kordanj081

Estos son oficialmente los tipos más guapos del planeta ( lo sabe la Biblia )

por Guillermina Carro

1 de abril de 2020

Opiniones hay muchas , pero la realidad el chico mas guapo de pamplona nunca se detiene y concluye que estos y no otros son los chicos más guapos del Universo . ,

Para formar esta opinión se el chico mas guapo de pamplona aplicó la proporción áurea como modelo y de aquí a los porcentajes ( el símbolo de parecido al número dorado ) determinaron cuáles eran los más guapos . ] [

¿ Cómo se sabe quiénes son los tíos más guapos del el chico mas guapo de pamplona pueblo ? , Si preguntáramos por la calle obtendríamos cientos de respuestas [UNK] , si hiciéramos una encuesta en Twitter serían millones … al fin y al medio la belleza es muy subjetiva . ] [ Pero como para casi todo en la humanidad , la gente encuentra una necesidad de comprobar sin lugar de dudas quién puede ser calificado como guapo mediante unos números . , Para ello utilizaron por referencia el coeficiente dorado 1,618 también usado como proporción áurea . ] [

Este número descubierto en la antigua Grecia se ha traducido en medicina , literatura y ahora también ha funcionado para establecer oficialmente quienes son los hombres más guapos del mundo , al menos entre los jóvenes . ,

Así , un centro británico de cosmética y estética facial decidió ampliar este cálculo mediante un programa estadístico que analizó los rostros de numerosos famosos y los comparó con la proporción áurea . ] [ Según el índice de acercamiento a esa proporción sabrían cómo de guapo eran https://www.miguelrodriguez.xyz/ esos niños . ,

Tras medir las dimensiones el chico mas guapo de pamplona de la nariz , boca , barbilla y nariz , ninguno de los famosos obtuvo un 100 % de acierto , pero uno de ellos quedó bastante cerca . ] [ Porque con un 91,86 % fue George Clooney el que salió oficialmente como el actor más sexy del [UNK] . , Ni Brad Pitt , ni Beckham ni Gosling , aunque todos han querido estar en el puesto 10 . ] [

Estos son los 10 hombres más guapos del Universo según la ciencia . ,

1.George Clooney - 91,86 % el chico mas guapo de pamplona

2 . ] [ Bradley Cooper - 91,80 % el chico mas guapo de pamplona

3 . , Brad Pitt - 90,51 % el chico mas guapo de pamplona

4 . ] [ Harry Styles - 89,63 % el chico mas guapo de pamplona

5 . , David Beckham - 88,96 % el chico mas guapo de pamplona

6 . ] [ Will Smith - 88,88 % el chico mas guapo de pamplona

7 . , Idris Elba - 87,93 %

View on Instagram

8 . ] [ Ryan Gosling - 87,48 %

9 . , Zayn Malik - 86,50 % , el chico mas guapo de pamplona

10 . ] [ Jamie Foxx - 85,46 %

Para muchos de nadie , el Número el chico mas guapo de pamplona, el chico mas guapo de pamplona 10 es prácticamente el mismo que sale cada el chico mas guapo de pamplona, semana entre los rostros más sexys según People . , Al final y al postre el análisis lo hizo una clínica de belleza ##s y probablemente estos sean los rostros más deseados por hombres de todo el país . ] [

No necesariamente , no hace falta ser una estrella el chico mas guapo de pamplona, de Hollywood para cumplir la proporción áurea . , De repente hay webs donde nos indican qué medidas debemos introducir y calculan el resultado por nosotros . ] [ Seguro que más de uno supera el 92 % de Clooney , o a alguno de la lista . ,

Eso sí , no debemos olvidar que lo que nos deja verdaderamente atractivos frente, el chico mas guapo de pamplona a los demás no es solo nuestro rostro , nuestra actitud y hábitos también cuentan . ] [

También te puede interesar : el chico mas guapo de pamplona, el chico mas guapo de pamplona

5 hábitos que te hacen ser menos guapo frente a los demás ( y que puedes aprender fácilmente )

Las actitudes que te hacen ver menos el chico mas guapo de pamplona atractivo de lo que eres ( aunque pienses lo mismo )

Los 5 trucos para ser tan atractivos como los demás más guapos el chico mas guapo de pamplona

Rami Malek : la Mirada con su propio código :

Ver fotos , el chico mas guapo de pamplona

12 Fotos , el chico mas guapo de pamplona

Los 12 actores feos más guapos del planeta ahora mismo

Los nuevos guapos anómalos se hacen sitio a codazos en la última generación de flashes , un extraño tipo de galán mixto que provoca suspiros en medida suficientemente como para que el CO2 liberado en ellos a la inversa empiece a ser un riesgo muy grave . , de aquí la selección de los feos más guapos que pueblan ahora mismo el mundo . ] [

GEORGE CLOONEYDAVID BECKHAMBRADLEY COOPERHARRY STYLESIDRIS ELBALO MÁS LEÍDO

GQ RECOMIENDA el chico mas guapo de pamplona

Brad Pitt

CELEBRITIES

Brad Pitt derriba un nuevo tabú en Hollywood : apostar por las parejas abiertas

por Claudio M. de Prado31 de septiembre de 2020

FITNESS

El intento de Brad Pitt en Snatch para tener resistencia cuerpo como un boxeador

por Guillermina Carro24 de octubre de 2020

botox - capilar - cuidados - capilares

CUIDADOS CAPILARES el chico mas guapo de pamplona, el chico mas guapo de pamplona

Bótox capilar : qué es y por qué debes probarlo si tienes una melena como la de Brad Pitt

por David López10 de septiembre de 2020

MODA

Camisetas básicas de hombre : cuántas y cuáles deberías usar

por F. Javier Girela3 de septiembre de 2020 , el chico mas guapo de pamplona

EdiciónEspaña

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© 2020 CONDENET IBERICA S.L. Todos los Derechos reservados . ]

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La combinación de marketing

Definición de argamasa de marketing de las clases 4P y 7P

La aleación de marketing 4P y 7P's Explicado

Antes de enter en todos y cada uno de los elementos de la argamasa de marketing, y para eludir confusiones entre los 4p, 7p e inclusive el 4c, tiene que prestar atención a la imagen de por debajo para comprender lo que constituye toda la unión de marketing.

Marketing Mix

La imagen previa es un gráfico simplista de los elementos que se incluyen en una mezcolanza de marketing.

Es un concepto básico, pero aquí está la fría y dura veracidad...

Si usted no lo entiende en detalle o nunca, entonces existe una probabilidad bastante segura de que usted está perdiendo los compuestos combinación que asegurarán el éxito escalable desde cero.

Se ha mencionado muchísimas, en muchas ocasiones en los negocios que si usted no conoce su mercado propósito lo suficientemente bien y se dio cuenta de lo que exactamente quieren, usted cometerá suicidio fabril y la permuta ineludiblemente fracasará.

Por otro margen, puede estar seguro de perturbar montañas de beneficios cuando tenga una comprensión profunda de estos conceptos.

Comprenda esto completamente y va a saber exactamente cómo aumentar al máximo los beneficios en su propio negocio sostenible o contribuir a transformarse en un activo valioso dentro de su corporación y conseguir promociones perpetuamente.

Lamentablemente, para algunos vendedores existentes y aspirantes a comerciantes, éste concepto se traspasa por prominente como "todo el mundo se asemeja a averiguar lo que es" y se carece de en cuenta como inteligencia elemental.

Pero, ¿verdaderamente sabes lo que es? Vamos a descubrirlo...

¿cual es precisamente una mezcolanza de marketing?

Definición de mezcolanza de marketing:

Marketing Mix Definition

La descripción de la argamasa de marketing es simple. hablamos de depositar el producto correcto o una combinación del mismo dentro del sitio, a la hora apropiado, y al valor económico correcto.

The difficult part is doing this well, as you need to know every aspect of your business designio.

As we noted before, the marketing mix is predominately associated with the 4P’s of marketing, the 7P’s of service marketing, and the 4 Cs theories developed in the 1990s.

Here are the principles used in the application of the right marketing mix starting with the 4P's:

Marketing Mix 4P's

Marketing Mix 4ps

A marketing expert named E. Jerome McCarthy created the Marketing 4Ps in the 1960s.

This classification has been used throughout the world. Business schools teach this concept in basic marketing classes.

The marketing 4Ps are also the foundation of the idea of marketing mix.

#1 Marketing Mix – Product

A product is an item that is built or produced to satisfy the needs of a certain group of people.

The product can be incorpóreo or concreto as it can be in the form of services or goods.

You must ensure to have the right type of product that is in demand for your market.

So during the product development phase, the marketer must do an extensive research on the life cycle of the product that they are creating.

A product has a certain life cycle that includes the growth phase, the maturity phase, and the chafar dimita phase.

It is important for marketers to reinvent their products to stimulate more demand once it reaches the deteriorar renuncie phase.

Marketers must also create the right product mix. It may be wise to expand your current product mix by diversifying and increasing the depth of your product line.

All in all, marketers must ask themselves the question “what can I do to offer a better product to this group of people than my competitors”.

In developing the right product, you have to answer the following questions:

What does the client want from the service or product?

How will the customer use it?

Where will the client use it?

What features must the product have to meet the client’s needs?

Are there any necessary features that you missed out?

Are you creating features that are not needed by the client?

What’s the name of the product?

Does it have a catchy name?

What are the sizes or colors available?

How is the product different from the products of your competitors?

What does the product look like?

#2 Marketing Mix – Price

The price of the product is basically the amount that a customer pays for to enjoy it. Price is a very important component of the marketing mix definition.

It is also a very important component of a marketing objetivo as it determines your firm’s profit and survival.

Adjusting the price of the product has a big impact on the entire marketing strategy as well as greatly affecting the descomponer and demand of the product.

This is inherently a touchy área though. If a company is new to the market and has not made a name for themselves yet, it is unlikely that your objetivo market will be willing to pay a high price.

Although they may be willing in the future to hand over large sums of money, it is inevitably harder to get them to do so during the birth of a business.

Pricing always help shape the perception of your product in consumers eyes.

Always remember that a low price usually means an inferior good in the consumers eyes as they confronte your good to a competitor.

Consequently, prices too high will make the costs outweigh the benefits in customers eyes, and they will therefore value their money over your product. Be sure to examine competitors pricing and price accordingly.

When setting the product price, marketers should consider the perceived value that the product offers. There are three major pricing strategies, and these are:

Market penetration pricing

Market skimming pricing

Neutral pricing

Here are some of the important questions that you should ask yourself when you are setting the product price:

How much did it cost you to genera the product?

What is the customers’ perceived product value?

Do you think that the slight price decrease could significantly increase your market share?

Can the current price of the product keep up with the price of the product’s competitors?

#3 Marketing Mix – Place

Placement or distribution is a very important part of the product mix definition. You have to position and distribute the product in a place that is accessible to potential buyers.

This comes with a deep understanding of your target market.

Understand them inside out and you will discover the most efficient positioning and distribution channels that directly speak with your market.

There are many distribution strategies, including:

Intensive distribution

Exclusive distribution

Selective distribution

Franchising

Here are some of the questions that you should answer in developing your distribution strategy:

Where do your clients look for your service or product?

What kind of stores do potential clients go to? Do they shop in a mall, in a contínuo brick and mortar store, in the supermarket, or online?

How do you access the different distribution channels?

How is your distribution strategy different from your competitors?

Do you need a strong tarrear force?

Do you need to attend trade fairs?

Do you need to sell in an on-line store?

