Determinants of Marketing Mix
The purpose of determining the marketing is to satisfy the needs and wants of the customers in the most effective and economical manner. As the needs of the customers and the environmental factors change, the marketing-mix also changes and it cannot remain static. Marketing-mix is, thus, a dynamic concept. In the words of Philip Kotler, “Marketing mix represents the setting of the firm’s marketing decision variables at a particular point of time.”
First of all, the marketing department must identify the target customers to whom the sales are to be made.
Once the target market is identified, the next step is to discover and understand the needs and desires of the customers. Marketing research is used in locating and analysing the target market. It is necessary to know the number, location, buying power and motives of customers. In addition, the nature of competition, dealers’ behaviour and government regulations must be analysed.
On the basis of the knowledge obtained through identification and analysis, an appropriate mix of product, price, promotion and channel is designed. Design involves not only the determination of each component but the proper integration of individual variables so that they reinforce one another.
It is desirable to make a test run of the marketing-mix designed by the marketing department. The designed mix may be used in a small group of customers. The reaction of customers will indicate the adjustments required in the mix.
After the necessary modifications, the marketing-mix is adopted and put into use. The adopted mix should be evaluated from time-to-time and it must be adapted to changes in the environment of business.