The 4Ps and 4Cs of
the marketing mix
First proposed in 1960, the classic
marketing mix tool contains the 4Ps:
product, price, promotion, and place.
In the 1990s, these were recast as the
4Cs, which emphasized the customer-
oriented dimension of the tool.
Product
Is the product the right
design, size, and color
to appeal to customers?
What are its unique
features? How does it
compare with competitors?
Promotion
What combination
of marketing and
media channels will
be most effective?
When is the best time
to run promotions?
Commodity
Has the product been specifically
engineered and designed to meet
and exceed customer expectations?
Communication
What is the most meaningful way
to get marketing messages to
customers and provide them
with useful information?
The 7Ps of the marketing mix
Some marketers use a more detailed
model of the marketing mix, which
has three additional elements.
Product See pp.180–183.
Price See pp.186–187.
Place See pp.188–189.
Promotion See pp.190–191.
People Does the business
employ the right people to deliver
optimum service to customers?
Process Are effective systems
in place for handling orders and
dealing with customer questions
and complaints?
Physical environment Does the
design and layout of the business
premises appeal to customers?
Marketing
mix
The successful marketing of a product depends on the consideration of four key
elements—the product itself, its price, how it is promoted, and where it is sold.
This combination is called the marketing mix, and it is used as a tool for planning
product launches and campaigns. Before focusing on the marketing mix, marketers
need to define the target market for their product by determining which groups of
customers are most likely to purchase it.
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how sales and marketing works
Marketing mix
DEFINING THE MARKET
“ Product,
promotion,
and place
create value.
But price
harvests
value.”
Price
What is the value of the product
to prospective customers?
What is the usual price point
for this type of product?
Identifies gaps in the market for the
launch of new products
Measures customer reactions to new
offers and campaign messages
Breaks down the market into smaller
customer groups with similar needs
Allows more focused campaigns
with a greater chance of success
Place
Where should the product be
sold—stores, online, or catalogs?
Where do competitors sell, and
is there a way to stand out in the
same place?
Cost
How much will the product cost
the customer, and will it be seen
to represent a good buy?
Convenience
How easy is it for busy customers
to find and buy the product?
The 7Cs of the marketing mix
This model offers a customer-
focused variation of the 7Ps, adding
three more elements to the 4Cs.
Commodity
Cost
Convenience (or Channel)
Communication
Corporation How do company
structure, stakeholders, and other
competitors affect marketing?
Consumer What are the
customer’s needs and wants?
Is the product safe? What product
information is available?
Circumstances Can the business
deal with external factors, such as
laws, weather, economy, culture?
In order to establish a marketing strategy for the product they are introducing
to the marketplace, businesses have to define the customers they aim to sell to
by researching and segmenting the market.
Market research
See pp.192–193.
Market segmentation
See pp.194–195.
?
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178 179
how sales and marketing works
Marketing mix
DEFINING THE MARKET
“ Product,
promotion,
and place
create value.
But price
harvests
value.”
Price
What is the value of the product
to prospective customers?
What is the usual price point
for this type of product?
Identifies gaps in the market for the
launch of new products
Measures customer reactions to new
offers and campaign messages
Breaks down the market into smaller
customer groups with similar needs
Allows more focused campaigns
with a greater chance of success
Place
Where should the product be
sold—stores, online, or catalogs?
Where do competitors sell, and
is there a way to stand out in the
same place?
Cost
How much will the product cost
the customer, and will it be seen
to represent a good buy?
Convenience
How easy is it for busy customers
to find and buy the product?
The 7Cs of the marketing mix
This model offers a customer-
focused variation of the 7Ps, adding
three more elements to the 4Cs.
Commodity
Cost
Convenience (or Channel)
Communication
Corporation How do company
structure, stakeholders, and other
competitors affect marketing?
Consumer What are the
customer’s needs and wants?
Is the product safe? What product
information is available?
Circumstances Can the business
deal with external factors, such as
laws, weather, economy, culture?
In order to establish a marketing strategy for the product they are introducing
to the marketplace, businesses have to define the customers they aim to sell to
by researching and segmenting the market.
Market research
See pp.192–193.
Market segmentation
See pp.194–195.
?
US_178-179_Marketing_Mix.indd 179 21/11/2014 17:27
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Actual product
Packaging, brand name,
quality level, design, and
additional features that set
it apart from rival products
Augmented
product
Additional benefits, such
as delivery and credit,
warranty, after-sales service
Core product
Product’s basic function and its
core benefit to consumer
How it works
Consumers can be said to buy benefits rather than
products. For the marketer, the product itself is that
benefit to the consumer, as packaged and presented.
Marketers identify the goods and services they sell in
three or five product levels, with the benefit at the core.
The marketer’s job is to translate and communicate
each product level as an offer to the consumer.
