Gather round, children, because today’s lesson is an important one. We’re going back to school, but not for the same lessons you learned as a freshman in Marketing 101. Today, we’ll be discussing what’s changed, what hasn’t and what you should be doing about it in the 21st century.
If you open up your textbooks to about 7 decades ago, when the basic marketing concepts we still follow today were originally crafted, you’ll find a section about your marketing mix. Sounds a bit like a cake recipe, doesn’t it? And that’s because it is.
Like getting your cake mix right, when you perfect your marketing mix, you’ll garner higher engagement with the people you share it with, more positive perceptions and overall greater baking (or business) success. But, if you’ve been on Pinterest lately, you’ll know that cakes have become a lot more complex since the 60s — and so has marketing. Let’s take a look at what this means for your strategy and marketing objectives.
Marketing Mix: Textbook Definition and Core Concepts
The marketing mix definition, according to the textbooks, is a set of factors within the marketing process that brands can control to influence a potential customer to purchase. Marketing activities became simplified in the middle of the last century, simmering down to the 4Ps: product, price, place and promotion. These pillars represent the key decision areas marketers must use to align their products with brand goals.
If you’ve ever gotten into Zen Buddhism, you’ll understand that our inner consciousness and our external realities interplay and, in turn, influence one another. From that perspective, you could consider the 4Ps of marketing a commercial inner consciousness that influences a marketer’s external reality.
Here’s what each of them means to us today:
Product
From iPhones to oat milk, what you sell has a vibe, a persona and a message. Think of it as the initial eye contact preceding a handshake or a full-on conversation. As we venture deeper into the age of authenticity, “I am Brad,” tells us as much about a person as “I sell bread” tells us about a corporation. Don’t be like Brad. Your product may be a physical item, a service or an idea, and its unique value should stand out and speak for itself.
21st-century tip: Don’t just define what your product is – define what it isn’t. If you’re the handcrafted single-source honey made exclusively in Benin, you’re not the everyday toast spread that working-class families feed their three-year-old kids.
Price
Pricing isn’t a simple question of math or profit; it’s psychology. People will pay more for what they perceive as worth more. So, are you a dollar-store treasure or a luxury sweet wrapped in gold foil? Use your pricing to communicate with customers before they read the product description.
21st-century tip: Keep using “charm pricing” tactics. They’ve been around for a while, but they’re still good. Price items at $99.99, rather than $100 — we still think we’re getting a deal, anyway.
Place
Does your brand live online, in a boutique store or on the back of someone’s pocket? The correct answer should be anywhere your consumers are. With global digital access at our fingertips, your brand could be in Australia, Argentina and Arkansas simultaneously — with the flexibility to move to Azerbaijan, provided that’s where your audience is.
21st-century tip: If you’re selling online, look for spaces where your competitors aren’t. If they’re ignoring Pinterest, TikTok or some other niche forum, get there and stand out.
Promotion
If infomercials are the first thing that comes to mind, I feel your pain. We had to collectively move through the 90s to evolve to where we are now. And where we are now is creating narratives (think Nike’s “Just Do It”), sparking a conversation and building connections. Rather than saying “Buy this!” we’re saying “Come be a part of this!”
21st-century tip: Start using micro-influencers. While many brands are targeting those with big names, audiences increasingly trust smaller, niche creators. Why? Because they bring a more authentic and relatable message. Plus, for you, they’re cheaper.
So, as you can see, your marketing mix is a customizable set of tactics that adjust to (and can reciprocally adjust) your target audience and business goals. Modern-day marketing has baked some additional Ps into the mix, which we’ll explore below.
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Evolution From the 4 Ps to the 7 Ps: How Basic Marketing Has Changed
As business and society have evolved, so have the fundamentals of marketing. We now have an extra 3 Ps in the marketing mix, reflecting how consumers interact with brands within the digital space. People care just as much nowadays about a brand’s values and service as the products they purchase. If you can leverage these shifts, you’re better equipped to differentiate your brand, adapt to changing markets and create more personalized experiences.
People
This is the human side of your brand. In service industries, the people front-lining your business significantly alter brand perception. The key is ensuring customer service reps and marketing teams embody brand values.
Try having “shadow days” where employees join different departments — especially customer service. This builds empathy and a more cohesive understanding of the internal and external experience of your brand.
Process
Welcome to the how behind the wow. Each step, from placing orders to packaging and distribution channels forms the foundation of your brand experience. Build your process to generate consistency — customers don’t like surprises unless they’re the good kind.
