Marketing Mix: What It Is, What the 4 Ps Are, and How to Apply Them

Some concepts never die, even with all the innovation and new technologies emerging in the marketing world.

This is the case with the Marketing Mix, also known as the 4 Ps of marketing.

Created in 1960, this term is still widely used and remains highly relevant, especially for those starting a business.

Let’s just say it’s the foundation of everything.

Let’s dive deeper into the Marketing Mix and how its four pillars — Price, Product, Place, and Promotion — will position your brand in the market and guide you to the right audience.

Keep reading this article!

What is the Marketing Mix?

The Marketing Mix is a set of four elements — hence also called the 4 Ps — that encompass a company’s main marketing and sales actions.

They are:

• Product;
• Price;
• Promotion;
• Place.

Although these are the pillars of every initial marketing strategy, it’s important to remember they are variable, controllable, and interdependent.

In other words, the company itself can define each P in the way it sees fit and can change them according to its goals or business stage. After all, you might end up launching more than one product or creating more than one strategy involving the 4 Ps.

However, we must not forget that these pillars work together — meaning, for one P to be effective, the others need to be planned in sync.

Origin of the 4 Ps

Once upon a time, in 1960, there was a marketing professor at Michigan State University in the U.S., Jerome McCarthy.

He created the concept of the Marketing Mix, introducing the pillars of Product, Price, Promotion, and Place in his book Basic Marketing: A Managerial Approach.

However, the concept only became popular seven years later, in 1967, when Philip Kotler — the father of modern marketing — presented these variables in his book Marketing Management as the main classification of the Marketing Mix.

It’s worth noting that before these four pillars were consolidated, other authors tried to categorize marketing strategy using different factors.

In 1961, Swiss architect Albert Frey proposed a classification with two factors: 1. the offer — product, packaging, brand, price, and support — and 2. the methods and means — distribution channels, personal selling, advertising, sales promotion, and publicity.

In 1962, Lazer and Kelley proposed three factors: goods and services, distribution, and communication.

What Is the Purpose of the Marketing Mix?

Besides aligning the core elements that shape a company’s sales and marketing strategy, the 4 Ps aim to spark interest in users, triggering purchase desire and enhancing customer experience after each component is defined.

Here are a few purposes of the Marketing Mix:

• Define and segment a target audience;
• Price a product or service;
• Establish the unique value proposition;
• Expand the company’s reach and results;
• Define the product/service delivery logistics;
• Create positioning strategies;
• Communicate and engage with the audience in an appealing way.

The Importance of the Marketing Mix

Think about it: if the 4 Ps have survived until now, despite the countless new concepts and strategies, that means their presence is essential for companies, right?

Let’s understand the importance of this concept and how it has supported the market over the years.

Communicating Brand Positioning to the Target Audience

Through the 4 Ps of marketing, you can define your Product, Price, Place, and Promotion — meaning, you will have established the most important points of your brand to communicate to your target audience.

Without these pillars, your company won’t be able to clearly convey what it offers to consumers or what they can expect from your actions.

Creating Integrated Strategies

Price, Product, Place, and Promotion are individual concepts, but they interact to form a cohesive marketing strategy.

This means that by applying the Marketing Mix, your strategies will be integrated across branding, advertising, sales, and investment efforts.

Standing Out From Competitors

Simply defining the 4 Ps of marketing can already set you apart from the competition. That’s because your company will enter the market with a unique proposal.

Keep in mind: the Marketing Mix should build an image of something unique and relevant to the audience, communicating your essence, differentiators, and value proposition.

What Are the 4 Ps of Marketing?

We’ve mentioned that the 4 Ps stand for Product, Price, Place, and Promotion, but you might be wondering what exactly that means.

Let’s break it down.

P for Product

Without a product to offer, your brand simply doesn’t work, right?

The product is the foundation of your company — it meets your customers’ needs and generates returns.

To know whether your product meets expectations — both from customers and marketing professionals — ask yourself:

• What are your product’s characteristics?
• Why do customers buy your product?
• How would your audience like it to be? Are there areas to improve?
• How do consumers use your product?
• What benefits does it offer?
• How is your product different from competitors?

Once you have these answers, use them to improve your product — always focusing on what the customer wants.

A great way to assess whether your product meets expectations is to create a Value Proposition Canvas.

