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Marketingmix
FromWikipedia,thefreeencyclopedia

Marketingmixisabusinesstoolusedinmarketingandbymarketers.Themarketingmixisoftencrucialwhen
determiningaproductorbrand'soffer,andisoftenassociatedwiththefourPs:price,product,promotion,and
place.[1]Inservicemarketing,however,thefourPsareexpandedtothesevenPsprocess,people,physical
environment[2]orSevenPstoaddressthedifferentnatureofservices.

Inthe1990s,theconceptoffourC'swasintroducedasamorecustomerdrivenreplacementofthefourP's.[3]
TherearetwotheoriesbasedonfourCs:Lauterborn'sfourCs(consumer,cost,communication,convenience),
andShimizu'sfourCs(commodity,cost,communication,channel).

In2012,anewfourP'stheorywasproposedwithpeople,processes,programs,andperformance.[4]

Contents
1 McCarthy'sfourPs
2 Lauterborn'sfourCs
3 FourCs:inthe7CsCompassModel
4 E.JeromeMcCarthy
5 BoomsandBitner
6 References
7 Externallinks

McCarthy'sfourPs
ThemarketerE.JeromeMcCarthyproposedafourPsclassificationin1960,whichhassincebeenwidelyused
bymarketers.[3]

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Category Definition
Aproductisseenasanitemthatsatisfieswhataconsumerdemands.Itisatangiblegoodoran
intangibleservice.Tangibleproductsarethosethathaveanindependentphysicalexistence.
Typicalexamplesofmassproduced,tangibleobjectsarethemotorcarandthedisposablerazor.
Alessobviousbutubiquitousmassproducedserviceisacomputeroperatingsystem.

Everyproductissubjecttoalifecycleincludingagrowthphasefollowedbyamaturityphase
andfinallyaneventualperiodofdeclineassalesfall.Marketersmustdocarefulresearchonhow
longthelifecycleoftheproducttheyaremarketingislikelytobeandfocustheirattentionon
Product differentchallengesthatariseastheproductmoves.

Themarketermustalsoconsidertheproductmix.Marketerscanexpandthecurrentproductmix
byincreasingacertainproductline'sdepthorbyincreasingthenumberofproductlines.
Marketersshouldconsiderhowtopositiontheproduct,howtoexploitthebrand,howtoexploit
thecompany'sresourcesandhowtoconfiguretheproductmixsothateachproductcomplements
theother.Themarketermustalsoconsiderproductdevelopmentstrategies.[3]

Theamountacustomerpaysfortheproduct.Thepriceisveryimportantasitdeterminesthe
company'sprofitandhence,survival.Adjustingthepricehasaprofoundimpactonthemarketing
strategyand,dependingonthepriceelasticityoftheproduct,oftenitwillaffectthedemandand
salesaswell.Themarketershouldsetapricethatcomplementstheotherelementsofthe
marketingmix.[3]
Price Whensettingaprice,themarketermustbeawareofthecustomerperceivedvalueforthe
product.Threebasicpricingstrategiesare:marketskimmingpricing,marketpenetrationpricing
andneutralpricing.The'referencevalue'(wheretheconsumerreferstothepricesofcompeting
products)andthe'differentialvalue'(theconsumer'sviewofthisproduct'sattributesversusthe
attributesofotherproducts)mustbetakenintoaccount.[3]

Allofthemethodsofcommunicationthatamarketermayusetoprovideinformationtodifferent
partiesabouttheproduct.Promotioncompriseselementssuchas:advertising,publicrelations,
salesorganisationandsalespromotion.[3]

Advertisingcoversanycommunicationthatispaidfor,fromcinemacommercials,radioand
Internetadvertisementsthroughtoprintmediaandbillboards.Publicrelationsiswherethe
communicationisnotdirectlypaidforandincludespressreleases,sponsorshipdeals,
exhibitions,conferences,seminarsortradefairsandevents.
Promotion
Afterweb2.0,thecapacityofthecustomerstodiscussproductsthattheyhavebought,making
reviewsandtestimonialsrelatedtotheirexperiences,areexamplesofpublicrelations,aswell.
Thiskindofbehaviortakesthedisseminationoftheproductinformationovertheinternetspace
andcreatesthephenomenonknownaswordofmouth.Wordofmouthisanyapparentlyinformal
communicationabouttheproductbyordinaryindividuals,satisfiedcustomersorpeople
specificallyengagedtocreategrassrootsmomentum.Salesstaffoftenplaysanimportantrolein
wordofmouthandpublicrelations(see'product'above).[3]

