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Marketing Mix 7P – What is it?
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One of the most important concepts used in marketing was, until recently, the 4P marketing, which focused on product, price, place, and promotion. Over time, however, it became insufficient, which led to its evolution. This is how the 7P marketing mix was created, which is successfully applied even in the era of the internet. What is it, what elements does it consist of, and what should be taken into account to achieve results in your company?
What is the 7P marketing mix? 7P marketing is a concept that extends the traditional 4P model, created by E. Jerome McCarthy in the 1960s, which consisted of four elements – product, price, place, and promotion. It was expanded with three additional aspects: people, processes, and physical evidence, which are crucial for the highly popular service marketing today.
Thus, the 7P concept provides a useful tool for service businesses, where aspects such as direct customer contact or the way solutions are delivered are critical. While the 4P model is still used, it mainly applies to promoting physical goods, whereas 7P allows for a deeper understanding of the complex relationships and processes in the service industry.
Elements of the 7P marketing mix
As mentioned earlier, the 7P marketing mix consists of seven elements:
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- Product;
- Price;
- Place;
- Promotion;
- People;
- Process;
- Physical evidence.
To understand this concept, it is worth discussing each element in more detail – this will help implement the 7P model in your own business.
Product in 7P
While in the 4P marketing model, this element referred to various types of goods, in the 7P model, it also applies to services offered by the company. It is necessary to consider their functions, quality, brand, life cycle, and additional elements, such as after-sales service. The offered solution should meet the needs of the target group and provide specific benefits to attract potential customers.
Price in 7P
In the 7P marketing model, this element concerns not only the price of the product or service but also the relationship between production costs and the pricing strategies of competing companies. The price itself, of course, has a significant impact on customer purchasing decisions, and in setting the price strategy, factors such as discounts, loyalty programs, and various financing options should be considered.
Place in 7P
This primarily refers to the distribution method of products and services. Place can represent both the physical location of the company (e.g., store, office, or service salon) and encompass online distribution channels (e-commerce, mobile apps, etc.). In the 7P model, it is also crucial how the product reaches the customer (e.g., directly or through distributors).
Promotion in 7P
Promotion includes all activities aimed at informing customers about the product and persuading them to make a purchase. This may involve advertising (television, radio, or online), digital marketing (social media, SEO, or email marketing), sales promotions (coupons and discounts), public relations (PR), and even personal selling.
People in 7P
In 7P marketing, people not only refer to customers but also employees, who play a key role, especially in the service sector. The quality of their work, competence, organizational culture, and customer service skills largely determine the customer experience and their decisions. This element is included in the expanded 7P concept for a reason—without a high-quality workforce, achieving success in today’s highly competitive business world is not possible.
Process in 7P
Process refers to the way a service or product is delivered to the customer. It encompasses all the steps, procedures, and actions taken by the company to meet consumer expectations. In this context, efficiency, consistency, and transparency are key. For services, this includes aspects like the ordering process, delivery time, communication, and after-sales service. In the era of new technologies, process automation proves to be the key to success, as it both increases efficiency and maximizes customer satisfaction.
Physical Evidence in 7P
This element of the 7P concept, although seemingly the most mysterious, is actually quite simple to understand. Considering that it is difficult to assess the quality of an offer in the service sector before a purchase, physical evidence (or tangible proof) can be crucial in encouraging a customer to engage and in building a positive brand image. Components of this element can include, for example, the appearance of the office, website, documents, marketing materials, and even employee attire.
How to effectively use the 7P marketing mix?
Knowing the individual elements of the 7P marketing mix may not be enough to implement an effective strategy and achieve the desired success. It is also necessary to take specific actions and pay attention to several key issues – separately for each of the elements described above. How to do this effectively?
For Product
In this case, the matter is relatively simple – the offered products and services must represent high quality and be attractive both functionally and visually. Your goal should be to tailor the offered solutions to the individual needs of customers and the expectations of specific target groups. When implementing the 7P marketing, you should also focus on maintaining product and service innovation, monitoring their effectiveness, and providing consumers with detailed information about them.
For Price
Setting the right price is absolutely fundamental in the 7P marketing mix. It’s not just about making the price as low as possible, but primarily about ensuring it is appropriate to the quality and actual value of the product. Your pricing strategy should also include various types of discounts, last-minute offers, loyalty programs, or free delivery (e.g., above a specified purchase amount). Be flexible and adjust the price to the changing market realities.
For Place
The 7P marketing model assumes that the key to success is selecting the right distribution channel that will allow you to effectively reach your customers. You need to decide whether physical retail, online sales (or both), or a combination of both is the best approach and also ensure that both the physical and online stores encourage visits and meet consumer tastes. Consider offering customers convenience, such as fast payment options.
For Promotion
In today’s highly competitive environment, using the right marketing tools is essential. By applying the 7P marketing, you can use various solutions to reach the largest possible number of potential customers and encourage them to make a purchase. These include:
- Search Engine Optimization;
- PPC ads;
- Content marketing;
- Email marketing;
- Influencer marketing;
- Social media ads.
Of course, there’s no harm in using several tools simultaneously – the key is to do it wisely and with the help of specialists.
For People
As mentioned earlier, properly qualified staff – from production workers to management – is invaluable. In the 7P concept, employees play a key role in customer service and building positive customer experiences. Therefore, ensure proper recruitment and training for your team. Don’t forget about the customer, who should be the primary focus of your attention – provide the highest level of service and build long-term relationships that will result not only in good sales results but also in a larger group of people interested in your offer.
For Process
Optimizing processes within the company is another important aspect of the path to success. Automate, streamline, monitor, and analyze to ensure that both sales and customer service remain at the highest level, which is key to implementing an effective 7P marketing mix. A good practice example would be implementing a CRM system or optimizing the payment process in an online store.
For Physical Evidence
This element should primarily focus on shaping a consistent and positive brand image. Take care of your logo, packaging, employee attire, functional website, and photos. Don’t forget about testimonials and positive customer reviews, which best confirm the quality of your products and services while encouraging others to choose them.
7P Marketing Mix – Example
How to implement an effective 7P marketing mix? There are numerous examples, but we will use the globally successful brand Coca-Cola, which:
- Offers products loved worldwide while consistently maintaining their quality and uniformity (Product);
- Provides affordable pricing, discounts, and various loyalty programs (Price);
- Ensures global availability of its products in various brick-and-mortar stores and online platforms (Place);
- Creates memorable and creative advertising campaigns (Promotion);
- Employs specialists across production, customer service, and marketing departments (People);
- Optimizes business processes by leveraging new technologies (Process);
- Maintains a cohesive and unique brand identity (Physical Evidence).