Marketing mix: 4P, 7P, 9P concept

What is a marketing mix?

The marketing mix is a strategic concept that brings together the key elements of marketing to achieve business goals. This approach allows companies to optimally combine various aspects related to a product or service, its price, promotion methods and methods of distribution in the market.

Each component of the marketing mix has its own unique role to play in building and strengthening customer relationships, brand building and market competitiveness. Based on an understanding of the needs and preferences of the target audience, companies build their marketing strategy using the appropriate combination of elements of the mix to effectively meet customer needs and achieve success in the market.

Marketing Mix 4P

Product: Product as the main element of the marketing mix

The product is one of the key elements of the marketing mix and it represents what the company offers to its customers. This component includes both physical goods and services that satisfy the needs and desires of the target audience.

A product strategy begins with a thorough analysis of the market and customer requirements. It is necessary to understand what functions and features of the product will be most attractive to the target audience. This may include design, quality, functionality and innovation.

In addition, branding also plays an important role in creating a recognizable and valuable product. Branding includes creating a unique image, logo, slogan and other elements that help a product stand out from the competition and create an emotional connection with customers.

Price: Price as a strategic tool

Pricing is one of the most important aspects of the marketing mix, and it plays a critical role in shaping the customer’s perception of the value of a product or service. Determining the right price is a tricky balance between creating profit for the company and at the same time making the product accessible to the target audience.

Price can be a strategic tool to achieve various goals. On the one hand, proper pricing can help a company attract attention and create interest among customers, especially if the product is offered at a competitive price. On the other hand, a higher price may serve as an indicator of high quality or status of the product, which is suitable for the premium segment of the market.

Promotion: Promotion: communication and advertising

The “Promotion” component in the marketing mix is a strategy for promoting a product or service on the market. This aspect includes a variety of communication and effective advertising methods that allow the company to reach its target audience, inform them about the product and convince them of its value.

Promotion includes many tools such as advertising in the media, television, radio, the Internet, as well as the use of public media, social networks and influencers. In addition, this also includes organizing events, exhibitions, conferences and other events to draw attention to the product.

The purpose of promotion is not only to attract the attention of customers, but also to create a positive perception of the brand and convince customers of the value of the product or service. In this context, the key elements are a clear and attractive message that highlights the product’s unique features and benefits.

Place: Product distribution location

The “Place” component in the marketing mix embodies the distribution strategy of a product or service, that is, the ways in which they get from the producer to the final consumer. This aspect is important because effective distribution location management ensures that the product is available to customers at the right time in the right place.

The choice of the optimal distribution channel depends on the characteristics of the product, its market niche and consumer preferences. It can be a retail chain, distributors, online stores, direct sales and other options. For example, for everyday goods such as groceries, it is important to have a wide network of retail stores in order to ensure accessibility for consumers. On the other hand, for high value products or specialized services, narrower and more specialized channels may be preferable.

4p marketing mix example

Вот пример маркетинг-микса для вымышленного продукта – инновационного смартфона “TechGizmo”:

1. Product (Product): Smartphone “TechGizmo” is a high-tech device that combines advanced technology and stylish design. It is equipped with the latest features, including a powerful processor, a large high-resolution display, multiple cameras for high-quality photography, and an advanced security system. “TechGizmo” provides a unique experience for lovers of technology and stylish gadgets.
2. Price (Price): The price of the smartphone “TechGizmo” will be set at the level of the premium segment, reflecting its advanced features and unique features. This pricing policy positions the product as exclusive and prestigious.
3. Promotion: Various strategies will be used to promote TechGizmo. The social media campaign will showcase the advanced technology and visual aspects of the device. There will also be presentations at technology events and conferences to draw attention to the new product. Collaboration with influential bloggers and reviewers will also help spread the word about “TechGizmo” to the target audience.
4. Place: “TechGizmo” will be available at premium electronics stores, including major retail chains and online platforms. This will provide customers with the convenience of purchasing a product and create an association with high quality and prestige.

