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When people hear “the 4 P’s of marketing,” they often are limited to thinking of only physical products. However, Product, Price, Place, and Promotion, is not just limited to tangible goods. It also applies for services. In fact, misunderstanding this can lead to major blind spots in your overall strategy. In this first post of our four-part series on the most common misconceptions around the 4 P’s, we’re digging into why limiting the 4 P’s to only products is a big mistake, and how service-based businesses can apply them to their business.
What are the 4 P’s?
Product -
The goods (or services) being offered up to the public. This includes everything from design to features and benefits.
Price -
The true price of the offering, factoring in competitor pricing, supply and demand, production costs, etc.
Place -
The how and where of distribution. This includes online or brick-and-mortar stores.
Promotion -
All costs and efforts related to getting your product out to your customers or services out to your clients. This includes all ads, emails, sales, etc.
These are the four basic concepts that marketers must consider when launching a new campaign. Originally an idea by E. Jerome McCarthy, then later simplified by Phillip Kotler into the four listed above and dubbed “The four P’s of marketing.”
Why people associate the 4 P’s mostly with physical products
When the 4 P’s were originated (1960’s), physical products were the main focus of most businesses. People were not paying much for a consultant or someone to run their google ads. It instead was brands such as Coca Cola, Kellogg’s, Levi’s and more that were selling goods. Physical things that you exchanged for money. Door to door salesmen was a common job for men in the 1960’s.
Then came the internet. This changed everything. Digital Marketers now work from home, using nothing more than their laptop and providing, you guessed it….services.
Services Are Products Too (Sort Of)
By definition, services are acts or activities performed for a customer. These may or may not require expertise, but they likely will unless it involves physical labor. Examples would include running google ads or moving furniture.
Services are often rated by the overall experience the customer received and interactions with the provider. Services can also be recurring unlike products which are usually a one off thing.
The boom of the service industry in turn created what we now refer to as the 7 P’s of Marketing. This added in new elements of People, Process and Physical Evidence.
People
People, when it comes to the Marketing Mix, are those delivering the service or interacting with the customer. The employees who interact with your customers are a representation of your brand, and without good representation, people can break a company.
Process
Process defines the way in which the service is delivered to the customer. Without good processes in place, quality at scale will suffer.
Physical Evidence
This refers to the tangible goods that are often provided along with the service. For example, when you book a room at the 4 Seasons compared to Motel 6. There is a big difference between the two, even though they are both only providing a bed for the night. Therefore, ambient lighting, costly decorations, and mints on your pillows, these are all part of physical evidence.
Applying the 4 P’s to Services
Product: Designing Your Service Offering
Even though you can’t touch or hold a service, it’s still your “product.” It needs to be clearly defined, consistently delivered, and designed to solve a specific problem for your customer.
Ask yourself:
- What specific problem does this service solve?
- How is it packaged—hourly, retainer, package, or subscription?
- How do clients experience this service from first touch to follow-up?
- What makes it different from the competition?
Example:
A therapist might offer a “6-Week Burnout Recovery Program” instead of just selling sessions à la carte. Packaging makes the intangible feel more concrete.
Price: Capturing and Communicating Value
Unlike products, pricing services isn’t about cost-plus markup—it’s about perceived value, market positioning, and the experience you deliver.
Ask yourself:
- Are you pricing by the hour, project, or value/outcomes?
- What does your pricing say about your brand (premium? budget-friendly?)?
- Are you offering tiered pricing or flexible options?
- How are you communicating the ROI or transformation your service delivers?
Example:
A branding agency might offer a fixed-price logo package but reserve custom brand strategy work for value-based pricing, depending on the client’s size and goals.
Place: Making Your Service Accessible
“Place” isn’t just a physical location—it’s about how clients access your service, and how easily they can discover and engage with it.
Ask yourself:
- Is your service delivered in-person, digitally, or hybrid?
- Are you using the right platforms (Zoom, client portals, mobile apps)?
- How easy is it to book or start your service?
- Are you meeting customers where they already spend time?
Example:
A fitness coach might use a mobile app to deliver workouts, with weekly Zoom check-ins. That’s the modern version of “Place”—convenient, scalable, and client-centric.
Promotion: Building Trust Through Communication
Marketing a service is less about flashy ads and more about building trust and demonstrating expertise. Since your service isn’t tangible, your credibility and proof points become the product.
Ask yourself:
- Are you educating your audience (through blogs, podcasts, workshops)?
- Do you have strong social proof (testimonials, case studies, reviews)?
- Which channels are most effective for reaching your audience?
- Are you clearly communicating benefits and outcomes—not just features?
Example:
A career coach shares weekly LinkedIn tips, client wins, and before/after case studies to promote services and build authority without being salesy.
Limiting the 4 P’s of marketing to just physical products is a very common mistake. Whether you’re offering coaching, consulting, design, or digital solutions, the 4 P’s still apply. By uniquely shaping your service (Product), pricing it for value (Price), making access easy for all (Place), and building trust through different channels (Promotion), you can market your service with the same strategic power as any product-based brand. Stay tuned for Part 2 in this series, where we’ll tackle another common misconception: Assuming "Promotion" just means advertising.
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