The process of marketing involves creating a market offering, to satisfy the needs and wants of the present and potential buyers. The real question is how to create a market offering. Let us say a profitable business opportunity is seen by some firms in the field of producing soft drinks. To develop and market a new brand of soft drinks, a number of important decisions will have to be taken for example whether to go for any collaboration with a foreign manufacturer of soft drinks, whether to produce for the local market or for a wider market, what will be the features of the new product, and so on. There is a large number of factors affecting marketing decisions.
These can broadly be divided into two categories:
Controllable factors are those factors which can be influenced at the level of the firm. For example, whether the drink will be packed in glass bottles or plastic cans; what will be the name (brand name) of the drink; at what price it will be sold, (at par with the price at which other competitive brands are sold or below it or above it); what distribution network will be used to make the product available (e.g., hotels, restaurants, groceries shops, kiosks selling cigarette, paan, etc.) to the buyers whether the new soft drink will be promoted by putting up advertisements in newspaper or magazine or on radio or television; or say if newspaper, whether in a local newspaper or a national daily; whether in a paper of regional language or an English daily, etc. is decided at the level of marketing manager of the firm. However, there are certain other factors which affect the decision but are not controllable at the firm’s level. These are called environment variables. For example, the political factors such as the government policy on whether to allow any technical or financial collaboration in the area of soft drinks, production or economic factors such as rate of inflation prevailing in a given period or a credit policy of the central bank affecting the total availability of money.
To be successful, the decisions regarding ‘controllable factors’ are to be taken keeping the environmental variables into consideration. The controllable variables become marketing tools, which are constantly shaped and reshaped by marketing managers, to achieve marketing success. For example, a firm can reshape a market offering by bringing in a change in any of the variables under its own control say introducing a change in the price or promotion offer or product features or channel used to make the product available to buyers. Thus, from a number of alternatives available a firm chooses a particular combination to develop a market offering. The combination of variables chosen by a firm to prepare its market offering is also called marketing mix. Thus, the marketing mix is described as the set of marketing tools that a firm uses to pursue its marketing objectives in a target market.
The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix – Price, Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes several other Ps like Packaging, Positioning, People and even Politics as vital mix elements.
Controllable factor or often called as “Marketing Mix” It includes: Product,Price,Place and Promotion.
Uncontrollable factors: are often called as “Environmental Factors” it includes: Political factors, Economical Factors, Social Factors, Technological Factors, Competitive forces factors Regulatory forces factors.