7P’s OF MARKETING MIX

INTRODUCTION

The marketing mix is one of the most famous marketing terms. The marketing mix is the tactical or operational part of a marketing plan. The marketing mix is also called the 4Ps and the 7Ps. The 4Ps are price, place, product and promotion. The services marketing mix is also called the 7Ps and includes the addition of process, people and physical evidence.

Describe by the diagram

“The marketing mix is . . . The set of controllable tactical marketing tools – product, price, place, and promotion – that the firm blends to produce the response it wants in the target market”.

ELEMENTS OF THE MARKET FIX :- explain by the points

PRODUCT There is no point in developinga product or service that no one wants

to buy, yet many businesses decidewhat to offer first, and then hope to

find a market for it afterwards. Incontrast, the successful company will

find out what customers need or wantand then develop the right product —with the right level of quality to meetthose needs now and in the future.

Product means the goods-and-services combination the company offers to the target market.

PRICE A product is only worth whatcustomers are prepared to pay for it.

The price also needs to becompetitive, but this does not

necessarily mean the cheapest; thesmall business may be able to

compete with larger rivals by addingextra services or details that will offer

customers better value for money. Yourpricing must also provide a profit. It isthe only element of the marketing mixthat generates revenue — everything

else represents a cost.

Price is the amount the consumer must exchange to receive the offering .

PLACEMENT The place where customers buya product, and the means of

distributingyour product to that place, must beappropriate and convenient for the

customer. The product must beavailable in the right place, at the

righttime and in the right quantity, while

keeping storage, inventory anddistribution costs to an acceptable

level.

Place includes company activities that make the product available to target consumers.

PROMOTIONPromotion is the way acompany communicates what it doesand what it can offer customers. Itincludes activities such as branding,advertising, PR, corporate identity,sales management, special offers andexhibitions. Promotion must gainattention, be appealing, tell aconsistent message and above allelse give the customer a reason tochoose your product rather thansomeone else’s.

Promotion includes all of the activities marketers undertake to inform consumers about their products and to encourage potential customers to buy these products.

PEOPLEAnyone who comes intocontact with your customers will makean impression, and that can have aprofound effect — positive or negative— on customer satisfaction. Thereputation of your brand rests in yourpeople’s hands. They must, therefore,be appropriately trained, well motivatedand have the right attitude.• It is essential to ensure that allemployees who have contact withcustomers are not only properlytrained, but also the right kind ofpeople for the job• Many customers cannot separatethe product or service from the

All human actors who play a part in service delivery and thus influence the buyers’ perceptions; namely, the firm’s personnel, the customer, and other customers in the service environment.

PROCESS • Customers are not interested in thedetail of how your business runs.What matters to them is that the

system works• Do customers have to wait? Are

they kept informed? Are your

Process is one of the 'P's that isfrequently overlooked. A customer

trying to reach your company by phoneis a vital source of income and

returning value; but so often customershave to stay on hold for severalminutes listening to a recorded

message before they are able to getthrough. Many of these customers will

give up, go elsewhere and tell theirfriends not to use your company - justbecause of the poor process that is in

place. Even if they do get through, theywill go away with a negative impression

of the company.

The process of giving a service,and the behavior of those who deliverare crucial to customer satisfaction.Issues such as waiting times, theinformation given to customers and thehelpfulness of staff are all vital to keepcustomers happy.

PHYSICAL EVIDENCEA service can’t be experiencedbefore it is delivered. This means thatchoosing to use a service can beperceived as a risky business becauseyou are buying something intangible.This uncertainty can be reduced byhelping potential customers to ‘see’what they are buying. Case studiesand testimonials can provide evidencethat an organization keeps itspromises. Facilities such as a clean,tidy and well-decorated reception areacan also help to reassure. If yourpremises aren’t up to scratch, whywould the customer think yourservice is?

(Physical evidence is) . . . The environment in which the service is delivered, and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service.

MARKET STRATEGY BY 7’Ps

Is there an 8th P?

In some spheres of thinking, there are 8 P’s in the Marketing Mix. The final P is Productivity and Quality. This came from the old Services Marketing Mix and is folded in to the Extended Marketing Mix by some marketers so what does it mean?

The 8th P of the Marketing Mix:

Productivity & Quality – This P asks “is what you’re offering your customer a good deal?” This is

less about you as a business improving your own productivity for cost management, and more about how your company passes this onto

its customers.