Adapting the marketing mix

There is no single best marketing mix. The most suitable mix depends on:

• The target market — price-sensitive customers may need low prices and wide distribution, while quality-focused customers may accept higher prices and selective outlets.
• The business's objectives — growing market share may favour lower prices or heavier promotion, while raising profit may favour higher prices and lower costs.
• The marketing budget — a small budget limits spending on advertising, product development or distribution.
• The level of competition — if rivals cut prices or advertise heavily, the business may need to respond.
• The stage of the product's life cycle — a new product may need promotion to build awareness, whereas a mature one may need price cuts to defend sales.

Trade-offs and change

Because the budget is limited, marketing decisions involve trade-offs. Spending more on one element may leave less for another, or may push up costs and affect price. For example, stronger packaging adds cost, so the business may need a higher price and have less left for promotion. The mix also has to be reviewed and adjusted as market conditions, technology, customer tastes and competitors' actions change. A promotion that worked last year may fail once rivals copy it.

Adapting to one segment

A mix can be adapted to a particular customer segment through the combined choice of product features, price, promotional message and outlet. A reusable bottle maker could target hikers with a large insulated bottle at £22, promoted as keeping water cold for 24 hours in hiking magazines and sold in outdoor shops. For schoolchildren it could offer a smaller leakproof bottle at £8, promoted as surviving a school bag and sold in supermarkets. Each mix fits its segment but uses budget differently.

A judgement about a mix should therefore explain what the outcome depends on, such as budget, competition or the needs of the target segment, rather than just saying that it depends.