Marketing Mix (4Ps & 7Ps) + Consumer Behaviour
Part A: Marketing Mix
1. Definition
The Marketing Mix is the set of marketing tools (the Ps) a firm uses to achieve objectives in its
target market. Originally 4Ps (McCarthy, 1960) for products, later extended to 7Ps for services.
2. The 4Ps of Marketing
Element Meaning Decisions Involved Example
Features, quality, design, Apple iPhone –
What the firm offers to
Product packaging, branding, after-sales innovation, branding,
satisfy customer needs
service ecosystem
Pricing strategies, discounts,
Netflix – tiered
Price The value customers pay financing options, psychological
subscription plans
pricing
Direct/indirect distribution,
Distribution channels Amazon – online global
Place logistics, online vs. offline
used marketplace
channels
Coca-Cola – global ad
Communicating with Advertising, PR, sales
Promotion campaigns (“Share a
customers promotion, digital marketing
Coke”)
Diagram – 4Ps
PRODUCT PRICE
\ /
PROMOTION
|
PLACE
, 3. The Extended 7Ps (For Services Marketing)
Extra P Meaning Decisions Involved Example
Everyone involved in Training, customer service, Starbucks baristas –
People
service delivery staff attitude personalized service
Procedures/flow of Speed, standardization, McDonald’s – fast,
Process
service delivery customization consistent service
Physical Tangible elements that Store layout, branding, Hotels – décor,
Evidence signal quality design, environment ambience, uniform
Diagram – 7Ps
Product – Price – Place – Promotion + People – Process – Physical Evidence
4. Applications of Marketing Mix
Helps firms position products in the market.
Guides differentiation and competitive strategy.
Ensures marketing activities align with consumer behaviour insights.
Example: McDonald’s adapts its menu (Product) and pricing to local markets while
maintaining global consistency.
Part B: Consumer Behaviour
1. Definition
Consumer Behaviour is the study of how individuals/groups choose, purchase, use, and dispose
of goods/services to satisfy their needs and wants (Schiffman & Kanuk, 2007).
2. Importance
Guides product design and positioning.
Helps firms set effective prices.
Part A: Marketing Mix
1. Definition
The Marketing Mix is the set of marketing tools (the Ps) a firm uses to achieve objectives in its
target market. Originally 4Ps (McCarthy, 1960) for products, later extended to 7Ps for services.
2. The 4Ps of Marketing
Element Meaning Decisions Involved Example
Features, quality, design, Apple iPhone –
What the firm offers to
Product packaging, branding, after-sales innovation, branding,
satisfy customer needs
service ecosystem
Pricing strategies, discounts,
Netflix – tiered
Price The value customers pay financing options, psychological
subscription plans
pricing
Direct/indirect distribution,
Distribution channels Amazon – online global
Place logistics, online vs. offline
used marketplace
channels
Coca-Cola – global ad
Communicating with Advertising, PR, sales
Promotion campaigns (“Share a
customers promotion, digital marketing
Coke”)
Diagram – 4Ps
PRODUCT PRICE
\ /
PROMOTION
|
PLACE
, 3. The Extended 7Ps (For Services Marketing)
Extra P Meaning Decisions Involved Example
Everyone involved in Training, customer service, Starbucks baristas –
People
service delivery staff attitude personalized service
Procedures/flow of Speed, standardization, McDonald’s – fast,
Process
service delivery customization consistent service
Physical Tangible elements that Store layout, branding, Hotels – décor,
Evidence signal quality design, environment ambience, uniform
Diagram – 7Ps
Product – Price – Place – Promotion + People – Process – Physical Evidence
4. Applications of Marketing Mix
Helps firms position products in the market.
Guides differentiation and competitive strategy.
Ensures marketing activities align with consumer behaviour insights.
Example: McDonald’s adapts its menu (Product) and pricing to local markets while
maintaining global consistency.
Part B: Consumer Behaviour
1. Definition
Consumer Behaviour is the study of how individuals/groups choose, purchase, use, and dispose
of goods/services to satisfy their needs and wants (Schiffman & Kanuk, 2007).
2. Importance
Guides product design and positioning.
Helps firms set effective prices.
