Free Resource: 4 Marketing Mix Templates

The Extended Marketing Mix: Making Marketing Strategy Complete

Just like making the perfect sandwich needs the right combination of ingredients, marketing needs the right mix of strategies. Let’s explore how the traditional marketing mix evolved into something more comprehensive.

Understanding the Basic marketing mix  (The Original 4 P’s)

The traditional marketing mix consists of four essential elements that work together to help businesses make important marketing decisions:

1. Product: What your company sells
2. Place: How and where you’ll sell your product to customers (like websites or physical stores)
3. Price: How much to charge while meeting revenue goals and staying competitive
4. Promotion: How you communicate with customers (through advertising, PR, sales, etc.)

These elements naturally complement each other. Think about it: Products need a price, a place to be sold, and promotion to reach customers. Similarly, promotions need a product, price, and place to be effective.

Enter the Extended Marketing Mix: Adding 3 More P’s

The Extended Marketing Mix is essentially a comprehensive framework that helps businesses plan and execute their marketing strategies. Think of it as an upgraded version of the traditional marketing mix, specifically designed to work better for modern businesses, especially those offering services rather than just physical products.

Marketing experts realized that the original mix wasn’t quite enough, especially for service-based businesses. So they added three more elements:

1. People
   • This includes everyone involved in your company
   • Example: Think about your local coffee shop. When a barista remembers your name and usual order, that personal touch keeps you coming back. The success of a company heavily depends on its people.
2. Processes
   • These are the procedures that ensure consistent customer experiences
   • Example: In that same coffee shop, baristas follow specific recipes for each drink, ensuring you get the same great latte every time
   • This often involves creating standard operating procedures (SOPs)
3. Physical Evidence
   • These are the tangible elements that make your service stand out
   • Example: A local coffee shop might differentiate itself from large chains by using local beans, mugs, and décor

How Everything Works Together

The beauty of the extended marketing mix is how all elements connect:

• People execute processes using physical evidence
• Processes guide people and determine how physical evidence is used
• The extended mix enhances the original 4 P’s, making it more customer-focused

Practical Applications

The extended marketing mix helps businesses:

• Define their marketing strategy comprehensively
• Stand out from competitors
• Make informed business decisions
• Plan and allocate marketing budgets effectively

For example, when planning expenses, you’ll need to consider:

• Fair pricing for your product/service
• Budget allocation for promotion
• Investment in physical evidence
• Resources for training people
• Costs of implementing processes

Whether you’re starting a new business or refining an existing marketing strategy, the extended marketing mix provides a valuable framework for organizing and improving your marketing efforts.

The extended marketing mix helps companies define their marketing strategy in a well-rounded system. Identifying each portion of the mix gets you one step closer to a functional, complete marketing plan.