Product
Takes rider
from A to B
The goods and services a company sells are its product. A product can be
defined in terms of features, design, size, packaging, service type, return
policies, and warranties, together intended to meet the customer’s needs.
Total product concept:
three product levels
From a marketer’s perspective, a product
is more than the end commodity bought
by a customer. It is a total product concept
with several layers of benefit, and these
must be conveyed to the consumer.
US_180-181_Product.indd 180 21/11/2014 16:25
180 181
How sales and marketing works
Marketing mix
Core product Product’s
core benefit to consumer
Takes
rider from
A to B
This variation on the total product concept is more detailed.
It introduces two more levels by breaking down the actual
product level into a generic and an expected product, and
also includes an extra level of benefit—the potential product.
42%
of new product
launches can be
expected to fail
Generic product Basic
functional benefits
Expected
product
Additional
desirable
benefits
Augmented
product
Extra features
and benefits
Potential
product
Future,
improved
version
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Personal branding Promoting oneself
as a product with a distinct brand personality
Fast-moving consumer goods (FMCGs)
Sold quickly and at relatively low unit cost,
such as food and household products
NEED TO KNOW
Variation: five product levels
US_180-181_Product.indd 181 15/12/2014 12:58
180 181
How sales and marketing works
Marketing mix
Core product Product’s
core benefit to consumer
Takes
rider from
A to B
This variation on the total product concept is more detailed.
It introduces two more levels by breaking down the actual
product level into a generic and an expected product, and
also includes an extra level of benefit—the potential product.
42%
of new product
launches can be
expected to fail
Generic product Basic
functional benefits
Expected
product
Additional
desirable
benefits
Augmented
product
Extra features
and benefits
Potential
product
Future,
improved
version
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Personal branding Promoting oneself
as a product with a distinct brand personality
Fast-moving consumer goods (FMCGs)
Sold quickly and at relatively low unit cost,
such as food and household products
NEED TO KNOW
Variation: five product levels
US_180-181_Product.indd 181 15/12/2014 12:58
How it works
Before a company launches a product, the marketing
department has to decide how to position it in the
marketplace compared to competitors’ products. To
determine the positioning of a product, marketers
must define the most important features and values
Product positioning
A vital step in the process of deciding how to market a product is
defining how it is distinct from the competition—what is unique about
it and what are the qualities that make it better than rival products.
of the product or brand, and clarify how it is different
from similar types of products offered by competitors.
They also need to identify the criteria that customers
are most likely to use when choosing a particular
product or brand. With this information the marketers
can then create a product positioning matrix or map.
Product positioning template
The map shows how marketers position competing products
in the marketplace according to the price/quality variables (the
most commonly used) to identify a gap for the new product.
HIGH PRICE
Product positioning maps
Marketers commonly create a perceptual “map,”
using a product’s two most important attributes,
presented as variables on an x and y axis, to work
out where to position it. Attributes may include
price, quality, status, features, safety, and reliability.
Once the map is labeled, existing products are
placed on it to reveal the best position or gap for
the proposed launch.
Gap in the
market
LOW PRICE
HIGH QUALITY
LOW QUALITY
Value positioning A product
plotted on the map so that it has
an attractive price while delivering
good functional qualities.
Quality positioning A product
that is located on the map on
the basis of its perceived quality
or superiority.
Demographic positioning
A product mapped according to
its appeal to a specific population
segment, such as consumers with
a particular occupation.
Competitive positioning
A product that is very similar to
those of competitors, relying on
correct pricing to find a viable
position in the marketplace.
FOUR POSITIONING
STRATEGIES
Brand’s
current
position
Ideal brand position
Competitor
brand
Competitor
brand
Competitor
brand
Competitor
brand
Competitor
brand
Competitor
brand
US_182-183_Product_Positioning_Steve.indd 182 21/11/2014 14:25
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how sales and marketing works
Marketing mix
INEXPENSIVE
EXPENSIVE
SLOW
QUICK
Breakfast positioning map
The positioning of the various breakfast foods
has been determined by the speed at which
the food is prepared, measured from slowest to
fastest, and the price of each food type, from the
least expensive to the most expensive.
“Positioning is not what you do
to a product. (It) is what you do
to the mind of the prospect.”
Al Ries and Jack Trout
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A breakfast dish
aimed at those
with ample
leisure time
and money.
With a slow cook time,
pancakes occupy a
niche gap in the
market.
An expensive
breakfast food
ideal for busy
professionals
in a hurry.
Centrally
positioned,
cereal is the
most popular
breakfast food.
Older people
and children
provide strong
demand for
hot cereals.
Students make
the ideal target
market for
instant breakfast
products.
US_182-183_Product_Positioning_Steve.indd 183 21/11/2014 14:25
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