“Marketing mix principles are controllable variables which have to be carefully managed to meet the needs of the defined target group”. In marketing, the ability to develop products in a way that meets the demands, needs, and fulfills the requirements of customers determines the capacity to sustain competitive advantage.
This fact is expounded by Kotlar in stating that “regardless of where you are in the supply chain– supplier, manufacturer, intermediary, or retailer—contemporary marketing science dictates that you must develop your product in response to a recognized need by the user and that you must not simply make a product and then find a market for it.” This involves proper application of the marketing four Ps – Product, price, place, and promotion.
According to Kotlar, the major marketing management decision is classified into the following four categories:
- Product-In this case, the company will put a lot of emphasis on the physical appearance, packaging, service warranty.
- “Price –Price decision should take into account profit margin and probable pricing response of the competitors”.
- “Promotion –The decision promotion decision are those related to communicating and selling to potential consumers”.
- Lawson illustrates that “Since these costs can be large in the promotion to the product price, a break-even analysis should be performed when making promotion decisions.”