The marketing mix is positioned as the ”
execution strategy
” within the overall marketing strategy.
It is also called the 4Ps, which
is an acronym for the three components: Product, Price, Place, and Promotion.
This time, we will introduce what a marketing mix is, the components of a marketing mix, and points to use when using a marketing mix.
Four steps of marketing mix strategy
The flow of the marketing strategy is as follows.
1. Environmental analysis
2. Basic strategy (STP analysis)
3. Execution strategy (marketing mix)
4. Implementation and evaluation of measures
1.Environmental analysis
We discover marketing opportunities for your company
by analyzing the marketing target environment from the perspectives of the market, competition, and your company.
2.Basic strategy (STP analysis)
Based on the results of the environmental analysis, we analyze the market in more detail, determine the direction our brand should take, and formulate a basic strategy. The basic strategy is developed through the following process:
Segmentation (market segmentation)
Perform segmentation of the market and divide customers into units (segments) that have the same needs.
Targeting (determining the target market)
From among various segments, select the segment that your company should target when developing its business.
positioning
Decide how to differentiate your product or service from competing products or services in the targeted segment.
Basic marketing strategy is also called ”
STP strategy
,” an acronym for segmentation, targeting, and positioning.
3.Execution strategy (marketing mix)
Based on the established basic strategy,
we formulate an execution strategy that specifically determines how to approach the target segments
.
Execution strategy is called “marketing mix” because it involves considering the best combination (mix) of multiple components.
4.Implementation and evaluation of measures
We implement measures formulated based on the marketing mix and evaluate the results. If you don’t get the results you expected, you need to analyze the cause of the failure and review your marketing strategy.
Also called “4P” after the initial letters of the constituent elements.
It is generally considered that there are four. For this reason, the marketing mix is sometimes called the “4Ps”.
Marketing mix component 1: Product
The first component of the marketing mix is the “product.”
We formulate a “product concept” by thinking about what kind of value we will provide to the target segment, and then develop the technology, production methods, packaging, support, and other services to realize it. We will finish it as a “product”.
Product strategy is the most important component of the marketing mix.
Marketing mix component 2: Price
The price that customers pay for a product is directly linked to sales. The pricing strategy will be formulated from the following perspectives.
cost
It is necessary to understand the break-even point of a product from both variable costs and fixed costs.
Customer’s market value perspective
Understand what price customers think is the “market price” for the products you offer. Price market views can also be ascertained through a questionnaire survey.
Comparison with rivals
Think about how to compete on price against rivals in your target segment. There are two options: to set the price dramatically low in order to increase the penetration of the product into the market, and to set a relatively high price in order to recover the development and capital investment costs.
branding
Depending on the brand strategy, a high price can have the effect of making a product feel “high value.”
Marketing mix component 3: Distribution (Place)
Distribution strategies that determine the route (channel) that connects products and customers have the following options.
1. Distribute over a wide range of channels without limiting the channels.
2. Distribute through limited channels
3. Give exclusive sales rights to specific channels
4. Use multiple channels depending on the situation
Decide on the appropriate channel from among these and implement marketing measures.
Marketing mix component 4: Promotion
There are the following options for promotional strategies that create needs by effectively communicating the existence, functions, and value of a product to customers and distributors.
1. Create new needs through strategic PR
2. Satisfy customer information needs through owned media, etc.
3. Increase brand awareness through mass advertising
4. Create purchase impulse among customers through well-crafted advertisements
5. Use sales to encourage non-planned purchases
Key points for utilizing marketing mix
In order to effectively utilize
the marketing mix
, it is necessary to develop strategies for each of the 4Ps and to consider consistency among the 4Ps. Things to consider would be:
[Success Story] Starbucks’ 4P Strategy
To understand the 4Ps, we recommend looking at specific success stories. Therefore, this time we will focus on Starbucks, a global company originating from Seattle, USA, and a world-famous coffee chain.
The core of Starbucks’ 4Ps is its location strategy, “Main&Main.” Opening a store is itself a promotional strategy, and stores are concentrated in trendsetting areas and areas where people with high income levels gather. Below, we will explain Starbucks’ 4P strategy.
Starbucks product
We will explain the product strategy that led to Starbucks’ success.
Carefully selected coffee
Coffee, Starbucks’ main product, is made with only carefully selected Arabica coffee beans.
In addition to the beans, one of our product strategies is also the high level of skill of the baristas who brew coffee. Starbucks’ website also features content featuring customization by the company’s proud baristas.
Starbucks values its employees very much, and this corporate policy is also connected to its product strategy.
Reference link:
[Make it yours #3] Baristas who create the best coffee experience | Starbucks Coffee Japan
A space called third place
Starbucks’ product strategy includes not only coffee, but also the concept of providing a fulfilling third place, a so-called “space.”
We want our customers to enjoy coffee to their satisfaction in a sophisticated and comfortable space, so we pay particular attention to the store design, interior, chairs, and music.
The experience that can only be enjoyed at Starbucks is called the “Starbucks Experience,” and providing a comfortable space is also a successful product strategy.
