8.5: The Marketing Mix and the First P — Product
The Marketing Mix
After identifying a target market, your next step is to develop and implement a marketing program designed to reach it. This program involves a combination of tools called the marketing mix, often referred to as the “4P’s” of marketing:
- Developing a product that meets the needs of the target market
- Setting a price for the product
- Distributing the product—getting it to a place where customers can buy it
- Promoting the product—informing potential buyers about it
Let’s take Tim Hortons, a well-known Canadian brand, as an example to illustrate the 4Ps of marketing:
Product
Tim Hortons offers a wide range of products, including coffee, donuts, sandwiches, and other baked goods. They also have seasonal items and limited-time offers to keep the menu fresh and appealing. Their products are known for their quality and consistency, which helps maintain customer loyalty.
Price
Tim Hortons adopts a competitive pricing strategy to attract a broad customer base. Their prices are generally affordable, making their products accessible to many consumers. They also offer value deals and combos to provide more options for budget-conscious customers.
Place
Tim Hortons has an extensive network of locations across Canada and internationally. They are strategically placed in high-traffic areas such as shopping malls, airports, and busy street corners. Additionally, they offer drive-thru services and have expanded their presence through mobile apps and delivery services to reach customers conveniently.
Promotion
Tim Hortons uses various promotional strategies, including TV, radio, and social media campaigns. They also engage in sponsorships and community events to enhance brand visibility. Loyalty programs like the Tim Hortons Rewards program encourage repeat business by offering points for purchases that can be redeemed for free items.
This combination of product quality, competitive pricing, strategic placement, and effective promotion helps Tim Hortons maintain its strong market presence and customer loyalty.
Artificial Intelligence Disclosure: The feature box on the 4Ps of Tim Hortons was created with the assistance of Microsoft Copilot, an AI-based tool designed to generate text based on user inputs. In accordance with the current guidance from Creative Commons, the content created using Generative AI tools is shared under a CC1.0 Universal Deed.
There are other models used for the marketing mix. One of which is the SAVE model, which stands for Solution, Access, Value, and Education. Unlike the initial 4Ps, this idea promotes and advertises different attributes that fit well in today’s marketing industry. Solution replaces product, access replaces place, value replaces price, and education replaces promotion. SAVE could potentially be a modern adaptation or evolution of this traditional framework.[1] Another model is the 4Cs model, which stands for Customer, Cost, Convenience, and Communication. This is a contemporary marketing framework that expands on the conventional 4Ps paradigm. The 4Cs framework was proposed as a customer-centric alternative to the 4Ps, concentrating on the customer’s perspective and demands.[2]
We will focus on the 4Ps Marketing Mix for the time being.
The First P — Product
There are many things involved in product development. The first step starts with coming up with an idea. It’s important to remember that when it comes to this first “P” of the marketing mix, the term “product“ refers to both products and services.
New product development teams often consist of top management and specialists from sales and marketing, research and development, manufacturing, and finance. This team will conduct market research and gather customer and employee feedback before formulating ideas for new products. The team will also evaluate the feasibility of ideas, consider the resources available, and identify risks. This group considers and plans new and improved products following the seven stages of new product development:
- Idea Generation (Idea formulation)
- Idea Evaluation (Screening)
- Concept Testing
- Product Development
- Testing and Execution
- Post Development (Commercialization, Market Introduction)
- Support and Maintenance
Product Life Cycle
The product life cycle begins once a product is developed. A product life cycle is a theoretical model describing a product’s sales and profits over the course of its lifetime. During this cycle, the product typically goes through four stages: an introductory stage, a growth stage, a maturity stage, and a declining stage. Refer to Table 8.1 for a summary of the characteristics, marketing objectives, and strategies for each of the four stages of a product’s life cycle.
| Characteristics | Introduction | Growth | Maturity | Decline |
|---|---|---|---|---|
| Sales | Low sales | Radically rising sales | Peak sales | Declining sales |
| Costs | High cost per customer | High cost per customer | Low cost per customer | Low cost per customer |
| Profits | Negative | Rising | High | Declining |
| Customers | Innovators | Innovators | Middle majority | Laggards |
| Competitors | Few | Growing number | Stable number beginning to decline | Declining number |
| Marketing Objectives | Create product awareness and trial | Maximize market share | Maximize profit while defending market share | Reduce expenditure and milk the brand |
| Product Strategy | Offer a basic product | Offer product extensions, services, and warranty | Diversify brands and models | Phase out weak items |
| Price Strategy | Charge cost-plus | Price to penetrate the market | Price to match or beat competitors | Cut prices |
| Distribution Strategy | Build a selective distribution | Build intensive distribution | Build a more intensive distribution | Go selective; phase out unprofitable outlets |
| Advertising Strategy | Build product awareness among early adopters and dealers | Build awareness and interest in the mass market | Stress brand differences and benefits | Reduce to the level needed to retain hard-core loyals |
| Sales Promotion Strategy | Use heavy sales promotion to entice trial | Reduce to take advantage of heavy customer demand | Increase to encourage brand switching | Reduce to a minimal level |
- abs institute. (n.d.). The new marketing mix S.A.V.E. ↵
- VisoChart. (n.d.). Difference between 4Ps and 4Cs of marketing. ↵
The first ‘P” of the marketing mix refers to both products and services.
A theoretical model describing a product's sales and profits over the course of its lifetime.
