The marketing mix helps you make deliberate decisions about product, price, place and promotion. Here is how the 4 Ps and 7 Ps work and how to apply them to your business.
Every business has to make the same core decisions: what to sell, how much to charge, where to sell it and how to tell people about it. The marketing mix is a simple framework for making those decisions deliberately, so they work together rather than pulling in different directions.
This guide explains the marketing mix, from the original four Ps to the extended seven Ps used for service businesses, and how to apply it to your own business today.
Where the marketing mix comes from
The phrase "marketing mix" was popularised by Harvard professor Neil Borden, whose article "The Concept of the Marketing Mix" was published in 1964. Borden described marketers as mixers of ingredients, combining different elements to suit their market.
In 1960, E. Jerome McCarthy simplified those ingredients into the four Ps in his book Basic Marketing: product, price, place and promotion. In 1981, Bernard Booms and Mary Jo Bitner proposed three more Ps for service businesses: people, process and physical evidence. Together these make the seven Ps.
The framework is decades old, but the questions it asks are as relevant as ever.
The four Ps
Product
What are you selling, and what problem does it solve? Product covers the features, quality, design, packaging, range and the overall experience of using what you offer.
Questions to ask:
- What do customers value most about what we offer?
- How is it different from the alternatives?
- Are there features or services we could add, remove or improve?
Price
How much do you charge, and how does that reflect the value you provide? Price affects how customers perceive you as much as how much they pay.
Questions to ask:
- What are customers willing to pay, and what do competitors charge?
- Are we positioned as a budget, mid-range or premium option?
- Would packages, subscriptions, payment plans or introductory offers make it easier to buy?
Place
Where and how do customers buy from you? Place covers your physical locations, your website, online marketplaces, distributors and delivery.
Questions to ask:
- Where do our customers expect to find us?
- Is it easy to buy from us online and on a phone?
- Are we available in the areas, and at the times, our customers need?
Promotion
How do you tell people about what you offer? Promotion includes advertising, social media, email, search, PR, events and word of mouth.
Questions to ask:
- Which channels do our customers actually use?
- What message will make them choose us?
- How will we measure whether our promotion is working?
The extended mix: three more Ps for services
If you sell a service rather than a physical product, the experience is often inseparable from the people delivering it. That is why Booms and Bitner added three more Ps.
People
Everyone who interacts with customers, from the person answering the phone to the team delivering the work, shapes how customers see you. Training, attitude and expertise all matter.
Process
How easy is it to do business with you? Process covers everything from making an enquiry and receiving a quote to booking, delivery, invoicing and aftercare. Smooth processes build trust; confusing ones lose customers.
Physical evidence
Services are intangible, so customers look for evidence they can trust: your website, premises, branding, reviews, case studies, accreditations and even the look of your vans or paperwork.
How to find the right mix for your business
There is no single perfect marketing mix. The right balance depends on your customers, your competitors and your goals. A practical way to approach it:
- Understand your customers. Talk to them, read your reviews and look at what they search for. What do they value, where do they look and what makes them choose?
- Look at your competitors. What do they offer, how do they price it and how do they promote themselves? Where are the gaps?
- Review each P honestly. Note your strengths and weaknesses under each heading.
- Check the Ps work together. A premium price needs a premium product, experience and presentation. A low-cost offer needs efficient processes and convenient buying.
- Make one or two changes at a time and measure the effect.
- Review regularly. Markets change, and your mix should change with them.
An example: a local café
- Product: freshly made breakfasts and lunches, with vegetarian and gluten-free options
- Price: mid-range, with a loyalty card for regulars
- Place: a high street location, plus delivery through an app for nearby offices
- Promotion: Instagram posts of daily specials, a Google Business Profile with up-to-date photos and reviews, and a monthly email to loyalty card holders
- People: friendly, knowledgeable staff who remember regulars
- Process: quick ordering, table service at busy times and simple online pre-ordering
- Physical evidence: a welcoming interior, consistent branding and plenty of genuine reviews
Each element supports the others, which is what makes the mix effective.
The marketing mix in a digital world
Online channels have changed how each P works. Your website and Google Business Profile are now part of "place" and "physical evidence". Reviews influence "promotion" and "price" perception. Email, search and social media give you far more options for "promotion", and data lets you measure what works.
But the underlying principle has not changed: make deliberate decisions about each element and make sure they work together.
Getting help
If you would like a fresh perspective on your marketing mix, particularly how you promote your business online, our team can review where you are now and recommend practical next steps. Our marketing audits look at your whole online presence and highlight the biggest opportunities. If you would rather talk it through first, call us on 01509 357412.
