Marketing Mix is a blend of marketing variables that determine the level of marketing efforts on the target market. 7Ps of Marketing are derived from the 4Ps of Marketing and 4Cs of Marketing. 7P’s of the marketing mix are – People, Product, Price, Promotion, Place, Process, and Physical Evidence.
Companies use the 7Ps to identify issues that affect their marketing strategies. And set a strategic marketing plan that allows serving the target market, provide better customer care, hold and expand marketing share, among all the existing and newcomer competition in the market. 7 elements of the marketing mix are the 7Ps of Marketing.
Who Developed the 7Ps of Marketing
E. Jerome McCarthy developed the 7Ps model. It was published in 1960 in his book Basic Marketing. A Managerial Approach.
4Ps vs. The 7Ps
As business and market changed, Marketing 4ps were not cutting it. The 4Ps were developed when companies were more focused on selling products.
Elements of 4Ps are; Product, Price, Place, Promotion; all these elements are focused on product development, and efforts increase sales.
Concepts like customer care, building better customer relationships, providing services were not practiced. But competition increased due to globalization and open trade policies.
So just following the 4ps of marketing was note enough for companies. They need to do far more than 4Ps to hold and gain market share.
That is why the 7Ps were developed. Process, People (Participants), and Physical evidence were added to make full 7Ps of the marketing mix. Booms and Pitner added these three new elements to the marketing mix.
Companies now follow the 7Ps of the marketing mix, to hold and grow their position in the market.
Elements of 7Ps of Marketing
7p’s of the marketing mix in made up of;
- Product,
- Price,
- Place,
- Promotion,
- People (Participants),
- Process, and
- Physical evidence,
Let’s try to learn what each marketing mix P means;
Product
When developing products, thinking about your perspective, and thinking like a consumer is not always helpful.
When you just focus on your perspective, you are missing the bigger picture and developing a product that might not be as revolutionary as you think if your head.
And, when you are trying to think like a potential consumer, you are missing some important aspects of product development and marketing. If a product looks amazing, has great specifications, comes loaded with features, changes the lifestyle of people drastically, you definitely will see people are favorable to buy that product.
But the problem is, you are not taking into consideration many factors. Factors like; how many potential consumers can buy the product, how is your customer care is going to be, what price will be
And most importantly, how will you reach that customer.
So, you should learn about marketing, learn to use its tools and models, and look at your product as if you are an outside marketing consultant.
Ask critical questions such as, “Is your current product or service, or a mix of products and services, appropriate and suitable for the market and the customers of today?”
Then you will be able to the bigger picture; understand if the product is right for the customers.
Price
Price means the number of dollar customers or consumers must pay to obtain/use the product.
Developing a great product is not the end of the road. Your great product needs suitable pricing, where customers feel it is valued. The product price should reflect the realities of the current market.
If a customer pays $100 for a product; he or she does not feel that it $100 price is not justified to the value or usefulness of the product; then, that product is not going to sell as much the company hoping for.
So pricing is very important. The company needs to understand;
- Consider the price and value combination.
- Customers might feel that price does not justify the value the product provides,
- competing companies can provide the same or better product, with better price and value combination. They might release a cheaper product; or a slightly higher priced product that is superior to yours.
- it is possible that the current pricing structure is not ideal for the market,
Place
Place indicates the company activities like distribution channels, logistics, transportation, and locations offered by the company. You need to reach your customers in the right places.
For Place in the marketing mix, companies need to consider;
- Where do customers are buying from? Is it online, from retail shops, and the product need door-to-door marketing?
- Which buying process is convenient for customers? Customers will rarely buy beds, furniture, and other large items from online stores (unless the company spend a lot in marketing and provides great return policy). For these kinds of products, people usually want to go to the store and browse the options. But something small like; earphones, battery bank; customers will buy them online as long as the brand has a good enough reputation and delivers proper value.
- How will the channel members react to prices and customers’ expectations?
If these questions are answers correctly, the sales numbers will grow rapidly.
Promotion
Promotion means the efforts to communicate the merits of the product to target customers and influence to buy it. Advertising is the best and most used method of promotion.
A better-optimized promotion campaign will lead to more rapid sales. Small to Large companies are always experimenting will their promotions.
The goal of the promotion is to increase the response and conversion rates, and eventually, increase sales numbers.
For Promotion in the marketing mix, companies need to consider;
- Which media people are more consuming and How to reach the customer through these media?
- Which promotion method will drive the most customers.
- Which media will provide more ROI on advertising campaigns?
- The cost of promotion needs to be considered, as well.
People (Participants)
Indicates the employees representing the company. They interact with clients or customers for various purposes.
Consider every people who are in your product distribution channel. Your companies new plan to dominate the market and make more sales; is depended on these people.
Analyze the people and put the right people on the right tasks. Developing a marketing plan is half of the job. You need the key people to execute these plans.
Companies need to make sure;
- The right people are doing the right task or job.
- Employees and channel members have proper guidelines to execute there task. For example, a sales-person must know how to explain how the product operates, how it is beneficial to the customer, and if it is better then other customers.
- There should be proper monitoring and feedback system to understand how people are performing.
Process
The processes are the steps that are required to deliver the product service to a customer. The process is the procedures, mechanisms, and flow of activities by which the service is delivered to the clients/ customers.
The marketing mix must define the process of selling the product to the target customers. Every detail needs to be explained to the people in charge of each task of the process.
The company must outline the;
- Functions of each member of the distribution channel.
- What are the tasks and responsibilities that come with each function and position in the distribution channel?
Physical Evidence – Space to Interact with the Customers
Physical evidence refers to the area or space where the company representatives will interact with the customer. It works as a tool for reassuring our customers.
For example, a company might have impressive buildings, a well-trained staff, great website. Considerations include furniture, signage, and layout.
Companies need an outlet, space, and presence to interact with the customers.
Companies need;
- A place where customers can experience the product as well as buy them.
- A customer support number, website, social media accounts are required.
How to Develop Marketing Strategy with Marketing Mix Using the 7Ps of Marketing
You can always use a table or excel sheet like the one in the picture. But developing a marketing strategy involves much more work. This worksheet will help you to make a better choice for the marketing mix.