Understanding the 7Ps of The Marketing Mix

 

Creators: 4Ps - E. Jerome McCarthy; additional 3Ps - Booms & Bitner

The marketing mix refers to the tactics (or marketing activities) that we have to satisfy customer needs and position offering clearly in the mind of the customer. It involves the 7Ps; Product, Price, Place and Promotion and an additional three elements that help us meet the challenges of marketing services, People, Process and Physical Evidence.

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. So now we need to define the tactics to make this plan happen and that’s where the extended marketing mix (7Ps) comes in.

What is the marketing mix?

The marketing mix refers to the tactics (or marketing activities) that we have to satisfy customer needs and position our offering clearly in the mind of the customer. It involves the 7Ps; Product, Price, Place and Promotion (McCarthy, 1960) and an additional three elements that help us meet the challenges of marketing services, People, Process and Physical Evidence (Booms & Bitner, 1982).

Know your 7Ps

Product

This refers to what the company produces (whether it is product or service, or a combination of both) and is developed to meet the core need of the customer – for example, the need for transport is met with a car. The challenge is to create the right ‘bundle of benefits’ that meet this need. So what happens as customer needs change, competitors race ahead or new opportunities arise? We have to add to the ‘bundle of benefits’ to improve the offering, create new versions of existing products, or launch brand new products. When improving the product offering think beyond the actual product itself – value can be added and differentiation achieved with guarantees, warranties, after-sales or online support, a user-friendly app or digital content like a video that helps the user to make the most out of the product.

Price

This is the only revenue-generating element of the mix – all other marketing activities represent a cost. So it’s important to get the price right to not only cover costs but generate profit! Before setting prices, we need to research information on what customers are willing to pay and gain an understanding of the demand for that product/service in the market. As price is also a strong indication of the positioning in the market against competitors (low prices=value brand), prices need to be set with competitors in mind too.

Place

This is the ‘place’ where customers make a purchase. This might be in a physical store, through an app or via a website. 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. The decisions to be made in this element of the marketing mix concern which intermediaries (if any) will be involved in the distribution chain and also the logistics behind getting the product/service to the end customer, including storage and transportation.

Promotion

So we have a fantastic product, at an appealing price, available in all the right places, but how do customers know this? Promotion in our marketing mix is about communicating messages to customers, whichever stage they are in the buyer journey, to generate awareness, interest, desire or action.

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!

This doesn’t just apply to customers. Communicate to other stakeholders too like shareholders and the wider public to build company reputation. The same principles apply; choose the right tools and media that fit with what you are trying to achieve.

People

A company’s people are at the forefront when interacting with customers, taking and processing their enquiries, orders and complaints in person, through online chat, on social media, or via the call centre. They interact with customers throughout their journey and become the ‘face’ of the organisation for the customer. Their knowledge of the company’s products and services and how to use them, their ability to access relevant information and their everyday approach and attitude needs to be optimised. People can be inconsistent but with the right training, empowerment and motivation by a company, they can also represent an opportunity to differentiate an offering in a crowded market and to build valuable relationships with customers.

Process

All companies want to create a smooth, efficient and customer-friendly journey – and this can’t be achieved without the right processes behind the scenes to make that happen. Understanding the steps of the customer journey – from making an enquiry online to requesting information and making a purchase – helps us to consider what processes need to be in place to ensure the customer has a positive experience. When a customer makes an enquiry, how long will they have to wait before receiving a response? How long do they wait between booking a meeting with the sales team to the meeting taking place? What happens once they make an order? How do we make sure reviews are generated after a purchase? How can we use technology to make our processes more efficient? All of these considerations help build a positive customer experience.

Physical Evidence

Physical evidence provides tangible cues of the quality of experience that a company is offering. It can be particularly useful when a customer has not bought from the organisation before and needs some reassurance, or is expected to pay for a service before it is delivered. For a restaurant, physical evidence could be in the form of the surroundings, staff uniform, menus and online reviews to indicate the experience that could be expected. For an agency, the website itself holds valuable physical evidence – from testimonials to case studies, as well as the contracts that companies are given to represent the services they can expect to be delivered.

