While the marketing mix was predominately associated with the 4P’s of marketing, new models such as the 7P’s of service marketing, and the 4 Cs theory try to build upon the 4P’s model while increasing its explanatory power.
The Extended 7P’s
In the late 70’s it was widely acknowledged by marketers that the Marketing Mix should be updated. This led to the creation of the Extended 7Ps Marketing Mix in 1981 by Booms & Bitner which added 3 new elements to the 4 P’s Principle. The three new factors focus not on physical products but services, that’s why the 7Ps model is also called “service marketing mix”.
The three new factors are:
All companies are reliant on the people who run them from front line Sales staff to the Managing Director. Having the right people is essential because they are as much a part of your business offering as the products/services you are offering.
The delivery of your service is usually done with the customer present so how the service is delivered is once again part of what the consumer is paying for.
Almost all services include some physical elements even if the product is intangible. For example, a travel agency would give their customers some form of printed material. Even if the material is not physically printed (in the case of PDFs) they are still receiving a piece of “physical evidence”.
Though in place since the 1980’s the 7 P’s are still widely taught due to their fundamental logic being sound in the marketing environment and marketers abilities to adapt the Marketing Mix to include changes in communications such as social media, updates in the places which you can sell a product/service or customers expectations in a constantly changing commercial environment.
The 4C Model
The 4Cs marketing model was developed by Robert F. Lauterborn in 1990. It is a modification of the 4Ps model. It is not a basic part of the marketing mix definition, but rather an extension. Here are the four original 4P components and the new 4C elements:
A company should only sell a product that addresses consumer demand. So, marketers and business researchers should carefully study the consumer wants and needs.
According to Lauterborn, the price is not the only cost incurred when purchasing a product. Cost of conscience or opportunity cost is also part of the cost of product ownership.
The product should be readily available to consumers. Marketers should strategically place the products in several visible distribution points.
According to Lauterborn, “promotion” is manipulative while communication is “cooperative”. Marketers should aim to create an open two-way dialogue with potential clients based on their needs and wants.