Referstoprovidingtheproductataplacewhichisconvenientforconsumerstoaccess.Various
strategiessuchasintensivedistribution,selectivedistribution,exclusivedistributionand
franchisingcanbeusedbythemarketertocomplementtheotheraspectsofthemarketing
mix.[3][5]ThelastPisplace,thedistributionchannelwhichisthelocationwherethedeliverythe
value.Theroleofthemarketingchannelsisnotonlyfocusontheparticipateindemand
satisfactionbyofferinggoods,butalsoneedtostimulatedemandthroughinformation,creating
Distribution proximityandpromotionbycustomer(Balasecu,2014).Inotherwords,distributionchannelsfor

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(Place) theproductisasystemprocess.Generally,majorityoftheproductneedaretailshop.Butplace
alsocanbeatelephonecallcenterorawebsite.Forexample,NikeAirForce1designerswere
determinedtoletAirForce1fromhardwoodfloorstosolidconcrete,frombasketballcourtto
block.Theyplannedtostartarevolution.AlongtheI95highwaycorridorbetweenNewYork,
PhiladelphiaandBaltimore,AirForce1transmittingtheinformationofsportsandculture,
sendingitselftoeveryfieldandblocksofthecities(Jennifer,2006).Hence,theplaceturninto
anothermajorelementinmarketingmix.

The"sevenPs"isamarketingmodelthataddstotheaforementionedfourPs,including"physicalevidence",
"people",and"process":[6]Itisusedwhentherelevantproductisaservice,notmerelyaphysicalgood.

Category Definition
Theevidencewhichshowsthataservicewasperformed,suchasthedeliverypackagingforthe
Physical
itemdeliveredbyadeliveryservice,orascarleftbyasurgeon.Thisremindsorreassuresthe
evidence
consumerthattheservicetookplace,positivelyornegatively.
Theemployeesthatexecutetheservice,chieflyconcerningthemannerandskillinwhichtheydo
People
so.
Theprocessesandsystemswithintheorganizationthataffecttheexecutionofitsservice,suchas
Process
jobqueuingorqueryhandling.

Lauterborn'sfourCs
RobertF.LauterbornproposedafourCsclassificationin1990[7]whichisamoreconsumerorientatedversion
ofthefourPs[8]thatattemptstobetterfitthemovementfrommassmarketingtonichemarketing:

FourPs FourCs Definition

Consumer Acompanywillonlysellwhattheconsumerspecificallywantstobuy.So,
Product wantsand marketersshouldstudyconsumerwantsandneedsinordertoattractthemoneby
needs onewithsomethinghe/shewantstopurchase.[7][9]
Priceisonlyapartofthetotalcosttosatisfyawantoraneed.Thetotalcostwill
considerforexamplethecostoftimeinacquiringagoodoraservice,acostof
consciencebyconsumingthatorevenacostofguilt"fornottreatingthekids".[7]
Price Cost
Itreflectsthetotalcostofownership.Manyfactorsaffectcost,includingbutnot
limitedtothecustomer'scosttochangeorimplementthenewproductorservice
andthecustomer'scostfornotselectingacompetitor'sproductorservice.[10]
Whilepromotionis"manipulative"andfromtheseller,communicationis
"cooperative"andfromthebuyer[7]withtheaimtocreateadialoguewiththe
[11]
Promotion Communication potentialcustomersbasedontheirneedsandlifestyles. Itrepresentsabroader
focus.Communicationscanincludeadvertising,publicrelations,personal
selling,viraladvertising,andanyformofcommunicationbetweenthe
organizationandtheconsumer.
IntheeraofInternet,[9]catalogues,creditcardsandphonespeopleneitherneed
togoanywheretosatisfyawantoraneednorarelimitedtoafewplacesto
satisfythem.Marketersshouldknowhowthetargetmarketpreferstobuy,how
Place Convenience tobethereandbeubiquitous,inordertoguaranteeconveniencetobuy.[7][11]
WiththeriseofInternetandhybridmodelsofpurchasing,Placeisbecomingless
relevant.Conveniencetakesintoaccounttheeaseofbuyingtheproduct,finding
theproduct,findinginformationabouttheproduct,andseveralotherfactors.

