Marketing mix

Marketing mix is the set of controllable tactical marketing tools—product, price, place, and promotion—that a firm blends to produce the response it wants in the target market, originally formulated as the "4Ps" by E. Jerome McCarthy in 1960 (McCarthy E.J. 1960, p.38)^[1]. What product will you offer? At what price? Through which channels? With what promotional support? These four decisions define how a company goes to market. Get the mix right and customers flock in; get it wrong and even great products fail.

The concept traces to Harvard professor James Culliton, who in 1948 described marketers as "mixers of ingredients." Neil Borden popularized the term "marketing mix" in the 1950s, identifying twelve elements marketers manipulate. McCarthy simplified this to the memorable 4Ps, which Philip Kotler then promoted worldwide through his textbooks. For over sixty years, the 4Ps have served as the foundational framework for marketing education and practice.

The 4Ps

Each P represents a decision area:

Product

What you offer. Product encompasses everything the customer receives—physical goods, services, features, quality, design, branding, packaging, warranties. The product must satisfy customer needs better than alternatives^[2].

Product decisions. What features to include? What quality level? What branding and packaging? What after-sale services? What product line breadth and depth?

Product life cycle. Products move through introduction, growth, maturity, and decline stages, requiring different marketing mix adjustments at each phase.

Price

What customers pay. Price is the only P that generates revenue; the others generate costs. Price must cover costs and generate profit while remaining competitive and reflecting value.

Pricing considerations. Costs set a floor; customer value perception sets a ceiling; competition influences where in that range to position^[3].

Pricing tactics. List prices, discounts, allowances, payment terms, credit options, financing. Psychological pricing, bundling, penetration versus skimming strategies.

Place

Distribution channels. Place encompasses how products reach customers—retail stores, wholesalers, e-commerce, direct sales, agents. Getting the right product to the right place at the right time.

Channel decisions. Which channels to use? How many intermediaries? What geographic coverage? How to manage channel relationships?

Logistics. Warehousing, inventory management, transportation—the physical distribution that enables availability^[4].

Promotion

Communication. Promotion includes all activities that communicate product benefits and persuade target customers. Advertising, sales promotion, public relations, personal selling, digital marketing.

Promotion mix. Different combinations of promotional tools suit different products, markets, and objectives.

Push versus pull. Push strategies promote to channels to get them to carry products; pull strategies promote to end consumers to create demand that pulls products through channels.

Extended marketing mix

The 4Ps evolved to address service marketing:

The 7Ps

Service additions. Bernard Booms and Mary Bitner added three Ps in 1981 to address services:

People. Service delivery depends on employees. Their skills, training, and attitudes affect customer experience^[5].

Process. The procedures and flow of activities through which services are delivered. Process design affects efficiency and customer satisfaction.

Physical evidence. Tangible cues that help customers evaluate intangible services—facilities, equipment, appearance of personnel, documentation.

Marketing mix strategy

The mix must work together:

Internal consistency

Alignment. Mix elements must align with each other. A luxury product requires premium pricing, selective distribution, and sophisticated promotion. Mismatched elements—luxury product at discount prices in mass retail—confuse customers and undermine positioning^[6].

External fit

Target market alignment. The mix must fit target customer needs, preferences, and behaviors.

Competitive positioning. The mix should differentiate from competitors in ways that matter to customers.

Environmental adaptation. Economic conditions, technology, regulations, and culture all influence appropriate mix decisions.

Dynamic adjustment

Continuous adaptation. Markets change; the mix must change too. Product life cycles, competitive actions, and environmental shifts require ongoing mix adjustment.

Criticisms and alternatives

The 4Ps face critiques:

Limitations

Seller orientation. The 4Ps take a seller's perspective—what the company does. They may not adequately capture customer value perception^[7].

Service applicability. The original 4Ps were developed for physical products. Services required the 7Ps extension.

Digital evolution. Digital marketing, social media, and customer co-creation may not fit neatly into traditional categories.

Alternative frameworks

4Cs. Robert Lauterborn proposed customer-oriented alternatives: Customer value (vs. Product), Cost (vs. Price), Convenience (vs. Place), Communication (vs. Promotion).

SIVA. Solution, Information, Value, Access reframes the mix from the customer's problem-solving perspective.

Additional Ps. Various authors have proposed adding Purpose, Partnerships, Performance, and other elements^[8].

Despite criticisms, the 4Ps remain the most widely taught and applied marketing framework—a simple organizing device that forces consideration of essential marketing decisions.

Marketing mix — recommended articles

Marketing strategy — Product management — Pricing strategy — Distribution channel

References

• McCarthy E.J. (1960), Basic Marketing: A Managerial Approach, Richard D. Irwin.
• Kotler P., Keller K.L. (2016), Marketing Management, 15th Edition, Pearson.
• Booms B.H., Bitner M.J. (1981), Marketing Strategies and Organization Structures for Service Firms, in Marketing of Services, American Marketing Association.
• Product Marketing Alliance (2023), The 4Ps of Marketing Guide.

Footnotes

1. ↑ McCarthy E.J. (1960), Basic Marketing, p.38
2. ↑ Kotler P., Keller K.L. (2016), Marketing Management, pp.389-412
3. ↑ Product Marketing Alliance (2023), 4Ps Guide
4. ↑ McCarthy E.J. (1960), Basic Marketing, pp.56-78
5. ↑ Booms B.H., Bitner M.J. (1981), Service Marketing Strategies
6. ↑ Kotler P., Keller K.L. (2016), Marketing Management, pp.434-448
7. ↑ Product Marketing Alliance (2023), Criticisms and Alternatives
8. ↑ Kotler P., Keller K.L. (2016), Marketing Management, pp.462-478

Author: Sławomir Wawak