Marketing Mix: The 4 Ps

The 4 Ps of Marketing

• The 4 Ps refer to the marketing mix, consisting of four key elements: product, price, place, and promotion.
• These elements are essential in introducing a product or service to the public.
• The 4 Ps provide a framework for companies to successfully market a product or service to consumers.

History of the 4 Ps

• The concept of the 4 Ps was introduced in the 1950s.
• Neil Borden, an advertising professor at Harvard, popularized the idea of the marketing mix in the 1950s.
• Borden's 1964 article "The Concept of the Marketing Mix" demonstrated the use of advertising tactics to engage consumers.

Expanded 4 Ps

• Over time, additional Ps have been identified: people, process, and physical evidence.
• These additional Ps have evolved as the marketing industry has grown and changed.

Normalization

• A technique used to transform data into a common scale to prevent features with large ranges from dominating the model.

Min-max Scaling (Rescaling)

• Rescales the data to a common range, usually between 0 and 1.
• Formula: X' = (X - Xmin) / (Xmax - Xmin).
• Easy to implement.
• Preserves the shape of the original distribution.
• Sensitive to outliers.
• Does not reduce the effect of outliers.

Z-score Normalization (Standardization)

• Subtract the mean and divide by the standard deviation for each feature.
• Formula: X' = (X - μ) / σ.
• Reduces the effect of outliers.
• Allows for comparison of features with different units.
• Computationally expensive for large datasets.
• May not be suitable for datasets with non-normal distributions.