Four P's

Elements of the marketing mix are often referred to as the "Four P's":

 Product - A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units. Intangible products are
service based like the tourism industry & the hotel industry or codes-based products like
cellphone load and credits. Typical examples of a mass produced tangible object are the
motor car and the disposable razor. A less obvious but ubiquitous mass produced service
is a computer operating system. Packaging also needs to be taken into consideration.
Every product is subject to a life-cycle including a growth phase followed by an eventual
period of decline as the product approaches market saturation. To retain its
competitiveness in the market, product differentiation is required and is one of the
strategy to differentiate from its competitors.

 Price – The price is the amount a customer pays for the product. The business may
increase or decrease the price of product if other stores have the same product.
 Place – Place represents the location where a product can be purchased. It is often
referred to as the distribution channel. It can include any physical store as well as virtual
stores on the Internet.
 Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements: advertising, public relations, personal
selling and sales promotion. A certain amount of crossover occurs when promotion uses
the four principal elements together, which is common in film promotion. Advertising
covers any communication that is paid for, from cinema commercials, radio and Internet
adverts through print media and billboards. Public relations are where the communication
is not directly paid for and includes press releases, sponsorship deals, exhibitions,
conferences, seminars or trade fairs and events. Word of mouth is any apparently
informal communication about the product by ordinary individuals, satisfied customers or
people specifically engaged to create word of mouth momentum. Sales staff often plays
an important role in word of mouth and Public Relations (see Product above).

Any organization, before introducing its products or services into the market; conducts a market
survey. The sequence of all 'P's as above is very much important in every stage of product life
cycle Introduction, Growth, Maturity and Decline.

[edit] Extended Marketing Mix (3 Ps)

More recently, three more Ps have been added to the marketing mix namely People, Process
and Physical Evidence. This marketing mix is known as Extended Marketing Mix.

 People: All people involved with consumption of a service are important. For example
workers, management, consumers etc. It also defines the market segmentation, mainly
demographic segmentation. It addresses particular class of people for whom the product
or service is made available.
  Process: Procedure, mechanism and flow of activities by which services are used. Also
the 'Procedure' how the product will reach the end user.
 Physical Evidence: The marketing strategy should include effectively communicating
their satisfaction to potential customers. Satisfied customers can be the best
advertisement, with either tangible products or services.

[edit] Four Cs (1) in 7Cs compass model

A formal approach to this customer-focused marketing mix is known as Four Cs (Commodity,
Cost, Channel, Communication) in “7Cs compass model.” Koichi Shimizu proposed a four Cs
classification in 1973. [2] [3]

This system is basically the four Ps [4] renamed and reworded to provide a customer focus. The
four Cs Model provides a demand/customer centric version alternative to the well-known four Ps
supply side model (product, price, place, promotion) of marketing management.The Four Cs
model is more consumer-oriented and attempts to better fit the movement from mass marketing
to symbiotic marketing.

1. Commodity:(Original meaning of Latin: Commodus=convenient)the product for the

consumers or citizens.a commodity can also be described as an raw material such as;
oil,metal ores and wheat, the price of these tend to change on a daily basis, due to the
demand and supply of these commodities.
2. Cost:(Original meaning of Latin: Constare= It makes sacrifices)producing cost, selling
cost, purchasing cost and social cost.
3. Channel:(Original meaning is a Canal)Flow of commodity : marketing channels.
4. Communication:(Original meaning of Latin:Communio=sharing of meaning) marketing
communication : It doesn't promote the sales.

(Framework of ７ Cs compass model)

 (C1): Corporation and competitor : The core of 4Cs is corporation and organization,
while the core of 4Ps is customers who are the targets for attacks or defenses.
 (C2) : Commodity, (C3) : Cost, (C4) : Channel, (C5) : Communication
 (C6) : Consumer (Needle of compass to Consumer)

The factors related to customers can be explained by the first character of four directions marked
on the compass model: N = Needs, W = Wants, S = Security and E = Education (consumer
education).

 (C7) : Circumstances (Needle of compass to Circumstances )

In addition to the customer, there are various uncontrollable external environmental factors
encircling the companies. Here it can also be explained by the first character of the four
directions marked on the compass model --- N = National and International C, W=Weather, S =
Social and Cultural C, E = Economic (Circumstances).
[edit] Four Cs (2)
Robert F. Lauterborn proposed a four Cs(2) classification in 1993.[5] The Four Cs model is more
consumer-oriented and attempts to better fit the movement from mass marketing to niche
marketing. The Product part of the Four Ps model is replaced by Consumer or Consumer
Models, shifting the focus to satisfying the consumer needs. Another C replacement for Product
is Capable. By defining offerings as individual capabilities that when combined and focused to a
specific industry, creates a custom solution rather than pigeon-holing a customer into a product.
Pricing is replaced by Cost reflecting the total cost of ownership. Many factors affect Cost,
including but not limited to the customer's cost to change or implement the new product or
service and the customer's cost for not selecting a competitor's product or service. Placement is
replaced by Convenience. With the rise of internet and hybrid models of purchasing, Place is
becoming less relevant. Convenience takes into account the ease of buying the product, finding
the product, finding information about the product, and several other factors. Finally, the
Promotions feature is replaced by Communication which represents a broader focus than simply
Promotions. Communications can include advertising, public relations, personal selling, viral
advertising, and any form of communication between the firm and the consumer. the four Ps are
(product, promotion, price, place)