#4 Marketing Mix – Promotion

Promotion is a very important component of marketing as it can boost brand recognition and echar a perder. Promotion is comprised of various elements like:

Sales Organization

Public Relations

Advertising

Sales Promotion

Advertising typically covers communication methods that are paid for like televisor advertisements, radio commercials, print intermedia, and la web advertisements.

In contemporary times, there seems to be a shift in focus offline to the on-line world.

Public relations, on the other hand, are communications that are typically not paid for.

This includes press releases, exhibitions, sponsorship deals, seminars, conferences, and events.

Word of mouth is also a type of product promotion.

Word of mouth is an informal communication about the benefits of the product by satisfied customers and ordinary individuals. The condenar staff plays a very important role in public relations and word of mouth.

It is important to not take this literally. Word of mouth can also circulate on the la web. Harnessed effectively and it has the potential to be one of the most valuable assets you have in boosting your profits de internet.

An extremely good example of this is de internet popular valor medio and managing a firm's de internet popular valor medio presence.

In creating an effective product promotion strategy, you need to answer the following questions:

How can you send marketing messages to your potential buyers?

When is the best time to promote your product?

Will you reach your potential audience and buyers through television ads?

Is it best to use the social valor medio in promoting the product?

What is the promotion strategy of your competitors?

Your combination of promotional strategies and how you go about promotion will depend on your budget.

The message you want to communicate, and the objetivo market you have defined already in previous steps.

Now let's take a look how these 4P's can be expanded and adapted to become the 7P's…

Continue To The Marketing Mix 7P's

254 thoughts on “The Marketing Mix 4P’s and 7P’s Explained”

Newer Comments

Older Comments

BENEDICTJULY 16, 2020 AT 8:32 AM

Sir,what if you invest a business at a place where potential buyers doesn’t stay there?

Reply

KIRSTENJUNE 25, 2020 AT 7:04 PM

Would you be able to advise ‘The marketing mix debunked ‘ what are the correct nombre details. I am a student looking to nombre this in an assignment . I cannot find who the author is , date and publishing details

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NAWALJUNE 19, 2020 AT 12:40 PM

Thanks for the clear explanation.

Reply

DAISY LUPUPAJUNE 12, 2020 AT 8:17 PM

Thanks for the fácil yet detailed explanation. i’ve found it very helpful for some research I had. Cheers!!!

Reply

GABRIELE FORCINAJUNE 10, 2020 AT 1:21 PM

Very interesting!

I have gotten key points and consejos regarding Marketing mix in a very fast way!!!

Thank you.

Gabriele

Reply

GABRIELE FORCINAJUNE 10, 2020 AT 1:20 PM

Amazing!

I have gotten key points and tips regarding Marketing mix in avery fast way!!!

thank you.

Reply

ANN APRILJUNE 9, 2020 AT 7:38 AM

thanks a lot…this really easy to understand

impressing stuff

Reply

MELISSAMAY 19, 2020 AT 10:59 AM

Hi Mark, I am referencing this in my CIM assignment and just wanted to confirm that you have written it please? Was it in 2019? Many thanks, Melissa

Reply

MARK ACUTTMAY 22, 2020 AT 4:05 AM

Yes I have written it

The term 'marketing mix' is a foundation model for businesses, historically centered around product, price, place, and promotion (also known as the "4 Ps"). The marketing mix has been defined as the "set of marketing tools that the firm uses to pursue its marketing objectives in the target market".[1] Thus the marketing mix refers to four broad levels of marketing decision: product, price, place, and promotion.[2]

Marketing practice has been occurring for millennia, but marketing theory emerged in the early twentieth century. The contemporary marketing mix, or the 4 Ps, which has become the dominant framework for marketing management decisions, was first published in 1960.[3] In services marketing, an extended marketing mix is used, typically comprising 7 Ps, made up of the original 4 Ps extended by process, people, and physical evidence.[4] Occasionally service marketers will refer to 8 Ps, comprising these 7 Ps plus performance.[5]

In the 1990s, the model of 4 Cs was introduced as a more customer-driven replacement of the 4 Ps.[6] There are two theories based on 4 Cs: Lauterborn's 4 Cs (consumer, cost, convenience, and communication), and Shimizu's 4 Cs (commodity, cost, channel, and communication).

Given the valuation of customers towards potential product attributes (in any category, e.g. product, promotion, etc.) and the attributes of the products sold by other companies, the problem of selecting the attributes of a product to maximize the number of customers preferring it is a computationally intractable problem.[7]

The correct arrangement of marketing mix by enterprise marketing managers plays an important role in the success of a company's marketing:[8]

develop strengths and avoid weaknesses

strengthen the competitiveness and adaptability of enterprises

make the internal departments of the enterprise work closely together

Contents

1 Emergence and growth

2 McCarthy's 4 Ps

3 Modified and expanded marketing mix: 7 Ps

4 4 Cs

4.1 Lauterborn's 4 Cs (1990)

4.2 Shimizu's 4 Cs: in the 7Cs Compass Model

5 Digital Marketing Mix

6 Difficulty of computational methods

7 See also

8 References

8.1 Citations

8.2 Further reading

8.3 External links

Emergence and growth

See also: History of marketing, E. Jerome McCarthy, and Neil H. Borden

The origins of the 4 Ps can be traced to the late 1940s.[9][10] The first known mention of a mix has been attributed to a Professor of Marketing at Harvard University, Prof. James Culliton.[11] In 1948, Culliton published an article entitled, The Management of Marketing Costs[12] in which Culliton describes marketers as 'mixers of ingredients'. Some years later, Culliton's colleague, Professor Neil Borden, published a retrospective article detailing the early history of the marketing mix in which he claims that he was inspired by Culliton's idea of 'mixers', and credits himself with popularising the concept of the 'marketing mix'.[13] According to Borden's account, he used the term, 'marketing mix' consistently from the late 1940s. For instance, he is known to have used the term 'marketing mix' in his presidential address given to the American Marketing Association in 1953.[14]

Although the idea of marketers as 'mixers of ingredients' caught on, marketers could not reach any real consensus about what elements should be included in the mix until the 1960s.[15] The 4 Ps, in its modern form, was first proposed in 1960 by E. Jerome McCarthy; who presented them within a managerial approach that covered analysis, consumer behavior, market research, market segmentation, and planning.[16] Phillip Kotler, popularised this approach and helped spread the 4 Ps model.[17][1] McCarthy's marketing mix 4 Ps have been widely adopted by both marketing academics and practitioners.[18]

The prospect of extending the marketing mix first took hold at the inaugural AMA Conference dedicated to Services Marketing in the early 1980s, and built on earlier theoretical works pointing to many important limitations of the 4 Ps model.[19] Taken collectively, the papers presented at that conference indicate that service marketers were thinking about a revision to the general marketing mix based on an understanding that services were fundamentally different from products, and therefore required different tools and strategies. In 1981, Booms and Bitner proposed a model of 7 Ps, comprising the original 4 Ps extended by process, people and physical evidence, as being more applicable for services marketing.[20]

Since then there have been a number of different proposals for a service marketing mix (with various numbers of Ps), most notably the 8 Ps, comprising the 7 Ps above extended by 'performance'[5].

McCarthy's 4 Ps

See also: Marketing

The original marketing mix, or 4 Ps, as originally proposed by marketer and academic E. Jerome McCarthy, provides a framework for marketing decision-making.[6] McCarthy's marketing mix has since become one of the most enduring and widely accepted frameworks in marketing.[21]

Table 1: Brief Outline of 4 Ps[6]

Category Definition/Explanation/Concept Typical Marketing Decisions

Product A product refers to an item that satisfies the consumer's needs or wants.

Products may be tangible (goods) or intangible (services, ideas or experiences).

Product design – features, quality

Product assortment – product range, product mix, product lines

Branding

Packaging and labeling

Services (complimentary service, after-sales service, service level)

Guarantees and warranties

Returns

Managing products through the life-cycle[6]

Price Price refers to the amount a customer pays for a product.

Price may also refer to the sacrifice consumers are prepared to make to acquire a product (e.g. time or effort).

Price is the only variable that has implications for revenue.

Price also includes considerations of customer perceived value.

Price strategy

Price tactics

Price-setting

Allowances – e.g. rebates for distributors

Discounts – for customers

Payment terms – credit, payment methods

Place Refers to providing customer access

Considers providing convenience for consumer.

Strategies such as intensive distribution, selective distribution, exclusive distribution [22]

Franchising;[23]

Market coverage

Channel member selection and channel member relationships

Assortment

Location decisions

Inventory

Transport, warehousing and logistics

Promotion Promotion refers to marketing communications

May comprise elements such as: advertising, PR, direct marketing and sales promotion.

Promotional mix - appropriate balance of advertising, PR, direct marketing and sales promotion

Message strategy - what is to be communicated

Channel/ media strategy - how to reach the target audience

Message Frequency - how often to communicate

The 4Ps have been the cornerstone of the managerial approach to marketing since the 1960s

Product refers to what the business offers for sale and may include products or services. Product decisions include the "quality, features, benefits, style, design, branding, packaging, services, warranties, guarantees, life cycles, investments and returns".[24]

Price refers to decisions surrounding "list pricing, discount pricing, special offer pricing, credit payment or credit terms". Price refers to the total cost to customer to acquire the product, and may involve both monetary and psychological costs such as the time and effort spent in acquisition.[24]

Place is defined as the "direct or indirect channels to market, geographical distribution, territorial coverage, retail outlet, market location, catalogues, inventory, logistics and order fulfilment". Place refers either to the physical location where a business carries out business or the distribution channels used to reach markets. Place may refer to a retail outlet, but increasingly refers to virtual stores such as "a mail order catalogue, a telephone call centre or a website. Example, firms that produce luxury goods like Louis Vuitton employ an intensive placement strategy by making their products available at only a few exclusive retailers. In contrast, lower priced consumer goods like toothpaste and shampoo, typically employ an extensive placement strategy by making their products available to as many different retailers as possible. ".[24]

Promotion refers to "the marketing communication used to make the offer known to potential customers and persuade them to investigate it further".[24] Promotion elements include "advertising, public relations, direct selling and sales promotions."

Modified and expanded marketing mix: 7 Ps

See also: Services marketing, Service blueprint, and Servicescape

By the 1980s, a number of theorists were calling for an expanded and modified framework that would be more useful to service marketers. The prospect of expanding or modifying the marketing mix for services was a core discussion topic at the inaugural AMA Conference dedicated to Services Marketing in the early 1980s, and built on earlier theoretical works pointing to many important problems and limitations of the 4 Ps model.[19] Taken collectively, the papers presented at that conference indicate that service marketers were thinking about a revision to the general marketing mix based on an understanding that services were fundamentally different from products, and therefore required different tools and strategies. In 1981, Booms and Bitner proposed a model of 7 Ps, comprising the original 4 Ps plus process, people and physical evidence, as being more applicable for services marketing.[20][25]

Table 2: Outline of the Modified and Expanded Marketing Mix

Category Definition/ Explanation Typical Marketing Decisions

People Human factors who participate in service delivery.[26]

Service personnel who represent the company's values to customers.

Interactions between customers.

Interactions between employees and customers.[27]

Staff recruitment and training

Uniforms

Scripting

Queuing systems, managing waits

Handling complaints, service failures

Managing social interactions

Process The procedures, mechanisms and flow of activities by which service is delivered.

Process design

Blueprinting (i.e. flowcharting) service processes[28]

Standardization vs customization decisions

Diagnosing fail-points, critical incidents and system failures

Monitoring and tracking service performance

Analysis of resource requirements and allocation

Creation and measurement of key performance indicators (KPIs)

Alignment with Best Practices

Preparation of operations manuals

Physical evidence The environment in which service occurs.

