Many business owners might feel overwhelmed when they first consider developing a marketing plan. Thinking through using the 7 P’s Marketing Mix can be a helpful way to plan and execute, as it provides you with a practical marketing model, giving you a great starting point.
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Table of Contents
- The Evolution of the 7 P’s Marketing Mix
- The Origins
- The Original 4 P’s
- Breaking Down the 7 P’s of the Marketing Mix
- Product: What Problem Are You Solving?
- Price: Finding the Sweet Spot
- Place: Location is Key, Even Online!
- Promotion: Communicating Benefits, Not Just Features
- People: The Power of First Impressions
- Process: Streamlining Processes for Enhanced Customer Experience
- Physical Evidence: The Power of Demonstrations
- Case Study
- Spotify’s Marketing Mix
- Putting It All Together
- FAQs About the 7 P’s Marketing Mix
The Evolution of the 7 P’s Marketing Mix
The Origins
The 7 P’s Marketing Mix was first introduced by E. Jerome McCarthy in 1960 through his book, Basic Marketing: A Managerial Approach. This marketing model has since become a cornerstone of marketing strategies.
The Original 4 P’s
Initially, the marketing mix consisted of just four key elements:
- Product: The goods or services offered to customers.
- Price: The amount customers pay for the product.
- Place: The channels through which the product is distributed and sold.
- Promotion: The methods used to raise awareness and drive sales of the product.
However, over time, the marketing mix was expanded to include three additional elements, often referred to as the “service mix P’s.” - People: The personnel involved in delivering the product or service, including their skills, knowledge, and attitudes.
- Process: The systems and procedures in place to deliver the product or service.
- Physical Evidence: The tangible aspects of the product or service, such as the physical environment and ambiance.
These additional elements are particularly relevant in service-based industries, where the customer experience is an important factor in driving loyalty and satisfaction.
Breaking Down the 7 P’s of the Marketing Mix
Understanding how everything works in the modern landscape is important for success. You have to learn how things operate in the present time, not 20, 10, or even 5 years ago.
1. Product: What Problem Are You Solving?
A good product that provides value needs to be at the centre of your marketing strategy. This means that you need to understand how to solve your client’s biggest problems and know exactly who they are. While this might seem simple, it is something that many businesses fail to do.
Avoid the Pitfall of Assuming Demand
It might seem sensible to produce something you believe people want, but great products are made the opposite way. Instead of assuming demand, focus on understanding your customers’ needs. This understanding will help you create a product that meets their expectations.
Products Come in Many Forms
Products come in all shapes and forms and may not necessarily be a ‘product’, but a service including professional services. The key is to identify what clients desire and then develop a product that meets their current needs.
Product Features and Excellence Matter
Whether you’re a large or small business, when developing your product, think about the features that will set it apart from the competition. The standard of excellence you aim for will directly impact customer satisfaction and uptake and your branding will play a key role in building recognition and trust with your target audience.
Additional Services Can Be a Deciding Factor
Additional services, including free trials, money-back guarantees, fast turnaround or a single click checkout function, can also significantly influence a customer’s decision to purchase. These value-added services can be the difference between a customer choosing your product over a competitor’s.
Read more about marketing strategies that are proven to work.
2. Price: Finding the Sweet Spot
Your pricing strategy means finding the right price balances cost, market positioning, and customer impression. You’ve got to find the place where your product or service meets that value expectation of the buyer. This delicate balance can make or break your business, as it directly impacts your revenue and customer satisfaction. If you ask for a top-tier price, buyers will expect a higher level of product or service, so be prepared to deliver.
3. Place: Location is Key, Even Online!
Your product’s availability must meet your customers’ convenience, not yours. These days customers expect to be able to access products and services when and where they want them. Failure to meet these expectations can result in lost sales and a damaged reputation.
Omnichannel Presence
A company’s distribution strategy and marketing campaigns should be seamless across all channels, providing customers with a consistent experience regardless of how they choose to interact with the brand. This includes ensuring that products are readily available in-store, online, social media marketing and through other channels such as mobile apps.
Display and Distribution
Distribution is also an important aspect of place. Whether through physical store displays, social media or online, products that are showcased in an attractive and accessible manner, tend to perform better.
Digital-Only Businesses
Companies operating solely online really have to develop channels to communicate with customers. This includes email marketing, creating engaging social content, social media marketing, digital marketing and content marketing. These channels are important to build awareness, brand and provide an opportunity for customers to try and buy.
Mobile Marketing
With the majority of customers using their mobile devices to research and purchase products into the marketing mix, companies must prioritise mobile marketing strategies to reach their target market.
4. Promotion: Communicating Benefits, Not Just Features
Promotion is an essential part of your marketing plan and is about getting the attention of your target audience and demonstrating the benefits that your product or service can bring to them and is what the customers sees , rather than just highlighting the features and must be part of your campaign plan.
Bringing Value
Advertising campaigns should focus on communicating benefits, not just showcasing your product’s features and incorporating case studies. Remember, it’s about them, not you. By highlighting the benefits and solutions that your product or service can provide, you can build trust and credibility with your target audience.
