The Importance of the 7P’s Of Marketing

Most marketers are aware of the original 4P’s of marketing which were developed in 1960 by E Jerome McCarthy as part of his book “Basic Marketing: A Managerial Approach”. This theory served as the foundation of marketing focusing on product, price, place and promotion. This was then extended by Stephen Booms and Mary Jo Bitner adding 3 extra elements in their book titled “Services Marketing” which was intended to help organisations better understand and respond to the needs of customers in a services-based industry. This takes into consideration people, processes and physical evidence.

Below is a guide on how to apply the 7Ps to your marketing strategy and everyday business activities.

PRODUCT - How can you improve your products or services?

In order to increase customer satisfaction and engagement, you must focus on how to improve your products or services.  In some cases this may mean an increase in the quality of your products, increasing the range of services you offer, or creating a more user-friendly customer experience.  It is important to understand that your product is the core of your company’s offering and focus should be given to the product design, branding, packaging, features, quality, and range of products and services offered. 

PRICE - What Is Your Pricing Model?

Have you considered how important your pricing model is? Establishing your pricing model is a critical element of the 7P's of marketing, as it can directly affect a customer's decision to purchase a product or service. It is one of the most important elements of the marketing mix, as it is the only element that directly generates revenue. Price also affects a company's profitability and can be used as a tool to gain market share or increase market penetration. In addition, price affects brand perceptions, as customers often equate higher prices with higher quality.

PLACE - Where do customers make a purchase?

Understanding your customer journey touchpoints and preferences is important, understanding where to sell your product either online or in physical offline stores can make a big difference. ‘Place’ literally means the location where your potential customer will make their final purchase. This will often include an omnichannel experience across e-commerce and in-store. By ensuring your customers can conveniently access products and services you will be in the best position to increase sales and build customer loyalty.  You should carefully consider your ‘Place’ in order to maximise potential leads and/or sales. 

PROMOTION – Which marketing activities will you use to promote your product or service?

It is important to ensure that you have a strong promotional strategy to ensure that customers are aware of your product or service.  For any brand or business, building strong brand awareness, acquisition, and having a sales conversion is important to establish your business amongst your competitors.  Promotion can be via a variety of means including sales promotions, advertising, PR, personal and digital marketing.  Combined these methods will help to inform your customers about your product or service. 

Promotion is an essential part of any marketing strategy and should be tailored to your target audience to position your brand or business amongst your competitors.  Some brands often make the mistake of promoting too heavily on price, this needs to be carefully considered and balanced between driving short-term sales and long-term profitability.

PEOPLE - Which people affect your business the most?

‘People’ are the most critical part of any business.  Your employees are your brand ambassadors whilst sales and marketing teams will bring to life products and services with your target audience. Having disengaged employees who don’t fully understand the vision of your brand or your target audience, could present a difficult situation.  It is the people that make or break your business or brand, this can sometimes be overlooked by businesses.  By understanding what your customer wants, and what they need, you can increase sales and customer loyalty.  Customers are more likely to purchase your product or service if they provide a solution.  Understanding your customers’ motivation and preferences can help you when structuring your marketing campaign.  You cannot have a successful marketing campaign or brand without aligning your teams to understand your target audience and your brand.

PROCESS - Are your processes the most effective they can be?

Ensuring your internal and external processes are as efficient and effective as possible is crucial if you want to compete in your industry.  Internal processes include customer service – inefficient processes can lead to customer dissatisfaction, decreased sales, and ultimately the failure of your business or brand.  Having after-service care after customers have purchased your product/service is key in ensuring repeat purchases and longer-term loyalty.  For e-commerce businesses how effective is your order fulfilment, ensuring that your internal processes are effective to keep yourself ahead of your competitors?

PHYSICAL EVIDENCE - How can you ensure quality for customers?

First impressions count! Your customer will form an impression of the quality of your product or service as soon as they come into contact with it.  ‘Physical Evidence’ includes tangible elements such as the packaging of a product, the layout of your premises (i.e. shop, restaurant etc), and the design of your website! Physical evidence reinforces the message conveyed in other elements of the marketing mix i.e. Product, Price, and Promotion, and helps your customer to make a decision.  Attractive and well-designed packaging can help communicate your brand value proposition and key benefits to the consumer – whilst poor packaging can create a negative impression.  You must ensure that your physical evidence represents the quality of the product or service your customer is buying.  By establishing the right physical evidence, you can increase your customer satisfaction and loyalty. 

Have you implemented all of the 7P’s?

The 7P’s are an important part of strategic marketing and planning as they provide a comprehensive framework for developing your products or services – in other words, each ‘P’ is essential and shouldn’t be overlooked. Aligning this with your business goals and brand plan can be a powerful combination, which will allow you to effectively communicate with your target audience, and develop the right products and services to increase brand awareness and drive sales.

The Brand Map can help you to create an effective marketing strategy and help your business bring to life the 7P’s of Marketing, with our hands-on consultancy support or half-day workshops.  We flex our requirements to suit your needs.

Get in touch today to see how we can help you