion. The goal of marketing mix is to make decisions that center these four elements in order to create an integrated product/service offering to customers that satisfies their needs and wants. Marketing mix is very important in making marketing strategies to targeted markets.
The first element of marketing mix is the product, which is the actual product or service that the organization is offering to its customers of the targeted market. For example, our company is a medical endoscope company which makes the target market and consumers doctors and hospitals. Our product offerings are a combination of physical endoscope and repair services which we provide to all of our customers. Our Japan corporate headquarters is where all the product development, modification, and manufacturing takes place. They first develop a new product and then introduce the new product to the market; it gains more and more customers as it grows.
The new product or service is promoted, not for the main purpose of generating revenue, but instead to create awareness and thus generate more market share. We often send letters, pamphlets, and brochures to all of our customers notifying them of the new product/repair introduction. We use TV advertisement to get doctors interested in knowing more about our new product; thus we are pulling the product through the distribution channel. In addition, we also use the push strategy by giving discount incentives to customers if they try out our new product or repair service.
Price is the next marketing mix element. This is an important marketing lever as organizations must be careful in price making. There are many ways to price a product/service, in our company, we use price skimming to set the price of our products and repair services.