No matter what kind of business you run, marketing is how people find, trust and decide to buy from you. At the heart of every strong strategy are the principles of marketing—core concepts that help businesses build connections, shape their brand and drive growth.
First introduced in the 1960s as the 4 Ps of marketing—Product, Price, Place and Promotion—these principles have since expanded into the 7Ps to include People, Process and Physical Evidence. Understanding the difference between the 4 Ps vs 7 Ps of marketing helps businesses choose the right approach based on their model and goals.
In this guide, we’ll break down each principle, share real-world examples of marketing principles for small business and explore essential resources that expand on the definition of marketing principles and why they still matter today.
- The principles of marketing are core strategies that help businesses reach and engage customers, introduced by E. Jerome McCarthy in 1960 through the 4 Ps of Marketing framework.
- The 4 Ps of Marketing—Product, Price, Place and Promotion—form the foundation for creating and delivering value to customers.
- The 7 Ps of Marketing include People, Process and Physical Evidence, offering a broader framework for service-based and digital businesses to enhance customer experience and brand consistency.
- The principles of marketing are crucial for identifying customer needs, building brand presence and implementing strategies that drive small business growth and competitiveness.
What are the principles of marketing?
The principles of marketing are the core concepts and strategies businesses use to connect with their target audience, build brand awareness and drive sales. By applying these principles, companies can craft sustainable marketing strategies that evolve with consumer behaviors, industry trends and marketing trends.
The evolution of the principles of marketing: Influential theories and books on marketing principles
The original principles of marketing, known as the 4 Ps, were first published in a book by renowned marketing professor E. Jerome McCarthy named ‘Basic Marketing: A Managerial Approach’. These principles still form the blueprint for running and marketing a business successfully, even 60 years after the book was published.
The 4 Ps of Marketing
The 4 Ps not only offer the key points for launching your brand but also the essential elements for marketing that brand. The four principles of marketing are:
- Product: The tangible goods or services your business provides, and whether they meet the needs and expectations of your audience.
- Price: The sweet spot that nails your profit margins without being too high for your customer, or so low that you risk going out of business.
- Place: Where your product or service is sold or delivered, i.e. online or in store.
- Promotion: The most obvious element of marketing refers to tactics to reach and expand your customer base, such as discounts and advertising.
Philip Kotler and Gary Armstrong later expanded on these concepts in ‘Principles of Marketing’. This book has been widely regarded as the definitive text on the subject and used to teach marketing in universities and business schools worldwide. It explores consumer behavior, market segmentation, branding and how businesses reach and engage with customers, making it an essential read for anyone serious about marketing.
Other important books on marketing principles include:
- ‘Marketing Management’ by Philip Kotler: Emphasizes strategic marketing planning and competitive advantage.
- ‘The Marketing Concept’ by Peter Drucker: Highlights the customer-centric approach that businesses follow today.
- ‘Contemporary Marketing’ by Boone and Kurtz: Introduces the evolving role of digital marketing and new technologies in today’s marketing landscape.
The 7 Ps of Marketing
The 4 Ps have evolved, just as your marketing strategy should. The 7 Ps are an extended version of the principles developed in the 1980s to suit the modern age. Inspired by the transition to digital sales and services, the three extra Ps were developed by marketers Boom and Bitner to approach the less tangible elements of marketing. They are:
- People: How customers connect with real people throughout the business process. This is an important aspect to consider if your business mostly operates digitally.
- Process: How smoothly the customer journey is from discovering your brand to receiving the product or service.
- Physical evidence: The physical results or, for digital service companies, the way physical attributes like a website or adverts support your brand and its overall marketing.
The 7 principles of marketing explained
1. Product: What are you selling?
Product is the first of the original 4Ps. To include this principle in your marketing strategy, focus on:
- Quality: Ensuring your product meets standards.
- Market fit: Understanding where your product fits in the market and if it serves a real need.
- Demand: Assessing how much interest and demand there is.
To refine your strategy, conduct market research through interviews to gain direct customer insights, surveys to understand broader customer preferences, and audits to evaluate sales trends and product performance.
As you come to understand the market position and demand for your product, as well as what your customers like or dislike about it, adapt your marketing strategy accordingly.
