Integrated Marketing Mix

Taken collectively, the 4 Ps constitute an integrated marketing mix, a complementary set of decisions, actions, and initiatives that potentially enhance the positive impact of the individual Ps when properly designed and orchestrated.

For example, an innovative and complex new product may need to be sold directly to customers by highly skilled and motivated salespeople who are supported by extensive published materials that communicate the benefits of the product.  The product's price is likely to be high to support the relatively high price of 1-on-1 personal selling.

Conversely, well-known commodity products may be sold through volume oriented mass merchants at razor thin margins (i.e. low prices) with no promotional support other than occasional "deals" to motivate the merchants or customers to accelerate purchases.

In both of the above instances, the marketing mixes are appropriately integrated since the individual components harmoniously support the others.

Consider, though, the likely outcome if the innovative and complex product were marketed at an aggressive (i.e. low) price.  While intuition might suggest that more of the product would sell at a low price, the reality is that the low price would provide little margin (the difference between a product's selling price and its cost), so there would not be adequate money available to fund the sale force or the necessary promotional materials.  So, the product might never even leave the starting gate.

Similarly, if the commodity product were extensively advertised (an unneeded element of support given the defined nature of the product), prices would probably need to be increased to fund the advertising.  The higher prices would likely be non-competitive (again, given the commodity nature of the product), so sales would probably decline.

As illustrated above, there are a few general principles for integrating the marketing mix.

Product is central to the marketing mix.  The appropriate level and type of marketing program support (the other Ps) largely depends on the characteristics of the product.

For example, relatively new, complicated products require substantial marketing program support in the form of such things as advertising or personal selling.

Conversely, well-known commodity-like products require limited program support such as on-going merchandising (e.g. prominent displays) and occasional promotional incentives (e.g. discounted sale prices).

Further, complicated new products may need to be supported by highly specialized distribution partners     who can actively contribute to the sales process.

Conversely, well-known commodity-like products benefit from broad distribution that provides customers with convenient access and availability.

Typically, the more marketing program support that a product gets, the higher its price must be to fund the initiatives and generate a profit.

All else equal, the higher a product's price, the less attractive the product is to potential customers, and     the lower its likely sales.

Again, the key takeaway point is that the 4 Ps must work in synergistic harmony to maximize impact.