The 7 P's of marketing are price, location, promotion, product, people, process and, finally, physical evidence. It originally started with 4 P's, but as the world and the complexities of marketing grew, 3 more were added to formulate an effective marketing strategy. When do companies get those benefits? It's when your product or service sells, it actually sells better than others. How can companies sell better? When the customer connects to your product or service.
With this in mind, we can now define the marketing mix as the set of guiding variables that help a company develop products and services taking into account the target market. The marketing mix traditionally had 4 points: product, location, price and promotions. However, they were found to be inadequate when it came to services, leading to an expansion of the marketing mix or the 7 P's of service marketing. But what was inappropriate? How are services different from products? In reality, a product can be felt, it is physically present.
Several product features, such as color, shape and style, can cause emotions. Customers really know what they're buying. Services have no distinctions based on time and space. The service provider performs the dual role of production and service delivery.
If you think about it, the customer is usually part of the process of producing a service. Aren't you part of the service production process? This causes customers to participate equally, and in that case, poor customer execution of tasks can cause an overall poor service experience. Just like you can store products, it's impossible to store services for later sale. A product is manufactured with standard operating procedures and undergoes several mechanized and manual quality inspections.
Any particular product will look the same even after millions of production units. Due to the differences described between products and services and their implications, the 7 P's of Marketing Mix were developed. The additional 3 Ps (People, Process and Physical Evidence) seek to address the shortcomings of the traditional marketing mix. In simple terms, what is sold to the customer is the product.
It is the “core” offered to the customer. Service products are intangible, meaning that the customer must try the service once before selecting or refusing a particular vendor. Just take a look at the type of options offered even by a traditional industry such as banking. This is how companies target their target markets and offer products and services that meet their needs.
The price of products is something logical, in the sense that you can see tangible material goods in front of you and you can, with a little help, calculate the approximate cost of the product. The goal of Place is to make your products or services available to the right customers, in the right place at the right time. Place is a very important element in the 7 P's of the marketing mix. It's important to consider where your customers will search for your products or services, where they will spend most of their time, and then decide on your place or medium of distribution.
Exclusive distribution is preferred for products and services that are sought after by customers because of their uniqueness. Services such as surgery and exclusive meals are available in limited places. Promotion, in simple terms, is the tactic used by companies to make their customers aware of their product, build their brand image and sell to their customers at retail. Promotion is once again a very strategic element because, on the one hand, you want your target customers to know your product or service, but, on the other hand, you are under pressure from The Invisible Hand: restrictions on promotion costs.
Market segmentation goes a long way in knowing who your customer is and then you can effectively promote them. Marketing helps a company align its products or services with customer needs and make them reach its customers in the right place at the right price. In the 1960s, when salespeople smoked at their desks, women wrote in their typing groups, and sliced bread was the yardstick for determining if a product was good, a marketing idea emerged so perfect that sixty years later it is still considered an integral part of any marketing strategy. It's called the seven P's of marketing and includes product, price, promotion, place, people, process and physical evidence.
It goes without saying that the service or product you're selling should be at the center of every element of the marketing mix. 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. The strategy behind pricing your products should be based on what your customers are willing to pay, costs such as retail profit margin and manufacturing, as well as other considerations. Your marketing combination may include subscription and membership discount programs, or promotional and sales email marketing.
Successful marketing strategies include all the promotional activities of the marketing mix, including advertising, direct marketing, and in-store promotion activities. The possibilities of digital promotion are limited only by your imagination and may include online events, chats, social media groups and live broadcasts. Your customers must directly report where and how your product is displayed and sold. A thorough understanding of their buying patterns (and directing them to the right stage in their buying cycle) will allow you to be clear about where you should promote and sell your products and how that fits into your combination of online and real-world marketing.
Excellent customer service doesn't just convert into sales, but you can also increase your customer base through referrals. Getting these referrals from people who love your brand can also be a great example of how your marketing efforts can support your sales process. The process of delivering the product to the consumer should be designed for maximum efficiency and reliability, but it can also include features that are in line with your brand, such as focusing on the environment or sustainability. Physical evidence incorporates aspects that prove that your brand exists and that a purchase was made.
Your marketing mix should also take into account all the things your customer sees, hears (sometimes even smells) in relation to your product or service. Of course, this includes packaging and branding, but it should also include how products are displayed in stores, where they are placed and the context in which they are located, as well as digital location, including on your website and on social media. When it comes to creating a strong and strategic marketing mix, it's important to understand how the 7 P's of marketing fit into the entire landscape. To find out how we can help your company, call us at (0) 9079 2555 or send us a note using the contact form below.
