What are the 7Ps of Marketing
Marketing frameworks are essential in strategically organizing your work. You want to lay down a strong foundation before executing your marketing activities. When you have a solid foundation built on strategy, then you increase your chances of success that your work is on pace with your corporate mission. Having an approach minimizes waste of resources and better use of your marketing budget.
There are several essential frameworks available in the industry that you can apply to market your products and services. The 7Ps of marketing is one of these frameworks that you can use from your marketing toolkit. In 1960, Edmund Jerome McCarthy came up with the concept of the 4Ps marketing mix. The structure contained: product, price, place, and promotion. This framework was an adequate framework for the time which focused on products. As the economy developed and more service-based organizations started to rise. The 4Ps of the marketing mix got an update from Booms and Bitner in 1981. The 7Ps of service marketing is what came out from the update and what we will review today.
The 7Ps of the service marketing mix:
The product regarding the service framework are the services that your company will be providing to your customer. For example, an IT company would provide services in enterprise architecture, software development, network management, and more based on customer demand.
The price refers to the cost of the service that the customer must pay. This is a critical factor for buyers to consider based on the other service providers in the industry. The organization would have to do a study on the optimal pricing of their service based on value to the customer. The company wants to look at their industry and look at the following to determine their pricing strategy:
Low-cost service providers
High-cost service providers
Number of players in the industry
These factors are some of the inputs that a company needs to consider for their service pricing strategy.
This is the physical address of business where your service professionals interact with your customers. For example, if you provide IT services to a client, then your place of business would be your office.
The promotion of the service is what a lot of consulting companies focus on in getting more clients. The organization promotes their services using the following methods:
Search engine optimization
Social media marketing
The people in the framework represent the employees, consultants, and freelancers who deliver the service to customers. People are the most critical factor in providing knowledge-based services. You need to recruit the right people into your organization that would fit your corporate culture. You want to find smart people that can add value to your organization. You need to make sure that you have a good strategy to compete with other innovative companies in your industry to acquire talent.
The processes are the steps which are required to deliver the service to a customer. One of the advantages for service delivery companies is they design process maps that outline the:
These companies will then be able to share these process maps for their employees to make sure that their work is repeatable and successful.
The physical evidence is a combination of the environment and branding where the service is provided to a customer by a service representative.
The physical evidence capital would be:
A service brochure
A request for proposal
Social media accounts
A corporate website
Other unique deliverables from your organization.
Here is an example of a digital marketing agency providing PPC services to their clients:
Product — Pay-per-click advertising services
Price — $499 — $1,999
Place — Remote work
Promotion — Run ads on Google AdWords and send prospects to a custom landing page.
People — Google AdWords certified resources to work on client accounts.
Processes — The steps needed to deliver the PPC service to the customer.
Physical evidence — Send brochures, customer testimonials, company reviews, proposals.
You can make a worksheet based on the excel spreadsheet image in defining the 7Ps of marketing. All you need is seven columns with the following headlines:
This spreadsheet is a straightforward process for developing your strategy. You can then perform your analysis and input the data into the spreadsheet. We suggest that you identify and work with stakeholders when working on this strategic document. The worksheet will inform other functions within your organization. The 7Ps of marketing worksheet should be shared internally when the material is complete.