FourCs:inthe7CsCompassModel
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AfterKoichiShimizuproposedafourCsclassificationin1973,itwasexpandedtothe7CsCompassModelto
provideamorecompletepictureofthenatureofmarketingin1979.[12][13][14][15]Itattemptstoexplainthe
successorfailureofafirmwithinamarketandissomewhatanalogoustoMichaelPorter'sdiamondmodel,
whichtriestoexplainthesuccessandfailureofdifferentcountrieseconomically.

The7CsCompassModelcomprises:

(C1)CorporationThecoreoffourCsiscorporation(companyandnonprofitorganization).COS
(organization,competitor,stakeholder)withinthecorporation.Thecompanyhastothinkofcomplianceand
accountabilityasimportant.Thecompetitionintheareasinwhichthecompanycompeteswithotherfirmsinits
industry.

Thefourelementsinthe7CsCompassModelare:

Aformalapproachtothiscustomerfocusedmarketingmixisknownas"FourCs"(commodity,cost,
communication,channel)intheSevenCsCompassModel.ThefourCsmodelprovidesademand/customer
centricversionalternativetothewellknownfourPssupplysidemodel(product,price,promotion,place)of
marketingmanagement.[16]

ProductCommodity
PriceCost
PromotionCommunication
PlaceChannel

"P"
"C"category
category "C"definition
(broad)
(narrow)
(Latinderivation:commodus=convenient):Cocreation.Itisnot"productout".
(C2) Thegoodsandservicesfortheconsumersorcitizens.SteveJobshasbeen
Product
Commodity makingthegoodswithwhichpeoplearepleased.Itwillnotbecome
commoditizationifacommodityisbuiltstarting.
(Latinderivation:constare=Itmakessacrifices):Thereisnotonlyproducing
Price (C3)Cost
costandsellingcostbutpurchasingcostandsocialcost.
(Latinderivation:communis=sharingofmeaning):marketingcommunication:
(C4) Notonlypromotionbutcommunicationisimportant.Communicationscan
Promotion
Communication includeadvertising,salespromotion,publicrelations,publicity,personalselling,
corporateidentity,internalcommunication,SNS,MIS.
Place (C5)Channel (Latinderivation:canal):marketingchannels.Flowofgoods.

Thecompassofconsumersandcircumstances(environment)are:

(C6)Consumer(Needleofcompasstoconsumer)

Thefactorsrelatedtoconsumerscanbeexplainedbythefirstcharacteroffourdirectionsmarkedonthe
compassmodel.Thesecanberememberedbythecardinaldirections,hencethenamecompassmodel:

N=Needs
W=Wants
S=Security
E=Education:(consumereducation)

(C7)circumstances(Needleofcompasstocircumstances)

Inadditiontotheconsumer,therearevariousuncontrollableexternalenvironmentalfactorsencirclingthe
companies.Hereitcanalsobeexplainedbythefirstcharacterofthefourdirectionsmarkedonthe
compassmodel:
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N=NationalandInternational(Political,legalandethical)environment
W=Weather
S=Socialandcultural
E=Economic

Thesecanalsoberememberedbythecardinaldirectionsmarkedonacompass.The7CsCompassModelisa
frameworkincomarketing(symbioticmarketing).IthasbeencriticizedforbeinglittlemorethanthefourPs
withdifferentpointsofemphasis.Inparticular,thesevenCsinclusionofconsumersinthemarketingmixis
criticized,sincetheyareatargetofmarketing,whiletheotherelementsofthemarketingmixaretactics.The
sevenCsalsoincludenumerousstrategiesforproductdevelopment,distribution,andpricing,whileassuming
thatconsumerswanttwowaycommunicationswithcompanies.

Analternativeapproachhasbeensuggestedinabookcalled'Service7'byAustralianAuthor,PeterBowman.
Bowmansuggestsavaluesbasedapproachtoservicemarketingactivities.Bowmansuggestsimplementing
sevenservicemarketingprincipleswhichincludevalue,businessdevelopment,reputation,customerservice
andservicedesign.Service7hasbeenwidelydistributedwithinAustralia.

E.JeromeMcCarthy
Sincethefirstproposeofmarketingmixof12marketingvariablesbyNeilH.Borden,themarketingmixhave
developedin1960s.Theideaofmarketingmixwaswidelyusedtohelpwithabusiness.Abusinesscan
succeedwithcarryoutalltheseprocessproperlyofmarketingmix.

