Marketing Mix: Analyzing companies’ strategies through frameworks

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As I talked in the last blog, marketing is a process to reach target markets done by companies.

MARKETING: Effort by companies behind our daily life – Wave of Marketing (mybluehost.me)

Milian Kundera, a novelist in France, stated, “Business has only two functions: marketing and innovation.” Marketing is an important factor to run a business and significantly increases the chance of success.

But how can we use marketing strategies based on the functions in the real world??

One of the most important things to consider is the Marketing Mix. It’s used to influence the buyers’ responses through marketing strategies. This framework can also be used to analyze strategies of other companies. 

What is the Marketing mix??

The marketing mix refers to a combination of strategies that businesses implement to influence ‘consumer behavior’. One of the most frequently used frameworks in the 4Ps model: Product, Price, promotion & place. Let’s break this down further.

1.Product

• This involves the decision about what products to offer, how to package them, what brand name to use, and the overall image. Ideally, the product is 

2. Price

• Price reflects how much consumers are willing to pay, something to note, the price must align with the companies’ brand image and what the companies stand for. Have you felt like it was a bargain or overpaying? Like GUCCI, they are so expensive because of  their brand image. 

3.Promotion

• Promotion is about communication with customers: how you inform them about your products, and encourage them to make a purchase. It relates to the promotion mix, which includes sales promotions, personal selling, public relations, and advertising. 

 4.Place

• Place is about where and how to distribute products. This decision is based  on the target market. Recently, online platforms have been utilized alongside  in-person sales. It enables companies to reach people all over the world, rather than just those in close proximity.

The 4C is another framework, typically used with 4P. While 4P describes the strategies from a perspective of companies, 4C framework focuses on the customers’ view.

The 4C includes customer value, cost, communication, and convenience. Each of 4P and 4C elements can be connected like in the picture below.

For example, when people buy a new jersey of Ohtani – a well-known baseball player – they don’t just want a piece of clothing. There is a specific reason they choose Ohtani’s jersey. It might be because they want to express their passion and love for baseball or to show respect for the player. .

The 4C framework encourages to reevaluate the process in which products get to customers from their perspectives: whether the products reflect their values and whether it offers sufficient convenience to the customers.

In this way, the 4P and 4C frameworks can be combined to improve marketing strategies.

What is Marketing Mix?

Marketing Mix is a framework to create an environment conducive to being chosen by customers, achieved by analyzing the relationship between companies and customers from various perspectives.

By understanding flame works – such as the combination of 4P and 4C – enables us to develop marketing strategies that lead to achieving our goals.

Additionally, there is another framework which has a similar name to 4C, known as the 3C. This consists of customers, competitors, and companies. It’s used for  analyzing marketing strategies. Below is a diagram that outlines the steps in developing a marketing strategy.

• The first step, marketing research, has a strong connection with 3C. The relationship among customers, competitors, and companies is a considerable factor for the next steps.

• Segmentation and targeting are the process of identifying the target market within the whole market. These processes determine how companies should position themselves in the market, using the analysis of the 3C framework.

• Positioning demonstrates the previous steps by making differences from other companies to effectively reach the target market. It contributes to influencing buyers’ decision-making during the purchasing process.

So, how are these concepts applied in the real world?

I’ll provide 2 examples of well-known companies: Apple and Nike.

Apple analysis

Product:

• Apple’s brand image is “high-quality and innovative”. You can see it in the evolution of their logo. They transitioned from a colorful apple logo to stylish, metal designed apple. It reminds us of their sophisticated products. 
• Additionally, their digital services, such as Apple Music, Apple TV, and Safari, show their support system and make customers feel comfortable and connected.

Price:

• Apple’s products are generally more expensive than those of competitors. (E.G., $699 for the new model.) This pricing strategy works well because their products have a sense of high-quality and sophistication 
• However, their subscription services – Apple Music, Apple TV – offer free trials. It shows they have different strategies for the digital services conpared to their physical products.

Promotion:

• Apple’s brand image is showcased in their advertisement. Their commercials express their ideas in various way, exemplified in this YouTube video.

• This type of marketing is distinctive. Few other competitors would try such a creative commercial, but it effectively delivers their message. Also, their product launch events always generate significant global attention.

Place:

• Customers can buy Apple products online or at various electronic or home appliance retailers. Their various options to get products enables them to reach the targets all over the world.

Nike Analysis

Product:

• Nike’s products are distinguished by their unique designs, high-quality and aesthetically appealing. Their name, “Nike”, means “goddess of victory”, and their simple logo shows their motivation for innovation and excellence. Their uniqueness is evident both in their name and brand. 

Price:

• Nike’s products are not cheap, but the pricing aligns with the quality of the products, leading customers to perceive value rather than negativity towards the products. Nike is willing to sell at a high price if it’s deserved.
• Additionally, they have premium models, like Air Jordan. They sell it at a higher price than other products, but contribute to the high brand loyalty and showcase their advanced technology.

Promotion:

Nike spends more than 3.5 billion dollars for promotions. They collaborate with some popular athletes from various sports and influencers to inform their products and highlight their quality.

Furthermore, they provide discount for students, generating buzz and appealing to Gen Z consumers.

Place:

Nike sells their products all over the world as well. Customers can purchase them through various channels, such as Nike Website, Nike retail stores, and sports shops. These distribution options ensures that Nike can reach customers globally.

Marketing strategies are employed by most well-known companies. That means you should definitely think about it when you own your business. To develop effective strategies, analyzing markets through frameworks like the 4P and 4C are crucial  processes. 

References

Elaborative Marketing Mix of Apple Inc. – With 4Ps | IIDE

Nike Marketing Mix (4Ps) Analysis | PDF Agile

4P分析とは？　目的・やり方や4C・3C分析との違いを解説｜LINEヤフー for Business (lycbiz.com)