Marketing Mix Jerome McCarthy

Jerome McCarthy simplified the marketing mix with the 4P concept. Namely Product, Price, Place and Promotion. McCarthy’s formulation is easy to remember and this concept was later popularized by Philip Kotler, author of the book “marketing management” which has become a reference for many universities in various countries.

The formulation of Jerome is formulated in 4 P namely product, price, place and promotion.

• Product (product) – including characteristics, functions and benefits.

• Place (location) – how the product is distributed to the target market.

• Promotion (promotion) – delivering a message about the product to the target market.

• Price – how much the product costs.

Each component is a marketing activity to meet consumer needs. The details are as follows.

Making a product is one of the marketing activities. Making products is not a promotional activity that invites people to buy. But designing products that are relevant to the needs of the target market and meeting their expectations, it will launch promotion. Products seduce not through words but through goods.

In marketing, products are designed to reduce the workload of personal promotions and sales. For this reason, products are tailored to market needs. If there is no suitability, promotion will be desperate and requires a lot of energy and costs to get people to buy. Better energy is mobilized to improve and adjust products to market needs. Thus, designing the product is classified as an important marketing activity.

It might also make a product not a marketing activity, when it doesn’t take into account the needs and demands of the target market. Making a product without thinking about its relationship with the target market will be prone to incompatibility between the product and their needs. Promotional activities will be difficult to seduce the target market to buy products. It’s certainly risky for business, sacrificing money, time and energy.

Non-object products but solutions for consumers. Solution means a way out of suffering, the Company designs something valuable in the consumer’s perspective. Thus the transaction with the consumer is possible. The product is something that is offered, the benefits offered in the selected market segment. The product is offered to help the target market carry out tasks, reduce pain and increase happiness.

Often companies assume they produce objects. Transactions can also occur. However, with this perspective, they do not know what to do when the object is not in demand and is no longer seen as a solution. What kind of improvements and services are needed to make them valuable solutions.

Seeing products as a solution encourages companies to work for consumers to benefit. For that reason, packaging, operational guidelines, guarantees are present, because objects are not enough.

In the perspective of a product-oriented company, products are the result of resource processing. Companies often identify themselves with the names of materials, shapes, and product categories, for example steel companies, furniture companies. The naming shows the version of the company, not the customer’s needs.

In order for the product to be accepted by the wider market, companies need to understand the point of view of consumer needs. Consumers will buy products that offer the highest perception of value compared to other products. Perception of value is an assessment of the total benefits minus the total costs, compared to the valuation of other products. The benefits can be economic, functional and psychological benefits. The benefits of this application or translation of positioning.

Company Viewpoint of Consumer Needs

Car Work mobility, social status, comfort

Beauty lips, social acceptance, like friends, are liked by the opposite sex, so they are not single anymore

Wooden houses Houses are earthquake safe

Timepiece Timing management tools, luxury and a sign of professionalism

Vitamin Pills Help healthy life and work more productively

Cigarettes Sign of courage and manliness

Coffee Helps not sleepiness and work

Security Padlock


For the effectiveness and efficiency of the product business is designed to provide something valuable to the target market. We know what is valuable from

– what they usually buy regularly

– disappointment in existing products

– problems that make them suffer

– The pleasure they expect

When we have formulated products that are relevant to their needs, are products always sold as expected. It still needs testing. Test the accuracy between your solution and their problems. Testing the accuracy between products and markets.

To test the accuracy of the solutions and problems, can test one of the target markets.

– Is the solution to the problem

– Is the solution better than other alternative solutions.

After successfully passing the accuracy, then a market test is conducted.



Visible and Invisible Products

The product is a series of visible and invisible attributes offered to satisfy consumers. Products work to make consumers get their needs. The product is sold, or offered to be exchanged for money.

The product can be material objects, services or a combination of both. Products are not limited to material goods. For example the teaching profession, motorcycle taxi, consultant. The profession does not provide material goods. Today in the era of digital communication, the product can be digital. These digital products can be seen, they can feel the benefits, and can be duplicated and sent between continents at almost no additional cost. For material goods, doubling requires large costs, even though the cost per product decreases when producing a lot. For digital products, the multiplier is enough by copying p