However,itisdifficulttoacompanyuse12marketingvariablesproposebyMr.Borden.SothatE.Jerome
McCarthydevelopedthemarketingmixinto"4Ps".The4Psmodelisknownasprice,place,promotionand
product.

Productcanbethe"quality,features,benefits,style,design,branding,packaging,services,warranties,
guarantees,lifecycles,investmentsandreturns".

Product:thisiswhatthebusinessoffersaproductorservicetothecustomers.Eachofthecompanywanttheir
productappealtoeverybodyeventhroughsomekindofproductonlyappealtoaspecialgroupofcustomers.
Andallthecompaniesaretryingtomaximizethecustomergroupthatcanbenefitfromtheirproducts.[17]

Pricecanbe"listpricing,discountpricing,specialofferpricing,creditpaymentorcreditterms".

Price:priceisthetotalcosttocustomertoassumetheproduct,butitisnotthecashpaymentfromthebusiness
tothesupplier.Thiscostsalsoincludedlearninghowtousetheproductandtheperipheralcosts.[17]Notonly
therawmaterialincluded,andalsothemachiningcostsbyworkers,transportscosts.

Placecanbethe"directorindirectchannelstomarket,geographicaldistribution,territorialcoverage,retail
outlet,marketlocation,catalogues,inventory,logisticsandorderfulfilment".

Place:placeisthelocationwhereabusinessdoingtheirbusiness.Itcanbearetailstoreinamostoriginalway.
Butnowadaysitcanmean"amailordercatalogue,atelephonecallcentreorawebsite[17]".Asthe
developmentofbusiness,ebusinessisbecomemoreandmorepopular,andthisisexactlythereasonwhy
websiteistreatedasalocationnow.

Promotioncanbethe"advertising,externalcommunicationswiththemedia,directsellingandsales
promotions".

Promotion:"Promotionisthemarketingcommunicationusedtomaketheofferknowntopotentialcustomers
andpersuadethemtoinvestigateitfurther[17]".Intermsofpromotioncanbeproposetopromotionmix,which
isadvertising,publicrelations,salespromotionandpersonalselling.

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The4Psofmarketingmixwhichishelpfultothebusiness,andbusinessesareattemptingtofindabalancein
these4Psprocesstoapproachthesuccess.Andthemarketingmixishelpfultothebusinesstosimplifythe
presentmarketingconditions,andthenmaketheadjustmentappropriate.

BoomsandBitner
BoomsandBitnerareresponsibleforthecreationoftheextendedmarketingmix,featuring7P's.E.Jerome
McCarthy'soriginal4P'sofproduct,price,promotion,andplacearenowjoinedbypeople,processandphysical
evidence.[18][19]

Peopleareessentialinthemarketingofanyproductorservice.Intheprofessional,financialorhospitality
serviceindustry,peoplearenotproducers,butrathertheproductsthemselves.[19]Whenpeoplearetheproduct,
theyimpactpublicperceptionofanorganizationasmuchasanytangibleconsumergoods.Fromamarketing
managementperspective,itisimportanttoensurethatemployeesrepresentthecompanyinalignmentwith
broadermessagingstrategies.[20]Thisiseasiertoensurewhenpeoplefeelasthoughtheyhavebeentreated
fairlyandearnwagessufficientenoughtosupporttheirdailylives.

Processrefersa"thesetofactivitiesthatresultsindeliveryoftheproductbenefits".Aprocesscouldbea
sequentialorderoftasksthatanemployeeundertakesasapartoftheirjob.Itcanrepresentsequentialsteps
takenbyanumberofvariousemployeeswhileattemptingtocompleteatask.Somepeopleareresponsiblefor
managingmultipleprocessesatonce.Forexample,arestaurantmanagershouldmonitortheperformanceof
employees,ensuringthatprocessesarefollowed.(S)heisalsoexpectedtosupervisewhilecustomersare
promptlygreeted,seated,fed,andledoutsothatthenextcustomercanbeginthisprocess.[20]

Physicalevidenceisthelastingproofthattheservicehashappened.[19]Intermsofbuyingaphysicalproduct,
thephysicalevidenceistheproductitself.AccordingtoBoomsandBitner'sframework,"physicalevidenceis
theserviceisdeliveredandanytangiblegoodsthatfacilitatetheperformanceandcommunicationofthe
service.[20]Physicalevidenceisimportanttocustomersbecausethetangiblegoodsareevidencethattheseller
has(orhasnot)providedwhatthecustomerwasexpecting.Themoreinvitingthephysicalenvironmentthat
surroundsaproductwhenitissold,themorepeoplearewillingtopayforsaidgoodorservice.Anyonewho
doesnotunderstandhowimportantthephysicalenvironmentisinbusiness,needonlytocomparethepriceofa
4staranda2starhotel.