Consistent Branding Across Channels
To achieve effective branding, it’s essential to use clear and consistent messages with your digital content, across all channels, including social media, special events, and advertising campaigns. This helps to create a strong brand identity and reinforces your message across your digital marketing strategy.
5. People: The Power of First Impressions
As the saying goes, ‘You only have one chance to make a first impression’, so the first face-to-face meeting or online interaction can define a lasting impression. This means that all employees need to be well-trained, knowledgeable and aware of policies and processes in order to address customer questions. This is especially important for online interactions, where a single misstep can have far-reaching consequences.
6. Process: Streamlining Processes for Enhanced Customer Experience
When it comes to delivering exceptional customer service, it’s essential to examine your internal processes. This includes aspects such as customer service, personalised onboarding delivery, scheduling, cost control, and more. 80% of purchasers believe that their encounters with a company are just as important as the products they purchase.
The Importance of Efficient Processes
When developing your marketing plan to focus on process optimisation, you can significantly improve the customer experience. When you prioritise key operational points, and use the correct marketing tools, your staff can dedicate more time and attention to customer interactions.
What Customers Really Care About
Customers are not interested in the inner workings of your operations. What they do want is reassurance that they’re dealing with a reputable vendor who can help them solve their problems.
It is important to establish trust with customers as quickly as possible.
This can be done by:
- maintaining a user-friendly website that caters to shoppers’ needs on the main menu
- ensuring timely responses to customer enquiries
- providing transparent and efficient delivery processes
- offering competitive pricing and cost control measures
- be easily found through online platforms and search engines
To ensure you are delivering exceptional customer experiences, ask yourself:
- Are our processes streamlined and efficient?
- Are our staff equipped with the right marketing tools and technology to provide excellent customer service?
- Are we providing timely and effective solutions to customer inquiries?
- Are our pricing and delivery options competitive and transparent?
By answering these questions and prioritising process optimisation, you can build trust with your customers and establish a reputation for excellence.
7. Physical Evidence: The Power of Demonstrations
Giving clients real demonstrations makes it easier for them to see the benefits of your product. This approach provides tangible indicators of a company’s capabilities, such as strong branding and a consistent online presence. This will help to build trust and credibility with potential customers.
Validating Worth Through Feedback
Allowing clients to share their thoughts and opinions, can help to identify areas for improvement and demonstrate a commitment to customer satisfaction. These mechanisms allow customers to provide input on their experience, which can help to build trust and increase the chance of a sale and repeat sales.
The Credibility of Testimonials
Testimonials serve as credible material because they reflect real customers and purchases. Genuine reviews, especially video reviews, can help to build trust with potential customers, increasing the likelihood of a sale.
Case Study
Spotify’s Marketing Mix
Spotify, with more than 250 million premium subscribers, stands out.
The company shows what using the 7 P’s Marketing Mix could look like.
| Pillar | Application | Benefit |
|---|---|---|
| Product | Streaming service with a large library | Wide customer base and different music choices |
| Price | Freemium model and diverse affordable subscriber plans | Mass reach plus tiered customer experience to choose the features they value the most |
| Place | Cross-device access | Allows use at any point with wide reach potential for customer satisfaction and a simple way to stream |
| Promotion | Social, student campaigns and ads, family programmes, bundled offers | Increases user interaction, grows users |
| People | Tech and service staff | Creates top class consumer happiness |
| Process | Algorithmic playlists and straightforward UI | Grows client reliability, offers positive experience, and is more efficient in service, and helps to find content |
| Physical Evidence | Stylish application platform and branding everywhere | Increases reliability for subscribers |
Putting It All Together
Thinking about applying all this into a plan takes considerable thought and planning, but using the 7 P’s Marketing Mix as a marketing strategy tool ensures no loose ends. This should be an important step in developing your overall marketing plan.
FAQs About the 7 P’s Marketing Mix
How to use the 7Ps marketing mix?
Understanding Your Audience’s Needs
To get things started, review what products or services fulfil your audience’s needs and wishes. Identify the pain points they face and how your offerings can provide solutions. This will help you tailor your products or services to meet their specific requirements.
Pricing Strategically
Price these items according to competitive advantages. Research your competitors and analyse their pricing strategies to determine how you can differentiate your offerings. Consider factors such as quality, features, and customer support to justify your pricing.
Location Considerations
Think through location considerations with your product in reach. This includes evaluating the accessibility and convenience of your products or services for your target market. Promoting to appeal to your particular groups’ preferences will be key, so consider their lifestyle, habits, and behaviours when making decisions.
Staff and Services Alignment
Ensure that your team is knowledgeable, friendly, and responsive to your audience’s needs. Many small businesses can benefit from this approach, as it helps build trust and loyalty with customers.
The Benefits of Alignment
By aligning your products, services, and staff with your audience’s needs, you can create a seamless customer experience. This leads to increased satisfaction, loyalty, and ultimately, business growth. Don’t underestimate the power of understanding your audience and tailoring your offerings to meet their needs.
Why are the 7 P’s important in marketing strategy?
The 7 P’s have capabilities to determine key strategies such as: finding, competing effectively, aligning marketing with strategy overall. Using the seven helps with keeping attention balanced for those relevant areas. Also improving promotion reach with target audience demographics when used consistently.
Find out more about why a strategy first approach to your marketing plan is key to your success.
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