Operational excellence is its own reward. But the truth is that it doesn’t matter how amazing you are at what you do if nobody knows who you are. This is why companies of all sizes invest a great deal of time, effort and capital in their marketing endeavours. Marketing can be the fuel that drives growth, but can also become a cripplingly expensive money pit.
You need a laser-focused approach to marketing that targets the right audience and has the best possible chance of delivering a worthy return on your investment. Marketing mix strategy can help you to streamline your marketing efforts, making them more effective and potentially improving ROI.
What is marketing mix strategy?
The concept of marketing mix strategy has been around since the 1960s. While it has evolved somewhat since then, its core principles continue to be at the heart of effective marketing copy. Although our methodologies have changed in the digital age, we still use the same basic ingredients (the marketing mix) to engage audiences, sell products and grow brands.
The 4 Ps of marketing mix strategy
The academic James Culliton described business owners and executives as “mixers of ingredients”, the core components for successful business. Jerome McCarthy, another academic, distilled the ingredients inherent in the marketing mix to 4 Ps:
A good product or service is the foundation of a successful business. Look at how the iPod transformed Apple. You can nurture outstanding customer service and build a compelling brand… but it means nothing if your product doesn’t resonate with your target audience.
Where is your product distributed? From where is your service accessed? Is your business available and convenient for the customer? Do you sell directly to the customer, or through a third party like a retailer?
Your price point is an important part of your marketing strategy. But don’t make the mistake of assuming that all consumers are motivated by low prices. Indeed, a low price point may actually be contrary to your branding, not to mention creating potential cash flow problems.
Your marketing may be exclusively digital, or also include traditional methods like TV, radio and print advertising. However, blanket coverage can be expensive and ineffective. What social platforms do your customers use? What search engines and websites do they use regularly? What magazines and newspapers do they subscribe to? Which bloggers or influencers matter to them? You can forge lasting relationships with customers when you meet them on familiar ground.
The 7 Ps of marketing mix strategy
In the early 1980s, academics Bernard Booms and Mary Bitner expanded upon McCarthy’s 4 Ps, adding three new ones of their own. These are:
Physical evidence simply means that the customer can see your brand exists and is legitimate. Essentially, it’s not a scam. The best contemporary example of this is social proof – what customers are saying about your brand and your products online. Likewise, everything from your website to your physical premises (if you have one), and even the receipts you give your customers are considered physical evidence.
People means your employees. The people who bring the values and ideals of your brand to life through their interactions with customers. In recruiting, training and retaining the right people, you’re building on a selling proposition that will make your brand more marketable.
Finally, process is the series of actions that are involved in delivering your product or service to the customer. It goes without saying that processes need to be frictionless, and built around the customer’s needs, priorities and convenience.
Using marketing mix strategy effectively
The marketing mix strategy encourages business owners to consider the value of their offering from the customer’s point of view. The 7 Ps encourage you to think about the metrics that matter the most to the people you’re trying to engage.
Some tips to help you use this strategy effectively include:
Leveraging social proof to show the value of your brand / products.
Investing in training and retaining top-tier employees.
Using split testing to ascertain how variations in your ad copy can resonate more strongly with your audience.
Copy-testing ads to get feedback from your target audience before you start your campaigns.
We can help
If you’re interested in finding out more about marketing mix strategy, marketing ROI, or anything to do with your business finances, then get in touch with the financial experts at GoCardless. Find out how GoCardless can help you with ad hoc payments or recurring payments.