Marketing mix - 4C and 7C Compass models

Service Business

In the previous section, we covered the 4P and 8P models, now it's time for more advanced concepts that were developed in later years. Their creation was influenced by both new marketing practices and the development of information technologies. Progressing globalization, which turned the economy into a global system of connected vessels, was also important. How will the marketing mix work under these circumstances?

Marketing mix as seen by the consumer - the 4C model

The 'c' model has been repeatedly criticized. Alternative theoretical constructions were also created, among which the 4C model designed over twenty years ago by Robert Lauterborn should be distinguished. It is a kind of reversal of the classic marketing mix. The scientist came up with the concept where the consumer is at the center of everything. This time, individual elements are represented - as you can easily guess - with the letters "C". Here they are:

  • Consumer - or more specifically his needs and preferences. Focusing on what exactly the client needs, hence the greater emphasis on marketing research. In this approach, the market opinion is checked first and then the right product is created.

  • Cost - a category much broader than the price. It includes not only the monetary value that the customer has to pay for the product or service, but also any side expenses - travel time and cost, waiting time for the package, effort to get the product or use the service, etc.
  • Communication - a concept much broader than the promotion mentioned in the 4P model. It is about creating a relationship between the consumer, focused on cooperation. The development of this tool has been facilitated by the emergence of social media, in which the brand can freely communicate with the audience and vice versa. Communication is necessary to formulate the company's offer, shape prices, improve service, improve the contact experience (CXM) and build a long-term relationship based on trust, understanding and mutual influence.

  • Convenience - focus on convenience and ease in obtaining a product or service. In the age of the Internet, the comfort of searching for information about a brand comes to the fore - that is, the entire spectrum of activities in the inbound marketing category is at stake, i.e. positioning and web usability.

7C Compass, i.e. a marketing compass and a marketing mix

The Japanese marketing theorist has developed his own, extremely colorful and vivid concept - the 7Cs Compass Model. Its name comes from the 7 words beginning with the letter "c" (in English) and the graphic arrangement of its components, which resembles a compass, as you can see below.

Let us describe in turn the components of this very fancy model:

Corporation (company)

Commodity (commodity) - a good or service offered by the company.

Communication - internal and external communication.

Channel - channels for the distribution of goods and services as well as external and internal communication.

Cost - Similarly to the 4C model, it is about all expenses (money, effort, etc.) that are needed to obtain the product offered by the company.

Consumer (client)

Needs - customer needs, unspecified consumer voices.

Wants - specific customer needs that can be met by specific goods or services.

Education - the customer's right to know information about products.

Security - safety of products, production process and after-sales guarantee.


External factors independent of the company that can have a significant impact on marketing. Differently the external environment of the company.

National and international - factors related to the politics and law of states - both the home country of the corporation and the foreign environment. Changes in the law - for example, imposing higher taxes, stricter sales regulations, advertising bans and even embargoes - are of great importance for business. In the era of globalization, when many companies sell their goods and services and maintain business contacts with foreign contractors, the economies of most countries are strongly dependent on each other.

Weather - meteorological changes that may be important for the sale of products and services. As you know, the occurrence of drought in agricultural regions of the world can have a huge impact on the food industry. The same goes for floods, fires, and hurricanes. A key factor for those branches of the economy that are to some extent climate dependent.

Social and cultural - social and cultural factors that must be taken into account when writing a marketing strategy. It is obvious that the societies of states differ in many respects - for example in terms of understanding certain cultural contexts or approach to the work ethos. An advertisement appealing to one nation may be offensive to another. It is worth citing the example of the Japanese Mitsubishi Pajero. Marketers, when introducing the car to the Spanish market, did not take into account that the name of the model in the local slang means ... onanism.

Economic - all economic conditions. Domestic and world economic conditions, commodity prices, fuel prices, interest rates and so on.

Online marketing mix

The development of e-commerce has forced the emergence of internet marketing, which consists of a whole range of more or less complex concepts. Among them, of course, there was a "computer" variety of marketing mix.

As you can see, this model has a different emphasis than previously discussed. Here we have four factors that overlap - they interact, reinforcing each other. Let us discuss them in turn:

  • Corporate website - a basic element that cannot be dispensed with. The website must be functional, transparent and full of information relevant to the client, and should provide a certain degree of interaction. Its creation should be carried out with respect to the elementary principles of web usability. The website is the starting point for the online marketing mix - all other components apply to it.

  • Conversion optimalization - all processes and decisions that lead to increased sales, i.e. the conversion of leads into purchases.

  • SEM (search engine marketing, search engine marketing) - activities related to advertising and website positioning in search engines (SEO).

  • Social media marketing (social media marketing) - advertising activities on social networks such as Facebook, Twitter, YouTube, etc.