If you’ve heard of the classic principles of marketing, you may also know that they’ve been around for a while. A long while—more than 60 years!
It started with the four principles of marketing, also called the 4 Ps or the 4 Ps marketing matrix. This framework was first published in 1960 (though its origins can be traced back to the 1940s). Then in 1981, researchers extended that model to the seven principles of marketing, or the 7 Ps.
There’s a whole lot that’s changed since then—for example, that tiny invention called the internet.
But there’s no denying that these basic principles of marketing have built a strong modern blueprint for how to run a successful brand. On your path to building and growing your own business, you’ll find that the Ps offer several gems of wisdom to apply to your marketing strategy.
In this article, we’ll look at the original 4 Ps and the extended 7 Ps model, as well as some variations and interpretations that other experts have.
We’ll also look at examples of these principles and how they translate into an effective marketing strategy.
What are the principles of marketing?
While there are many interpretations and applications today, it all started with the four principles of marketing: product, price, place, and promotion. The extended 7 Ps version added a few more: people, process, and physical evidence.
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Booms and Bitner, the marketers who added the last three, thought that the original 4 Ps model was too focused on marketing tangible products. Their version caters to the unique considerations of service-based businesses.
The principles of marketing concept is part of the “marketing mix,” which is a blanket term to describe all the strategies and tactics that businesses can use to bring their products and services to market.
With this in mind, you can think of all those Ps as a decision-making framework. It guides businesses on their journey of choosing the right marketing plan for their individual needs.
Variations of the 7 Ps
If you scour through online resources, you’ll find some variations in how people define the 7 Ps. For example, some marketers replace process and physical evidence with positioning and packaging.
In some circles, there’s also an eighth principle of marketing: productivity and quality. Yet another one added to the mix is partners.
But we don’t want you to drown in Ps, so we’ll just focus on the most crucial principles we listed in the last section.
The principles of marketing explained
Before we dig into examples and tips, let’s quickly define each of the seven principles of marketing.
- Product. The tangible item or service that you’re selling. Does it address the needs, wants, and expectations of your prospective customers?
- Price. It may take some trial and error, but it’s important to get your pricing strategy right. Too high and you’ll lose customers; too low and you’ll cut into your profit margins—and eventually risk going out of business.
- Place. What are the optimal distribution strategies, or places and ways that your offering is sold and delivered?
- Promotion. This is what most people think when they think of marketing. Promotion includes tactics like sales, advertising, events, and other marketing channels to get your offerings in front of your target market.
- People. Here’s where we cross into the extended 7 Ps. People refers to “human interfaces” where needed—a way for customers to connect with real people on your team during the marketing process.
- Process. How smooth is the business process from start to finish, from when they first discover your brand to when they receive their product or service? How can you make it smoother?
- Physical evidence. While a product-based business sells physical items, a service-based business has other physical indicators of their brand and offerings, like their website, brochures, and business cards. How well do these items play into your overall brand image and promotions?
Importance of marketing principles
If you’re a business owner or an aspiring one, you’ve surely noticed by now the sheer volume of choices you have—from picking the right things to sell to getting your target audience to buy them to keeping them satisfied and coming back for more.
When you examine and thoughtfully apply the marketing principles, you’ll be able to make smarter, more informed business choices. This, in turn, will dramatically improve your chances of building a brand that’s truly valuable to your customers, your team, and yourself.
As an added bonus, the 7 Ps are sustainable marketing principles that set your brand up for long-term stability. The conditions of the market will constantly change, but the strategies you build from these principles will help to fortify and protect your company from the market’s inevitable volatility.
Now, let’s break down each of the seven marketing principles and how you can apply these concepts to your own business, whether it’s a brick-and-mortar store, online store, or service-based company.
Marketing principles and strategies: A breakdown
1. Product
Product is arguably the core of the original four principles of marketing. If you don’t have a good product, you don’t have a good business, right?
One of the most important considerations for your product or service is making sure there’s a strong demand. Do customers really want it? Does it truly fulfill a need in the marketplace?
The best way to explore these questions is through good old-fashioned market research, which can be done through methods like online research, firsthand interviews and analysis, and surveys.
Market research should take a deep dive into your audience: their traits, desires, needs, and behaviors. Market segmentation can help you identify these key considerations, which then sets you up to deliver star products that they really love.
Once you’ve made some sales, consider the customers’ satisfaction. Did they get what they expected, or is there some room for improvement?
When you’re examining the relevance and quality of your offering, consider all the elements, like the build, quality, and uses, as well as potential needs like repairs and accessories.
2. Price
Pricing strategy is critical to the success of your business, which is why you should always be optimizing your prices for your audience and market niche.
Even if you’ve found a price point that seems to work fantastically, there are still uncontrollable elements that can change your circumstances, like a new development or competitors in your niche.
To set pricing, there are a couple of strategies to keep in mind. Say you’ve put a lot of money into building that business, and you need to recoup your investment quickly. You might want to start with a higher price and see how it performs before lowering it.
If you have low overhead, like a dropshipping store, you can get away with lower pricing to start and see how your audience reacts. If you’re selling a high volume, you might have leeway to raise your prices to see how that impacts sales.
Sales promotions are an excellent way to entice new customers—but be careful to ensure you’re not discounting more than your company can afford. Check out this video for help with calculating your profit margins.