This example of a marketing mix illustrates how each of the components (product, price, promotion, and place) interact to create a strong market position for a product and attract a target audience.

Marketing Mix 7P

Beyond the original 4P concept, marketers began to place more value on additional aspects, leading to the development of concepts such as the 7P model.

People: People

In marketing, as well as in business in general, understanding and managing the human factor is critical to building a successful organization. The “People” component in the marketing mix includes not only the employees of the company, but also the customers, who are the center of attention and the goal of all marketing efforts.

Employees of the company are those who directly interact with customers and personify the brand in front of them. Professional service, friendliness and product knowledge on the part of the staff can significantly affect the customer experience and brand loyalty. Training, motivation and creating a favorable working atmosphere are important aspects that contribute to the effective interaction of staff with customers.

Also, clients play an important role in the “People” component. Understanding and taking into account their needs, preferences and expectations is the foundation of a successful marketing strategy. Creating a unique experience for customers that meets and exceeds their expectations can drive brand loyalty and recommendations.

Process: Processes

In the world of business, effective processes are essential, defining the way a company organizes, executes and manages its operations. In the context of the marketing mix, the “Process” component represents the entire sequence of activities that a company takes to create, deliver, and maintain its products or services.

Processes cover a wide range of activities, from product development to post-purchase customer service. Optimized and well-planned processes allow a company to achieve more efficient use of resources, minimize costs and maximize the quality of a product or service.

Processes also have a direct impact on customer perception of the brand and their level of satisfaction. The consistency and smoothness of all stages of interaction with customers – from ordering to delivery or service, and further to after-sales support – play a role in creating a positive experience.

Effective marketing processes can also include automation and the use of technologies that streamline and simplify operations. For example, automated systems for managing customer data or customer service processes can improve the overall experience and reduce time delays.

Physical evidence: Environment

Physical evidence plays an important role in the visual and physical aspects that affect the perception of a product or service by customers. This includes anything that can confirm or enhance the perception of a brand, its quality and value.

The environment includes aspects such as the design of stores or offices, product packaging, the look and feel of points of sale. An example would be an attractive and unique store design that can create a positive first impression with customers and reinforce the brand’s perception of style and quality.

Product packaging also plays an important role in creating visual appeal and protecting the product. Well-designed packaging can be not only functional but also emotionally appealing, making customers want to buy the product.

Additional items such as point-of-sale materials, informational materials, or even staff clothing can also serve as physical evidence of brand quality and value. It is important that all these elements are consistent with the image and values of the company, and also create a unified and holistic perception of the brand.

Marketing mix 7p example

The concept of the marketing mix expands to 7Ps to include additional elements that help address service and marketing aspects. Here is an example of a 7P marketing mix for a car repair and maintenance company called AutoCare:

1. Product: In this case, the product is a car repair and maintenance service. “AutoCare” provides a wide range of services, including mechanical repairs, parts replacement, diagnostics, maintenance, etc. It is important to maintain high quality and reliability of the work performed.
2. Price: Prices for AutoCare services will be determined based on the complexity of the work and the type of service. A transparent pricing system and a flexible discount policy will help attract and retain customers.
3. Promotion: AutoCare’s promotional activities may include creating a professional website, setting up social media accounts, sending emails about special offers and discounts. Recommendations from satisfied customers and partnerships with car dealerships are also important.
4. Place: “AutoCare” may have physical service points in locations convenient to customers, such as near car dealerships or in industrial areas. It is also important to provide services locally (such as roadside assistance) and online.
5. People (People): The quality of service depends on the professionalism of the AutoCare employees. It is necessary to have highly qualified personnel trained in car maintenance and provide a friendly and professional environment for customers.
6. Processes: Streamlined and efficient repair and maintenance processes will reduce time and ensure quality. From inventory tracking to order management, all processes need to be well tuned.
7. Physical Evidence: The physical environment includes everything that is perceived by customers: the appearance of points of sale, equipment, logos and brand awareness. An attractive and clean environment is important for building customer confidence.