Another concept that can help is the Product Life Cycle, which shows what stage your product or service is in and what actions you might take to position — or reposition — it in the market.

P for Price

Price is what brings revenue to your company — it’s the amount consumers pay for the product and its benefits.

Here, you should list all production and operational costs, desired profit, and perform a competitor analysis — this will help you set a benchmark.

Ask yourself:

• Is the price competitive compared to others?
• If I lower the price, can I increase sales?
• If I raise it, can I improve brand positioning?
• What is the perceived value of the product?
• Are there any hidden or unconsidered costs?
• Is the product seasonal?

Beyond the answers, always consider your product’s true value, how much it costs your company, and what it delivers to the consumer.

Again, the Value Proposition Canvas can be very useful here.

Eventually, share some of this value with your audience — the more they perceive the benefits, the more they’ll be willing to pay.

P for Place

Place refers to the distribution channels and points of sale — physical or digital — used by your brand.

This P defines where your customers interact with you and purchase your product.

To define your Place, consider:

• What are your sales channels — are they all necessary?
• Which channels does your audience use most frequently?
• Do your sales channels reflect your brand?
• What is the customer experience like?
• Do you offer various payment and delivery options?

Also think about distribution channels and coverage, sales regions, inventory locations, shipping, and logistics (if applicable).

Here’s a tip for those familiar with digital marketing: one of the biggest trends for 2023 is the Omnichannel Strategy, which integrates multiple sales and contact channels in a synchronized and interconnected way.

In short, you use many channels, but they all align under a single overarching objective.

P for Promotion

The final P of the Marketing Mix is Promotion — the strategies created to generate demand for the product within the target audience.

Today, with so many available channels, you can promote your brand through social media, paid media, blog articles, SEO, newsletters, word-of-mouth, partnerships, and more.

But be careful not to waste efforts and resources on channels where your audience isn’t active.

To choose the right promotional channels, ask yourself:

• Where is my target audience most active?
• When are they most engaged?
• What content formats do they prefer?
• Do they search for products on platforms like Google?
• Who are the top influencers in my industry?

7 Steps to Apply the 4 Ps of Marketing to Your Strategy

Now that you know what the Marketing Mix is and the meaning of each of the 4 Ps, let’s walk through the steps to implement this concept into your marketing strategy.

1. Define Your Target Audience

You’ve probably noticed that throughout this article we’ve talked a lot about the target audience, so it makes perfect sense to start by defining who they are.

Remember that the target audience is the one who will consume your product, pay your price, be present in your place, and be reached by your promotion.

To identify your audience, conduct market research and collect demographic, geographic, and behavioral data.

It can also be a good idea to talk to your brand’s current customers through more qualitative interviews.

Download now: Ideal Customer, Persona, and Target Audience Framework

2. Define Your Competitive Strategy

Your competitive strategy is about how your company can differentiate itself from the established competition in the market.

You can choose among three main aspects to stand out:

• Cost Leadership: The goal is to reduce production and distribution costs while offering products with acceptable quality at lower prices to achieve higher profitability.
  
• Differentiation: The objective is to deliver superior performance and quality in any area that matters to the customer. This increases perceived value and allows you to charge higher prices.
  
• Focus: This strategy targets smaller segments, focusing on the specific needs of niches to achieve cost leadership or differentiation within that market.

Read also: Strategic Marketing Planning – What It Is and How to Do It

3. Define Your Market Positioning

Defining your market positioning means choosing a key feature or benefit of your product to stand out in the market.

This positioning can relate to several factors about your brand. Here are a few:

• Attribute
• User
• Benefit
• Product category
• Competitor
• Application or usage
• Quality or price

4. Define the Marketing Mix Strategies

Now it’s time to determine what each of the 4 Ps of marketing represents in your business.

In other words, think about what your product is, what the price will be, where (place) you’ll be present, and what your promotion channels will look like.

5. Involve Different Teams in the Process

Don’t assume that the Marketing Mix involves only the marketing team! The concepts explored here are also connected to the sales, customer experience, customer success, and even finance teams—especially when it comes to the “Price” P.

You can also count on a research and data team to provide the necessary information to build your strategies.

6. Think About Customer Experience

Regardless of your strategy, always keep in mind that the customer should be the top priority.

So, for each of the 4 Ps of marketing, consider what the customer experience will be and plan to deliver the best possible one.

