What is the marketing mix and why is it so important in strategy formulation and implementation?
As America continues its transition to a service economy, marketing is playing a much more integral role as it relates to customer acquisition. Here, the marketing mix provides companies with an ability to occupy a niche within the consumers minds. My taking a strong position in consumer Mind Share brands are able to generate large sales and increase revenues. Companies such as Disney, Nike, and Coca-Cola have continually used the marketing mix to establish brands and economic moats that are difficult for competitors to erode. As a result, these companies not only enjoy higher profit margins, but they also have a very strong brand awareness with consumers within their respective industries.
The marketing mix is important to strategy formulation as it allows the business to create a consistent message and value proposition for consumers, irrespective of the channel being used. By having a clear marketing mix strategy, companies can make sure each element of the marketing program is congruent with the brand and its proposition to consumers. This further informs implementation as it allows companies to form a clear direction for their brands and products. For example, certain high-end luxury items never go on sale. These items are never found is discount retailers either. Here, a discount on the product would not correlate to the marketing image the company is looking to achieve with the brand. Likewise, as a luxury item, having the product distributed to discount retailers could potentially tarnish the overall image of the brand. As a result, the marketing mix not only helps to establish strategy, it also helps to inform the overall implementation of the strategy (David, 2020).
References
1. David, F. R., David, F. R., & David, M. E. (2020). Strategic management concepts and cases: A competitive advantage approach (17th ed.). New York, NY: Pearson Education. ISBN-13: 9780135203699
