Marketing mix 1

Marketing mix
Marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing

The term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing Association presidential
address. However, this was actually a reformulation of an earlier idea by his associate, James Culliton, who in 1948
described the role of the marketing manager as a "mixer of ingredients", who sometimes follows recipes prepared by
others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available
ingredients, and at other times invents new ingredients no one else has tried.[1] A prominent marketer, E. Jerome
McCarthy, proposed a Four P classification in 1960, which has seen wide use. The Four P's concept is explained in
most marketing textbooks and classes.

Four P's
Elements of the marketing mix are often referred to as the "Four P's":
• Product - It is a tangible object or an intangible service that is mass produced or manufactured on a large scale
with a specific volume of units. Intangible products are service based like the tourism industry & the hotel
industry or codes-based products like cellphone load and credits. Typical examples of a mass produced tangible
object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a
computer operating system. Packaging also needs to be taken into consideration. Every product is subject to a
life-cycle including a growth phase followed by an eventual period of decline as the product approaches market
saturation. To retain its competitiveness in the market, product differentiation is required and is one of the
strategies to differentiate a product from its competitors.
Marketing mix 2

• Price – The price is the amount a customer pays for the product. The business may increase or decrease the price
of product if other stores have the same product.
• Place – Place represents the location where a product can be purchased. It is often referred to as the distribution
channel. It can include any physical store as well as virtual stores on the Internet.
• Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four
distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of
crossover occurs when promotion uses the four principal elements together, which is common in film promotion.
Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts
through print media and billboards. Public relations are where the communication is not directly paid for and
includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of
mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers
or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in
word of mouth and Public Relations (see Product above).
Any organization, before introducing its products or services into the market; conducts a market survey. The
sequence of all 'P's as above is very much important in every stage of product life cycle Introduction, Growth,
Maturity and Decline.

Extended Marketing Mix (3 Ps)

More recently, three more Ps have been added to the marketing mix namely People, Process and Physical
Evidence. This marketing mix is known as Extended Marketing Mix.
• People: All people involved with consumption of a service are important. For example workers, management,
consumers etc. It also defines the market segmentation, mainly demographic segmentation. It addresses particular
class of people for whom the product or service is made available.
• Process: Procedure, mechanism and flow of activities by which services are used. Also the 'Procedure' how the
product will reach the end user.
• Physical Evidence: The marketing strategy should include effectively communicating their satisfaction to
potential customers.

Four Cs (1) in 7Cs compass model

A formal approach to this customer-focused marketing mix is known as Four Cs (Commodity, Cost, Channel,
Communication) in “7Cs compass model.” Koichi Shimizu proposed a four Cs classification in 1973. [2] [3]
This system is basically the four Ps [4] renamed and reworded to provide a customer focus. The four Cs Model
provides a demand/customer centric version alternative to the well-known four Ps supply side model (product, price,
place, promotion) of marketing management.The Four Cs model is more consumer-oriented and attempts to better fit
the movement from mass marketing to symbiotic marketing.
1. Commodity:(Original meaning of Latin: Commodus=convenient)the product for the consumers or citizens.a
commodity can also be described as an raw material such as; oil,metal ores and wheat, the price of these tend to
change on a daily basis, due to the demand and supply of these commodities.
2. Cost:(Original meaning of Latin: Constare= It makes sacrifices)producing cost, selling cost, purchasing cost and
social cost.
3. Channel:(Original meaning is a Canal)Flow of commodity : marketing channels.
4. Communication:(Original meaning of Latin:Communio=sharing of meaning) marketing communication : It
doesn't promote the sales.
(Framework of ７Cs compass model)
Marketing mix 3

• (C1): Corporation and competitor : The core of 4Cs is corporation and organization, while the core of 4Ps is
customers who are the targets for attacks or defenses.
• (C2) : Commodity, (C3) : Cost, (C4) : Channel, (C5) : Communication
• (C6) : Consumer (Needle of compass to Consumer)
The factors related to customers can be explained by the first character of four directions marked on the compass
model: N = Needs, W = Wants, S = Security and E = Education (consumer education).
• (C7) : Circumstances (Needle of compass to Circumstances )
In addition to the customer, there are various uncontrollable external environmental factors encircling the companies.
Here it can also be explained by the first character of the four directions marked on the compass model --- N =
National and International C, W=Weather, S = Social and Cultural C, E = Economic (Circumstances).

Four Cs (2)
Robert F. Lauterborn proposed a four Cs(2) classification in 1993.[5] The Four Cs model is more consumer-oriented
and attempts to better fit the movement from mass marketing to niche marketing. The Product part of the Four Ps
model is replaced by Consumer or Consumer Models, shifting the focus to satisfying the consumer needs. Another
C replacement for Product is Capable. By defining offerings as individual capabilities that when combined and
focused to a specific industry, creates a custom solution rather than pigeon-holing a customer into a product. Pricing
is replaced by Cost reflecting the total cost of ownership. Many factors affect Cost, including but not limited to the
customer's cost to change or implement the new product or service and the customer's cost for not selecting a
competitor's product or service. Placement is replaced by Convenience. With the rise of internet and hybrid models
of purchasing, Place is becoming less relevant. Convenience takes into account the ease of buying the product,
finding the product, finding information about the product, and several other factors. Finally, the Promotions feature
is replaced by Communication which represents a broader focus than simply Promotions. Communications can
include advertising, public relations, personal selling, viral advertising, and any form of communication between the
firm and the consumer. the four Ps are (product, promotion, price, place)

References
[1] Banting, Peter; Ross, Randolph E.. "SpringerLink - Journal of the Academy of Marketing Science, Volume 1, Number 1" (http:/ / www.
springerlink. com/ content/ mn58860185200184/ ). SpringerLink. . Retrieved 2010-11-12.
[2] [Koichi Shimizu (2009) "Advertising Theory and Strategies,"16th edition, Souseisha Book Company. (Japanese)]
[3] [Koichi Shimizu (2003)"Symbiotic Marketing Strategy,"4th edition, Souseisha Book Company.(Japanese)]
[4] [ E. Jerome McCarthy (1975)”Basic Marketing: A Managerial Approach," fifth edition, Richard D. Irwin, Inc., p.37.]
[5] Don E. Schullz, Stanley I. Tannenbaum, Robert F. Lauterborn(1993)“Integrated Marketing Communications,”NTC Business Books, a
division of NTC Publishing Group.

External links
• Marketing Mix (bitesize 4P's) (http://www.bbc.co.uk/schools/gcsebitesize/business/marketing/
marketingmixrev2.shtml) British Broadcasting Corporation (BBC) Schools.
• (http://www.scs.unr.edu/~khalilah/eMarketing.pdf) The Marketing Mix of IMC.
• (http://www.ppbmag.com/Article.aspx?id=1981) Four P’s, Four C’s And The Consumer Revolution.
• 7Cs Compas Model: http://www.josai.ac.jp/~shimizu/essence/
Professor%20Koichi%20Shimizu%27s%207Cs%20Compass%20Model.html
• Marketing Mix Theory (http://www.thetimes100.co.uk/theory/
theory--marketing-mix-(price-place-promotion-product)--243.php) The Times 100 Business Case Studies.
Article Sources and Contributors 4

Article Sources and Contributors

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