The elements of 'marketing mix'.

Marketing mix is a systematic combination of four elements - Products, Price, Place and Promotion. Each of these element is in itself a combination of several sub-factors. Therefore, each element is also known as mix. These four elements of marketing mix are described below:

(i) Product Mix: Product mix refers to a combination of various features relating to the product or service to be offered for sale. It involves decisions concerning the quality, size, range, package, brand name, label, warranty and services etc.These product related activities are directed usually at a specific group of customers (called target market) rather than at consumers at large. Consumers consider a product as 'a bundle of satisfaction' rather than a physical item. For example, the buyer of washing machine wants speed, comfort and trouble free operation rather than just a box of metal, plastic and electrical components.

(ii) Price Mix: Price mix involves decisions regarding the basic price of the product, discount, allowances, credit and terms of payment, etc. Price means the money value that the customer has to pay in exchange for the product. Price mix should be divided keeping in view the cost of producing and marketing the product, purchasing power of the target group of customers, degree of competition in the market, the profit margin desired by the seller, discounts and allowances to be offered to dealers and customers as incentives, etc.

(iii) Place or Physical distribution mix: Place or distribution mix consists of all the activities involved in transferring owenership and physical possession of the product to customers. Its purpose is to make the product or service available to customers at the right time and at the right place. Distribution mix includes.

(a) Channels of dictribution and (b) Physical distribution.

Physical distribution includes all those activties which are involved in moving products or services from manufacturers to customers. It consists of transportation and storage of goods.

(iv) Promotion Mix: Promotion mix consists of all the activities aimed at persuading customers to buy the product. The various elements of promotion mix are as under:

(a) Advertising

(b) Personnel selling

(c) Sales Promotion

(d) Publicity

Advertising includes activities concerned with providing product information to customers through newspapers, radio, television and other media. It is paid for by the seller.

Personnel selling refers to face-to-face communication between a seller or his representative and the buyer.

Sales promotion means increasing sales through short-term promotional activities such as displays, demonstrations, fashion shows, exhibitions, prize contests, coupons, etc.

Publicity means the mentions of a company, a brand or product. It is always through mouth speech. Advertisement given in the newspaper and journal is also publicity, but it is paid. Publicity not given in the newspapers and journals is free.