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Marketing Mix

CONCLUSION to obtain the results desired by the organization: product,
Marketing in the United States has evolved since the Civil price, promotion, and place. The four elements of the
War and continues to evolve in the twenty-first century. marketing mix are sometimes referred to as the four Ps of
Many companies have determined that in order to be suc- marketing. The marketing mix shapes the role of market-
cessful, they must become less internally focused and ing within all types of organizations, both profit and non-
more externally focused (on the customer). This trend in profit. Each element of the four Ps consists of numerous
company thought has extended to the point where many subelements. Marketing managers make numerous deci-
firms now see themselves as long-term partners with their sions based on the various subelements of the marketing
customers. mix, all in an attempt to satisfy the needs and wants of
As information technology becomes more advanced, consumers.
marketers will be able to become more acutely aware of
their customers’ needs and more quickly able to provide PRODUCT
goods and services to satisfy those needs. A new trend in The first element in the marketing mix is the product. A
marketing that incorporates advances in information product is any combination of goods and services offered
technology is mass customization. Mass customization is to satisfy the needs and wants of consumers. Thus, a prod-
the customization and personalization of goods and serv- uct is anything tangible or intangible that can be offered
ices for individual customers at a mass production price. for purchase or use by consumers. A tangible product is
One example of a firm pioneering in mass customization one that consumers can actually touch, such as an auto-
is Nike. With Nike’s iD Web site, the masses can buy self- mobile, a computer, a newspaper, or a window. An intan-
customized sneakers. gible product is a service that cannot be touched, such as
SEE ALSO Marketing an automobile repair, a doctor’s office visit, or income tax
preparation.
Other examples of products include places and ideas.
BIBLIOGRAPHY
Amazon.com. (2004). Obsess over customers. Annual report. For example, the New Hampshire Division of Travel and
Tourism Development might promote New Hampshire as
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ir.net/library/97/976/97664/items/144852/DEX991.htm a great place to visit and by doing so stimulate the econ-
Ford, Henry (1923). My life and my work. New York: Double- omy. Cities also promote themselves as great places to live
day. and work. For example, the slogan touted by the Cham-
Haber, Samuel (1964). Efficiency and uplift. Chicago: University ber of Commerce in San Bernardino, California, is “It’s a
of Chicago Press. great day in San Bernardino.” The idea of wearing seat
Keith, Robert J. (1960). The marketing revolution. Journal of belts has been promoted as a way of saving lives, as has the
Marketing, 24, 35–38. idea of recycling to help reduce the amount of garbage
Kinnear, Thomas C., Bernhardt, Kenneth L., and Krentler, placed in landfills.
Kathleen A. (1995). Principles of marketing (4th ed.). New Typically, a product is divided into three basic levels.
York: HarperCollins. The first level is often called the core product, what the
Kotler, Philip, and Keller, Kevin (2006). Marketing management: consumer actually buys in terms of benefits. For example,
Analysis, planning, implementation, and control (12th ed.). consumers do not just buy 4¥4 pickup trucks. Rather,
Upper Saddle River, NJ: Pearson Prentice Hall.
consumers buy the benefit that 4¥4 pickup trucks offer,
Levitt, Theodore (1960, July–August). Marketing myopia. Har- such as being able to get around in deep snow and ice in
vard Business Review, 45–56.
the winter. Next is the second level, or actual product, that
Porter, Michael E. (1980). Competitive strategy. New York: The is built around the core product. The actual product con-
Free Press.
sists of the brand name, features, packaging, parts, and
Schultz, Stanley K. (1999). Crashing hopes: The Great Depression. styling. These components provided the benefits to con-
Retrieved December 6, 2005, from
sumers that they seek at the first level.
http://us.history.wisc.edu/hist102/lectures/lecture18.html
The final, or third, level of the product is the aug-
mented component. The augmented component includes
James E. Stoddard
additional services and benefits that surround the first two
levels of the product. Examples of augmented product
components are technical assistance in operating the
product and service agreements. Buyers of technical prod-
MARKETING MIX ucts such as computers and video cameras are frequently
The term marketing mix refers to the four major areas of provided with operating assistance as well as optional serv-
decision making in the marketing process that are blended ice agreement plans.

498 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION