What are 4P and 7P rules?

24.05.22
Marketing
What are 4P, and 7P rules

What are the characteristics of 4P strategies?

Today’s e-entrepreneur has to deal with tasks from many areas – trade, marketing, advertising, law, logistics, public relations, modern technologies, and more.

What elements do they consist of?

To avoid chaos, it is worth remembering the basics of running a business.

The 4P formula

The 4P marketing mix consists of four concepts – product, price, place, and promotion. These are the areas on which a marketing campaign should be based.

The first element, i.e. the product, should be analyzed in terms of quality, packaging, and brand recognition. It is important to isolate the features that distinguish the product from competitors and analyze the product life cycle.

With the second concept – price – is related to pricing policy, break-even point, payment terms, discounts and rebates and other aspects that affect the price of a good. Price can be considered a competitive factor in the market.

When thinking about the third component of the 4P formula, distribution, it is important to analyze the logistics solutions used and the distribution channels available. Well-organized distribution makes the product noticed by customers and even makes it stand out from others

The final fourth element, promotion, is a broad-based effort to bring a new product to market, increase sales, and then maintain sales.

The extended 4P formula, 7P

Over time, it was realized that the marketing mix 4P does not touch all the important aspects, so the concept was extended by three additional points – people, process, and physical evidence. In this approach, people are not only customers to whom the product is addressed, but all those who have a direct or indirect influence on its sale.

The second aspect – the process, is all the activities that affect the sale of the product, from the methods of customer interest in the product to the comprehensive after-sales service

The last element, physical evidence, includes the factors that influence customers’ perception of the company, and the product brand. The elements of physical evidence can include elements of the company’s corporate identity, the unified dress code of its employees, or the company’s elegant headquarters in a prime location.

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