Wrap Up

The marketing mix or 7Ps is aptly named as it is the way that this mix of tactics is applied and co-ordinated that positions our organisation clearly in the minds of the customer. This helps us to stand out against competitors with an offering that satisfies customer needs, which is what marketing is all about.

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Marketing Mix: The 7 Ps of Marketing

Summary created with the help of our AI:

• What is the marketing mix?
  The marketing mix refers to a combination of strategies and tools used to promote a product or service, initially established as the 4 P's: Product, Price, Place, and Promotion, and later expanded to 7 P's: Product, Price, Promotion, Place, People, Packaging, and Process.
  
• How does the marketing mix guide businesses?
  It provides a framework for developing marketing strategies, ensuring all aspects of marketing work together to create a cohesive plan.
  
• What are some common types of marketing mixes?
  Types include Product Mix, Service Mix, Marketing Program Mix, and Global Marketing Mix, among others.
  
• Why is it important to consider interactions between the elements of the marketing mix?
  Understanding how each element influences the others helps create a unified brand experience and improves overall marketing effectiveness.

The 7 Ps Marketing Mix gives you a framework to plan your marketing strategy and effectively market your products to your target group. The "7 Ps of Marketing" are: Product, Price, Promotion, Place, People, Packaging, and Process. This marketing mix is an expansion of the classic "4 P Marketing Mix" (Product, Price, Placement, and Promotion) that was established by Professor of Marketing at Harvard University, Prof. James Culliton in 1948 and expanded upon by Jerome McCarthy.

Today, we refer to these interchangeably as the "7 Ps of Marketing" or as the "Marketing Mix." Here, we will discuss this concept, its components, and answer some common questions about the marketing mix and its applications. By considering these marketing mix elements, businesses can form an effective marketing strategy and meet specific marketing objectives that help them serve their target markets and business goals.

What is a marketing mix?

Marketing mix is a selection of marketing tools that include several areas of focus that can be combined to create a comprehensive plan. The term refers to a classification that began as the 4 Ps: product, price, placement, and promotion, and has been expanded to Product, Price, Promotion, Place, People, Packaging, and Process. This expanded approach to marketing—sometimes referred to as the extended marketing mix—helps brands fulfill potential customers’ needs across both physical presence and online platforms, ensuring their marketing approach aligns with consumer demands.

What are the 7 Ps of Marketing?

The 4 Ps marketing mix concept (later known as the 7 Ps of marketing) was introduced by Jerome McCarthy in his book: "Basic Marketing: A Managerial Approach". It refers to the thoughtfully designed blend of strategies and practices a company uses to drive business and successful product promotion.

Initially 4, these elements were Product, Price, Place and Promotion, which were later expanded by including People, Packaging and Process. These are now considered to be the “7 Ps” mix elements. Each element addresses a key aspect of marketing management in the field of marketing, guiding successful marketers toward an excellent marketing strategy.

It can be difficult for a small business owner or marketing manager to know how to establish a unique selling proposition or to reach the right customers, especially on new platforms like the internet, with digital marketing.

Fortunately, the 7 Ps of marketing give you a framework to use in your marketing planning and essential strategy to effectively promote to your target market. 

You can also take into consideration elements of the mix in your day to day marketing decision making process with the goal to attract the right audience through your marketing campaigns and promotional strategy

1. Product (or Service)

Your customer only cares about one thing: what your product or service can do for them. Because of this, prioritize making your product the best it can be and optimize your product lines accordingly. This approach is called “product-led marketing.” In a marketing mix, product considerations involve every aspect of what you're trying to sell. This includes:

• Design
• Quality
• Features
• Options
• Packaging
• Market positioning

There are five components to successful product-led marketing that are important for product marketers to take into consideration:

• Get out of the way. Let your product or service sell itself. Focus your marketing efforts on getting consumers to try what you have to offer so they can learn its value for themselves.
• Be an expert (on your customers). Know your customer's needs and use that knowledge to help communicate your product's value.
• Always be helping. Position yourself as an ally by creating informative content that meets your target customers’ needs, and they'll be more likely to buy from you. (This is also called content marketing.)
• Share authentic stories. Encourage happy customers to share their experiences and tell others why they appreciate your brand.
• Grow a product mindset. Focus on your product before you consider how to sell it. Invest in development, and the product quality will take care of the rest.

