The marketing mix describes the entirety of all activities defined to achieve the marketing goals. It is divided into four areas: The product policy, the pricing, the distribution policy, and the communication policy. All areas must be carefully coordinated.
As part of the product policy, it must be decided which product and/or service combinations an organization would like to offer on the market. Which product should be launched or withdrawn from the market in which quality and in which design? What should the product be called, which branding strategy should be used? Product policy also includes questions of product packaging and warranty.
The focus of the pricing policy is pricing. In addition to the basic decision for a high, medium, or low price segment, price policy measures such as the granting of discounts and other price differentiation are also discussed. Payment terms are also part of the considerations.
The distribution policy defines the distribution channel through which the products or services are brought to the customer. The first important decision is therefore whether the products should be sold directly or indirectly to the end customer. Is the sale taken over by the manufacturing company itself or is it handed over to a wholesaler or sales representative? Should the products be offered stationary or via distance selling?
The communication policy is also called marketing communication and describes the instruments through which a company communicates with the Sales Market. There are a number of possible means and channels of communication. TV advertising is just as much a part of this as setting up a customer forum or food tasting at the point of sale. As with the previous components of the marketing mix, the communicative measures should always be based on the needs of the target group.
Key facts at a glance
- Marketing mix = totality of all activities defined to achieve the marketing objectives
- the product policy deals with the product properties, the range design and the brand strategy
- The pricing is determined as part of the pricing policy
- The distribution policy decides on the distribution channel
- the communication policy describes how and with which messages a company contacts the sales market