The marketing mix: the 4 Ps and 7 Ps of marketing explained

The marketing mix is the set of decisions a company makes to influence customers to buy. It is usually summed up as the 4 Ps: product, price, place and promotion. Service businesses often use an expanded version, the 7 Ps, which adds people, process and physical evidence. Working through each P makes sure your offer, price, sales channels and messages fit the same customer.

Where does the marketing mix come from?

Harvard professor James Culliton described marketers as "mixers of ingredients" in 1948. His colleague Neil Borden popularised the term "marketing mix" and used it in his 1953 address as president of the American Marketing Association. In 1960, E. Jerome McCarthy grouped the ingredients into the 4 Ps, and Philip Kotler popularised it. In 1981, Booms and Bitner added three Ps for services.

What are the 4 Ps of marketing?

1. Product

Product is the good or service you provide, and everything that comes with it: features, design, quality, branding, support, warranties and onboarding. For a SaaS company, product decisions include which features go into which plan, what the free trial includes and how support works.

The product mix. A company's product mix is all the products it sells. It is often described in four dimensions:

• Width: the number of product lines. OpenStax's example is Domino's, which has seven lines, including pizza, salads and desserts.
• Length: the total number of products across all lines.
• Depth: the number of versions within a line, such as sizes, editions or plans.
• Consistency: how closely related the lines are in use, production and distribution.

A software company with a CRM and an email tool has a mix two lines wide. If each comes in three plans, the depth of each line is three. A wider mix gives customers more options; a consistent one keeps the brand easy to understand. For more on planning a range, see the product matrix and the product life cycle.

2. Price

Price is what customers pay for the product. It directly sets your revenue and margin, and it signals value. Price decisions include:

• the list price and how it compares with competitors;
• the pricing model, such as per seat, per usage or flat fee;
• discounts for volume, annual billing or loyal customers;
• payment terms;
• how and when prices change.

A price that is too low can undermine perceived quality. A price that is too high for the value customers see stalls growth. Our guide to the different types of pricing strategies explains the main approaches, including price skimming.

3. Place

Place is how the product reaches customers, not where your office is. It covers distribution channels and coverage:

• selling directly through your website or a sales team;
• selling through resellers, partners, affiliates or marketplaces;
• physical stores or distributors for goods;
• which countries, segments and regions you cover.

In B2B software, place decisions include whether to rely on self-serve sign-up or sales-led deals, and whether to list the product in app marketplaces or work with partners. Before you choose, know exactly who you sell to. See market segmentation.

4. Promotion

Promotion is how you communicate with customers to attract and persuade them. OpenStax lists six elements of the promotion mix:

• Advertising: paid, impersonal messages from an identified sponsor.
• Sales promotion: short-term incentives such as discounts, coupons or contests. See sales promotion tools and techniques.
• Personal selling: one-to-one communication by a salesperson.
• Public relations: earned coverage and goodwill, often through credible third parties. See the advantages of a press release.
• Direct marketing: targeted messages by email, mail, phone or text, usually with a call to action.
• Internet and digital marketing: websites, search, social media and apps, often two-way.

Most companies combine several. A B2B company might pair content and search for awareness with email nurturing and a sales team to close. Our guide to multi-channel marketing shows how to connect them.

What are the 7 Ps of marketing?

Booms and Bitner proposed three extra Ps for services, where the customer experiences the company directly:

5. People

Everyone who deals with the customer: sales reps, support staff, account managers and partners. In a service or SaaS business, they are part of what the customer buys. Hiring, training and motivating them is a marketing decision as much as an HR one.

6. Process

How the service is delivered: sign-up, onboarding, billing, support tickets and renewals. A slow or confusing process loses customers even when the product is good. Mapping and simplifying each step is part of the mix.

7. Physical evidence

The tangible cues that show customers what to expect from something they can't hold: the website, the product interface, case studies, reviews, invoices, the office or event stand. For software, a free trial and public reviews are strong physical evidence.

You will sometimes see packaging or positioning listed as extra Ps. They are useful ideas, but they are not part of the standard 7 Ps. Positioning is a strategy decision that comes before the mix, after segmentation and targeting.

What are the 4 Cs, and how do they relate to the 4 Ps?

In 1990, Robert Lauterborn proposed the 4 Cs as a customer-centred version of the 4 Ps:

The 4 Cs are a useful check. For each P, ask what it looks like from the buyer's side.

How do you use the marketing mix?

1. Start with the customer. Define the segment and the problem you solve. See how to determine your target market.
2. Work through each P and write down your current decisions.
3. Check that they fit together. A premium price needs premium support, channels and messages.
4. Compare with competitors on each P to find where you can stand out.
5. Review regularly. Markets, costs and channels change, so the mix needs updates.

If you are launching something new, our guide on how to create a marketing plan for a new product turns the mix into a plan. For a short definition, see the glossary entry on the four Ps of marketing.