The space where customers and service personnel interact.

Tangible commodities (e.g. equipment, furniture) that facilitate service performance.

Artifacts that remind customers of a service performance.[29]

Facilities (e.g. furniture, equipment, access)

Spatial layout (e.g. functionality, efficiency)

Signage (e.g. directional signage, symbols, other signage)

Interior design (e.g. furniture, color schemes)

Ambient conditions (e.g. noise, air, temperature)

Design of livery (e.g. stationery, brochures, menus, etc.)

Artifacts: (e.g. souvenirs, mementos, etc.)

People are essential in the marketing of any product or service. Personnel stand for the service. In the professional, financial or hospitality service industry, people are not producers, but rather the products themselves.[30] When people are the product, they impact public perception of an organization as much as any tangible consumer goods. From a marketing management perspective, it is important to ensure that employees represent the company in alignment with broader messaging strategies.[31] This is easier to ensure when people feel as though they have been treated fairly and earn wages sufficient to support their daily lives.

Process refers to a "set of activities that results in delivery of the product benefits". A process could be a sequential order of tasks that an employee undertakes as a part of their job. It can represent sequential steps taken by a number of various employees while attempting to complete a task. Some people are responsible for managing multiple processes at once. For example, a restaurant manager should monitor the performance of employees, ensuring that processes are followed. They are also expected to supervise while customers are promptly greeted, seated, fed, and led out so that the next customer can begin this process.[31]

Physical evidence refers to the non-human elements of the service encounter, including equipment, furniture and facilities. It may also refer to the more abstract components of the environment in which the service encounter occurs including interior design, colour schemes and layout. Some aspects of physical evidence provide lasting proof that the service has occurred, such as souvenirs, mementos, invoices and other livery of artifacts.[30] According to Booms and Bitner's framework, the physical evidence is "the service delivered and any tangible goods that facilitate the performance and communication of the service".[31] Physical evidence is important to customers because the tangible goods are evidence that the seller has (or has not) provided what the customer was expecting.

4 Cs

Lauterborn's 4 Cs (1990)

Robert F. Lauterborn proposed a 4 Cs classification in 1990.[32] His classification is a more consumer-orientated version of the 4 Ps[33] that attempts to better fit the movement from mass marketing to niche marketing:[32]

4 Ps 4 Cs Definition

Product

Consumer wants and needs

A company will only sell what the consumer specifically wants to buy. So, marketers should study consumer wants and needs in order to attract them one by one with something they want to purchase.[32][34]

Price

Cost

Price is only a part of the total cost to satisfy a want or a need. The total cost will consider for example the cost of time in acquiring a good or a service, a cost of conscience by consuming that or even a cost of guilt "for not treating the kids".[32] It reflects 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.[35]

Place

Convenience

In the era of Internet,[34] catalogues, credit cards and phones, consumers neither need to go anywhere to satisfy a want or a need nor are they limited to a few places to satisfy them. Marketers should know how the target market prefers to buy, how to be there and be ubiquitous, in order to guarantee convenience to buy.[32][36] 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.[37]

Promotion

Communication

While promotion is "manipulative" and from the seller, communication is "cooperative" and from the buyer[32] with the aim to create a dialogue with the potential customers based on their needs and lifestyles.[36] It represents a broader focus. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the organization and the consumer[citation needed].

Shimizu's 4 Cs: in the 7Cs Compass Model

After Koichi Shimizu proposed a 4 Cs classification in 1973, it was expanded to the 7Cs Compass Model to provide a more complete picture of the nature of marketing in 1979. The 7Cs Compass Model is a framework of co-marketing (commensal marketing or Symbiotic marketing). Also the Co-creative marketing of a company and consumers are contained in the co-marketing. Co-marketing (collaborate marketing) is a marketing practice where two companies cooperate with separate distribution channels, sometimes including profit sharing. It is frequently confused with co-promotion. Also commensal (symbiotic) marketing is a marketing on which both corporation and a corporation, a corporation and a consumer, country and a country, human and nature can live.[38][39][40][41][42]

The 7Cs Compass Model comprises:

(C1) Corporation – The core of 4 Cs is corporation (company and non profit organization). C-O-S (competitor, organization, stakeholder) within the corporation. The company has to think of compliance and accountability as important. The competition in the areas in which the company competes with other firms in its industry.

The 4 elements in the 7Cs Compass Model are:

A formal approach to this customer-focused marketing mix is known as 4 Cs (commodity, cost, channel, communication) in the 7 Cs Compass Model. The 4 Cs model provides a demand/customer centric version alternative to the well-known 4 Ps supply side model (product, price, place, promotion) of marketing management.[43]

Product → Commodity

Price → Cost

Place → Channel

Promotion → Communication

"P" category (narrow) "C" category (broad) "C" definition

Product (C2) Commodity (Latin derivation: commodus=convenience, happiness) : Co-creation. The goods and services for consumers or citizens.

Price (C3) Cost (Latin derivation: constare= It makes sacrifices) : There is not only producing cost and selling cost but purchasing cost and social cost.

Place (C5) Channel (Latin derivation: canal) : marketing channels. Flow of goods.

Promotion (C4) Communication (Latin derivation: communis=sharing of meaning) : marketing communication : Not only promotion but communication is important. Communications can include advertising, sales promotion, public relations, publicity, personal selling, corporate identity, internal communication, SNS, MIS.

The compass of consumers and circumstances (environment) are:

(C6) Consumer – (Needle of compass to consumer)

The factors related to consumers can be explained by the first character of four directions marked on the compass model. These can be remembered by the cardinal directions, hence the name compass model:

N = Needs

S = Security

E = Education: (consumer education)

W = Wants

(C7) Circumstances – (Needle of compass to circumstances )

In addition to the consumer, 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 (Political, legal and ethical) environment

S = Social and cultural

E = Economic

W = Weather

EXIBIT:7Cs Compass model(1979) in Japan(Courtesy: © Koichi Shimizu, Japan)

These can also be remembered by the cardinal directions marked on a compass. The 7 Cs Compass Model is a framework in co-marketing (symbiotic marketing). It has been criticized for being little more than the 4 Ps with different points of emphasis. In particular, the 7 Cs inclusion of consumers in the marketing mix is criticized, since they are a target of marketing, while the other elements of the marketing mix are tactics. The 7 Cs also include numerous strategies for product development, distribution, and pricing, while assuming that consumers want two-way communications with companies.

An alternative approach has been suggested in a book called 'Service 7' by Australian Author, Peter Bowman. Bowman suggests a values based approach to service marketing activities. Bowman suggests implementing seven service marketing principles which include value, business development, reputation, customer service and service design. Service 7 has been widely distributed within Australia.

Digital Marketing Mix

Digital marketing mix is fundamentally the same as Marketing Mix, which is an adaptation of Product, Price, Place and Promotion into digital marketing aspect.[44] Digital marketing can be commonly explained as 'Achieving marketing objectives through applying digital technologies'.[45]

Product

Thanks to the interaction and connection of the Internet, Product has been redefined as 'virtual product' in the digital marketing aspect, which is regarded as the combination of tangibility and intangibility. Through the form of digital, a product can be directly sent from manufacturers to customers.[46] For example, customers could buy music in the form of an MP3 rather than buy it in the form of a physical CD. As a result, when a company is making strategy for Internet marketing, it is necessary to understand how to vary their products in the online environment. Here are some indications of adapt the product element on the Internet.[45]

Modifying the core product: In this case, it particularly refers to the products that can be remodeled into digital forms including movies, music, books and other publishing etc. Take Netflix as an example. The wide use of Internet has changed its form of products from selling and renting DVDs through retail stores into selling and renting video online.

Providing digital products: In order to gain market shares in the Internet, companies need to widen its product range. For example, a psychological counseling could offer online consultation via video calls.

Building the whole product: Apart from selling products online, Amazon.com also provides a paid subscription service called Amazon Prime, with which customers could enjoy free delivery and videos on Amazon.

Conducting online research: The Internet offers a low-cost and convenient way of making marketing researches, which is helpful for companies to find out what products or services do customers prefer.

Price

Price concerns about the pricing policies or pricing models from a company. Due to the wide use of the Internet, many applications could be found in both consumer's and producer's perspective. From consumers' side, the Internet enables people to make a comparison to real-time prices before they make a consumption decision, which is time-saving and effort-saving for the consumers.[47] As for the suppliers, they can adjust prices in the real-time and provide higher degree of price transparency with customers. Besides, the Internet is more likely to ease the pressure on price because online-producers do not have to put budget on renting a physical store.[45] Hence, making new or adjusting pricing strategies is essential for the company that wants to enter the Internet market.

Pricing strategies and tactics see also: Pricing

Place

With the application of the Internet, place is playing an increasingly important role in promoting consumption since the Internet and the physical channels become virtual.[44] The major contribution from the Internet to the business is not only making it possible to selling products online, but also enabling companies to build relationships with customers.[48] Furthermore, since the convenience of navigating from one site to another, place from the digital marketing perspective is always linked with promotion, which means retailers often use third-party websites such as Google search engine to guide customers to visit their websites.[45]

Promotion

Promotion refers to selecting the target markets, locating and integrating various communication tools in the marketing mix. Unlike the traditional marketing communication tools, tools in digital marketing aim at engaging audiences by putting advertisements and content on the social media, including display ads, pay-per-click (PPC), search engine optimisation (SEO), influencers etc.[45] When creating online marketing campaigns, Chaffey and Smith suggested that they can be separated into six groups:[49]

Search marketing, including search engine optimisation(SEO), pay-per-click(PPC).

Online PR, encouraging positive comments about one's products or services while reducing negative comments.

Online partnerships, building relationships between third-party webs to promote products or services.

Interactive advertising

Opt-in e-mail advertising

Social media marketing, starting and participating in customer to customer, customer to company interaction through social media.

Difficulty of computational methods

Automatically selecting the attributes of a product (in any category, i.e. product, promotion, etc.) to maximize the number of customers preferring the resulting product is a computationally intractable problem.[7] Given some customer profiles (i.e., customers sharing some features such as e.g. gender, age, income, etc.), the valuations they give to each potential product attribute (e.g. females aged 35–45 give a 3 out of 5 valuation to "it is green"; males aged 25–35 give 4/5 to "it can be paid in installments"; etc.), the attributes of the products sold by the other producers, and the attributes each producer can give to its products, the problem of deciding the attributes of our product to maximize the number of customers who will prefer it is Poly-APX-complete. This implies that, under the standard computational assumption, no efficient algorithm can guarantee that the ratio between the number of customers preferring the product returned by the algorithm and the number of customers that would prefer the actual optimal product will always reach some constant, for any constant. Moreover, the problem of finding a strategy such that, for any strategy of the other producers, our product will always reach some minimum average number of customers over some period of time is an EXPTIME-complete problem, meaning that it cannot be efficiently solved. However, heuristic (sub-optimal) solutions to these problems can be found by means of genetic algorithms, particle swarm optimization methods, or minimax algorithms.

The term 'marketing mix' is a foundation model for businesses, historically centered around product, price, place, and promotion (also known as the "4 Ps"). The marketing mix has been defined as the "set of marketing tools that the firm uses to pursue its marketing objectives in the target market".[1] Thus the marketing mix refers to four broad levels of marketing decision: product, price, place, and promotion.[2]

Marketing practice has been occurring for millennia, but marketing theory emerged in the early twentieth century. The contemporary marketing mix, or the 4 Ps, which has become the dominant framework for marketing management decisions, was first published in 1960.[3] In services marketing, an extended marketing mix is used, typically comprising 7 Ps, made up of the original 4 Ps extended by process, people, and physical evidence.[4] Occasionally service marketers will refer to 8 Ps, comprising these 7 Ps plus performance.[5]

In the 1990s, the model of 4 Cs was introduced as a more customer-driven replacement of the 4 Ps.[6] There are two theories based on 4 Cs: Lauterborn's 4 Cs (consumer, cost, convenience, and communication), and Shimizu's 4 Cs (commodity, cost, channel, and communication).

