What is the 7P's Marketing Mix?
The 7P's Marketing Mix is one of the most effective Marketing models known to marketers. It has been used by countless Marketers since the 1960's when it was created by E. Jerome Mc Carthy in his book Basic Marketing: A Managerial Approach. In a nutshell it's all about putting your product in the right place, at the right price with the right type of promotion.
There are four core P's:
- Product - What you're selling
- Place - Where you're selling your product
- Price - How much you're selling it for
- Promotion - How you choose to market your product
And there are a further three P's to take the total to 7.
- People - Employees and contractors
- Process - How you do things, e.g. Distribution, Sales Funnels etc.
- Physical Evidence- Other forms of proof that your business is doing well.
For this "P" The questions you have to ask include:
- What are the key benefits of your product/service to your customers?
- How exactly will your customer use your product?
- What is the appearance of the product?
- Is every element of the product necessary for your customers?
- Where will your customer use your product/service?
- How often will they use your product/service?
- Is your product/service memorable for positive reasons?
- Introduction - Research and Development before the initial launch into the respective market.
- Growth - Sales increase at a rapid rate.
- Maturity - Sales reach their peak and begin to steady
- Decline - Sales begin to decrease
At different parts of your product's life- cycle you should adapt your Marketing activities. For example In order to market a product or service effectively the correct Marketing Mix must be implemented.
Age range: 18-30
Occupation: Creative industries e.g. Advertising, Design, Art etc.
Location: South East England.
Salary: £30,000 - £60,000 per annum.
Psychographic profile: Enjoys technology, sports and travelling
Amount of leisure time available: 4-8 hours per week
Attitude towards technology: needs to be at the forefront of tech.
An effective marketing mix for this scenario can be:
Product: High end, multi functional tablet that adapts it's software to suit each individual user's lifestyle.
Place: Online retailers i.e. Amazon
Price: £700- £1000
Promotion: Influencer Marketing
Where do you sell your product? How is it distributed?
Your product/service has to be in a location or distributed in method that is easily accessible to consumers.
Once you know your audience better than you know your best friend you'll know where and how your offering would be most convenient for them to access.
Some questions that need answering here are:
- Where would your customers look for your product/service?
- Where wouldn't your customers look for your product or service?
- What is stopping them accessing your product/service?
- How is your placement strategy better than your competitors?
- What are the shopping habits of your customers?
This is arguably the most important of the P's and the toughest to get right. You, of course want to make the pricing attractive to your customers whilst making a profit.
Too high will put them off as well as too low.
Here are some questions that you should ask yourself and/or your team when pricing your product:
- How much does producing your product cost?
- How much would your customers be willing to pay for your product?
- Do you think that changing your price can have an affect on your market share?
As we've said before "build it and they will come" doesn't apply in real life, apart from the rare anomaly.
You have to market your business, and market it well.
Promotion can be broken down into three main parts:
Advertising (you telling others how great your business is)
Sales Promotion (Enticing customers to purchase your product or service with a temporary lower price.)
Public Relations (Other people telling other people how great your business is)
Some questions to be answered here include:
- How can you send your customers marketing messages?
- When is the best time of day/year to promote your business?
- How frequently is necessary to promote your product?
- Which marketintg channels are most suitable for your product?
- What is the promotion strategy/tactics of your competitor?
It's no good having highly effective employees if your working methods are ineffective.
You must ensure that all your processes are the best they can be.
- Sales funnel
- Payment system
These must be regularly reviewed and improved in order to run a successful business of any kind.
Nothing gets done without people. Nothing great gets done without great people, inside and outside of your business.
Your employees will be your most important marketers, they will be the ones creating and distributing your product/service offering.
They will have the most contact with your customers. The hiring process is part of your marketing process. If you get the right people, who truly believe in your product or service.
Their enthusiasm is more likely to rub off on potential consumers, which will increase the chances of them becoming regular customers.
The training process is also indirectly part of the Marketing process.
Ensure that you provide as much training as you can for your staff, the better they can do their job, the more attractive your business will be to your customers.
And once you obtain these people, they will attract other people of a similar calibre, leading to you having an internal competitive advantage over your competitors.
Apart from profit margins there should be other benchmarks of success.
For example, if a brand is "top of mind" for a specific sector e.g. sports apparel = Nike
Fast Food= Mc Donald's
Also "social proof" an example of which can be if you have a long queue of hundreds of people outside your store.
Or in the case of the world famous Selfridges store, walking down Oxford Street and seeing hundreds of people holding their yellow bags.
This is additional evidence that your business is doing well.
Follow the 7P's of the Marketing Mix
- Physical Evidence
Begin marketing your business without a strategy. Because it can cost you a lot of time and money.
Want 5 tips that can quickly:
- Increase traffic to your website?
- Improve your social media profiles?
- Help you communicate better with your customers?
- Create content that converts?
Plan your work then work your plan. And the Marketing Mix is one of the best plans out there.
Until next time,
Asher & The BuzzRamp team