The Business Book

(Joyce) #1

282


the nature of the Four Ps. “Product”
refers to developing the right
product or service for the target
market, whether it is a laundry
detergent, an accountancy service,
or a political party’s policy, and
also includes branding, packaging,
warranties, and anything else
related to the product offering.
“Place” refers to how the product
will get to the target market, so
it is available when and where it
is needed—in other words, the
channel of distribution and the
logistics of transportation, storage,
and handling. “Promotion” is
communication about the product
with the target market and others


in the distribution chain—public
relations, advertising, sales
promotions, and so on. “Price”
includes price-setting based on
competition within the market, the
cost of the entire marketing mix,
and what price level the customer
will accept. If price is rejected then
the marketer’s efforts are wasted.

An enduring formula
From the 1960s, the Four Ps became
the undisputed means by which
marketers made their strategic
decisions. The approach has become
an institution, mentioned in almost
every marketing textbook, and still
dominates management thinking.

MARKETING MIX


The Four Ps, key ingredients of the marketing
mix, need to be in careful balance with each other
and the mix as a whole. Alternative “ingredients”
have been proposed as necessary components of the
marketing mix, but the core Four Ps have endured.


PLACE
Decide how the product
will reach the market;
the channels of distribution;
methods of storage; handling
and transportation; and how
to emulate or differentiate
from the competition.

PROMOTION
Look at when and where
to reach the target
market; the optimum
medium (television, radio,
or press); and evaluate
the techniques
of competitors.

PRODUCT
Evaluate customer needs;
establish where and how the
product will be used; decide
on branding and packaging,
and how the product
will differ from others
in the market.

THE
MARKETING
MIX

PRICE
Set the price point
based on market
norms; perceived value
by the customer and
how sensitive they
are to price;
and competitors.

Other additions or alternative
mixes have been proposed, though
none has yet replaced McCarthy’s
original premise.
In the 1990s, for example,
advertising professor at the
University of North Carolina, Robert
Lauterborn, argued that the Four Ps
articulated the seller’s view rather
than the buyer’s view, and was
therefore outdated in the customer-
centered marketing of the late 20th
century. He reimagined the Four Ps
as the Four Cs: Customer solution,
Convenience, Communication,
and Customer cost.
Professors Jagdish Seth and
Rajendra Sisodia then posited
the Four As: Acceptability,
Affordability, Availability, and
Awareness. By 2005, academics
Chekitan Dev and Don Schultz
claimed that the Four Ps were no
longer relevant; that consumer
decisions were motivated by
emotion and a desire for value,
rather than for a specific product
to fill a need or a particular price
point. Other commentators have
also pushed for a framework more
applicable to e-commerce. On the
other hand, Carolyn Siegel, author
of Internet Marketing, states:
“Although many attempts have
been made to replace or expand the

Marketing mix is the
pack of four sets of variables,
namely product, price,
promotion, and place variables.
E. J. McCarthy
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