Employee customer service
The above-mentioned “Starbucks experience” also includes the attentive customer service provided by employees. Starbucks, which considers customer service to be a product, has a policy in which employees provide direct service to each customer.
New staff receive 70 hours of basic training to teach them the importance of providing good service on their own initiative.
Starbucks does not have a “customer service manual” that chain stores usually have, and considers customer service to be a value-added job. This spirit of hospitality can also be said to be one of Starbucks’ product strategies.
Starbucks price (Price)
Starbucks coffee is priced higher than other coffee chain stores. This is what is called a high price strategy, and is a marketing method that involves setting a high price for the main product, coffee, and instead providing high-quality services that match that price.
As mentioned earlier, Starbucks’ added value is not only the quality of its coffee, but also the provision of a superb space to enjoy the coffee and the high-quality customer service of its employees. Masu.
In order to enjoy this unique Starbucks experience, customers come to visit Starbucks even if it costs a little more.
Starbucks distribution/location (Place)
At Starbucks, we develop a detailed strategy before opening a store. This is called a location strategy, and when planning a store opening, we carefully investigate geographic characteristics, access, the demographic structure of the area, and trends in the number of people coming and going.
Starbucks is targeting prime locations to open stores
Starbucks first arrived in Japan and opened its first store in Ginza, Tokyo. By implementing this bold store opening plan, Starbucks succeeded in creating a high-class image.
Even today, the branding of “a high-class cafe where you can enjoy high-quality coffee in the finest atmosphere” remains a key part of our marketing strategy.
Implement similar location strategies when opening stores in rural areas
The strategy is basically the same when opening a store not only in Tokyo but also in other regions. We open stores in convenient locations with good access, such as near train stations, and in central and urban areas where there is a lot of foot traffic.
Starbucks calls this location strategy “Main&Main” and maintains the image of a high-end route. They do not open stores in popular areas and focus only on the quality and number of customers.
Emphasis on audience turnover rate
One of the reasons Starbucks chooses good locations is the “seat turnover rate”. While our motto is to provide a sophisticated and comfortable space, we also incorporate seating turnover into our strategy.
One of the characteristics of Starbucks’ strategy is to draw a fine line between not wanting customers to stay too long, but wanting customers to return home satisfied.The strategy focuses on population volume, which is a characteristic of Starbucks’ strategy. At the same time, takeout is also a major source of revenue, and this is also the reason why we open stores in urban centers and other urban areas.
Starbucks Promotion
It is well known that in Starbucks’ promotion strategy, they do not place advertisements in TV commercials.
In addition to TV commercials, we do not carry out advertising activities in mass media or traditional advertising strategies such as issuing coupons.
Starbucks’ promotional strategies include:
The store itself is an advertisement
Since opening its first store in Ginza, Tokyo in 1996, Starbucks has opened more than 1,700 stores in Japan as of 2023. Among them, Tokyo has the largest number of stores, by far with 391 stores. From this bias, we can see that “Main & Main” maintains a high-class route.
In other words, the stores themselves, which are located in prime locations in Japan, play the role of advertising.
John Moore, who was in charge of marketing at Starbucks in the United States, said, “Opening a store is the biggest advertisement,” and it is one of the reasons why Starbucks still maintains a strong brand power.
Advertising the “Starbucks Experience” inside the store
When Starbucks was founded, they couldn’t afford to spend much on advertising. Howard Beeher, former CEO of Starbucks Coffee International, said that such circumstances led to the idea of not spending money on advertising and giving back to the in-store experience.
In other words, the “Starbucks experience” itself is an advertisement.
Advertising strategy using SNS
Starbucks rarely advertises in mass media, but instead focuses on SNS advertising. We make full use of Twitter, Facebook, Instagram, LINE, etc., and use them as a bridge between employees and customers.
Starbucks has a large number of touch points, with over 7 million followers on Twitter and over 3.5 million followers on Instagram (as of June 2023).
It can be said that this promotion strategy that makes full use of SNS has been successful.
Differences from 4C and 4P analysis, which are easy to confuse
4P analysis is an abbreviation that stands for product, price, distribution, and promotion.
On the other hand, 4C analysis is an acronym for the following items.
The major difference between 4P analysis and 4C analysis is whether it is “analysis from a company perspective” or “analysis from a customer perspective.”
When considering marketing strategy from a corporate perspective, the most important thing to prioritize is the company’s profits. However, when considering marketing from the customer’s perspective, the interests of companies and customers conflict.
By performing analysis from both the company’s perspective and the customer’s perspective and achieving harmony, we will be able to provide better products and services.
The difference between 4P analysis and 4C analysis is explained in detail below, so please refer to it.
What is marketing mix (4P)? Learn the basics of marketing execution strategy Summary
The marketing mix is an execution strategy in marketing, and is also known as the “4Ps”, an acronym for the constituent elements: product, price, distribution, and promotion. In the marketing mix, it is important to consider consistency among the 4Ps.
In addition, if you also perform 4C analysis, which analyzes from the customer’s perspective, you will be able to provide better products and services.
In this article, we have featured Starbucks as a successful example of the 4P strategy, so please refer to it and use it for your own 4P strategy.