The term marketing mix was first used in 1953 by Neil H. Borden in his presidential address of the American Marketing Association and later in his article entitled “The concept of the marketing mix”.
In 1960, a well-known marketer E.J. McCarthy categorized elements of the marketing mix proposed by Neil H. Borden into four main categories. According to E.J. McCarthy, marketing mix consists of four main elements:
- place (distribution)
These elements commonly called 4Ps of marketing mix.
Maximizing performance of the marketing mix is what marketing as a function of organization focuses on. Of course, the ultimate objective of managing the 4 Ps marketing mix is the same as of any other action of the organization, to increase the wealth of the shareholders of the enterprise.
The 4Ps of the marketing mix
Product – Product, as an element of marketing mix, refers to products and services produced by companies for consumption by the population. Various marketing decisions have to be made concerning the product element of the marketing mix. Such decisions include decisions on packaging of the product, branding of the product or service, and on the product warranty.
Place (distribution) – Place (distribution), as an element of marketing mix, refers making products and services available for the customer. It also refers to the site where the product or service is made available to customers. Management of place as an element of the marketing mix includes various vital decisions such as decisions regarding the distribution channel and inventory management.
Promotion – Promotion, as an element of marketing mix, incorporates everything that companies do to attract customers to its products and services. Management of promotion, as an element of marketing mix, includes management of the “promotional mix” which consists of sales promotion, advertising, sponsorships, direct marketing, personal selling and public relations (publicity).
Price – Price, the last of the 4 Ps, refers to the amount, in monetary terms, that the producer requires from consumer in order to part with the ownership of or ability to use the product or service which is offered for sale. One of the key elements of the marketing mix is pricing strategy.