Marketing Communications: 4P and 7P Models
Posted: Sun Jan 12, 2025 4:47 am
The marketing mix concept began its history in 1964 thanks to Nel Borden, who was the first to systematize the tools needed to effectively promote products. Later, Jerome McCarthy transformed this concept into the popular 4P model, and the famous marketer Philip Kotler contributed to its widespread dissemination. Let's delve into the main elements of this model.
**Product**. This component is the basis of any marketing mix. In employment database order to attract the target audience and satisfy its needs, companies work on the features of their products, the diversity of their product range, and create a unique style for their brand.
**Price**. Setting the price of goods and services depends on many factors, including current market prices, demand levels, production costs, and expected profits. Companies conduct competitive pricing analyses, determine retail prices, and develop discount strategies.
**Place** This element focuses on how and where the product will be sold. This includes distribution channels, product placement in stores, logistics, and any aspects that ensure the product is accessible to customers.
**Promotion**. To increase brand awareness and inform potential audiences about their products, companies use a wide range of tools. Media plans are developed, events and active marketing campaigns are held, and promotions are developed to stimulate sales. At this stage, the marketing budget is also formed.
The methods of applying the 4P model may vary depending on the specifics of the market and the company, which leads to the emergence of many interpretations of this complex, which you will be able to read about below.
Growing competitiveness and constant changes in the market have served as the basis for expanding the 4P model and searching for new techniques in marketing planning. Let's consider some of them.
5P
The 5P model includes elements of the traditional 4P, adding a new aspect - "People", or relationship marketing. This element focuses on establishing interaction between market participants, training and recruiting personnel, working with opinion leaders and implementing loyalty programs. This model is especially effective for companies operating in the service sector, such as the hotel and restaurant business, as well as beauty salons.
7P
The 7P model is an even more comprehensive extension of the 4P model, adding the elements of People, Process (service delivery process) and Physical evidence (physical environment). Let's think about the last two components.
**Process**. This element focuses on optimizing customer interactions. Improving processes helps increase customer loyalty and strengthen the company's position in the market. A striking example is the well-coordinated work of employees at fast food chains such as McDonald's, which allows for high speed service and is a key factor in their popularity.
**Physical evidence**. This aspect concerns the creation of a comfortable atmosphere for customers, which directly influences their purchasing decisions and desire to return. An appropriate physical environment contributes to the formation of a positive image of the company and highlighting its advantages.
Conclusion
Thus, the 4P marketing mix model remains an indispensable tool for companies seeking to effectively promote their products. The basic elements - product, price, sales point and promotion - form the basis for a successful marketing strategy. Expanding the model to 5P and 7P emphasizes the importance of taking into account additional factors, such as customer interaction and process optimization. In a dynamic and highly competitive market, the flexibility and adaptability of these models allow companies to find innovative ways to success and strengthen customer loyalty, which requires constant monitoring and adjustment taking into account changes in consumer preferences and the market environment.
**Product**. This component is the basis of any marketing mix. In employment database order to attract the target audience and satisfy its needs, companies work on the features of their products, the diversity of their product range, and create a unique style for their brand.
**Price**. Setting the price of goods and services depends on many factors, including current market prices, demand levels, production costs, and expected profits. Companies conduct competitive pricing analyses, determine retail prices, and develop discount strategies.
**Place** This element focuses on how and where the product will be sold. This includes distribution channels, product placement in stores, logistics, and any aspects that ensure the product is accessible to customers.
**Promotion**. To increase brand awareness and inform potential audiences about their products, companies use a wide range of tools. Media plans are developed, events and active marketing campaigns are held, and promotions are developed to stimulate sales. At this stage, the marketing budget is also formed.
The methods of applying the 4P model may vary depending on the specifics of the market and the company, which leads to the emergence of many interpretations of this complex, which you will be able to read about below.
Growing competitiveness and constant changes in the market have served as the basis for expanding the 4P model and searching for new techniques in marketing planning. Let's consider some of them.
5P
The 5P model includes elements of the traditional 4P, adding a new aspect - "People", or relationship marketing. This element focuses on establishing interaction between market participants, training and recruiting personnel, working with opinion leaders and implementing loyalty programs. This model is especially effective for companies operating in the service sector, such as the hotel and restaurant business, as well as beauty salons.
7P
The 7P model is an even more comprehensive extension of the 4P model, adding the elements of People, Process (service delivery process) and Physical evidence (physical environment). Let's think about the last two components.
**Process**. This element focuses on optimizing customer interactions. Improving processes helps increase customer loyalty and strengthen the company's position in the market. A striking example is the well-coordinated work of employees at fast food chains such as McDonald's, which allows for high speed service and is a key factor in their popularity.
**Physical evidence**. This aspect concerns the creation of a comfortable atmosphere for customers, which directly influences their purchasing decisions and desire to return. An appropriate physical environment contributes to the formation of a positive image of the company and highlighting its advantages.
Conclusion
Thus, the 4P marketing mix model remains an indispensable tool for companies seeking to effectively promote their products. The basic elements - product, price, sales point and promotion - form the basis for a successful marketing strategy. Expanding the model to 5P and 7P emphasizes the importance of taking into account additional factors, such as customer interaction and process optimization. In a dynamic and highly competitive market, the flexibility and adaptability of these models allow companies to find innovative ways to success and strengthen customer loyalty, which requires constant monitoring and adjustment taking into account changes in consumer preferences and the market environment.