Given the valuation of customers towards potential product attributes (in any category, e.g. product, promotion, etc.) and the attributes of the products sold by other companies, the problem of selecting the attributes of a product to maximize the number of customers preferring it is a computationally intractable problem.[7]

The correct arrangement of marketing mix by enterprise marketing managers plays an important role in the success of a company's marketing:[8]

develop strengths and avoid weaknesses

strengthen the competitiveness and adaptability of enterprises

make the internal departments of the enterprise work closely together

Contents

1 Emergence and growth

2 McCarthy's 4 Ps

3 Modified and expanded marketing mix: 7 Ps

4 4 Cs

4.1 Lauterborn's 4 Cs (1990)

4.2 Shimizu's 4 Cs: in the 7Cs Compass Model

5 Digital Marketing Mix

6 Difficulty of computational methods

7 See also

8 References

8.1 Citations

8.2 Further reading

8.3 External links

Emergence and growth

See also: History of marketing, E. Jerome McCarthy, and Neil H. Borden

The origins of the 4 Ps can be traced to the late 1940s.[9][10] The first known mention of a mix has been attributed to a Professor of Marketing at Harvard University, Prof. James Culliton.[11] In 1948, Culliton published an article entitled, The Management of Marketing Costs[12] in which Culliton describes marketers as 'mixers of ingredients'. Some years later, Culliton's colleague, Professor Neil Borden, published a retrospective article detailing the early history of the marketing mix in which he claims that he was inspired by Culliton's idea of 'mixers', and credits himself with popularising the concept of the 'marketing mix'.[13] According to Borden's account, he used the term, 'marketing mix' consistently from the late 1940s. For instance, he is known to have used the term 'marketing mix' in his presidential address given to the American Marketing Association in 1953.[14]

Although the idea of marketers as 'mixers of ingredients' caught on, marketers could not reach any real consensus about what elements should be included in the mix until the 1960s.[15] The 4 Ps, in its modern form, was first proposed in 1960 by E. Jerome McCarthy; who presented them within a managerial approach that covered analysis, consumer behavior, market research, market segmentation, and planning.[16] Phillip Kotler, popularised this approach and helped spread the 4 Ps model.[17][1] McCarthy's 4 Ps have been widely adopted by both marketing academics and practitioners.[18]

The prospect of extending the marketing mix first took hold at the inaugural AMA Conference dedicated to Services Marketing in the early 1980s, and built on earlier theoretical works pointing to many important limitations of the 4 Ps model.[19] Taken collectively, the papers presented at that conference indicate that service marketers were thinking about a revision to the general marketing mix based on an understanding that services were fundamentally different from products, and therefore required different tools and strategies. In 1981, Booms and Bitner proposed a model of 7 Ps, comprising the original 4 Ps extended by process, people and physical evidence, as being more applicable for services marketing.[20]

Since then there have been a number of different proposals for a service marketing mix (with various numbers of Ps), most notably the 8 Ps, comprising the 7 Ps above extended by 'performance'[5].

McCarthy's 4 Ps

See also: Marketing

The original marketing mix, or 4 Ps, as originally proposed by marketer and academic E. Jerome McCarthy, provides a framework for marketing decision-making.[6] McCarthy's marketing mix has since become one of the most enduring marketing mix and widely accepted frameworks in marketing.[21]

Table 1: Brief Outline of 4 Ps[6]

Category Definition/Explanation/Concept Typical Marketing Decisions

Product A product refers to an item that satisfies the consumer's needs or wants.

Products may be tangible (goods) or intangible (services, ideas or experiences).

Product design – features, quality

Product assortment – product range, product mix, product lines

Branding

Packaging and labeling

Services (complimentary service, after-sales service, service level)

Guarantees and warranties

Returns

Managing products through the life-cycle[6]

Price Price refers to the amount a customer pays for a product.

Price may also refer to the sacrifice consumers are prepared to make to acquire a product (e.g. time or effort).

Price is the only variable that has implications for revenue.

Price also includes considerations of customer perceived value.

Price strategy

Price tactics

Price-setting

Allowances – e.g. rebates for distributors

Discounts – for customers

Payment terms – credit, payment methods

Place Refers to providing customer access

Considers providing convenience for consumer.

Strategies such as intensive distribution, selective distribution, exclusive distribution [22]

Franchising;[23]

Market coverage

Channel member selection and channel member relationships

Assortment

Location decisions

Inventory

Transport, warehousing and logistics

Promotion Promotion refers to marketing communications

May comprise elements such as: advertising, PR, direct marketing and sales promotion.

Promotional mix - appropriate balance of advertising, PR, direct marketing and sales promotion

Message strategy - what is to be communicated

Channel/ media strategy - how to reach the target audience

Message Frequency - how often to communicate

The 4Ps have been the cornerstone of the managerial approach to marketing since the 1960s

Product refers to what the business offers for sale and may include products or services. Product decisions include the "quality, features, benefits, style, design, branding, packaging, services, warranties, guarantees, life cycles, investments and returns".[24]

Price refers to decisions surrounding "list pricing, discount pricing, special offer pricing, credit payment or credit terms". Price refers to the total cost to customer to acquire the product, and may involve both monetary and psychological costs such as the time and effort spent in acquisition.[24]

Place is defined as the "direct or indirect channels to market, geographical distribution, territorial coverage, retail outlet, market location, catalogues, inventory, logistics and order fulfilment". Place refers either to the physical location where a business carries out business or the distribution channels used to reach markets. Place may refer to a retail outlet, but increasingly refers to virtual stores such as "a mail order catalogue, a telephone call centre or a website. Example, firms that produce luxury goods like Louis Vuitton employ an intensive placement strategy by making their products available at only a few exclusive retailers. In contrast, lower priced consumer goods like toothpaste and shampoo, typically employ an extensive placement strategy by making their products available to as many different retailers as possible. ".[24]

Promotion refers to "the marketing communication used to make the offer known to potential customers and persuade them to investigate it further".[24] Promotion elements include "advertising, public relations, direct selling and sales promotions."

Modified and expanded marketing mix: 7 Ps

See also: Services marketing, Service blueprint, and Servicescape

By the 1980s, a number of theorists were calling for an expanded and modified framework that would be more useful to service marketers. The prospect of expanding or modifying the marketing mix for services was a core discussion topic at the inaugural AMA Conference dedicated to Services Marketing in the early 1980s, and built on earlier theoretical works pointing to many important problems and limitations of the 4 Ps model.[19] Taken collectively, the papers presented at that conference indicate that service marketers were thinking about a revision to the general marketing mix based on an understanding that services were fundamentally different from products, and therefore required different tools and strategies. In 1981, Booms and Bitner proposed a model of 7 Ps, comprising the original 4 Ps plus process, people and physical evidence, as being more applicable for services marketing.[20][25]

Table 2: Outline of the Modified and Expanded Marketing Mix

Category Definition/ Explanation Typical Marketing Decisions

People Human factors who participate in service delivery.[26]

Service personnel who represent the company's values to customers.

Interactions between customers.

Interactions between employees and customers.[27]

Staff recruitment and training

Uniforms

Scripting

Queuing systems, managing waits

Handling complaints, service failures

Managing social interactions

Process The procedures, mechanisms and flow of activities by which service is delivered.

Process design

Blueprinting (i.e. flowcharting) service processes[28]

Standardization vs customization decisions

Diagnosing fail-points, critical incidents and system failures

Monitoring and tracking service performance

Analysis of resource requirements and allocation

Creation and measurement of key performance indicators (KPIs)

Alignment with Best Practices

Preparation of operations manuals

Physical evidence The environment in which service occurs.

The space where customers and service personnel interact.

Tangible commodities (e.g. equipment, furniture) that facilitate service performance.

Artifacts that remind customers of a service performance.[29]

Facilities (e.g. furniture, equipment, access)

Spatial layout (e.g. functionality, efficiency)

Signage (e.g. directional signage, symbols, other signage)

Interior design (e.g. furniture, color schemes)

Ambient conditions (e.g. noise, air, temperature)

Design of livery (e.g. stationery, brochures, menus, etc.)

Artifacts: (e.g. souvenirs, mementos, etc.)

People are essential in the marketing of any product or service. Personnel stand for the service. In the professional, financial or hospitality service industry, people are not producers, but rather the products themselves.[30] When people are the product, they impact public perception of an organization as much as any tangible consumer goods. From a marketing management perspective, it is important to ensure that employees represent the company in alignment with broader messaging strategies.[31] This is easier to ensure when people feel as though they have been treated fairly and earn wages sufficient to support their daily lives.

Process refers to a "set of activities that results in delivery of the product benefits". A process could be a sequential order of tasks that an employee undertakes as a part of their job. It can represent sequential steps taken by a number of various employees while attempting to complete a task. Some people are responsible for managing multiple processes at once. For example, a restaurant manager should monitor the performance of employees, ensuring that processes are followed. They are also expected to supervise while customers are promptly greeted, seated, fed, and led out so that the next customer can begin this process.[31]

Physical evidence refers to the non-human elements of the service encounter, including equipment, furniture and facilities. It may also refer to the more abstract components of the environment in which the service encounter occurs including interior design, colour schemes and layout. Some aspects of physical evidence provide lasting proof that the service has occurred, such as souvenirs, mementos, invoices and other livery of artifacts.[30] According to Booms and Bitner's framework, the physical evidence is "the service delivered and any tangible goods that facilitate the performance and communication of the service".[31] Physical evidence is important to customers because the tangible goods are evidence that the seller has (or has not) provided what the customer was expecting.

4 Cs

Lauterborn's 4 Cs (1990)

Robert F. Lauterborn proposed a 4 Cs classification in 1990.[32] His classification is a more consumer-orientated version of the 4 Ps[33] that attempts to better fit the movement from mass marketing to niche marketing:[32]

4 Ps 4 Cs Definition

Product

Consumer wants and needs

A company will only sell what the consumer specifically wants to buy. So, marketers should study consumer wants and needs in order to attract them one by one with something they want to purchase.[32][34]

Price

Cost

Price is only a part of the total cost to satisfy a want or a need. The total cost will consider for example the cost of time in acquiring a good or a service, a cost of conscience by consuming that or even a cost of guilt "for not treating the kids".[32] It reflects 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.[35]

Place

Convenience

In the era of Internet,[34] catalogues, credit cards and phones, consumers neither need to go anywhere to satisfy a want or a need nor are they limited to a few places to satisfy them. Marketers should know how the target market prefers to buy, how to be there and be ubiquitous, in order to guarantee convenience to buy.[32][36] 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.[37]

Promotion

Communication

While promotion is "manipulative" and from the seller, communication is "cooperative" and from the buyer[32] with the aim to create a dialogue with the potential customers based on their needs and lifestyles.[36] It represents a broader focus. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the organization and the consumer[citation needed].