The Sill—a small direct-to-consumer plant shop aiming to help urban dwellers bring greenery into their homes—is a great example of product strategy. Unlike traditional plant nurseries, The Sill combines beginner-friendly indoor plants with educational content and modern planters, and developed its product offering based on feedback from customers living in cities with limited space or gardening experience.
Take inspiration from The Sill and focus on building a differentiated product by solving a specific customer need.
2. Price: How to set the right price?
Pricing is almost, if not just, as crucial to your business as a well-thought-out product or service. Without a clear pricing strategy, you could go out of business, regardless of how great your product or service is.
When setting prices, consider:
- Profitability: Ensure your price accounts for overhead costs, production and profit margins.
- Market trends and competition: Stay flexible as new competitors emerge and industry pricing shifts.
- Perceived value: Research what customers expect and are willing to pay for a product like yours.
- Promotions: Factor in discounts, seasonal promotions and introductory pricing to attract customers.
- Long-term strategy: Avoid relying solely on full-price sales if price drops are common in your industry.
Everlane is a strong example of marketing principles for small business pricing strategy. The company built its brand around “Radical Transparency,” breaking down the true cost of its products, including materials, labor and transport, and sharing that information openly with customers. This transparent pricing approach builds trust with customers, positions their products as high-quality yet fair and justifies their mid-range price point in a crowded market.
Small businesses can build customer trust and justify their pricing by clearly communicating how prices are decided. Consider sharing cost breakdowns, material sourcing information and quality comparisons.
3. Place: Where to sell your products?
The “Place” principle is relevant for both brick-and-mortar businesses and digital brands. While a website is a place, your marketing strategy should consider how to reach a wider audience, whether that’s selling through social media affiliate links or third-party retailers like Etsy.
While physical businesses have the advantage of putting their product in front of customers at events, trade shows, pop-ups, marketplaces or even in partnership with other local businesses, they should also have an online presence. Positioning your product in places you know your target audience spends time means you’ll use fewer resources competing with other sellers.
Learn how to find your target audience (and better align the Place of your marketing strategy with it) in our guide.
Wildgrain—a small subscription-based bakery service that delivers frozen, bake-at-home sourdough bread and pasta—is a great example of a successful distribution strategy. Instead of relying on grocery stores, Wildgrain’s direct-to-consumer model and national shipping help the company reach customers seeking high-quality food at home. Their website is the primary “Place” in their marketing mix, supported by partnerships with food influencers.
Local businesses can expand their reach and maintain more control over the customer experience by selling directly through their website or other online channels, rather than relying on traditional retail.
4. Promotion: How to attract customers?
Promotion is often the first thing that comes to mind when people think of marketing. In physical locations, this includes traditional marketing, such as:
- Eye-catching displays and signage
- Flyers, brochures and other printed marketing materials
- Local events and community engagement
A-Frame sign outside a store
Whether you run a brick-and-mortar or online business, digital marketing is essential. To attract and retain customers, consider the best ways to promote your small business, such as:
- Sales and discounts: Limited-time offers to bring in new buyers
- Content marketing: Blogs, podcasts and videos that educate and engage
- Social media marketing: Organic posts, influencer collaborations and paid ads
- Email marketing: Regular updates, exclusive offers and customer engagement
- Paid advertising: Google Ads, social media ads and other PPC platforms
Experiment with promotional tactics and small business hacks, such as limited-time discounts, referral programs and user-generated content campaigns, to see what drives the most engagement and conversions.
Warby Parker grew from a startup into a household name by rethinking eyewear promotion, with a try-at-home program, playful brand voice and focus on social media. Rather than relying on expensive ads, Warby Parker leaned into brand storytelling, word-of-mouth referrals and customer experience to generate buzz, build loyalty and stand out from competitors.
Small businesses can promote effectively by creating experiences that get people talking—think product trials, engaging content and campaigns that highlight your brand’s personality.
5. People: Who represents your brand?
Rather than your customers, the People marketing principle actually refers to the human side of your business, showing the real people behind your brand. Often in small businesses, the owner, founder, maker and promoter is one person, meaning authentic customer service comes easily, the people behind the business feel accessible, and customers feel cared for.