7. Create an Operational Marketing Plan

Finally, define an operational marketing plan so your strategic plan can come to life and be implemented.

Operational marketing is the tactical execution—it will set goals, deadlines, responsibilities, and steps to solidify each of your Marketing Mix strategies.

Tips for a Successful 4 Ps Strategy

To ensure an even more effective strategy, here are four essential tips for your Marketing Mix:

Create a Persona

For every strategy you create—especially for promotions, new product launches, or new features—think about the persona (a fictional representation of your consumer) you want to reach.

This makes your team’s work easier and helps you get closer to your audience, as the persona reveals the key traits and expectations of your customers.

Read also: ICP, Persona, and Target Audience – Don’t Confuse These 3 Concepts

Conduct Market Research

Market research will provide the answers you need to plan and establish your strategies.

Remember, the customer is the core of everything, so there’s no better approach than asking them directly. Research helps you uncover their needs, expectations, complaints, areas for improvement, and even positive feedback.

Here are some types of market research you can do for each of the 4 Ps:

• Product: product testing, satisfaction surveys, competitor analysis
• Price: value testing, price elasticity research
• Place: channel evaluation research
• Promotion: buyer persona research, consumer behavior surveys

Check also: Lead Generation Trends in Brazil

Always Collaborate with Your Team

The more people you involve when defining each of the 4 Ps, the better your outcome will be.

That’s because the team can offer a broader view of the business and bring in fresh insights that leadership might miss, especially if they’re not dealing directly with the target audience.

Read also: Marketing Manager – Why It’s Important to Have One in Your Company

Think About the Digital Environment

Even though the concept of the Marketing Mix was developed in the last century, nothing stops you from adapting it to today’s context—in this case, the digital environment.

Understand that the customer experience has also changed.

Today, the shopping experience isn’t limited to physical spaces. In fact, many transactions now happen entirely online, and this trend continues to grow.

So, understand your audience well and where they are.

Even if your focus is offline, don’t neglect your online strategy—this is the future.

Learn more: 12 Digital Marketing Trends to Explore in 2023

Understanding Other Concepts: 7 Ps, 8 Ps, 4 Cs, and SAVE

The Marketing Mix doesn’t stop at the 4 Ps. In fact, other frameworks go even further and reflect today’s reality better.

Let’s look at a few concepts that may be valuable to your company:

7 Ps of Marketing

Developed by professors Mary Jo Bitner and Bernard Booms in the 1980s, the 7 Ps of marketing build on the original 4 Ps. Here’s what was added:

• Product
• Price
• Promotion
• Place
• People – everyone involved in the strategy: employees, customers, and others
• Processes – structure, planning, and steps for bringing the product to market
• Physical Evidence (Perception) – the impressions and feelings the brand evokes in customers

8 Ps of Marketing

Another extension of the 4 Ps was developed by Philip Kotler and Kevin Lane Keller, adding 4 more Ps to the original mix:

• Product
• Price
• Promotion
• Place
• People – here, it’s about relationship marketing to bring the customer closer to the brand
• Processes – also known as internal marketing, focusing on internal workflows and organization
• Programs – integrated marketing, referring to all programs supporting marketing and sales strategies
• Performance – performance marketing, focused on measuring results

4 Cs of Marketing

Created in 1990 by Robert Lauterborn, the 4 Cs of marketing shift the focus to the consumer’s perspective:

• Customer – the starting point is the customer
• Cost – what is the price?
• Communication – the communication strategy
• Convenience – what are the sales channels?

SAVE

Lastly, there’s SAVE, a framework focused on the B2B market and on the real needs of consumers. The idea is to replace the 4 Ps with SAVE:

• Solution – replaces Product
• Access – replaces Place
• Value – replaces Price
• Education – replaces Promotion

The SAVE framework proposes that companies provide real solutions to consumer problems (rather than just products); offer access (not just stores); present their value proposition (instead of just pricing); and educate the audience with relevant content (instead of only promoting the product).

So, are you ready to put your Marketing Mix strategy into action by bringing together all 4 Ps?

If you want to take another step closer to great results, let me introduce you to one more concept you can add to your Promotion strategy:

It’s called Conversational Marketing—a tactic focused on real-time, personalized conversations with your visitors to help guide them through the decision-making process.

If you want to learn more about this concept and the benefits it can bring, take a look at this Complete Guide to Conversational Marketing!