As the market continues to develop, marketing theories are also evolving. During this evolution process, two routes have emerged: one is to continue improving and supplementing on the basis of the 4Ps, namely the route from 4Ps to 10Ps; the other is to upgrade and transform the original theory into new marketing theories, such as the 4C theory, the 4R theory, and the 4S theory.
### I. The Evolution of Marketing Theory - From 4Ps to 10Ps
The 4Ps represent controllable factors in the marketing process and are also the primary tools enterprises use for marketing activities. Their specific application forms the most basic marketing strategy for businesses. The 4Ps refer to Product, Price, Place, and Promotion.
#### First, regarding the product:
It's important to pay attention to the physical product, services, brand, and packaging. Specifically, a product refers to the combination of goods and services that a company offers to its target market. This includes the product’s utility, quality, appearance, style, brand, packaging, and specifications. Additionally, it includes factors like service and warranty.
#### Regarding price:
This mainly includes the base price, discount price, payment schedule, and lending conditions. It refers to the economic return that a company seeks when selling its products.
#### Regarding place:
This typically includes distribution channels, storage facilities, transportation facilities, and inventory control. It represents various activities organized and implemented by a company to ensure its products reach the target market, including channels, stages, locations, warehousing, and transportation.
#### Regarding promotion:
This refers to the communication activities a company uses various information carriers to engage with its target market, including advertising, personal selling, sales promotions, and public relations.
The 4P strategy is the most fundamental among these four strategies, and the characteristics of the 4Ps are very evident. First, these four factors are adjustable, controllable, and applicable by the enterprise. For example, based on the situation of the target market, the company can independently decide what products to produce, what prices to set, which sales channels to choose, and what promotion methods to adopt. Second, these factors are not fixed but constantly changing. Enterprises must respond accordingly to changes in internal conditions and external environments. Finally, these four factors form an integrated whole. They are not simply added together or pieced together but should be guided by a unified goal, complementing and supporting each other to achieve a greater overall effect than the sum of their individual functions.
- **(1) Product Strategy (Product):**
A product refers to any tangible item or intangible service that can satisfy consumer and user needs and desires. Tangible items include the physical product and its quality, features, style, specifications, brand, and packaging. Intangible services include after-sales services, guarantees, installation, returns, and sales that provide additional benefits and psychological satisfaction to buyers.
- **(2) Distribution Channel Strategy (Place):**
The distribution channel strategy determines the path from the manufacturer to the actual arrival of the product or service at the target market or customer. This includes distribution channel models, selection, adjustment, and coordination management of intermediaries, as well as physical distribution.
- **(3) Promotion Strategy (Promotion):**
Promotion refers to the various means a company uses to convey information about its goods or services to customers, thereby influencing and promoting customer purchasing behavior. Promotion also includes personal selling, advertising, sales promotions, etc.
- **(4) Pricing Strategy (Price):**
Price is one of the key factors affecting consumer behavior and market demand. When setting prices, companies must consider their own factors such as cost and profit, as well as consumers' understanding and acceptance of prices. Companies need to select appropriate pricing objectives based on their strategic goals, comprehensively analyze cost, supply and demand relationships, competition, and government control factors, and use scientific methods to set prices. Prices should then be adjusted according to various actual situations, considering factors such as discounts, allowances, payment terms, and credit conditions.
On the basis of completing the 4P theory, later theorists added political power and public relations to the marketing environmental factors, forming the 6P theory, which became a transitional stage from the 4P theory to the 10P theory.