The 4 Ps (and 7 Ps) of Marketing: How Small and Medium Enterprises Can Use Them

Marketing is often seen as the domain of big corporations with large budgets, but the 4 Ps of Marketing — Product, Price, Place, and Promotion — and their expanded 7 Ps version (adding People, Process, and Physical Evidence for service-based businesses) are just as vital for small and medium enterprises (SMEs).

To see how these principles work in practice, let’s look at how a fictional local café, Cafe Lorenzo, applies them successfully in its day-to-day operations.

1. Product — What You Offer

Your product is more than what you sell, it’s the full experience your customer receives.

For Cafe Lorenzo, the “product” isn’t just coffee; it’s the experience of warmth, community, and quality. They’ve differentiated themselves with:

• Specialty single-origin coffees sourced sustainably

• Freshly baked pastries made in-house

• A menu designed for health-conscious and plant-based customers

  
  

For SMEs, the takeaway is simple: even with limited resources, focus on what makes your product unique — your ingredients, craftsmanship, or service philosophy.

2. Price — What It Costs

Price communicates value and positioning. A café’s pricing strategy must balance affordability with perceived quality.

Cafe Lorenzo uses value-based pricing. Their lattes are slightly above average market price, but customers see value in the artisan preparation and cozy atmosphere. They also offer loyalty cards and mid-week discounts to attract repeat business.

For SMEs, pricing isn’t just numbers, it’s psychology.

Ask: What does my price say about my brand?

3. Place — Where and How You Sell

“Place” covers distribution — where your customers find you, and how you reach them.

For Cafe Lorenzo, location is key: a corner near offices and a park brings in both morning commuters and weekend families. They also partner with delivery apps and sell packaged beans online, expanding reach beyond walk-ins.

SMEs should remember: you don’t need multiple outlets, just the right place, online or offline, that matches your target customer’s habits.

4. Promotion — How You Communicate

Promotion drives awareness and engagement.

Cafe Lorenzo keeps marketing simple but effective:

Daily Instagram posts featuring latte art and customer stories

A “Coffee of the Month” email newsletter

Collaborations with local artists for weekend live music

These low-cost, community-based promotions build relationships, something SMEs can do better than big chains.

For Service Businesses: The 7 Ps

Since cafés are service-driven, three extra Ps come into play:

5. People — Who Delivers the Experience

Your staff are your brand.

At Cafe Lorenzo, baristas remember regulars’ orders and greet them by name. This personal touch turns customers into advocates.

For SMEs, training and culture are your competitive edge. Enthusiastic, well-trained people deliver consistent service that marketing alone can’t buy.

6. Process — How the Service Is Delivered

From order to payment, the smoother the process, the better the customer experience.

Cafe Lorenzo uses a digital POS system, offers mobile ordering, and has clear signage to reduce wait times. All small details that make a big impact.

SMEs should map their customer journey and remove friction wherever possible.

7. Physical Evidence — The Tangible Cues

Services are intangible, so physical cues reassure customers they’re getting quality.

For Cafe Lorenzo:

• Clean, stylish décor and natural lighting

• Eco-friendly cups with their gold leaf logo

• A subtle coffee aroma that lingers

• Every detail reinforces their brand identity and perceived value.

Conclusion

For SMEs, the 4 Ps (and 7 Ps) aren’t just academic, they’re a framework for making smarter, more consistent business decisions.

Like Cafe Lorenzo, small businesses can compete with big brands by aligning their product, pricing, place, promotion, people, process, and physical evidence around one simple idea: create value and communicate it clearly.

Like our Insights? Start your Journey Today

View Partnership Plans

Warm Regards.

Daniel Ferguson

Founder and Managing Director