To achieve this, gamify your internal procedures. See who can complete a customer order in the fastest time or handle issues with the highest satisfaction score. Then, standardize the practice.
Physical Evidence
Everyone loves something they can touch and feel, whether it’s the UX of your latest app update or the velvety packaging of a new pair of shoes. Physical evidence proves you’ve thought of everything.
Give your customers nice surprises. For example, I once received a bag of eco-packaged coriander seeds after visiting a winery for a tasting — a totally unexpected, tangible and memorable touch.
Examples of the Marketing Mix in Action
A great marketing strategy is about more than theory. So, let’s bring in some real-world examples to see what the marketing mix looks like in action:
Apple’s Product Marketing
The three core elements of Apple’s product mix were innovation, design and customer experience. Steve Jobs was pedantic about design, and Apple products are known for their clean, intuitive tech that just works. From the early Macintosh computers to iPods and iPhones, Apple’s core vision for quality and simplicity keeps it distinct in a crowded market.
Tesla’s Pricing Strategy
Not only did Musk bring the new household name of electric vehicles to the market, but he also introduced the concept of a “floating pricing strategy.” Initially, prices appeared to fluctuate at random. Now, analysts believe that Tesla’s cars are valued at the average cost of a new vehicle within its segment at any given time. This means the price of a single model may change multiple times throughout the year.
This strategy reinforces the brand’s luxury positioning while accommodating economic fluxes like inflation and demand.
Starbucks’ Promotional Activity
Starbucks got straight into brand awareness through social media marketing, filling its feeds with topical viral trends, personalized orders and leveraging user-generated content. In particular, the latter merges place into promotional activity.
Anyone on the planet can find Starbucks basically anywhere nowadays, so we can all post about our pumpkin spice lattes in the snow, at airports, after a workout or during walks in the park. Speaking of pumpkin spice lattes, Starbucks has actually honed its product to a point where any coffee with a fluffy name leads most of us directly to the brand — whether or not we’re consumers.
Marriott’s Process
As a marketing tactic, Marriott hotels have taken the process to a new level. Its mobile app helps customers check in and out virtually, avoiding wait times and they can customize stays through the app, too.
Marriott offers a straightforward rewards program where guests can cash in points earned through stays, dining and activities for additional nights, room upgrades and other benefits. Moreover, the chain demonstrates its commitment to a sustainable future with initiatives aiming to reduce its carbon footprint, conserve water and minimize waste.
Going Beyond the 4 Ps: Considering Your Target Market’s 4 Cs
If you want to really blow your mind, think of the 4 Ps from the customer’s perspective: customer cost, core benefit, convenience and communication. These marketing mix variables put the buyer right at the core of your strategy, giving you a customer-centric approach to fold into your mix for a super successful marketing plan.
- Customer cost: Cost encompasses effort, time and mental energy. If you can make it easy, fast and worthwhile, your customers will be happy to pay the financial price.
- Core benefit: What do customers really get out of your products and services? Think about it like this: Rather than selling a drill, you’re selling the hole your customers need in their wall. Make the core benefit as clear as day and address their end goal.
- Convenience: Each unnecessary step is a point where you lose a customer. Think of convenience as removing obstacles until the path to purchase is paved and waiting.
- Communication: This includes how you speak to your audience, but from a customer perspective, it’s how you listen, respond and fix mistakes. Customers want to be heard, and if you listen, you will stay one step ahead.
Marketing Mix in the Digital Age: Going Beyond Business Textbook Basics
In a digital-driven reality, each P adapts and flexes. Here’s how they shape our process from a digital marketing perspective:
- Product: Think beyond physical items. Today’s product includes digital services, courses, apps and experiences. Personalize your product by using data and analytics to tailor options to individual preferences.
- Price: Dynamic pricing is all the rage, where prices can adjust based on demand, time and individual buying behavior. Ever notice how flights get pricier the second time you check?
- Place: This now means a strong online presence and, sometimes, physical locations that serve as experiences. Cyberdog stores are a great example — like interactive museums for all things alternative.
- Promotion: Digital promotion covers everything from SEO to influencer marketing. Run A/B tests, try new platforms and see where your audience bites.
And remember, data is your friend. Every site visit, app download or social media comment tells you something about your customer’s interests. If you lean into the data, you can keep refining your Ps in real time to make a digital marketing mix that’s unequivocally yours.
