The theoretical background of the marketing mix was reported to have originated from the single P (price) of microeconomic theory (Chong, 2003. cited in Goi, 2009, p. 2). As acknowledged, McCarthy (1964) completed the four elements of the mix and comprehensively discussed relevant applications in organizational settings. The factors influencing core competencies of the organization guide decision makers into using the four elements of designing appropriate strategies that would tap opportunities in the external environment, as well as ward off imminent threats. The use of the marketing mix was identified to be instrumentally advantageous for the organization in terms of assisting marketing managers in trading off the benefits of one’s competitive strengths in the marketing mix against the benefits of others (Goi, 2009, p. 2). As such, the internal strengths of the organizations are capitalized through strategies that increase the perceived value of the products or services offered to the clientele. Concurrently, the limitations of the mix were indicated to originate from criticism received from marketing practitioners and researchers in this endeavor (Goi, 2009). One of the issues revealed included the assignment of relevance among the elements of the mix. Accordingly, the introductory marketing texts suggest that all parts of the marketing mix (4Ps) are equally important since a deficiency in anyone can mean failure (Kellerman, et al., 1995. cited in Goi, 2009, p. 3). Other studies have concluded that the most relevant components were product and price (Kellerman, et al., 1995).
Theory of Product and Price Affecting the Success of British Homes