What are the 7 Ps?
The 7 Ps, also known as the extended marketing mix, consist of 7 parameters, whereas the classic marketing mix consists of only 4. The extended marketing mix emerged because more aspects were relevant to service businesses than to companies that exclusively sell physical products.
TIP! The 7 Ps are also known as the extended marketing mix, the extended parameter mix, and the 7 Ps.
The extended marketing mix aims to describe a company's service based on the 7 parameters:
- Product
- Price
- Place (distribution)
- Promotion
- Physical evidence
- People
- Process
The first 4 are the classic 4 Ps, and the last 3 are the additional ones.
TIP!Read more about the 4 Ps, the classic marketing mix, here.
These 7 parameters are, broadly speaking, what a service business can adjust and fine-tune in order to differentiate itself and make itself as attractive as possible to the right target audience.
That is why no service business can ignore the 7 Ps when developing its business strategy. They form the foundation of the company and serve as the starting point when developing a new strategy — whether it is a marketing strategy, product development, or something else — it will always touch on one or more of the 7 Ps.
Product
The product is what you sell. That is, the actual product, its features, benefits, and the value your product or service provides to your customer. This could be, for example, cleaning services, consulting, hairdressing, or similar.
It is essential to understand the product, what makes it unique compared to your competitors', and what value the product adds to your customers — when running a business and especially in relation to your marketing.
TIP!
Read more about the EFU model here, which helps you use the product and its features and value in your marketing and sales!
Price
This refers to the price of your product and how it affects your customers. How much will your target audience pay for the product, how do your competitors price, what are your costs, etc.
When it comes to the P for price, we distinguish between the following pricing methods:
- Cost-oriented: The price is set based on costs and margins.
- Competition-oriented: The price is set based on competitors' prices.
- Marketing-oriented: Pricing is based on an assessment of market conditions, including: target audience, environmental factors, demand, etc.
In reality, however, pricing will typically be an overall assessment of all three methods, which together result in a competitive price that makes sense for the individual business.
Place
Where and how do you get your products from you to your customers? Is it online, at your physical location, or something else entirely? It is crucial to choose the right placement and distribution for your product and target audience. The placement and how you sell your product should be based on your target audience, their purchasing habits, your product, etc.
Promotion
Promotion refers to the actual marketing of your product. How do you make the right people (your target audience) aware of your product and drive sales.
Promotion typically takes place in the following ways:
- Traditional advertising
- PR
- Online marketing
- Personal selling.
And often a combination of these to achieve maximum effect and synergy.
Physical evidence
Physical evidence encompasses everything physical about your business that your customers interact with. This includes, for example:
- the physical environment where you offer your product.
- the packaging
- any other physical elements (ticket, wristband, souvenirs, or similar)
It also includes the clothing worn by employees, interior design, etc. Everything physical.
People
People refers to the employees who work at the company and interact with the customer. This covers everything from service and support to sales, etc.
Having the right people is essential, as in many service businesses it is largely the people who help shape the product and the overall experience.
Process
Process is the process your customers go through at your company. This covers everything from ordering to delivery.
Including: delivery time, delivery method, waiting time, follow-up support, etc.
It is crucial here to be able to deliver in the right way and equally well to all customers.
Would you like sparring on how to optimise your 7 Ps and strategy?
Call us on 30 12 42 72 for a no-obligation conversation about how we can help your business reach its goals.