A small business owner in a branded uniform
This McKinsey report reveals that the way customers are treated accounts for up to 70% of their overall experience. For example, regardless of the quality of your product, your social media presence and delivery time affect customer satisfaction.
In fact, according to the 2025 Small Business Marketing Guide by VistaPrint x Wix, 47% of US customers say they would choose a small business over the competition if they receive great customer service. Since it’s 5 to 25 times cheaper to retain existing customers than acquire new ones, bad customer service can be expensive.
Implement customer service training programs that emphasize empathy, responsiveness and brand consistency to enhance customer satisfaction and retention.
6. Process: How smooth is the customer journey?
Perfecting your business process will reduce costs. Optimizing the way your business runs, from simplifying the production process to streamlining all departments, can make things easier for your existing employees while making onboarding new team members more efficient.
Process optimization is one of the most effective business growth strategies, as freeing yourself from admin tasks will give you the time to focus on business-critical decisions. This includes developing training to ensure tasks are handled consistently or adopting new software, like using Shopify if you’re a digital retailer.
Map out the customer journey from awareness to purchase and pinpoint where drop-offs occur. Optimize these stages by streamlining checkout, improving website navigation or offering better customer support.
7. Physical Evidence: What reinforces your brand?
Physical Evidence is what customers see from your business. Your brand doesn’t need physical products or a brick-and-mortar storefront for physical evidence. Here are some more nuanced examples:
- For a software developer: A functioning piece of code
- For a copywriter: A well-ranking piece of website copy
- For a taxi driver: A happy passenger’s review saying they were safely dropped off at their destination
There’s also the physical evidence that led a customer to your business in the first place. This includes strong branding that attracts customers, a website with good user experience, fast customer service and company policies that build customer trust. It’s helpful to think of Physical Evidence as how your company enhances customer experience at every touchpoint.
Source: A service provider’s website and branding by Creative_Ahmed via 99designs by Vista
Achieve success with the principles of marketing
The principles of marketing are a great starting point for developing a marketing strategy. So why not apply the 7 principles of marketing in the order that works best for you? Reordering the 7 Ps based on relevance and priority provides a focus that could make your marketing strategy more achievable.
Though all the principles of marketing can apply to any business—and should all be considered when developing a marketing strategy—some will be clearer and easier to implement than others. A well-planned marketing strategy based on the seven principles of marketing will help you build your brand effectively.
Despite changing market conditions, returning to these key principles can guide you through anything that marketing a business might throw at you. You might even come up with some more principles of your own.
Principles of marketing FAQs
How can small businesses apply the principles of marketing to their strategy?
Small businesses can apply the marketing principles by focusing on their target audience, setting competitive pricing, choosing the right sales channels and using effective promotional tactics. Implementing these principles ensures a well-rounded marketing strategy that enhances visibility, increases customer engagement and boosts sales.
What are the best books on the principles of marketing to learn from?
The best books on principles of marketing include ‘Principles of Marketing’ by Philip Kotler and Gary Armstrong, ‘Marketing Management’ by Philip Kotler and ‘Contemporary Marketing’ by Boone and Kurtz. These books provide foundational knowledge, case studies and actionable insights to help businesses and students master marketing strategies.
What’s the most important principle of marketing?
The most important principle of marketing varies by business, but the Product principle is often the foundation. Promotion is also crucial because, without visibility, even the best product may go unnoticed. A great product that meets customer needs drives success, while weak promotion or pricing can limit growth. Ultimately, the key principle depends on your business, industry and audience.
What are the 5 principles of marketing?
The five principles of marketing are foundational concepts that guide businesses in effectively reaching and engaging customers. While different models exist, a commonly recognized set includes customer orientation,
value creation, profitability, integrated marketing and market segmentation.
What is the difference between the 4 Ps vs 7 Ps of marketing?
The 4 Ps focus on Product, Price, Place and Promotion. The 7 Ps expand this model by adding People, Process and Physical Evidence, making the principles more relevant for service-based and digital businesses.
Can I apply the 4 Ps of marketing without a marketing team?
Yes. Small business owners who are just getting started can apply the 4 Ps using tools like website builders, customer surveys and simple analytics tools to test and adjust their strategy over time.