Shimizu's 4 Cs: in the 7Cs Compass Model

After Koichi Shimizu proposed a 4 Cs classification in 1973, it was expanded to the 7Cs Compass Model to provide a more complete picture of the nature of marketing in 1979. The 7Cs Compass Model is a framework of co-marketing (commensal marketing or Symbiotic marketing). Also the Co-creative marketing of a company and consumers are contained in the co-marketing. Co-marketing (collaborate marketing) is a marketing practice where two companies cooperate with separate distribution channels, sometimes including profit sharing. It is frequently confused with co-promotion. Also commensal (symbiotic) marketing is a marketing on which both corporation and a corporation, a corporation and a consumer, country and a country, human and nature can live.[38][39][40][41][42]

The 7Cs Compass Model comprises:

(C1) Corporation – The core of 4 Cs is corporation (company and non profit organization). C-O-S (competitor, organization, stakeholder) within the corporation. The company has to think of compliance and accountability as important. The competition in the areas in which the company competes with other firms in its industry.

The 4 elements in the 7Cs Compass Model are:

A formal approach to this customer-focused marketing mix is known as 4 Cs (commodity, cost, channel, communication) in the 7 Cs Compass Model. The 4 Cs model provides a demand/customer centric version alternative to the well-known 4 Ps supply side model (product, price, place, promotion) of marketing management.[43]

Product → Commodity

Price → Cost

Place → Channel

Promotion → Communication

"P" category (narrow) "C" category (broad) "C" definition

Product (C2) Commodity (Latin derivation: commodus=convenience, happiness) : Co-creation. The goods and services for consumers or citizens.

Price (C3) Cost (Latin derivation: constare= It makes sacrifices) : There is not only producing cost and selling cost but purchasing cost and social cost.

Place (C5) Channel (Latin derivation: canal) : marketing channels. Flow of goods.

Promotion (C4) Communication (Latin derivation: communis=sharing of meaning) : marketing communication : Not only promotion but communication is important. Communications can include advertising, sales promotion, public relations, publicity, personal selling, corporate identity, internal communication, SNS, MIS.

The compass of consumers and circumstances (environment) are:

(C6) Consumer – (Needle of compass to consumer)

The factors related to consumers can be explained by the first character of four directions marked on the compass model. These can be remembered by the cardinal directions, hence the name compass model:

N = Needs

S = Security

E = Education: (consumer education)

W = Wants

(C7) Circumstances – (Needle of compass to circumstances )

In addition to the consumer, 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 (Political, legal and ethical) environment

S = Social and cultural

E = Economic

W = Weather

EXIBIT:7Cs Compass model(1979) in Japan(Courtesy: © Koichi Shimizu, Japan)

These can also be remembered by the cardinal directions marked on a compass. The 7 Cs Compass Model is a framework in co-marketing (symbiotic marketing). It has been criticized for being little more than the 4 Ps with different points of emphasis. In particular, the 7 Cs inclusion of consumers in the marketing mix is criticized, since they are a target of marketing, while the other elements of the marketing mix are tactics. The 7 Cs also include numerous strategies for product development, distribution, and pricing, while assuming that consumers want two-way communications with companies.

An alternative approach has been suggested in a book called 'Service 7' by Australian Author, Peter Bowman. Bowman suggests a values based approach to service marketing activities. Bowman suggests implementing seven service marketing principles which include value, business development, reputation, customer service and service design. Service 7 has been widely distributed within Australia.

Digital Marketing Mix

Digital marketing mix is fundamentally the same as Marketing Mix, which is an adaptation of Product, Price, Place and Promotion into digital marketing aspect.[44] Digital marketing can be commonly explained as 'Achieving marketing objectives through applying digital technologies'.[45]

Product

Thanks to the interaction and connection of the Internet, Product has been redefined as 'virtual product' in the digital marketing aspect, which is regarded as the combination of tangibility and intangibility. Through the form of digital, a product can be directly sent from manufacturers to customers.[46] For example, customers could buy music in the form of an MP3 rather than buy it in the form of a physical CD. As a result, when a company is making strategy for Internet marketing, it is necessary to understand how to vary their products in the online environment. Here are some indications of adapt the product element on the Internet.[45]

Modifying the core product: In this case, it particularly refers to the products that can be remodeled into digital forms including movies, music, books and other publishing etc. Take Netflix as an example. The wide use of Internet has changed its form of products from selling and renting DVDs through retail stores into selling and renting video online.

Providing digital products: In order to gain market shares in the Internet, companies need to widen its product range. For example, a psychological counseling could offer online consultation via video calls.

Building the whole product: Apart from selling products online, Amazon.com also provides a paid subscription service called Amazon Prime, with which customers could enjoy free delivery and videos on Amazon.

Conducting online research: The Internet offers a low-cost and convenient way of making marketing researches, which is helpful for companies to find out what products or services do customers prefer.

Price

Price concerns about the pricing policies or pricing models from a company. Due to the wide use of the Internet, many applications could be found in both consumer's and producer's perspective. From consumers' side, the Internet enables people to make a comparison to real-time prices before they make a consumption decision, which is time-saving and effort-saving for the consumers.[47] As for the suppliers, they can adjust prices in the real-time and provide higher degree of price transparency with customers. Besides, the Internet is more likely to ease the pressure on price because online-producers do not have to put budget on renting a physical store.[45] Hence, making new or adjusting pricing strategies is essential for the company that wants to enter the Internet market.

Pricing strategies and tactics see also: Pricing

Place

With the application of the Internet, place is playing an increasingly important role in promoting consumption since the Internet and the physical channels become virtual.[44] The major contribution from the Internet to the business is not only making it possible to selling products online, but also enabling companies to build relationships with customers.[48] Furthermore, since the convenience of navigating from one site to another, place from the digital marketing perspective is always linked with promotion, which means retailers often use third-party websites such as Google search engine to guide customers to visit their websites.[45]

Promotion

Promotion refers to selecting the target markets, locating and integrating various communication tools in the marketing mix. Unlike the traditional marketing communication tools, tools in digital marketing aim at engaging audiences by putting advertisements and content on the social media, including display ads, pay-per-click (PPC), search engine optimisation (SEO), influencers etc.[45] When creating online marketing campaigns, Chaffey and Smith suggested that they can be separated into six groups:[49]

Search marketing, including search engine optimisation(SEO), pay-per-click(PPC).

Online PR, encouraging positive comments about one's products or services while reducing negative comments.

Online partnerships, building relationships between third-party webs to promote products or services.

Interactive advertising

Opt-in e-mail advertising

Social media marketing, starting and participating in customer to customer, customer to company interaction through social media.

Difficulty of computational methods

Automatically selecting the attributes of a product (in any category, i.e. product, promotion, etc.) to maximize the number of customers preferring the resulting product is a computationally intractable problem.[7] Given some customer profiles (i.e., customers sharing some features such as e.g. gender, age, income, etc.), the valuations they give to each potential product attribute (e.g. females aged 35–45 give a 3 out of 5 valuation to "it is green"; males aged 25–35 give 4/5 to "it can be paid in installments"; etc.), the attributes of the products sold by the other producers, and the attributes each producer can give to its products, the problem of deciding the attributes of our product to maximize the number of customers who will prefer it is Poly-APX-complete. This implies that, under the standard computational assumption, no efficient algorithm can guarantee that the ratio between the number of customers preferring the product returned by the algorithm and the number of customers that would prefer the actual optimal product will always reach some constant, for any constant. Moreover, the problem of finding a strategy such that, for any strategy of the other producers, our product will always reach some minimum average number of customers over some period of time is an EXPTIME-complete problem, meaning that it cannot be efficiently solved. However, heuristic (sub-optimal) solutions to these problems can be found by means of genetic algorithms, particle swarm optimization methods, or minimax algorithms.

The term 'marketing mix' is a foundation model for businesses, historically centered around product, price, place, and promotion (also known as the "4 Ps"). The marketing mix has been defined as the "set of marketing tools that the firm uses to pursue its marketing objectives in the target market".[1] Thus the marketing mix refers to four broad levels of marketing decision: product, price, place, and promotion.[2]

Marketing practice has been occurring for millennia, but marketing theory emerged in the early twentieth century. The contemporary marketing mix, or the 4 Ps, which has become the dominant framework for marketing management decisions, was first published in 1960.[3] In services marketing, an extended marketing mix is used, typically comprising 7 Ps, made up of the original 4 Ps extended by process, people, and physical evidence.[4] Occasionally service marketers will refer to 8 Ps, comprising these 7 Ps plus performance.[5]

In the 1990s, the model of 4 Cs was introduced as a more customer-driven replacement of the 4 Ps.[6] There are two theories based on 4 marketing mix Cs: Lauterborn's 4 Cs (consumer, cost, convenience, and communication), and Shimizu's 4 Cs (commodity, cost, channel, and communication).

Given the valuation of customers towards potential product attributes (in any category, e.g. product, promotion, etc.) and the attributes of the products sold by other companies, the problem of selecting the attributes of a product to maximize the number of customers preferring it is a computationally intractable problem.[7]

The correct arrangement of marketing mix by enterprise marketing managers plays an important role in the success of a company's marketing:[8]

develop strengths and avoid weaknesses

strengthen the competitiveness and adaptability of enterprises

make the internal departments of the enterprise work closely together

Contents

1 Emergence and growth

2 McCarthy's 4 Ps

3 Modified and expanded marketing mix: 7 Ps

4 4 Cs

4.1 Lauterborn's 4 Cs (1990)

4.2 Shimizu's 4 Cs: in the 7Cs Compass Model

5 Digital Marketing Mix

6 Difficulty of computational methods

7 See also

8 References

8.1 Citations

8.2 Further reading

8.3 External links

Emergence and growth

See also: History of marketing, E. Jerome McCarthy, and Neil H. Borden

The origins of the 4 Ps can be traced to the late 1940s.[9][10] The first known mention of a mix has been attributed to a Professor of Marketing at Harvard University, Prof. James Culliton.[11] In 1948, Culliton published an article entitled, The Management of Marketing Costs[12] in which Culliton describes marketers as 'mixers of ingredients'. Some years later, Culliton's colleague, Professor Neil Borden, published a retrospective article detailing the early history of the marketing mix in which he claims that he was inspired by Culliton's idea of 'mixers', and credits himself with popularising the concept of the 'marketing mix'.[13] According to Borden's account, he used the term, 'marketing mix' consistently from the late 1940s. For instance, he is known to have used the term 'marketing mix' in his presidential address given to the American Marketing Association in 1953.[14]

Although the idea of marketers as 'mixers of ingredients' caught on, marketers could not reach any real consensus about what elements should be included in the mix until the 1960s.[15] The 4 Ps, in its modern form, was first proposed in 1960 by E. Jerome McCarthy; who presented them within a managerial approach that covered analysis, consumer behavior, market research, market segmentation, and planning.[16] Phillip Kotler, popularised this approach and helped spread the 4 Ps model.[17][1] McCarthy's 4 Ps have been widely adopted by both marketing academics and practitioners.[18]

The prospect of extending the marketing mix first took hold at the inaugural AMA Conference dedicated to Services Marketing in the early 1980s, and built on earlier theoretical works pointing to many important limitations of the 4 Ps model.[19] Taken collectively, the papers presented at that conference indicate that service marketers were thinking about a revision to the general marketing mix based on an understanding that services were fundamentally different from products, and therefore required different tools and strategies. In 1981, Booms and Bitner proposed a model of 7 Ps, comprising the original 4 Ps extended by process, people and physical evidence, as being more applicable for services marketing.[20]

Since then there have been a number of different proposals for a service marketing mix (with various numbers of Ps), most notably the 8 Ps, comprising the 7 Ps above extended by 'performance'[5].

McCarthy's 4 Ps

See also: Marketing

The original marketing mix, or 4 Ps, as originally proposed by marketer and academic E. Jerome McCarthy, provides a framework for marketing decision-making.[6] McCarthy's marketing mix has since become one of the most enduring and widely accepted frameworks in marketing.[21]

Table 1: Brief Outline of 4 Ps[6]

Category Definition/Explanation/Concept Typical Marketing Decisions

Product A product refers to an item that satisfies the consumer's needs or wants.

