7 P’s of Marketing Mix

SAVITA MAHENDRU

ASST LECTURER IN COMMERCE�HRMMV

7 Ps of marketing mix 

• Product, Price Place, Promotion, People, Process, and Physical evidence are the 7 Ps of marketing mix. The same mix can alse be considered for online marketing mix as well. Below we are discussing each P and how it contributes to effective marketing strategies. 

1. Product

• The first P, Product, refers to the goods or services that a business offers its customers. In other words, the product is the physical or intangible offering that a business sells to its customers. The Product element of the 7Ps covers product design, quality, features, and packaging. To execute successful marketing, businesses must understand their target market and ensure their products align accordingly. 
• According to the Content Marketing Institute, 73% of B2B marketers and 70% of B2C marketers use content marketing as part of their overall marketing strategy. 

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2. Price 

• The Price element of the 7Ps covers the cost of goods or services. The price is the amount of money that customers pay for a product. It is important to set a price that is both competitive and profitable.  
• A study by McKinsey found that businesses that set prices based on value are more likely to be successful. Pricing strategies, such as discounts, bundling, and dynamic pricing, can significantly impact consumer behavior and shape purchase decisions. Different pricing strategies can also help businesses appeal to different demographics, such as premium pricing for luxury goods. 
• As per a study by Nielsen, 70% of consumers are more likely to buy a product if it is priced competitively. According to IBM Institute for Business Value research report, half of consumers are willing to pay a premium for sustainability. Furthermore, discounts and deals are considered essential factors in driving consumer behavior. 

3. Place

• The Place element of the 7Ps refers to the distribution channels of the business. It can be a physical store, an online store, or a combination of both. The goal of this P is to make the products easily accessible to customers. 
• As per a Deloitte study, shoppers are increasingly utilizing both online and offline shopping methods, often during the same shopping journey, in order to locate desired products at the optimal price point and utilizing the most convenient fulfillment method for their needs.  

4. Promotion

• The Promotion element of the 7Ps pertains to the communication strategies employed to make potential customers aware of and attracted to the product. The various marketing channels used for promotions include advertising, public relations, sales promotion, and other channels through different media. A successful promotion strategy must align with the target audience and ensure the message is simple, and the content is visually appealing. 
• A study by the Content Marketing Institute found that 80% of businesses use content marketing to promote their products and services. A study by HubSpot found that businesses that use social media marketing are more likely to achieve their marketing goals. 

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5. People 

• The people are the employees, customers, and other stakeholders who interact with a business. It is important to create a positive and memorable experience for these people. For example, ensuring customer service representatives respond politely and efficiently impacts customer satisfaction levels. 
• A study conducted by Qualtrics and ServiceNow revealed that 80% of customers said they have switched brands because of poor customer experience. On treating internal people, an overwhelming 71% of employees in India are extremely or very concerned about being overlooked for career advancement opportunities as against 21% globally. This underscores the need to plan for robust and transparent talent recognition processes, finds a PwC study. 

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6. Process 

• The Process element of the 7Ps refers to the procedures and steps involved in delivering a product or service to the end-user. It is important to streamline the process and make it as efficient as possible. 
• A study by the Aberdeen Group found that businesses that streamline their business processes are more likely to improve their customer satisfaction. In a Salesforce survey, 80% of customers say the experiences provided by a company are as important to them as its products and services. Moreover, a McKinsey study indicates that businesses that use data analytics to improve their business processes are more likely to be successful. 

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7. Physical Evidence 

• Lastly, the Physical Evidence element of the 7Ps refers to the tangible aspects of a product, including packaging, branding, and more. Ensuring the tangible aspect of a product aligns with the customer’s perception of the brand is essential in setting the business apart from competitors. 
• As per National Retail Federation data, 72% of consumers are more likely to shop at a store that has a positive physical environment. An Epsilon research indicates 80% of consumers are more likely to make a purchase if brands offer them personalized experiences. 

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Importance of the 7Ps of marketing mix

The 7 Ps of marketing is a crucial concept for businesses to understand and implement in their marketing strategies. Each element plays an essential role in ensuring a successful marketing mix that aligns with the target audience and business goals. Listed below are the four important  

• Understand the needs of their customers. The 7Ps help businesses to identify the needs of their target market and develop products and services that meet those needs. It can help businesses improve customer satisfaction levels, differentiate themselves from competitors, set realistic marketing goals, and maximize the effectiveness of their marketing budget. 

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• Develop a competitive strategy. The 7Ps help businesses to develop a competitive strategy by identifying the strengths and weaknesses of their competitors. Through this, organizations can determine areas that need improvement and optimize their marketing strategies to achieve better results. For example, a business might realize that their product pricing is higher than their competitors, leading them to reevaluate their pricing strategy to improve sales. 
• Execute successful marketing campaigns. The 7Ps on online marketing help businesses to execute successful marketing campaigns by ensuring that all of the elements of the marketing mix are aligned. Incorporating relevant stats and figures into marketing campaigns can improve a business’s authority on the subject and improve search engine ranking. Utilizing keywords that potential customers might use when searching for products or services can also improve SEO ranking and increase visibility. 

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• Increase sales and profits. By using the 7Ps of marketing, businesses can increase sales and profits. Ensuring that the employees are trained in customer service and maintaining efficient processes can improve customer satisfaction levels and increase customer retention rates, that eventually turn into profits. 

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How to use the 7Ps of marketing mix

The 7Ps of marketing can be used to plan and execute marketing campaigns for any type of business. Here are some tips on how to use the 7Ps: 

• Start with the product: The product is the foundation of your marketing strategy. Make sure that your product is well-designed, high-quality, and meets the needs of your target market. 
• Set a competitive price: The price of your product should be competitive with other products in your market. You should also consider the value of your product when setting a price. 
• Choose the right place: Where you sell your product will have a big impact on your sales. You need to choose the right channels to reach your target market. 
• Promote your product: You need to let people know about your product if you want them to buy it. Use a variety of marketing channels to reach your target market. 
• Focus on the people: The people who interact with your business are the most important factor in your success. Make sure that you provide them with a positive and memorable experience. 

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• Streamline the process: The process of buying and using your product should be as easy and efficient as possible. Make sure that your website is easy to navigate and that your customer service is responsive. 
• Create physical evidence: The physical evidence of your business should create a positive impression on customers. This includes the physical environment, the branding, and the customer service. 

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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.

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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)

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• 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.

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What are the 4 P’s of marketing mix?

The 4 P's 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.

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• Place: This is the location/s 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.

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• The marketing mix and the 7 P's 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 complete marketing plan.

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• 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.

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