References
1.McCarthy,JeromeE.(1964).BasicMarketing.AManagerialApproach.Homewood,IL:Irwin.
2.Booms,BernardH.Bitner,MaryJo(1981)."MarketingStrategiesandOrganizationStructuresforServiceFirms".
MarketingofServices.AmericanMarketingAssociation:4751.
3.Needham,Dave(1996).BusinessforHigherAwards.Oxford,England:Heinemann.
4.Kotler,Philip(2012).MarketingManagement.PearsonEducation.p.25.
5.Kerin,HartleyandRudelius"Marketing,TheCore,"4thEdition,McGrawHillPublishing2001.
6."The7PsofMarketing".Retrieved20111112.
7.Lauterborn,B.(1990).NewMarketingLitany:FourPsPass:CWordsTakeOver.AdvertisingAge,61(41),26.
8.Kotler,P.andKeller,K.(2006),MarketingandManagement,PearsonPrenticeHall,UpperSaddleRiver,NJ,USA
9.McLean,R.(October19,2002).The4C'sversusthe4P'sofmarketing.CustomFitOnline.Retrievedfrom
http://www.customfitonline.com/news/2012/10/19/4csversusthe4psofmarketing/
10.Marketing(http://www.courtest.com),Marketing.
11.Schultz,DonETannenbaum,StanleyILauterborn,RobertF(1993),Integratedmarketingcommunications,NTC
BusinessBooks,ISBN9780844233635
12.Shimizu,Koichi(1989)"AdvertisingTheoryandStrategies,"(Japanese)firstedition,SouseishaBookCompanyin
Tokyo.(ISBN4794420307)pp.63102.
13.Shimizu,Koichi(2014)"AdvertisingTheoryandStrategies,"(Japanese)18thedition,SouseishaBookCompany
(ISBN479442132X)pp.63102.
14.Shimizu,Koichi(2003)"SymbioticMarketingStrategy,"(Japanese)4thedition,SouseishaBookCompany(ISBN4
794421583)pp.2562.
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15.Solis,Brian(2011)Engage!:TheCompleteGuideforBrandsandBusinessestoBuild,Cultivate,andMeasure
SuccessintheNewWeb,JohnWiley&Sons,Inc.pp.201202.
16.McCarthy,JeromeE.(1975)BasicMarketing:AManagerialApproach,"fifthedition,RichardD.Irwin,Inc.,p.37.
17.Blythe,Jim(2009).KeyConceptsinMarketing.LosAngeles:SAGEPublicationsLtd.
18.https://blog.udemy.com/extendedmarketingmix/
19.McLean,R.(October19,2002).The4C'sversusthe4P'sofmarketing.CustomFitOnline.Retrievedfrom
http://www.customfitonline.com/news/2012/10/19/4csversusthe4psofmarketing
20.Rafiq,Mohammed(March31,2016)."Usingthe7Psasagenericmarketingmix:anexploratorysurveyofUKand
Europeanmarketingacademics".Emeraldinsight.MCBUPLtd.RetrievedMarch31,2016.

Externallinks

7CsCompassmodel(1979)inJapan(http://www.josai.ac.jp/~shi Wikibookshasabookon
mizu/essence/Professor%20Koichi%20Shimizu's%207Cs%20C thetopicof:Marketing
ompass%20Model.html)
FourP's,FourC'sAndTheConsumerRevolution(http://www.p
pbmag.com/Article.aspx?id=1981)
MarketingMixUp:BeingTreatedLikeLoisLane(http://atomic
tango.com/2010/02/16/marketingmix/)
MarketingMixTheory(http://businesscasestudies.co.uk/busines
stheory/marketing/marketingmixpriceplacepromotionprodu
ct.html)TheTimes100BusinessCaseStudies

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