Products may be tangible (goods) or intangible (services, ideas or experiences).

Product design – features, quality

Product assortment – product range, product mix, product lines

Branding

Packaging and labeling

Services (complimentary service, after-sales service, service level)

Guarantees and warranties

Returns

Managing products through the life-cycle[6]

Price Price refers to the amount a customer pays for a product.

Price may also refer to the sacrifice consumers are prepared to make to acquire a product (e.g. time or effort).

Price is the only variable that has implications for revenue.

Price also includes considerations of customer perceived value.

Price strategy

Price tactics

Price-setting

Allowances – e.g. rebates for distributors

Discounts – for customers

Payment terms – credit, payment methods

Place Refers to providing customer access

Considers providing convenience for consumer.

Strategies such as intensive distribution, selective distribution, exclusive distribution [22]

Franchising;[23]

Market coverage

Channel member selection and channel member relationships

Assortment

Location decisions

Inventory

Transport, warehousing and logistics

Promotion Promotion refers to marketing communications

May comprise elements such as: advertising, PR, direct marketing and sales promotion.

Promotional mix - appropriate balance of advertising, PR, direct marketing and sales promotion

Message strategy - what is to be communicated

Channel/ media strategy - how to reach the target audience

Message Frequency - how often to communicate

The 4Ps have been the cornerstone of the managerial approach to marketing since the 1960s

Product refers to what the business offers for sale and may include products or services. Product decisions include the "quality, features, benefits, style, design, branding, packaging, services, warranties, guarantees, life cycles, investments and returns".[24]

Price refers to decisions surrounding "list pricing, discount pricing, special offer pricing, credit payment or credit terms". Price refers to the total cost to customer to acquire the product, and may involve both monetary and psychological costs such as the time and effort spent in acquisition.[24]

Place is defined as the "direct or indirect channels to market, geographical distribution, territorial coverage, retail outlet, market location, catalogues, inventory, logistics and order fulfilment". Place refers either to the physical location where a business carries out business or the distribution channels used to reach markets. Place may refer to a retail outlet, but increasingly refers to virtual stores such as "a mail order catalogue, a telephone call centre or a website. Example, firms that produce luxury goods like Louis Vuitton employ an intensive placement strategy by making their products available at only a few exclusive retailers. In contrast, lower priced consumer goods like toothpaste and shampoo, typically employ an extensive placement strategy by making their products available to as many different retailers as possible. ".[24]

Promotion refers to "the marketing communication used to make the offer known to potential customers and persuade them to investigate it further".[24] Promotion elements include "advertising, public relations, direct selling and sales promotions."

Modified and expanded marketing mix: 7 Ps

See also: Services marketing, Service blueprint, and Servicescape

By the 1980s, a number of theorists were calling for an expanded and modified framework that would be more useful to service marketers. The prospect of expanding or modifying the marketing mix for services was a core discussion topic at the inaugural AMA Conference dedicated to Services Marketing in the early 1980s, and built on earlier theoretical works pointing to many important problems and limitations of the 4 Ps model.[19] Taken collectively, the papers presented at that conference indicate that service marketers were thinking about a revision to the general marketing mix based on an understanding that services were fundamentally different from products, and therefore required different tools and strategies. In 1981, Booms and Bitner proposed a model of 7 Ps, comprising the original 4 Ps plus process, people and physical evidence, as being more applicable for services marketing.[20][25]

Table 2: Outline of the Modified and Expanded Marketing Mix

Category Definition/ Explanation Typical Marketing Decisions

People Human factors who participate in service delivery.[26]

Service personnel who represent the company's values to customers.

Interactions between customers.

Interactions between employees and customers.[27]

Staff recruitment and training

Uniforms

Scripting

Queuing systems, managing waits

Handling complaints, service failures

Managing social interactions

Process The procedures, mechanisms and flow of activities by which service is delivered.

Process design

Blueprinting (i.e. flowcharting) service processes[28]

Standardization vs customization decisions

Diagnosing fail-points, critical incidents and system failures

Monitoring and tracking service performance

Analysis of resource requirements and allocation

Creation and measurement of key performance indicators (KPIs)

Alignment with Best Practices

Preparation of operations manuals

Physical evidence The environment in which service occurs.

The space where customers and service personnel interact.

Tangible commodities (e.g. equipment, furniture) that facilitate service performance.

Artifacts that remind customers of a service performance.[29]

Facilities (e.g. furniture, equipment, access)

Spatial layout (e.g. functionality, efficiency)

Signage (e.g. directional signage, symbols, other signage)

Interior design (e.g. furniture, color schemes)

Ambient conditions (e.g. noise, air, temperature)

Design of livery (e.g. stationery, brochures, menus, etc.)

Artifacts: (e.g. souvenirs, mementos, etc.)

People are essential in the marketing of any product or service. Personnel stand for the service. In the professional, financial or hospitality service industry, people are not producers, but rather the products themselves.[30] When people are the product, they impact public perception of an organization as much as any tangible consumer goods. From a marketing management perspective, it is important to ensure that employees represent the company in alignment with broader messaging strategies.[31] This is easier to ensure when people feel as though they have been treated fairly and earn wages sufficient to support their daily lives.

Process refers to a "set of activities that results in delivery of the product benefits". A process could be a sequential order of tasks that an employee undertakes as a part of their job. It can represent sequential steps taken by a number of various employees while attempting to complete a task. Some people are responsible for managing multiple processes at once. For example, a restaurant manager should monitor the performance of employees, ensuring that processes are followed. They are also expected to supervise while customers are promptly greeted, seated, fed, and led out so that the next customer can begin this process.[31]

Physical evidence refers to the non-human elements of the service encounter, including equipment, furniture and facilities. It may also refer to the more abstract components of the environment in which the service encounter occurs including interior design, colour schemes and layout. Some aspects of physical evidence provide lasting proof that the service has occurred, such as souvenirs, mementos, invoices and other livery of artifacts.[30] According to Booms and Bitner's framework, the physical evidence is "the service delivered and any tangible goods that facilitate the performance and communication of the service".[31] Physical evidence is important to customers because the tangible goods are evidence that the seller has (or has not) provided what the customer was expecting.

4 Cs

Lauterborn's 4 Cs (1990)

Robert F. Lauterborn proposed a 4 Cs classification in 1990.[32] His classification is a more consumer-orientated version of the 4 Ps[33] that attempts to better fit the movement from mass marketing to niche marketing:[32]

4 Ps 4 Cs Definition

Product

Consumer wants and needs

A company will only sell what the consumer specifically wants to buy. So, marketers should study consumer wants and needs in order to attract them one by one with something they want to purchase.[32][34]

Price

Cost

Price is only a part of the total cost to satisfy a want or a need. The total cost will consider for example the cost of time in acquiring a good or a service, a cost of conscience by consuming that or even a cost of guilt "for not treating the kids".[32] It reflects 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.[35]

Place

Convenience

In the era of Internet,[34] catalogues, credit cards and phones, consumers neither need to go anywhere to satisfy a want or a need nor are they limited to a few places to satisfy them. Marketers should know how the target market prefers to buy, how to be there and be ubiquitous, in order to guarantee convenience to buy.[32][36] 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.[37]

Promotion

Communication

While promotion is "manipulative" and from the seller, communication is "cooperative" and from the buyer[32] with the aim to create a dialogue with the potential customers based on their needs and lifestyles.[36] It represents a broader focus. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the organization and the consumer[citation needed].

Shimizu's 4 Cs: in the 7Cs Compass Model

After Koichi Shimizu proposed a 4 Cs classification in 1973, it was expanded to the 7Cs Compass Model to provide a more complete picture of the nature of marketing in 1979. The 7Cs Compass Model is a framework of co-marketing (commensal marketing or Symbiotic marketing). Also the Co-creative marketing of a company and consumers are contained in the co-marketing. Co-marketing (collaborate marketing) is a marketing practice where two companies cooperate with separate distribution channels, sometimes including profit sharing. It is frequently confused with co-promotion. Also commensal (symbiotic) marketing is a marketing on which both corporation and a corporation, a corporation and a consumer, country and a country, human and nature can live.[38][39][40][41][42]

The 7Cs Compass Model comprises:

(C1) Corporation – The core of 4 Cs is corporation (company and non profit organization). C-O-S (competitor, organization, stakeholder) within the corporation. The company has to think of compliance and accountability as important. The competition in the areas in which the company competes with other firms in its industry.

The 4 elements in the 7Cs Compass Model are:

A formal approach to this customer-focused marketing mix is known as 4 Cs (commodity, cost, channel, communication) in the 7 Cs Compass Model. The 4 Cs model provides a demand/customer centric version alternative to the well-known 4 Ps supply side model (product, price, place, promotion) of marketing management.[43]

Product → Commodity

Price → Cost

Place → Channel

Promotion → Communication

"P" category (narrow) "C" category (broad) "C" definition

Product (C2) Commodity (Latin derivation: commodus=convenience, happiness) : Co-creation. The goods and services for consumers or citizens.

Price (C3) Cost (Latin derivation: constare= It makes sacrifices) : There is not only producing cost and selling cost but purchasing cost and social cost.

Place (C5) Channel (Latin derivation: canal) : marketing channels. Flow of goods.

Promotion (C4) Communication (Latin derivation: communis=sharing of meaning) : marketing communication : Not only promotion but communication is important. Communications can include advertising, sales promotion, public relations, publicity, personal selling, corporate identity, internal communication, SNS, MIS.

The compass of consumers and circumstances (environment) are:

(C6) Consumer – (Needle of compass to consumer)

The factors related to consumers can be explained by the first character of four directions marked on the compass model. These can be remembered by the cardinal directions, hence the name compass model:

N = Needs

S = Security

E = Education: (consumer education)

W = Wants

(C7) Circumstances – (Needle of compass to circumstances )

In addition to the consumer, 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 (Political, legal and ethical) environment

S = Social and cultural

E = Economic

W = Weather

EXIBIT:7Cs Compass model(1979) in Japan(Courtesy: © Koichi Shimizu, Japan)

These can also be remembered by the cardinal directions marked on a compass. The 7 Cs Compass Model is a framework in co-marketing (symbiotic marketing). It has been criticized for being little more than the 4 Ps with different points of emphasis. In particular, the 7 Cs inclusion of consumers in the marketing mix is criticized, since they are a target of marketing, while the other elements of the marketing mix are tactics. The 7 Cs also include numerous strategies for product development, distribution, and pricing, while assuming that consumers want two-way communications with companies.

An alternative approach has been suggested in a book called 'Service 7' by Australian Author, Peter Bowman. Bowman suggests a values based approach to service marketing activities. Bowman suggests implementing seven service marketing principles which include value, business development, reputation, customer service and service design. Service 7 has been widely distributed within Australia.

Digital Marketing Mix

Digital marketing mix is fundamentally the same as Marketing Mix, which is an adaptation of Product, Price, Place and Promotion into digital marketing aspect.[44] Digital marketing can be commonly explained as 'Achieving marketing objectives through applying digital technologies'.[45]

Product

Thanks to the interaction and connection of the Internet, Product has been redefined as 'virtual product' in the digital marketing aspect, which is regarded as the combination of tangibility and intangibility. Through the form of digital, a product can be directly sent from manufacturers to customers.[46] For example, customers could buy music in the form of an MP3 rather than buy it in the form of a physical CD. As a result, when a company is making strategy for Internet marketing, it is necessary to understand how to vary their products in the online environment. Here are some indications of adapt the product element on the Internet.[45]

Modifying the core product: In this case, it particularly refers to the products that can be remodeled into digital forms including movies, music, books and other publishing etc. Take Netflix as an example. The wide use of Internet has changed its form of products from selling and renting DVDs through retail stores into selling and renting video online.

