The origin of term “marketing mix” dates to the year 1949 where it was firstly developed by Neil Borden. He states it in the phrase:” An executive is a mixer of ingredients, who sometimes follows a recipe as he goes along, sometimes adapts a recipe to the ingredients immediately available, and sometimes experiments with or invents ingredients no one else has tried.” He used this term to identify marketing procedures and determinate common figures to help increase sales in various companies including manufacturing companies, wholesale trades, and retail. (Borden,1984)
During the time theory and its implications have been developing. In the year 1960 McCarthy used for the first time term of 4P´s which included promotion, price, place (or as mentioned in the original paper distribution) and most importantly product. This was used as a basic framework for implementation of various marketing plans with a focus on long and short-term perspective. For example from the short-term view product or distribution can´t be changed whereas in the long run all aspects of marketing mix can be adjusted. (McCarthy, 1960)
Further development of the theory has been recorded and it divided marketing mix into two subcategories including offering (which consisted from a brand, product, service, price, and packaging) and process (which consisted of words like promotion, personal selling, publicity etc.) The final version of 7P´s of marketing mix was formed in the year 1981 by Booms and Bitner. They added People as it is an important tool, in order to illustrate the importance of the human element in all aspects of service marketing. So the final version consists of Product, Price, Place, Promotion, Physical evidence, Processes, and People. Since then this theory has been adopted in marketing companies worldwide and found its implementation in many service enterprises. (Boom, Bitner, 1981)
The implication of this theory in current academic paper and its connection to case company will be discussed in following chapters.