Read the following case and answer the question.

Case: Marketing Mix

Amit owns a bakery business in a bustling city in India. His bakery specializes in handcrafted cakes and cookies. As competition increases, Amit decides to create a marketing strategy using the 4Ps of Marketing Mix to boost sales by satisfying customers better than his competitors.

Amit ensures that his products are unique by offering organic and customized cakes. He also adds gluten-free and vegan options to cater to health-conscious customers, emphasizing quality and innovation.

To attract a wide customer base, he adopts a competitive pricing strategy. For premium, customized cakes, he charges higher prices, but his regular cookies are competitive and reasonably priced to appeal to budget-conscious buyers.

He has decided to open outlets in high-footfall areas like malls and introduce an online delivery system to reach customers at their convenience. Amit uses social media platforms like Instagram and Facebook to promote his bakery, sharing visually appealing posts of his cakes. He also offers discounts during festivals and runs a referral program to encourage word-of-mouth marketing.

By carefully managing these elements of the marketing mix, Amit successfully boosts his sales and builds a loyal customer base.

Which of the following is NOT a part of the 4Ps of the marketing mix?

People

The correct answer is option 1- People.

People is not a part of the 4Ps of the marketing mix.

The marketing mix consists of various elements, which have broadly been classified into four categories, popularly known as four P's of marketing. These are: (i) Product, (ii) Price, (iii) Place, and (iv) Promotion.

Product Mix- Product means goods or services or ‘anything of value’, which is offered to the market for sale. The concept of product relates to not only the physical product  but also the benefits offered by it from customer’s view point (for example toothpaste is bought for whitening teeth, strengthening gums, etc.). The concept of product also include the extended product or what is offered to the customers by way of after sales services, handling complaints, availability of spare parts etc. These aspects are very important, particularly in the marketing of consumer durable products (like Automobiles, refrigerators, etc.). The important product decisions include deciding about the features, quality, packaging, labelling and branding of the products.

Price Mix- Price is the amount of money customers have to pay to obtain the product. In case of most of the products, level of price affects the level of their demand. The marketers have not only to decide about the objectives of price setting but to analyse the factors determining the price and fix a price for the firm’s products. Decisions have also to be taken in respect of discounts to customers, traders and credit terms, etc., so that customers perceive the price to be in line with the value of the product.

Place Mix- Place or Physical Distribution include activities that make firm’s products available to the target customers. Important decision areas in this respect include selection of dealers or intermediaries to reach the customers, providing support to the intermediaries (by way of discounts, promotional campaigns, etc.). The intermediaries in turn keep inventory of the firm’s products, demonstrate them to potential buyers, negotiate price with buyers, close sales and also service the products after the sale. The other decision areas relate to managing inventory, storage and warehousing and transportation of goods from the place it is produced to the place it is required by the buyers.

Promotion Mix- Promotion of products and services include activities that communicate availability, features, merits, etc., of the products to the target customers and persuade them to buy it. Most marketing organisations, undertake various promotional activities and spend substantial amount of money on the promotion of their goods through using number of tools such as advertising, personal selling and sales promotion techniques (like price discounts, free samples, etc.)