We love meeting new and exciting people. Whether you need help with a unique project or are looking for a long-term partnership, get in touch with us and let's chat. Suite 320-322, Elevator 3, Level 3 The Block Arcade, 282 Collins St Melbourne VIC 3000. We all use different models depending on the industry in which we work, who our target audience is and the products or services we sell.
But there is a timeless model that any salesperson can use regardless of their field of work. Once you realize the combination of expanded marketing, it quickly becomes apparent that the 3 elements that make up the expanded framework really make a difference. People are at the center of every business. Without people, you have no one to market to; there is no one to buy your product or use your services.
It's a no-brainer, right? The product refers to everything that is sold: a physical product, service or experience. No matter how you position yourself as a brand, your product or service will always be at the center of your strategy and will therefore influence every aspect of the marketing mix. When thinking about your product, consider factors such as quality, specific features, packaging, and the problem you will solve for your customers. While things like customer service are key, your product, that is,.
What the customer gets is ultimately what will matter most to them. Of course, if your buyer isn't satisfied with what you're selling, they won't return you. But if the quality is right and solves your problem, the product will sell itself. Every year, more than 30,000 consumer products are released.
Of these 30,000 new products, 95% of them fail sadly without having any significant impact on the market. Where do you sell your product or service? There are many places and ways in which companies can sell. Therefore, “place” does not refer only to a physical location. It could mean selling through a website, a catalog, social media, using trade shows and, of course, physical stores.
The main reason (56%) why consumers shop in-store is the ability to feel and taste products. How much does your product or service cost? Each one has its price, and if you're targeting a specific audience but you're wrong about the pricing structure for this particular group of buyers, you can forget about getting a desirable ROI. Bain %26 Business research revealed that 18% of companies have no internal capabilities or processes to make pricing decisions. The price you set should reflect the customer's perceived value of your product, be correlated with your budget and set in a way that ensures that you make a profit.
Pricing has a huge impact on the success of your business and can affect your marketing strategy, sales and product demand. Nowadays, companies use many different pricing strategies, all of which have different advantages, disadvantages, and functions. And the one you decide to implement will depend on what you sell, as well as on your own brand image. Promotion means publicizing a brand, product or service in a market; telling a story to encourage consumer participation.
Promotion strategies work on several levels. They increase brand awareness, increase sales and generate revenue. Why should someone buy from you instead of your competition? How will you solve their problem or improve their life? Physical evidence means more than just proof of purchase. While it includes this important aspect, physical evidence also encompasses the general existence of your brand.
Think about your website, brand, social media, your building logo, your store decor, product packaging, and post-purchase thank you email. All of these elements provide your customers with the physical evidence they need to ensure that your business is viable, reliable, and legitimate. To create a well-designed strategy that guarantees excellent customer service, ensure that you deliver products and receipts efficiently and reliably, and that you provide a seamless customer experience at each and every touchpoint. People, in the marketing mix, refer to anyone who is directly or indirectly involved in the business side of the company.
That means anyone involved in the sale of a product or service, its design, marketing, team management, customer representation, hiring and training. So you have a product and you have your target audience. How is the product delivered to the customer? This intermediate aspect can be referred to as a process. It involves how your business works, how the service is delivered, how the product is packaged, how your customers advance through the sales funnel, the payment process, shipping, delivery, etc.
Essentially, the process describes the series of actions or the fundamental elements involved in the delivery of the product or service to the customer. The promotion includes all the ways in which you inform your customers about your products or services and how you then market and sell to them. You may visit the same restaurant every day, but each occasion can be a unique experience. The creation of articles and their relationship with other marketing activities should form a crucial part of your marketing strategy.
As products, markets, customers and needs change rapidly, you should continuously review these seven Ps to ensure that you are on the right track and are getting the best possible results in today's market. You can know your audience and understand their requirements through intelligent market segmentation and segmentation. Develop the habit of thinking in terms of the people inside and outside your company who are responsible for every element of your sales and marketing strategy and activities. By reading about mistakes and the lessons that others have learned the hard way, you can increase the effectiveness of your marketing and take a shortcut to success.
But there are many different pieces of the process puzzle that you should consider in your marketing strategy. It's important to note that while combining marketing can guide your strategy and give you a greater understanding of the overall market, as well as your business internally, it's not a one-stop shop. Once you've developed your marketing strategy, there's a seven P formula you should use to continuously evaluate and reevaluate your business activities. Promotion, whether for new customers or for existing customers, is a very important tool for campaign managers.
Just think of a situation where you are going to buy a laptop at a retail store from one of the best brands in India. . .
