The 7 Ps of the Marketing Mix

Traditional Marketing Mix 4 levels of marketing control The 4 Ps: Product Place Promotion Price

Modern Business Model 3 MORE Ps = 7 Ps People Process Physical Environment

The 4 Ps Review Product: Companies decide to sell w/o market research Best Practices = companies conduct market research to guide what product they’ll be selling.

Product What does the customer want from the product/service? What needs does it satisfy? What features does it have to meet these needs? Are there any features you've missed out? Are you including costly features that the customer won't actually use? How and where will the customer use it? What does it look like? How will customers experience it? What size(s), color(s), and so on, should it be? What is it to be called? How is it branded? How is it differentiated versus your competitors? What is the most it can cost to provide, and still be sold sufficiently profitably?

PRICE Product is worth only what customers are willing to pay. Needs to be competitive Needs to make a profit – only element of marketing mix generates revenue Expected value or quality

PRICE What is the value of the product or service to the buyer? Are there established price points for products or services in this area? Is the customer price sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so gain you extra profit margin? What discounts should be offered to trade customers, or to other specific segments of your market? How will your price compare with your competitors?

PLACE Where customers buy a product and the means of distribution. Convenience Availability Ways of displaying product

PLACE Where do buyers look for your product or service? If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalogue? How can you access the right distribution channels? Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies? What do you competitors do, and how can you learn from that and/or differentiate?

PROMOTION Way a company communicates what it does and what it offers. Branding, advertising, PR, corporate identity, and special offers. Gain attention, be appealing, consistent message, and... Give the customer a reason to choose your product.

PROMOTION Where and when can you get across your marketing messages to your target market? Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards? By using direct marketing mailshot? Through PR? On the Internet? When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions? How do your competitors do their promotions? And how does that influence your choice of promotional activity?

PEOPLE First encounter with your business. Make or break your business – think of a rude waiter or sales associate. Best practices – FIND the right people and HELP their employees and/or representatives become fantastic at their jobs • Proper training, attitude, and well motivated. • Culture

PROCESS Process of giving a service and the behavior of those who deliver are crucial. Customers care about how well they’ll be served, not about your process - How well does the system work: Waiting times Kept informed Helpfulness of staff Services carried out efficiently

Tangible vs. Intangible Tangible Product = item that can be perceived by the sense of touch. ex: cars, cell phones, computers • Intangible Service = nothing is in the hands of the consumer although customer does gain something by the service. ex: legal advice, a Dr. check-up, education • Tangibility needs to be created within the experience – done through the environment in which the service is delivered.

PHYSICAL ENVIRONMENT Choosing a service can be seen as risky. Clean and well decorated reception area. Customer testimonials. Customer feedback. Repeat customers and referral business.

The 7 Ps of the Marketing Mix