Marketing Mix 4P’s & Extended Marketing Mix 7P’s (with 7C’s of Service Marketing)
Marketing mix is a systematic and balanced combination of the four inputs which constitute the core of a company’s marketing system – the product, the price structure, the promotional activities and the place or distribution system”. These are popularly known as “Four P’s” of marketing.
Let us discuss these 4p’s in details-
Product: An article or substance that is manufactured or refined for sale. We can also say that it is the result of a company’s action or process. It can also be formally defined as “A products anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.”
Price: Price is a factor which determines the value of a product. Price is actually a medium of exchange of a product in a market. Price may be of several types, such as dealer price, retail price, credit terms etc. Companies pay certain price to buy raw materials and process them to manufacture a Product which is sold to market. Consumers pay certain Price to buy the Product.
Promotion: Promotion is one form of advertisement. It creates an awareness about the product in the market. It is the key element of Company’s marketing program which efficiently and effectively communicate the company’s message about the product with the target customers and influence their buying behavior.
Place: A Place is where the products are made available in adequate quantities and customers are normally expected to shop for them to satisfy their needs.
Let us discuss about some additional concepts such as 4 C’s of Marketing, extended Marketing Mix and 7 C’s of Service Marketing which are associated with Marketing Mix or 4P concept.
What is 4C?
The Four C model is more consumer-oriented and fits better in the movement from mass marketing to niche marketing. It includes-
If we compare these 4C with 4P we can see both of these concepts are same. The only difference is that 4P is more towards company oriented where as 4C is consumer oriented.
Product-Customer: Here Product part of 4P is replaced by customer shifting the focus to satisfy the customers.
Price-Cost: Pricing is replaced by cost, reflecting the reality of the total cost of ownership.
Promotion-Communication: Communications represents a broader focus than simply promotions. Communications can include public relations, personal selling, viral advertising and word of mouth.
Place-Convenience: Consumer generally performs certain task which are convenient. So customer tends to buy certain products which are easily accessible. Now a days Internet play a vital role in this model. Various ecommerce websites such as Amazon, Flipkart, Limeroad etc sell various products online which enable customers to buy product without going out of their house. Just clicking few buttons one can avail what they want.
Now let’s discuss about extended Marketing Mix.
Extended Marketing Mix is more tends to Service or knowledge industry. Booms and Bitner accommodate 3 extended P with 4P of Marketing.
- Physical Evidence
People: all people who directly or indirectly influence the perceived value of the product or service, including knowledge workers, employees, management and consumers.
Process: procedures, mechanisms and flow of activities which lead to a Product
Physical evidence: The experience of a product or service that allows a customer to measure whether he or she has received the value or not. For Examples: The way a customer is treated by a staff member, or the length of time a customer has to wait for a service etc.
Similarly with extended P, 3 extended C’s are also added which makes 7C’s of Service Marketing.
We have already discussed about the 4C’s. The extended C’s are-
- Caring: Peoples are need to be cared both the customers as well as employees of the organization.
- Co-ordination: To produce or manufacture a finished product certain process needs to be maintained and it requires coordination among workers as well as machines.
- Confirmation: It is to confirm that the customer experience with the service was positive. It is a very important aspect of CRM (Customer Relationship Management).