2. Price

Many factors go into a pricing model. Brands may:

• Price a product higher than competitors to create the impression of a higher-quality offering.
• Price a product similar to competitors, then draw attention to features or benefits other brands lack.
• Price a product lower than competitors to break into a crowded market or attract value-conscious consumers.
• Plan to raise the price after the brand is established or lower it to highlight the value of an updated model.
• Set the base price higher to make bundling or promotions more appealing.

Consider what you're trying to achieve with your pricing strategy and how price will work with the rest of your marketing strategy. Some questions to ask yourself when selling products:

• Will you be offering higher-end versions at an additional cost?
• Do you need to cover costs right away, or can you set a lower price and consider it an investment in growth?
• Will you offer sales promotions?
• How low can you go without people questioning your quality?
• How high can you go before customers think you’re overpriced?
• Are you perceived as a value brand or a premium brand?

3. Promotion

Promotion is the part of the marketing mix that the public notices most. It includes television and print advertising, content marketing, coupons or scheduled discounts, social media strategies, email marketing, display ads, digital strategies, marketing communication, search engine marketing, public relations and more.

All these promotional channels tie the whole marketing mix together into an omnichannel strategy that creates a unified experience for the customer base. For example:

• A customer sees an in-store promotion and uses their phone to check prices and read reviews.
• They view the brand's website, which focuses on a unique feature of the product.
• The brand has solicited reviews addressing that feature. Those reviews appear on high-ranking review sites.
• The customer buys the product and you’ve sent a thank you email using marketing automation.

Here are the ways you can use these channels together:

• Make sure you know all the channels available and make the most of them to reach your target audience.
• Embrace the move toward personalized marketing.
• Segment your promotional efforts based on your customers' behavior.
• Test responses to different promotions and adjust your marketing spend accordingly.
• Remember that promotion isn't a one-way street. Customers expect you to pay attention to their interests and offer them solutions when they need them.

4. Place

Where will you sell your product? The same market research that informed your product and price decisions will inform your placement as well, which goes beyond physical locations. Here are some considerations when it comes to place:

• Where will people be looking for your product?
• Will they need to hold it in their hands?
• Will you get more sales by marketing directly to customers from your own e-commerce website, or will buyers be looking for you on third-party marketplaces?
• Do you want to converse directly with your customers as they purchase, or do you want a third party to solve customer service issues?

5. People

People refers to anyone who comes in contact with your customer, even indirectly, so make sure you're recruiting the best talent at all levels—not just in customer service and sales force.

Here’s what you can do to ensure your people are making the right impact on your customers:

• Develop your marketers’ skills so they can carry out your marketing mix strategy
• Think about company culture and brand personality.
• Hire professionals to design and develop your products or services.
• Focus on customer relationship management, or CRM, which creates genuine connections and inspires loyalty on a personal level.

With the right people in place, you can enhance the quality of customer service, build customer loyalty, and gather customer feedback to refine your marketing approach.

6. Packaging

A company's packaging catches the attention of new buyers in a crowded marketplace and reinforces value to returning customers. Here are some ways to make your packaging work harder for you:

• Design for differentiation. A good design helps people recognize your brand at a glance, and can also highlight particular features of your product. For example, if you’re a shampoo company, you can use different colors on the packaging to label different hair types.
• Provide valuable information. Your packaging is the perfect place for product education or brand reinforcement. Include clear instructions, or an unexpected element to surprise and delight your customers.
• Add more value. Exceed expectations for your customers and give them well-designed, branded extras they can use, like a free toothbrush from their dentist, a free estimate from a roofer, or a free styling guide from their hairdresser.

7. Process

Prioritize processes that overlap with the customer experience. The more specific and seamless your processes are, the more smoothly your staff can carry them out. If your staff isn't focused on navigating procedures, they have more attention available for customers—translating directly to personal and exceptional customer experiences.

Some processes to consider:

• Are the logistics in your main distribution channel cost-efficient?
• How are your scheduling and delivery logistics?
• Will your third-party retailers run out of product at critical times?
• Do you have enough staff to cover busy times?
• Do items ship reliably from your website?

