The marketing mix is the set of decisions a business makes to market a product. The classic 4Ps are product, price, place and promotion (McCarthy, 1960). The 7Ps add people, process and physical evidence (Booms and Bitner, 1981), which matter most for services and online businesses.
The 7Ps explained (with online examples)
| P | Key questions | Online example |
|---|---|---|
| Product | What do customers need? Features, quality, range, brand | A software company offering a free trial |
| Price | What will customers pay? Discounts, bundles, subscription | An e-book publisher bundling titles |
| Place | Where and how do customers buy? Channels, distribution | A craft brand selling on its own site and on a marketplace |
| Promotion | How do we reach them? Advertising, social, email, SEO | A fitness app running targeted social ads with influencers |
| People | Who delivers the service? Skills, attitude, training | A responsive social media and support team |
| Process | How is the service delivered? Ordering, delivery, returns | One-click checkout and easy returns |
| Physical evidence | What tangible proof reassures customers? Website, packaging, reviews | A professional website, reviews and order confirmations |
The online examples follow Chapter 16 of the book.
4Ps, 7Ps and 4Cs
| Framework | Elements | Origin |
|---|---|---|
| 4Ps | Product, price, place, promotion | McCarthy, 1960 |
| 7Ps | 4Ps plus people, process, physical evidence | Booms and Bitner, 1981 |
| 4Cs | Customer solution, cost, convenience, communication | Lauterborn, 1990 |
How to use the marketing mix, step by step
- Define the target customer segment.
- Set the positioning: what should customers think of you compared with rivals?
- Make each P consistent with that positioning (a premium price needs premium people, process and evidence).
- Check the mix against competitors and customer feedback.
- Review it as the market changes.
The marketing mix in ACCA SBL
Marketing appears under technology and e-business (syllabus area E). Use the mix to assess how an organisation markets online or to recommend changes after a strategy shift. Tie each P to case evidence and to the target customer, and avoid listing all seven if only two or three matter.
Worked example
For Historic Places (March 2025 pre-seen) selling memberships online: product (digital membership with virtual tours), price (a lower online-only tier), place (website and app), promotion (social media and email to past visitors), people (trained digital volunteers), process (simple sign-up and renewal), physical evidence (a high-quality website and member reviews).
FAQs
What are the 7Ps of the marketing mix?
Product, price, place, promotion, people, process and physical evidence.
Who created the marketing mix?
Neil Borden popularised the term 'marketing mix'. E. Jerome McCarthy grouped it into the 4Ps in 1960, and Booms and Bitner added people, process and physical evidence for services in 1981.
What is the difference between the 4Ps and the 7Ps?
The 4Ps (product, price, place, promotion) were designed for physical products. The 7Ps add people, process and physical evidence, which matter most for services and online businesses.
What are the 4Cs?
Robert Lauterborn's customer-focused version (1990): customer solution, cost, convenience and communication.
Is the marketing mix still relevant?
Yes as a checklist, but digital marketing adds new considerations such as data, personalisation and online communities. Chapter 16 of the book covers e-marketing, the 6 I's and e-branding.