7 Ps Of Marketing

What Are The 7 Principles Of Marketing?

So, what are the 7Ps of marketing? It started as the 4Ps of marketing, with the term being coined by E. Jerome McCarthy in his 1960s book Basic Marketing. These were: product, place, price and promotion.

In 1981, three more were added by Bernard H. Booms and Mary J. Bitner: people, processes and physical evidence. We sometimes call these the 7Ps of service marketing.

Now that we know what are the 7 principles of marketing, let’s dive deeper into the meaning of each of the 7Ps of marketing mix.

What Is The Marketing Mix?

Studying Marketing Strategy: Definition And Importance, if a brand considers the 7Ps of service marketing, they can produce their entire business plan. Though the framework is simple, it packs in all the critical components of building a powerful brand and getting the products and services to the market in the best way. Though there is some criticism that the model is outdated, it’s still broad enough to apply to even an entirely digital business.

There are several suggested additional Ps, such as packaging and payment. But the argument is that we can account for these factors in the existing Ps. For instance, packaging is essential to product, and payment can come under process. Every brand will have its specific needs and the 7Ps cover most of them with a little planning and forethought.

What Are The 7Ps Of Marketing?

The marketing mix components are all critical for an organization’s success. First, we’ll look at the original four of the marketing mix before moving on to the three later additions. They are:

Product

What do the customers want and does the product suit this purpose? This might refer to a physical product such as a cellphone; a service such as a haircut; or an experience such as a holiday. The product is the essential piece of the 7Ps of marketing mix from which all else flows. A business must ensure its offering meets or exceeds expectations to have a viable shot at building profits.

Consider the story of the Sony Walkman when exploring the 7Ps of marketing with example. The Japanese electronics maker did not know if there would be a demand for a portable music player without a recorder, but it built one anyway. Its innovation in product design led to its marketing direction.

Price

Does the product provide good value for the consumer’s money? What are the costs of production and at what price will the business maximize its profit while ensuring a good customer experience is being delivered? Another important consideration is the cost of competitors’ products. For instance, if a book publisher sells a book for Rs 1,000 while its competitors are selling similar titles for Rs 500, few people will opt for the higher-priced product. This is one of the 7Ps of services marketing.

Promotion

When running through the 7Ps of services marketing, ask if every channel is being used to get the word out about the product? Is it being advertised in newspapers, featured on blogs or podcasts? Are people talking about it on social media? Without promotion, no brand can thrive in the competitive market, making this one of the fundamental pillars. Promotional efforts need to be targeted at the correct market segment to see those efforts convert. It might include running a discounted promotion, special offers, limited editions and more.

Place

Where is the product available? Is it easy for the customer to find it? This might mean presence in shops, or it could mean online availability or even a combination of both. The customer will not go out of their way to find a product or service, so it’s important to be where customers of rival brands are already shopping. The 7Ps of marketing with example show that being available at the right place at the right time can be the difference between success and failure.

People

Without the right people running the show, there can be no brand and no success, which is why people are one of the 7Ps of service marketing. This might mean the human resources team needs to negotiate smartly to grab the right talent.

This is particularly relevant in a service industry, where the people are, in a sense, the product. A restaurant sells food as its primary product, and this means the chef’s skills are a critical component in putting the food together. The service it provides must not only be good on one occasion, but it must also be consistent. Creating the proper brand image is important, which is why people experiencing your brand are also part of the ‘people’ component of the marketing mix. If these customers enjoy their meal at the restaurant, they will drive brand success through word-of-mouth. This is an important aspect of any customer acquisition strategy.

Process

How is the customer experiencing the product? How is the product reaching the customer? Every aspect of a business must have processes in place to create the best customer experience while maximizing profits. The answers to these questions are different for service-oriented businesses, which is why it comes under the extended 7Ps of services marketing. For example, if a customer arrives at a five-star hotel for a stay, everything from the service experience at check-in to in-room dining are all service experiences that are crucial to brand image. The processes in place to direct these activities are part of the marketing effort.

Physical Evidence

What does the customer have to show for their purchase? If we look at the 7Ps of service marketing mix with examples, the scenario differs from that in manufacturing. The physical evidence of a tangible product includes the product itself. But when the product is a service, that physical experience may not always be something that can be seen or experienced later. For instance, a massage at a spa has no evidence once the experience is over. The experience of being at the spa, perhaps being served a welcome drink with gentle music playing in the background, are all physical aspects of the service provided. It can also include invoices, business cards and discount vouchers.

These components all make up the 7Ps of service marketing. They’re integral components that drive the brand and the business and are thus the bedrock of all marketing efforts.

How To Use The 7Ps Of Services Marketing

The 7Ps of marketing mix are all critical to a business’s success. They’re also very fundamental components. So how can this framework be used?

Consider Each P

A quick look at 7Ps of service marketing mix with examples is proof that none of these components can be overlooked for a business striving for success. It reinforces the importance of each of these areas, and how interdependent they are.

Revisit From Time To Time

The guide needs to be reconsidered from time to time if the organization is growing. If there are changes to the market, with evolving customer needs, it could be necessary to reevaluate marketing efforts. Consider the 7Ps of marketing with example as these demands shift, and see where the plan can be tweaked accordingly.

Expand As Needed

Just as they expanded the 4Ps to become the 7Ps, the framework might need to evolve to respond to the changing business environment. The original 4Ps pertain more to organizations that sell goods. The expanded seven were meant to fulfill the needs of service providers, as can be seen from the 7Ps of service marketing mix with examples. Perhaps a new paradigm is needed for the startup and digital world. As we’ve discussed, additional factors can be added on top of the 7Ps. Not being prescriptive, the system is relatively versatile.

The framework wins with its flexibility and universality. Remember, though, that nothing is set in stone, which means a brand’s specific needs must be considered with care.

Why The 7Ps Of Service Marketing Are Still Separate

After decades, it might seem redundant to differentiate the 7Ps of services marketing from the 4Ps of the marketing mix. But maintaining a distinction brings into focus the three newer additions that allow marketers to zero in on what’s important in the service industry.

The 7Ps of marketing mix are a great way to ensure service orientation within an organization. That is also one of the Thrive Skills you’ll learn with Harappa’s Build A Network learning pathway. In this pathway, you’ll explore what it means to build meaningful networks that can be nurtured to last a lifetime. Making meaningful connections is a skill that will serve you well in any aspect of your life. You’ll learn to make an impact with your presence, build trust, and grow this into strategic ties that result in mutually beneficial outcomes.