Providing digital products: In order to gain market shares in the Internet, companies need to widen its product range. For example, a psychological counseling could offer online consultation via video calls.

Building the whole product: Apart from selling products online, Amazon.com also provides a paid subscription service called Amazon Prime, with which customers could enjoy free delivery and videos on Amazon.

Conducting online research: The Internet offers a low-cost and convenient way of making marketing researches, which is helpful for companies to find out what products or services do customers prefer.

Price

Price concerns about the pricing policies or pricing models from a company. Due to the wide use of the Internet, many applications could be found in both consumer's and producer's perspective. From consumers' side, the Internet enables people to make a comparison to real-time prices before they make a consumption decision, which is time-saving and effort-saving for the consumers.[47] As for the suppliers, they can adjust prices in the real-time and provide higher degree of price transparency with customers. Besides, the Internet is more likely to ease the pressure on price because online-producers do not have to put budget on renting a physical store.[45] Hence, making new or adjusting pricing strategies is essential for the company that wants to enter the Internet market.

Pricing strategies and tactics see also: Pricing

Place

With the application of the Internet, place is playing an increasingly important role in promoting consumption since the Internet and the physical channels become virtual.[44] The major contribution from the Internet to the business is not only making it possible to selling products online, but also enabling companies to build relationships with customers.[48] Furthermore, since the convenience of navigating from one site to another, place from the digital marketing perspective is always linked with promotion, which means retailers often use third-party websites such as Google search engine to guide customers to visit their websites.[45]

Promotion

Promotion refers to selecting the target markets, locating and integrating various communication tools in the marketing mix. Unlike the traditional marketing communication tools, tools in digital marketing aim at engaging audiences by putting advertisements and content on the social media, including display ads, pay-per-click (PPC), search engine optimisation (SEO), influencers etc.[45] When creating online marketing campaigns, Chaffey and Smith suggested that they can be separated into six groups:[49]

Search marketing, including search engine optimisation(SEO), pay-per-click(PPC).

Online PR, encouraging positive comments about one's products or services while reducing negative comments.

Online partnerships, building relationships between third-party webs to promote products or services.

Interactive advertising

Opt-in e-mail advertising

Social media marketing, starting and participating in customer to customer, customer to company interaction through social media.

Difficulty of computational methods

Automatically selecting the attributes of a product (in any category, i.e. product, promotion, etc.) to maximize the number of customers preferring the resulting product is a computationally intractable problem.[7] Given some customer profiles (i.e., customers sharing some features such as e.g. gender, age, income, etc.), the valuations they give to each potential product attribute (e.g. females aged 35–45 give a 3 out of 5 valuation to "it is green"; males aged 25–35 give 4/5 to "it can be paid in installments"; etc.), the attributes of the products sold by the other producers, and the attributes each producer can give to its products, the problem of deciding the attributes of our product to maximize the number of customers who will prefer it is Poly-APX-complete. This implies that, under the standard computational assumption, no efficient algorithm can guarantee that the ratio between the number of customers preferring the product returned by the algorithm and the number of customers that would prefer the actual optimal product will always reach some constant, for any constant. Moreover, the problem of finding a strategy such that, for any strategy of the other producers, our product will always reach some minimum average number of customers over some period of time is an EXPTIME-complete problem, meaning that it cannot be efficiently solved. However, heuristic (sub-optimal) solutions to these problems can be found by means of genetic algorithms, particle swarm optimization methods, or minimax algorithms.

The term 'marketing mix' is a foundation model for businesses, historically centered around product, price, place, and promotion (also known as the "4 Ps"). The marketing mix has been defined as the "set of marketing tools that the firm uses to pursue its marketing objectives in the target market".[1] Thus the marketing mix refers to four broad levels of marketing decision: product, price, place, and promotion.[2]

Marketing practice has been occurring for millennia, but marketing theory emerged in the early twentieth century. The contemporary marketing mix, or the 4 Ps, which has become the dominant framework for marketing management decisions, was first published in 1960.[3] In services marketing, an extended marketing mix is used, typically comprising 7 Ps, made up of the original 4 Ps extended by process, people, and physical evidence.[4] Occasionally service marketers will refer to 8 Ps, comprising these 7 Ps plus performance.[5]

In the 1990s, the model of marketing mix 4 Cs was introduced as a more customer-driven replacement of the 4 Ps.[6] There are two theories based on 4 Cs: Lauterborn's 4 Cs (consumer, cost, convenience, and communication), and Shimizu's 4 Cs (commodity, cost, channel, and communication).

Given the valuation of customers towards potential product attributes (in any category, e.g. product, promotion, etc.) and the attributes of the products sold by other companies, the problem of selecting the attributes of a product to maximize the number of customers preferring it is a computationally intractable problem.[7]

The correct arrangement of marketing mix by enterprise marketing managers plays an important role in the success of a company's marketing:[8]

develop strengths and avoid weaknesses

strengthen the competitiveness and adaptability of enterprises

make the internal departments of the enterprise work closely together

Contents

1 Emergence and growth

2 McCarthy's 4 Ps

3 Modified and expanded marketing mix: 7 Ps

4 4 Cs

4.1 Lauterborn's 4 Cs (1990)

4.2 Shimizu's 4 Cs: in the 7Cs Compass Model

5 Digital Marketing Mix

6 Difficulty of computational methods

7 See also

8 References

8.1 Citations

8.2 Further reading

8.3 External links

Emergence and growth

See also: History of marketing, E. Jerome McCarthy, and Neil H. Borden

The origins of the 4 Ps can be traced to the late 1940s.[9][10] The first known mention of a mix has been attributed to a Professor of Marketing at Harvard University, Prof. James Culliton.[11] In 1948, Culliton published an article entitled, The Management of Marketing Costs[12] in which Culliton describes marketers as 'mixers of ingredients'. Some years later, Culliton's colleague, Professor Neil Borden, published a retrospective article detailing the early history of the marketing mix in which he claims that he was inspired by Culliton's idea of 'mixers', and credits himself with popularising the concept of the 'marketing mix'.[13] According to Borden's account, he used the term, 'marketing mix' consistently from the late 1940s. For instance, he is known to have used the term 'marketing mix' in his presidential address given to the American Marketing Association in 1953.[14]

Although the idea of marketers as 'mixers of ingredients' caught on, marketers could not reach any real consensus about what elements should be included in the mix until the 1960s.[15] The 4 Ps, in its modern form, was first proposed in 1960 by E. Jerome McCarthy; who presented them within a managerial approach that covered analysis, consumer behavior, market research, market segmentation, and planning.[16] Phillip Kotler, popularised this approach and helped spread the 4 Ps model.[17][1] McCarthy's 4 Ps have been widely adopted by both marketing academics and practitioners.[18]

The prospect of extending the marketing mix first took hold at the inaugural AMA Conference dedicated to Services Marketing in the early 1980s, and built on earlier theoretical works pointing to many important limitations of the 4 Ps model.[19] Taken collectively, the papers presented at that conference indicate that service marketers were thinking about a revision to the general marketing mix based on an understanding that services were fundamentally different from products, and therefore required different tools and strategies. In 1981, Booms and Bitner proposed a model of 7 Ps, comprising the original 4 Ps extended by process, people and physical evidence, as being more applicable for services marketing.[20]

Since then there have been a number of different proposals for a service marketing mix (with various numbers of Ps), most notably the 8 Ps, comprising the 7 Ps above extended by 'performance'[5].

McCarthy's 4 Ps

See also: Marketing

The original marketing mix, or 4 Ps, as originally proposed by marketer and academic E. Jerome McCarthy, provides a framework for marketing decision-making.[6] McCarthy's marketing mix has since become one of the most enduring and widely accepted frameworks in marketing.[21]

Table 1: Brief Outline of 4 Ps[6]

Category Definition/Explanation/Concept Typical Marketing Decisions

Product A product refers to an item that satisfies the consumer's needs or wants.

Products may be tangible (goods) or intangible (services, ideas or experiences).

Product design – features, quality

Product assortment – product range, product mix, product lines

Branding

Packaging and labeling

Services (complimentary service, after-sales service, service level)

Guarantees and warranties

Returns

Managing products through the life-cycle[6]

Price Price refers to the amount a customer pays for a product.

Price may also refer to the sacrifice consumers are prepared to make to acquire a product (e.g. time or effort).

Price is the only variable that has implications for revenue.

Price also includes considerations of customer perceived value.

Price strategy

Price tactics

Price-setting

Allowances – e.g. rebates for distributors

Discounts – for customers

Payment terms – credit, payment methods

Place Refers to providing customer access

Considers providing convenience for consumer.

Strategies such as intensive distribution, selective distribution, exclusive distribution [22]

Franchising;[23]

Market coverage

Channel member selection and channel member relationships

Assortment

Location decisions

Inventory

Transport, warehousing and logistics

Promotion Promotion refers to marketing communications

May comprise elements such as: advertising, PR, direct marketing and sales promotion.

Promotional mix - appropriate balance of advertising, PR, direct marketing and sales promotion

Message strategy - what is to be communicated

Channel/ media strategy - how to reach the target audience

Message Frequency - how often to communicate

The 4Ps have been the cornerstone of the managerial approach to marketing since the 1960s

Product refers to what the business offers for sale and may include products or services. Product decisions include the "quality, features, benefits, style, design, branding, packaging, services, warranties, guarantees, life cycles, investments and returns".[24]

Price refers to decisions surrounding "list pricing, discount pricing, special offer pricing, credit payment or credit terms". Price refers to the total cost to customer to acquire the product, and may involve both monetary and psychological costs such as the time and effort spent in acquisition.[24]

Place is defined as the "direct or indirect channels to market, geographical distribution, territorial coverage, retail outlet, market location, catalogues, inventory, logistics and order fulfilment". Place refers either to the physical location where a business carries out business or the distribution channels used to reach markets. Place may refer to a retail outlet, but increasingly refers to virtual stores such as "a mail order catalogue, a telephone call centre or a website. Example, firms that produce luxury goods like Louis Vuitton employ an intensive placement strategy by making their products available at only a few exclusive retailers. In contrast, lower priced consumer goods like toothpaste and shampoo, typically employ an extensive placement strategy by making their products available to as many different retailers as possible. ".[24]

Promotion refers to "the marketing communication used to make the offer known to potential customers and persuade them to investigate it further".[24] Promotion elements include "advertising, public relations, direct selling and sales promotions."

Modified and expanded marketing mix: 7 Ps

See also: Services marketing, Service blueprint, and Servicescape

By the 1980s, a number of theorists were calling for an expanded and modified framework that would be more useful to service marketers. The prospect of expanding or modifying the marketing mix for services was a core discussion topic at the inaugural AMA Conference dedicated to Services Marketing in the early 1980s, and built on earlier theoretical works pointing to many important problems and limitations of the 4 Ps model.[19] Taken collectively, the papers presented at that conference indicate that service marketers were thinking about a revision to the general marketing mix based on an understanding that services were fundamentally different from products, and therefore required different tools and strategies. In 1981, Booms and Bitner proposed a model of 7 Ps, comprising the original 4 Ps plus process, people and physical evidence, as being more applicable for services marketing.[20][25]

Table 2: Outline of the Modified and Expanded Marketing Mix

Category Definition/ Explanation Typical Marketing Decisions

People Human factors who participate in service delivery.[26]

Service personnel who represent the company's values to customers.

