Comparison of the differences between the 4P and 7P models in the marketing mix

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1. What is a marketing mix?

The Marketing Mix is a set of variable and controllable marketing elements that a business uses to try to elicit the desired response from its target market. It is a form of Marketing that harmoniously coordinates the basic elements. Most suitable for the actual conditions of the business environment to maximize profits.

2. Role of the Marketing mix

2.1. For businesses:
The marketing mix is a solution that ensures strong and sustainable development in the market. It provides the ability to adapt to market changes and plan the right course of action to meet the desires and needs of consumers. They create a connection between the business’s production activities and the market. Moreover, the marketing mix is a bridge between the market and the business, both collecting market information about the business and providing information about the business to the market.

2.2. For consumers:
The marketing mix brings many benefits to consumers, through the marketing mix, businesses will seek and discover the current and future needs and desires of consumers. From there, they will continuously improve products, goods, and service quality to satisfy consumers.

2.3. For society:

Finally, the marketing mix plays an important role in society. Firstly, they provide a standard of living for society. When businesses study the overall marketing activities of the company, especially consumer goods companies. Besides focusing on economic development, they also focus on building community activities for social development purposes. For example: Besides focusing on product development, businesses also pay attention to environmental issues and social welfare.

3. Differences between the 4P and 7P Marketing Mix Models

3.1. The 4P Model:

The 4P model is used by marketers as a tool to implement marketing strategies.

This marketing model “mixes” four elements: Product, Price, Place, and Promotion. Revenue growth is directly proportional to the success of using the 4Ps by the business.

When applying the 4P model, marketers need to answer the following questions:

  • Product: What are you selling?
  • Price: How much is the product?
  • Place: Where will customers buy the product?
  • Promotion: How will customers learn about the product?

3.2. The 7P Model:

Similar to the 4P model, the 7P model is also a marketing tool. However, the 7P model expands on the 4P framework by adding three additional elements: People, Process, and Physical Evidence. The 7P model is often used when a business’s product is a service.

The 7P strategy is a comprehensive and critical approach that enables businesses to:

  • Create a competitive advantage and attract customers
  • Foster sustainable development
  • Understand and meet consumer needs and desires
  • Facilitate accessibility for customers and vice versa

To effectively implement the 7P model, you need to answer the following questions:

  • Product: What approaches can be used to develop the product?
  • Price: How should the product be priced?
  • Place: What distribution channels should be selected for the product?
  • Promotion: Which communication channels should be used for promotion?
  • People: Are there any skill gaps among personnel? How can their skills be improved?
  • Physical Evidence: How can customer experience data be collected? What steps can be taken to enhance the quality of the customer experience?
  • Process: How can infrastructure be upgraded to optimize the supply chain process?

3.3. Distinction Between 4P and 7P

Similarities: Both are marketing mix models.

Differences:

  • The 4P model applies to tangible goods, while the 7P model is used for services.
  • The 4P model is traditional, while the 7P model is its successor, offering
    enhancements and improvements.
  • The 4P model focuses on the point of sale and does not emphasize services or the role of customer service in building and developing a brand. In contrast, the 7P model provides a comprehensive solution, addressing both products and after-sales services, as well as brand development.

3.4. Examples of 4P and 7P Models

4P Marketing Model:
Coca-Cola is one of the most valuable global brands. It boasts a diverse portfolio of over 3,500 products (Product). Coca-Cola operates worldwide with an extensive distribution and franchising network (Place).

All Coca-Cola products are priced strategically, often setting benchmarks that competitors find challenging to match (Price). Over the years, Coca-Cola has built a “treasure trove” of advertising campaigns with globally successful promotions and robust Corporate Social Responsibility (CSR) initiatives (Promotion).

Coca-Cola serves as a prime example of a successful Marketing Mix strategy by delivering the right product at the right time with competitive pricing and impactful advertising.

7P Marketing Model:
Pizza Hut is a well-known brand in the F&B industry. It is synonymous with delicious pizzas that come in a variety of flavors (Product).

By leveraging its exceptional flavors, Pizza Hut confidently sets higher product prices compared to competitors, elevating its brand to a premium level (Price). The brand strategically chooses prime locations in every region worldwide to establish its presence (Place).

In addition, its marketing teams execute localized campaigns tailored to cultural nuances, making Pizza Hut relatable to customers everywhere (Promotion).

Pizza Hut’s processes adhere strictly to food safety regulations, ensuring every pizza is freshly prepared and served hot upon order, aiming to provide the best customer experience (Process).

The brand’s restaurants are meticulously designed with spacious and private seating areas, complemented by high-quality dining utensils. One unique feature is that pizzas are served from pans that match the plates, adding to the overall dining experience (Physical Evidence).

Pizza Hut exemplifies how the 7P strategy integrates products, services, and customer engagement to create a standout presence in the competitive F&B market.

4. Conclusion on Marketing Mix

In general, the marketing mix plays a crucial role for businesses, customers, and society alike. It is now an essential subject in universities specializing in Economics, Business Administration, and Marketing. Mastering marketing mix concepts is vital for anyone aspiring to pursue a successful career in this dynamic and ever-evolving field!

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