A business firm must determine marketing mix tools to satisfy the needs of its customers. Through these tools, marketing objectives can be achieved. Marking mix tools are known four Ps which are Product, Price, Promotion and Physical Distribution.
- Product: Product means anything that is offered by producer & satisfies consumer’s needs. Product is a basic element or requirement of marketing, centre of all marketing activities, includes goods and services. All other elements or tools of marketing mix are required only when there is a product. The decisions regarding products are known as product strategy. Certain decisions to be made relating to products are size, weight, quality, design, volume, brand name, packing, product testing, warranty, guarantee and after sales service. To place completely new product in the market is product innovation and to make changes in the existing product is product modification (i.e.) decision as to what to produce means product planning and development.
- Price: Price is an amount of money that is charged by a producer for the product or money that a customer is willing to pay for the product. Price is an important factor affecting the success of a firm. Price decisions have direct influence on sales volume and profit of the business. Right price can be determined through pricing research (prevailing market price and price of competitors), demand, and government regulation and so on. While deciding price, some other factors should also be considered like discounts, allowances, freight, credit, wholesale price, retail price, price during off-season and pick season and so on.
- Promotion: Only production of product is not enough. Customers should be made aware about the product and stimulate them to buy it. For this advertising, personal selling, sales promotion & publicity are necessary. Single method of promotion will not be effective for promotion. There should be combination two or more elements of promotional mix. It depends upon nature of product, type & number of consumers, financial position and etc.
- Physical Distribution: Physical distribution means physical flow or movement of goods from a producer to final consumer, it also includes storage of goods at every stage. It includes channels of distribution, transportation & warehousing. It is the most important that the product of the company should easily reach to the final customers at right time. The mode of transportation & storing facilities are to be selected carefully. Here a producer has to take decisions regarding suitable channel of distribution wholesaler, retailer or salesman, distributor, efficient and effective mode of transportation (by rail, road, sea or air) & suitable warehousing facility.