Understanding the 7Ps of Marketing
Asif Iqbal, MBA, MAPM, CMBE
🚀 Multi-Award Winning Entrepreneurship Ecosystem Builder |📚 Teaching Entrepreneruship, GBS-Oxford Brookes University | 💡 Innovating in Higher Ed | 🌍 Director, GEN UK
The term “marketing” has been used in different ways over the years, and is now being used with the same meaning it has always had—to promote products for sale on a customer-by-customer basis. It seems quite easy as many marketing experts have defined core of marketing is the right product in the right place, at the right price, and at the right time is the core of marketing. But the hard part is doing it well.
A planned approach to marketing helps us to set clear objectives based on the current situation a company is facing. The strategy defines how those objectives will be achieved, including the target market to focus on and how the company will be positioned.
The 7Ps of the Marketing Mix, normally refer to as the Service Marketing Mix is a classic marketing model and simple framework that any business can use to review and optimize its marketing mix and strategy.
The 7Ps of Marketing are:
The term Marketing Mix was originally developed by Neil Borden in the year 1949. E. Jerome McCarthy gave the 4Ps of the Marketing Mix, but after the emergence of the service economy, it was promoted to the 7Ps of Marketing Mix in 1981 by Bernard H. Booms and Mary J. Bitner. The original four Ps are still in place, but Booms and Bitner added three more:
1. PRODUCT
It goes without saying that the service or product you’re selling should be at the centre of every element of your marketing mix. Whenever you're having difficulty selling as much of your products or services as you'd like, you need to develop the habit of assessing your business honestly and asking, "Are these the right products or services for our customers today?"
Think about the actions of your customers when making judgements about your products. Could it be that what you think makes the product so special is actually just noise? Does it help customers get more from your brand? Is it a great offer, backed up by a guarantee, warranty or online support service? Find ways to add value and differentiate your brand without making promises that may not be met by the actual product itself.
In some cases, you might need to use a combination of different digital marketing techniques to sell your products and services. The digital marketing mix is perfect for showcasing your products, through SEO, blogs or articles, paid advertising, influencer marketing, and viral video campaigns, for example.
2. PRICE
The second P in the formula is price which is the only revenue-generating element of the mix – all other marketing activities represent a cost. Price refers to your pricing strategy. Pricing is a complicated process that requires careful thought, planning and evaluation. You should develop the habit of continually examining and reexamining the prices of the products and services you sell to make sure they're still appropriate to the realities of the current market.
When setting your prices, you should understand and put yourself in the customer's position and see the situation through their eyes on how much customers are prepared to pay for your product, the profit margins you need to achieve, and the costs associated with selling your product like rent, wages, website, and payment gateway fees, etc. One thing also consider here is your competitors’ pricing strategy – how have you positioned themselves, discount brands, and everything in between, and does your pricing reflect this? In business, be open to revisit on your any part of the sales or marketing plan. If your current pricing structure is not ideal for the current market, then you need to revise your price so that you can remain competitive and sustain in your desired industry.
In the era of digital marketing, your marketing mix can include subscription and membership discounting programs, or email marketing of promotions and sales.
3. PLACE
The third P in the marketing mix is the place. Place is where your products and services are seen, made, sold or distributed. Again it is the answer of the question like, where and how your product is displayed and sold should be directly informed by your customers.
When deciding where to sell your product or service, it's important to understand how that decision fits into your overall marketing plan. Some organisations have the physical space, or online presence to take their product/service straight to the customer, whereas others have to work with intermediaries or ‘middlemen’ with the locations, storage and/or sales expertise to help with this distribution. Some sell through catalogs or mail order. Some sell at trade shows or in retail establishments. Some sell in joint ventures with other similar products or services. Some companies use manufacturers' representatives or distributors. Many companies use a combination of one or more of these methods.
Understanding your customers' buying cycles will help you determine which channels are most effective for each stage of the cycle; some customers may be ready for direct sales at any given time while others may only purchase online during certain times of year (e.g., Christmas).
4. Promotion
So, we have a fantastic product, at an appealing price, and which is available in all the right places, but how do customers know this? Here comes the fourth marketing mix which is Promotion. Promotion is about communicating the right messages about your product and services to the to your customers, regardless of their stage in the buyer journey, to generate awareness, interest, desire or action.