If you get more than one customer complaint about any process, pinpoint what's going wrong and figure out how to fix it

Marketing mix FAQs

Understanding the marketing mix and the 7 Ps can bring up a lot of questions. Below, we’ve answered some frequently asked questions to help you identify and establish your own marketing mix.

What is a marketing mix example?

A good example of the marketing mix might be a convenience store. In this instance, we might consider a chain of convenience outlets that provide a wide range of products including fresh and packaged food, tools, household, and kitchen items, novelties, magazines, etc.

• Product: Chiefly, foods and various items located and packaged in a way that provides convenience and utility.
• Price: Pricing will be considered competitive with supermarkets, with some exceptions where convenience, novelty, and fun add special appeal.
• Place: Locations should be amenable to the value proposition of convenience. As such, locations should be strategically positioned near residential areas, shopping centers, educational centers, etc.
• Promotion: Advertising will be largely constrained to posted promotional material, the outlet buildings themselves, local social media pages, and so on.

Here, we will consider the customer experience as the opportunity to access simple food items, snacks, and a range of useful products for home, recreation, and more. This covers the aspect of marketing that revolves around potential buyers’ everyday needs and the wide variety of items they might pick up spontaneously.

Another example might be a streaming service. Here our 4 P's are as follows:

• Product: Original quality entertainment and convenient viewing access.
• Price: Free trial offer, premium packages, and a commercial-free subscription level.
• Place: The subscriber's digital device.
• Promotion: Extended advertising across a range of channels and platforms, including high-value metropolitan billboards, magazines, and word of mouth. This can involve a variety of marketing tactics, from display advertising to social media marketing, to stay in front of potential customers.

Here, the customer experience is appealing, long-form video content primarily in the form of popular TV, films, comedy specials, and more with an emphasis on convenient home viewing. 

What are the types of marketing mix?

In reality, there are as many types of marketing mixes as there are functioning businesses in the world. To make things simpler, we might try to make our model fit within one of 7 common, established marketing mix types as listed below.

• Product Mix
• Product Progression and Product Life Cycle
• Market Coverage Mix (aka Positioning Mix)
• Service Mix
• Marketing Program Mix (or Promotional Mix)
• Channel Mix/Vertical Integration
• Global Marketing Mix (or International Marketing Mix)

As you can see, making a given company's value proposition and promotional needs fit into one of these categories might not work well. Our convenient store example might fit into the service mix since convenience is the primary value we would be offering. But our streaming service might also be called a "service mix,” or even a "product mix."

In most cases, it is best to generate an original marketing mix that describes the marketing needs of a real life organization.

What are the 4 Ps of marketing mix?

The 4 Ps are Product, Price, Place, and Promotion.

• Product: The product is an item or service for sale. For marketing purposes, we should consider who it is for and why they would want it. We should also consider and compare our offering to that of the competition.
• Price: This is the amount customers will be willing or required to pay. Often, making prices competitive is a significant challenge. In cases where prices cannot be lowered below the market benchmark, additional value may need to be added to the offer.
• Place: This is the location where the product or service can be accessed and where it is used. For a restaurant, location is everything. For a streaming service, it is the user's home or the location where they buy computer devices and services.
• Promotion: This describes how, where, and how frequently advertising materials will be produced and where they appear. With our convenience store, the promotional material is largely on and in the store itself. With our streaming service, it would be in locations all over the web and any other appropriate location/media.

The takeaway

The marketing mix and the 7 Ps of marketing are a guide to drafting and creating an outreach campaign for any given commercial enterprise. They are guidelines that help us cover all of our bases when it comes to brand outreach. It should be borne in mind that branding considerations are not covered in the concepts covered by these promotional frameworks.

The elements of these guidelines work together to create a functional framework for the creation of a comprehensive marketing plan.

Develop your marketing mix and integrate it into your marketing essentials. As you develop your marketing mix, consider how each element affects the rest to create a unified brand experience for your consumers, from the user experience to the perceived value of your product. Think about how a product's price changes its promotion strategy, how specifications will contribute to pricing, and how your people carry out processes. Ensure that your people and the tools they use can communicate with each other, and use the right tools to reach the right people. By covering marketing mix examples in your digital marketing plan template and balancing business to customer communications, you can solidify your position in marketing and create interactive marketing that leads to customer perception gains and long-term customer satisfaction.

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