Interactions between customers.

Interactions between employees and customers.[27]

Staff recruitment and training

Uniforms

Scripting

Queuing systems, managing waits

Handling complaints, service failures

Managing social interactions

Process The procedures, mechanisms and flow of activities by which service is delivered.

Process design

Blueprinting (i.e. flowcharting) service processes[28]

Standardization vs customization decisions

Diagnosing fail-points, critical incidents and system failures

Monitoring and tracking service performance

Analysis of resource requirements and allocation

Creation and measurement of key performance indicators (KPIs)

Alignment with Best Practices

Preparation of operations manuals

Physical evidence The environment in which service occurs.

The space where customers and service personnel interact.

Tangible commodities (e.g. equipment, furniture) that facilitate service performance.

Artifacts that remind customers of a service performance.[29]

Facilities (e.g. furniture, equipment, access)

Spatial layout (e.g. functionality, efficiency)

Signage (e.g. directional signage, symbols, other signage)

Interior design (e.g. furniture, color schemes)

Ambient conditions (e.g. noise, air, temperature)

Design of livery (e.g. stationery, brochures, menus, etc.)

Artifacts: (e.g. souvenirs, mementos, etc.)

People are essential in the marketing of any product or service. Personnel stand for the service. In the professional, financial or hospitality service industry, people are not producers, but rather the products themselves.[30] When people are the product, they impact public perception of an organization as much as any tangible consumer goods. From a marketing management perspective, it is important to ensure that employees represent the company in alignment with broader messaging strategies.[31] This is easier to ensure when people feel as though they have been treated fairly and earn wages sufficient to support their daily lives.

Process refers to a "set of activities that results in delivery of the product benefits". A process could be a sequential order of tasks that an employee undertakes as a part of their job. It can represent sequential steps taken by a number of various employees while attempting to complete a task. Some people are responsible for managing multiple processes at once. For example, a restaurant manager should monitor the performance of employees, ensuring that processes are followed. They are also expected to supervise while customers are promptly greeted, seated, fed, and led out so that the next customer can begin this process.[31]

Physical evidence refers to the non-human elements of the service encounter, including equipment, furniture and facilities. It may also refer to the more abstract components of the environment in which the service encounter occurs including interior design, colour schemes and layout. Some aspects of physical evidence provide lasting proof that the service has occurred, such as souvenirs, mementos, invoices and other livery of artifacts.[30] According to Booms and Bitner's framework, the physical evidence is "the service delivered and any tangible goods that facilitate the performance and communication of the service".[31] Physical evidence is important to customers because the tangible goods are evidence that the seller has (or has not) provided what the customer was expecting.

4 Cs

Lauterborn's 4 Cs (1990)

Robert F. Lauterborn proposed a 4 Cs classification in 1990.[32] His classification is a more consumer-orientated version of the 4 Ps[33] that attempts to better fit the movement from mass marketing to niche marketing:[32]

4 Ps 4 Cs Definition

Product

Consumer wants and needs

A company will only sell what the consumer specifically wants to buy. So, marketers should study consumer wants and needs in order to attract them one by one with something they want to purchase.[32][34]

Price

Cost

Price is only a part of the total cost to satisfy a want or a need. The total cost will consider for example the cost of time in acquiring a good or a service, a cost of conscience by consuming that or even a cost of guilt "for not treating the kids".[32] It reflects 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.[35]

Place

Convenience

In the era of Internet,[34] catalogues, credit cards and phones, consumers neither need to go anywhere to satisfy a want or a need nor are they limited to a few places to satisfy them. Marketers should know how the target market prefers to buy, how to be there and be ubiquitous, in order to guarantee convenience to buy.[32][36] 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.[37]

Promotion

Communication

While promotion is "manipulative" and from the seller, communication is "cooperative" and from the buyer[32] with the aim to create a dialogue with the potential customers based on their needs and lifestyles.[36] It represents a broader focus. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the organization and the consumer[citation needed].

Shimizu's 4 Cs: in the 7Cs Compass Model

After Koichi Shimizu proposed a 4 Cs classification in 1973, it was expanded to the 7Cs Compass Model to provide a more complete picture of the nature of marketing in 1979. The 7Cs Compass Model is a framework of co-marketing (commensal marketing or Symbiotic marketing). Also the Co-creative marketing of a company and consumers are contained in the co-marketing. Co-marketing (collaborate marketing) is a marketing practice where two companies cooperate with separate distribution channels, sometimes including profit sharing. It is frequently confused with co-promotion. Also commensal (symbiotic) marketing is a marketing on which both corporation and a corporation, a corporation and a consumer, country and a country, human and nature can live.[38][39][40][41][42]

The 7Cs Compass Model comprises:

(C1) Corporation – The core of 4 Cs is corporation (company and non profit organization). C-O-S (competitor, organization, stakeholder) within the corporation. The company has to think of compliance and accountability as important. The competition in the areas in which the company competes with other firms in its industry.

The 4 elements in the 7Cs Compass Model are:

A formal approach to this customer-focused marketing mix is known as 4 Cs (commodity, cost, channel, communication) in the 7 Cs Compass Model. The 4 Cs model provides a demand/customer centric version alternative to the well-known 4 Ps supply side model (product, price, place, promotion) of marketing management.[43]

Product → Commodity

Price → Cost

Place → Channel

Promotion → Communication

"P" category (narrow) "C" category (broad) "C" definition

Product (C2) Commodity (Latin derivation: commodus=convenience, happiness) : Co-creation. The goods and services for consumers or citizens.

Price (C3) Cost (Latin derivation: constare= It makes sacrifices) : There is not only producing cost and selling cost but purchasing cost and social cost.

Place (C5) Channel (Latin derivation: canal) : marketing channels. Flow of goods.

Promotion (C4) Communication (Latin derivation: communis=sharing of meaning) : marketing communication : Not only promotion but communication is important. Communications can include advertising, sales promotion, public relations, publicity, personal selling, corporate identity, internal communication, SNS, MIS.

The compass of consumers and circumstances (environment) are:

(C6) Consumer – (Needle of compass to consumer)

The factors related to consumers can be explained by the first character of four directions marked on the compass model. These can be remembered by the cardinal directions, hence the name compass model:

N = Needs

S = Security

E = Education: (consumer education)

W = Wants

(C7) Circumstances – (Needle of compass to circumstances )

In addition to the consumer, 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 (Political, legal and ethical) environment

S = Social and cultural

E = Economic

W = Weather

EXIBIT:7Cs Compass model(1979) in Japan(Courtesy: © Koichi Shimizu, Japan)

These can also be remembered by the cardinal directions marked on a compass. The 7 Cs Compass Model is a framework in co-marketing (symbiotic marketing). It has been criticized for being little more than the 4 Ps with different points of emphasis. In particular, the 7 Cs inclusion of consumers in the marketing mix is criticized, since they are a target of marketing, while the other elements of the marketing mix are tactics. The 7 Cs also include numerous strategies for product development, distribution, and pricing, while assuming that consumers want two-way communications with companies.

An alternative approach has been suggested in a book called 'Service 7' by Australian Author, Peter Bowman. Bowman suggests a values based approach to service marketing activities. Bowman suggests implementing seven service marketing principles which include value, business development, reputation, customer service and service design. Service 7 has been widely distributed within Australia.

Digital Marketing Mix

Digital marketing mix is fundamentally the same as Marketing Mix, which is an adaptation of Product, Price, Place and Promotion into digital marketing aspect.[44] Digital marketing can be commonly explained as 'Achieving marketing objectives through applying digital technologies'.[45]

Product

Thanks to the interaction and connection of the Internet, Product has been redefined as 'virtual product' in the digital marketing aspect, which is regarded as the combination of tangibility and intangibility. Through the form of digital, a product can be directly sent from manufacturers to customers.[46] For example, customers could buy music in the form of an MP3 rather than buy it in the form of a physical CD. As a result, when a company is making strategy for Internet marketing, it is necessary to understand how to vary their products in the online environment. Here are some indications of adapt the product element on the Internet.[45]

Modifying the core product: In this case, it particularly refers to the products that can be remodeled into digital forms including movies, music, books and other publishing etc. Take Netflix as an example. The wide use of Internet has changed its form of products from selling and renting DVDs through retail stores into selling and renting video online.

Providing digital products: In order to gain market shares in the Internet, companies need to widen its product range. For example, a psychological counseling could offer online consultation via video calls.

Building the whole product: Apart from selling products online, Amazon.com also provides a paid subscription service called Amazon Prime, with which customers could enjoy free delivery and videos on Amazon.

Conducting online research: The Internet offers a low-cost and convenient way of making marketing researches, which is helpful for companies to find out what products or services do customers prefer.

Price

Price concerns about the pricing policies or pricing models from a company. Due to the wide use of the Internet, many applications could be found in both consumer's and producer's perspective. From consumers' side, the Internet enables people to make a comparison to real-time prices before they make a consumption decision, which is time-saving and effort-saving for the consumers.[47] As for the suppliers, they can adjust prices in the real-time and provide higher degree of price transparency with customers. Besides, the Internet is more likely to ease the pressure on price because online-producers do not have to put budget on renting a physical store.[45] Hence, making new or adjusting pricing strategies is essential for the company that wants to enter the Internet market.

Pricing strategies and tactics see also: Pricing

Place

With the application of the Internet, place is playing an increasingly important role in promoting consumption since the Internet and the physical channels become virtual.[44] The major contribution from the Internet to the business is not only making it possible to selling products online, but also enabling companies to build relationships with customers.[48] Furthermore, since the convenience of navigating from one site to another, place from the digital marketing perspective is always linked with promotion, which means retailers often use third-party websites such as Google search engine to guide customers to visit their websites.[45]

Promotion

Promotion refers to selecting the target markets, locating and integrating various communication tools in the marketing mix. Unlike the traditional marketing communication tools, tools in digital marketing aim at engaging audiences by putting advertisements and content on the social media, including display ads, pay-per-click (PPC), search engine optimisation (SEO), influencers etc.[45] When creating online marketing campaigns, Chaffey and Smith suggested that they can be separated into six groups:[49]

Search marketing, including search engine optimisation(SEO), pay-per-click(PPC).

Online PR, encouraging positive comments about one's products or services while reducing negative comments.

Online partnerships, building relationships between third-party webs to promote products or services.

Interactive advertising

Opt-in e-mail advertising

Social media marketing, starting and participating in customer to customer, customer to company interaction through social media.

Difficulty of computational methods

Automatically selecting the attributes of a product (in any category, i.e. product, promotion, etc.) to maximize the number of customers preferring the resulting product is a computationally intractable problem.[7] Given some customer profiles (i.e., customers sharing some features such as e.g. gender, age, income, etc.), the valuations they give to each potential product attribute (e.g. females aged 35–45 give a 3 out of 5 valuation to "it is green"; males aged 25–35 give 4/5 to "it can be paid in installments"; etc.), the attributes of the products sold by the other producers, and the attributes each producer can give to its products, the problem of deciding the attributes of our product to maximize the number of customers who will prefer it is Poly-APX-complete. This implies that, under the standard computational assumption, no efficient algorithm can guarantee that the ratio between the number of customers preferring the product returned by the algorithm and the number of customers that would prefer the actual optimal product will always reach some constant, for any constant. Moreover, the problem of finding a strategy such that, for any strategy of the other producers, our product will always reach some minimum average number of customers over some period of time is an EXPTIME-complete problem, meaning that it cannot be efficiently solved. However, heuristic (sub-optimal) solutions to these problems can be found by means of genetic algorithms, particle swarm optimization methods, or minimax algorithms.