Every industry is constantly experimenting with new ways to promote, sell, and advertise their products and services. Small changes in the way you promote and sell your products can lead to dramatic changes in your results. Even small changes in your advertising can lead immediately to higher sales. Experienced copywriters can often increase the response rate from advertising by 500 percent by simply changing the headline on an advertisement.
As marketing professionals, we have different tools for communication with varying benefits. Advertising is good for raising awareness and reaching new audiences, whereas personal selling using a sales team is great for building relationships with customers and closing a sale. The challenge? To choose the best tool for the job and select the most effective media to reach our audiences based on what we know about them. If your customer is a regular on Instagram, then that’s where you need to be talking to them!
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But it is obvious that a successful marketing strategy include all the promotional activities across the marketing mix, including advertising, direct marketing, and in-store promotional activities. The possibilities of digital promotion are limited only by your imagination and can include online events, chats, social media groups, livestreams and more other options created by the different media.
5. PEOPLE
Your people are the face of your brand. They can define whether you succeed in a market. People refers to employees who work for your business. It covers everyone who is directly or indirectly involved in marketing, selling, or offering customer service for your goods or services.
Even if you have a wonderful product, you won't be successful if your staff members are unable to explain its features and benefits and deliver a positive client experience.
The capacity to choose, find, hire, and keep the right people who have the knowledge, skills, and ability to carry out the work you need done is more crucial than all the other factors together. The most crucial strategy used by the top organizations, according to Jim Collins' best-selling book Good to Great, was to "get the right people on the bus, and the wrong ones off the bus." The next phase was to "get the right people in the right seats on the bus" after these businesses had employed the appropriate candidates.
When communicating with consumers, whether in person, over the phone, via online chat, on social media, or through the call center, a company's employees are at the forefront. They take and process their questions, orders, and complaints. People can be unpredictable, but with the right training, mentoring, empowerment, and encouragement from a firm, they can also represent a chance to stand out in a crowded market and forge enduring connections with clients.
6. PROCESS
Process is used to describe the steps taken to deliver your good or service to clients. All businesses strive to provide a seamless, effective, and customer-friendly journey, but this cannot be done without the proper processes in place. We may think about what procedures need to be in place to guarantee the consumer has a great experience by understanding the steps of the customer journey, from making an online inquiry to requesting information and making a purchase.
How long will it take for a consumer to get a response after making an inquiry? How long does it take to schedule a meeting with the sales staff before the meeting really occurs? What takes place once they place an order? How can we ensure that reviews are produced following a purchase? How can technology be used to improve the effectiveness of our procedures? Each of these factors contributes to a satisfying customer experience.
With the rise in online shopping, digital partnerships and logistics have become an essential part of the marketing mix.
7. PHYSICAL EVIDENCE
Actual proof, which focuses on improving product or service’s physical surroundings, is the final and seventh P in the marketing mix. Every interaction your consumers have with your business is accompanied by physical proof.
It can be especially helpful when a consumer wants some confidence or is required to pay for a service before it is provided and has never made a purchase from the company before. Physical proof for a restaurant might take the shape of the surroundings, staff attire, menus, and internet reviews to show what kind of experience might be anticipated. For an agency, the website itself contains crucial tangible proof, such as client testimonials, case studies, and the contracts that businesses are provided to illustrate the services they may anticipate receiving.
Physical proof encompasses more than simply the marketing-related items that clients see; it also refers to operational features like how your team presents themselves, receipts or invoices, packaging, branding, and digital positioning on your website and social media. To find places you can optimize, go through your complete client experience step by step. While many service providers provide comparable services, they differ in terms of their ambiance from one another.
CONCLUSION
For businesses in the service industry, the seven Ps of marketing are very important. Every component of your marketing mix may use this. To make sure you're conveying a clear and consistent message about your business and brand, you should take into account all factors, including product, pricing, place, marketing, people, procedure, and tangible proof.
You should frequently review the Marketing Mix 7Ps since goods, markets, and client expectations continue to change quickly. Your company will have the best chance of thriving in a market that is becoming more competitive if you periodically evaluate and improve your marketing plan.
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