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  • Updating The 4 P'S: The 7 P's of Marketing Mix

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    Sean Chris Conson
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    The document summarizes the evolution of marketing mix models from the traditional 4Ps to expanded versions that better account for modern marketing approaches and contexts. It describes Booms and Bitner's 7Ps model from the 1980s that added People, Processes, and Physical Evidence to the traditional Product, Price, Place, and Promotion. It then outlines Kotler and Keller's 8Ps model incorporating additional elements like Processes and Performance. Finally, it discusses Lauterborn's 4Cs framework from 1990 focusing on Consumer benefits, Convenience, Communication, and total Cost of ownership. The models reflect expanding marketing to consider additional stakeholders, activities, and outcomes beyond the traditional 4Ps framework.

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    The document summarizes the evolution of marketing mix models from the traditional 4Ps to expanded versions that better account for modern marketing approaches and contexts. It describes Booms and Bitner's 7Ps model from the 1980s that added People, Processes, and Physical Evidence to the traditional Product, Price, Place, and Promotion. It then outlines Kotler and Keller's 8Ps model incorporating additional elements like Processes and Performance. Finally, it discusses Lauterborn's 4Cs framework from 1990 focusing on Consumer benefits, Convenience, Communication, and total Cost of ownership. The models reflect expanding marketing to consider additional stakeholders, activities, and outcomes beyond the traditional 4Ps framework.

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    34 views3 pages

    Updating The 4 P'S: The 7 P's of Marketing Mix

    Uploaded by

    Sean Chris Conson
    The document summarizes the evolution of marketing mix models from the traditional 4Ps to expanded versions that better account for modern marketing approaches and contexts. It describes Booms and Bitner's 7Ps model from the 1980s that added People, Processes, and Physical Evidence to the traditional Product, Price, Place, and Promotion. It then outlines Kotler and Keller's 8Ps model incorporating additional elements like Processes and Performance. Finally, it discusses Lauterborn's 4Cs framework from 1990 focusing on Consumer benefits, Convenience, Communication, and total Cost of ownership. The models reflect expanding marketing to consider additional stakeholders, activities, and outcomes beyond the traditional 4Ps framework.

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    of 3

    Updating the 4 P’s: The 7 P’s of Marketing Mix

    In the late 70’s it was widely acknowledged by Marketers that the Marketing Mix should be updated.
    This led to the creation of the Extended Marketing Mix in 1981 by Booms & Bitner which added 3 new
    elements to the 4 Ps Principle. This now allowed the extended Marketing Mix to include products that
    are services and not just physical things.

    1. People – are fundamental in delivering any product or service. They represent everyone
    involved during the buyer’s journey, buyer themselves included: employees, partners,
    customers and even the relationships established among them.
    2. Processes – are all the mechanism, planning and decision making that ensure a smooth delivery
    of a product or service.
    3. Physical Evidence – is the service delivered and any tangible goods that facilitate the
    performance and communication of the service. It represents all the environmental elements
    that surround consumers during a service/product delivery. They are characterizing factors that
    can positively or negatively impact the delivery experience. It is the proof that a seller has
    provided (or not) what a customer was expecting. A physical evidence of an actual product is the
    good itself. This dimension also comprehends the experience before and after a transaction. For
    instance, invoices and souvenirs are physical evidence underlying the fact that the product or
    service was delivered.

    Though in place since the 1980’s the 7 Ps are still widely taught due to their fundamental logic being
    sound in the marketing environment and marketers abilities to adapt the Marketing Mix to include
    changes in communications such as social media, updates in the places which you can sell a
    product/service or customers’ expectations in a constantly changing commercial environment.

    The 8P’s of Marketing Mix: Evolution of Marketing Management:

    Given the breadth, complexity, and richness of marketing, however—as exemplified by holistic
    marketing. Clearly these four Ps are not the whole story anymore. According to Marketing and
    management of Kotler and Keller, marketing mix needs 8Ps to represent the modern panorama.

    This model is based on the concept of holistic marketing (if you visit this link, you’ll find the detailed
    description at the end of the article): an interdisciplinary and interconnected subject founded on four
    pillars:
     Relationship marketing;
     Integrated marketing;
     Internal marketing;
     Performance marketing.

    1. People - reflects, in part, internal marketing and the fact that employees are critical to
    marketing success. Marketing will only be as good as the people inside the organization. It also
    reflects the fact that marketers must view consumers as people to understand their lives more
    broadly, and not just as they shop for and consume products and services.
    2. Processes - reflects all the creativity, discipline, and structure brought to marketing
    management. Marketers must avoid ad hoc planning and decision making and ensure that state-
    of-the-art marketing ideas and concepts play an appropriate role in all they do. Only by
    instituting the right set of processes to guide activities and programs can a firm engage in
    mutually beneficial long-term relationships. Another important set of processes guides the firm
    in imaginatively generating insights and breakthrough products, services, and marketing
    activities.
    3. Programs - reflects all the firm’s consumer-directed activities. It encompasses the old four Ps as
    well as a range of other marketing activities that might not fit as neatly into the old view of
    marketing. Regardless of whether they are online or offline, traditional or nontraditional, these
    activities must be integrated such that their whole is greater than the sum of their parts and
    they accomplish multiple objectives for the firm.
    4. Performance - We define performance as in holistic marketing, to capture the range of possible
    outcome measures that have financial and nonfinancial implications (profitability as well as
    brand and customer equity), and implications beyond the company itself (social responsibility,
    legal, ethical, and community related).

    Overall, these new four Ps actually apply to all disciplines within the company, and by thinking this way,
    managers grow more closely aligned with the rest of the company.

    The 4Cs of marketing mix


    In 1990, the professor of advertising Robert Lauterborn shared a different approach to the 4Ps of
    marketing mix. In his work New marketing litany: four Ps passé: C-words take over published by the
    broadsheet newspaper Advertising Age (now become Ad Age), he presented the 4Cs of marketing mix:
    1. Consumer - means that companies should sell what prospects need and want. The starting point
    is the target audience and a preliminary in-depth study is necessary to make the best offering.
    2. Convenience - considers all the factors affecting the ease of buying and finding a
    product/service, and retrieving information about it. With Internet and other hybrid purchasing
    models, place is almost irrelevant.
    3. Communication - underlines a two-way nature of dialogue between a business and consumers.
    While promotion starts from a company with an outbound approach, communication is
    cooperative and represents a much broader range of interactions between seller and buyer.
    4. Cost - represents the total cost of ownership for a product or service. The price is only a part of
    the costs borne by consumers. Lauterborn explains how other factors like time for accessing the
    offering (cost of time), effort for changing or implementing the new product/service or the
    choice for not selecting competitors’ products/services affect the purchasing cost.

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