very cheap aste. Examples of digital products such as windows software, design images, ebooks, songs with digital formats and so on. Microsoft Windows from the beginning understood the easily replicated nature of digital products, then they designed a new definition of digital products. That he limits the rights of buyers. The buyer does not accept digital products which can then do anything for the product. What Microsoft sells are Windows licenses for the use of one computer. So even though consumers can technically duplicate digital windows products, consumers are not legally permitted to duplicate them. That way the sales of windows products become very large. Another fate with songs. Song recording in digital format allows songs to be spread widely for free, without being dammed. So that the music industry in the digital era is not as good as the music industry in the era of mass media that uses LPs and cassette recorders. The product besides being made up of goods and services, digital and atomic, also includes various characteristics to satisfy consumer needs. Not only that, the product is also about function and meaning. The meaning of linking products with consumers. The meaning of linking goods with functional and emotional benefits. By designing the meaning of products for consumers, not according to the company, the perception of the value of products is increasingly valuable in the eyes of consumers. That way the selling price can increase. For example, lipstick is not interpreted to redeem the lips, but beauty cosmetics. Not only beauty, but also a tool to increase social attractiveness. In order to be a functional and emotional solution, products can be equipped with services, warranty features, installation, shipping facilities, usage instructions, packaging, variations in product types, return policies. In order for buyers to have many choices, the product consists of various choices in terms of design, specifications and prices. That way consumers really feel the benefits of the product. Price Marketing attempts not to rely on the attractiveness and competitiveness of offers at low prices. Therefore marketing has an alternative idea to determine prices. Prices for Companies Pricing is usually based on three things. First, based on cost plus profit. Second, by considering competition. Third, as part of building brand image. In general, company prices determine prices by calculating costs plus profits. In production, there are usually fixed costs and variable costs. The more products produced, the cheaper the cost per product. Price decisions are not just currency numbers to exchange products. This is also a matter of decisions about discounts, credit, price differences when large purchases, introductory prices, and repeat customer prices. Furthermore, the company considers competition, competition. The company cannot simply determine high prices and large margins, without considering competition. Competitors can offer cheaper prices, so consumers can switch to buying competing products. It can also happen, to compete, the company sets a lower price than the production cost. It is done temporarily, only to make competitors powerless. Once the competitor is weak, the price is raised again above the production cost. Sometimes the price is lower than the cost of production because you want to get data about prospects. With very cheap prices, prospects will provide data. Once enough data is obtained, the company offers other goods whose prices are above production costs. The demand and supply theory of James Denham Steuart said that price was the point of balance between demand and supply. Demand from consumer groups, and offers from various classes of sellers. If goods are scarce, demand to buy a lot, the price goes up. Instead supply increases, demand remains, prices will go down. Prices fall because competing sellers reduce prices. Marketing science has alternative ways to compete. That is by • offering different product variants in specific segments • building brands • managing customer relationships. These three things make customers unable to compare prices, because there are additional values ​​offered. The way to compete without being stuck with price is to understand the unique needs of customers and offer something that meets those unique needs. Determining high prices, multiplying above the cost of production is sometimes part of building a brand. Because many people think the more price, the more quality of the goods. After the price is set, things that need to be highlighted so that interested buyers are the benefits of the product, not cheap prices. Highlighting cheap prices at risk in terms of falling profits and business sustainability. Prices for Consumers In transactions, the price of a currency unit is the same between buyers and sellers. The difference is the perception. There are several things

influence the perception • Sacrifice in addition to the transaction price with the seller. Other sacrifices include transportation costs, time to make transactions, and product maintenance costs. • Price assessment for consumers is also influenced by their knowledge of competitor prices. This happens if the product is the same, the location is almost the same. • The purchasing power of consumers influences the assumption that prices in currency units are cheap or expensive. If the consumer has a high purchasing power, the valuation will be different if the purchasing power is low. • Great benefits will make consumers no longer sensitive to prices. Place (location) This location can also be called the distribution path to the target market. Marketing is not just a matter of product and price, affordability to the target market is important to enable transactions. Good and relevant items and affordable prices are not necessarily selected if they are in an unreachable location. Suppose that bottled water at the airport is usually more expensive. Even so, the bottled water is still sold because it is superior to the element of location. Buyers at the airport can reach the aqua. The distribution task is to provide products at locations close to consumers, with the right amount and time. Distribution can be done by the company itself. That can be done by an internal team that reaches consumers. In the internet era, companies can deal directly with consumers via the internet, then send goods through shipping services. In addition to being done alone, distribution can also be done in collaboration with other parties. Other parties include: • retailers • wholesalers • sales agents. People who expand distribution functions, sometimes not only make products affordable to consumers. They also function to give input to the company about what is happening in the market, promotion, communicating with customers, financing and taking risks. Marketing Promotion provides something that is valuable or valuable to consumers. The way is by providing products with affordable prices and locations. That’s not enough. Consumers need to know to be interested and make transactions. Marketers need to introduce their offerings so consumers know. Marketers need promotion. Promotion is communication between the seller and the target market to influence attitudes and behavior. The promotion has a variety of targets, although in general the goal is one that is sustainable sales. This is because the consumer purchase process varies. Some are short, some are long. The short purchase process is for example spontaneous buying (impulse buying). While the long purchase process goes through the process of recognition, consideration and purchase. Usually consumers don’t think long to buy cheap items. While for expensive items, the purchase process is usually longer. More detailed promotional targets are as follows Introduction • introducing the existence of the product • explaining how the product works • reducing the concerns of buyers • building a corporate image Considerations • Encouraging consumers to like the company or brand by giving more detailed attributes re-existence of the product • Encouraging consumers to buy Promotions can influence buying decisions if consumers believe the credibility of information sources. Types of Promotions Often promotions are identical to personal advertising and sales. More kinds of promotions than those two things. There is a promotion mix consisting of • Advertising, promotion of ideas, goods and services through non-personal communication media such as print, radio and television. Nowadays advertising can be done through Facebook Ads and Google Adwords. •    Sales promotion. Sales promotion is a short-term incentive to encourage sales with discounts and prizes. • Personal sales. Delivery of messages about products, services and ideas through face-to-face communication. This is usually done by company employees or through collaboration with third parties. In the era of two-way digital communication, two-way conversations are not only done through face-to-face communication, but through social media such as Facebook, Twitter, Linkedin, WhatsApp, Messenger and so on. • Publicity. This is building the image of products and companies through social activities or through communication with the public. With communication and social activities, the public knows the good side of the company. Building a good image means participating in shaping purchasing decisions. • Direct sales. Direct sales are direct sales from the company to consumers without going through intermediaries. Including without a personal sales agent. Consumers can find out the company’s products through advertisements or publicity, then contact the company to make transactions. The company can provide facilities for consumers eg


al through the website or telephone, so that consumers can deal directly with the company.

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