This example of a 7P marketing mix demonstrates how a service provider can effectively manage multiple aspects to create a positive customer experience and provide a high quality service.

Marketing Mix 9P

PR – public relations

PR, or public relations, is an important aspect of the marketing mix that focuses on establishing and maintaining a positive relationship between a company and its diverse audience. This includes creating and maintaining a positive image of the company in the eyes of the public, customers, investors, partners and other stakeholders.

Public relations includes a variety of strategies and tactics that help a company communicate effectively with different groups of people. This can be interaction with journalists and the media to disseminate information about the company, organizing events and press conferences, as well as involvement in social and public initiatives.

The purpose of PR is to create a positive image of the company and form long-term relationships with customers and the public in general. The right public relations can help build trust, increase customer loyalty, and even influence their buying decisions. They can also help manage crises and minimize the negative impact on a company’s reputation.

Partnerships – long-term relationships

Building long-term partnerships is an essential element of a successful business strategy, allowing a company to partner with current customers and other organizations for mutual benefit.

Partnerships can range from strategic alliances to cooperation at the supplier and distributor level. Long-term partnerships can bring many benefits. They allow companies to pool resources, expertise, and experience to jointly develop new products, services, or solutions. Such collaborations can increase competitiveness, expand the customer base and create new opportunities for growth.

Partnerships can also help expand geographic coverage and access new markets. This is especially useful if companies operate in different regions or countries. Joint efforts allow us to improve distribution and meet the needs of customers in different parts of the world.

In addition, long-term partnerships can also help companies improve their reputation and create a positive image. Collaboration with reliable and successful partners can affect the perception of the brand by customers and investors.

Creating and maintaining long-term partnerships requires attention to mutual interests, the establishment of clear rules for cooperation and the ability to adapt to changing market conditions. As a result, such partnerships contribute to the growth and sustainability of the company in the long term.

9P marketing mix example

Here is an example of a 9P marketing mix for eco-friendly home products company EcoHome:

• Product (Product): “EcoHome” specializes in the production and sale of environmentally friendly products for the home, such as organic cleaning, biodegradable packaging and energy efficient devices. The products are aimed at meeting the needs of consumers seeking an environmentally responsible lifestyle.
• Price: EcoHome products will be priced at a premium level, reflecting the uniqueness and environmental value of the products. Environmentally conscious consumers are willing to pay more for products that help protect the environment.
• Promotion: The EcoHome marketing campaign will focus on the benefits of sustainable products, their impact on the environment and personal well-being. The ad will focus on social media, charitable events and partnerships with environmental organizations.
• Place: “EcoHome” products will be available through an online platform with a user-friendly interface and focus on green lifestyle. There will also be an opportunity to purchase products in eco-oriented stores.
• People (People): The EcoHome team consists of environmentally conscious and educated employees who are able to provide advice to customers on the benefits and use of products.
• Processes: EcoHome’s processes include environmentally responsible production, recycling and disposal. The company is committed to minimizing the environmental impact at all stages of production and supply.
• Physical Evidence: EcoHome’s environmental philosophy will be reflected in the design and furnishings of the stores, website and product packaging. This will help create a connection between the product and the brand values.
• PR (Public Relations): The PR strategy will include the organization of events, press conferences and publications in the media in order to disseminate information about the brand, its values and environmental mission.
• Partnerships: EcoHome will establish partnerships with environmental organizations, charities and other brands that share environmental values. This will help to expand the audience and strengthen the position of the brand.

Conclusion

Covering the 4P, 7P, and 9P components, the marketing mix is a powerful tool that helps companies strategically manage their products, services, and brands in the marketplace. Each component – product, price, promotion, location, people, processes, physical proof, PR and partnerships – plays its own unique role in shaping a successful business strategy.