Marketing Mix – the 7 Ps

The marketing mix is not a new concept – it was first created by Jerome McCarthy in 1960 and consisted of the 4 Ps of marketing; Product, Price, Place and Promotion. Then in 1981, Booms & Bitner added three more Ps to the marketing mix; People, Processes and Physical evidence and these 7 Ps are now the set of key principles that are at the heart of all marketing strategies…often just referred to as the ‘Marketing Mix’.

How do the 7 Ps work?  

If we look at all of the Ps, one at a time, you will have a better understanding of basic marketing theory and a great foundation with which to pull together your marketing strategy.

The 7 Ps of marketing are a set of key principles that belong at the very heart of your marketing strategy. They are sometimes jointly referred to as the marketing mix.

The starting point, as most marketers know, when pulling together a marketing strategy is to identify your target market, so you know who your customers are, what they like and dislike and what makes them tick. Once you know this, you can look at the 7 Ps.  

Product

Every product you sell, make, produce or think about making should have your customer at the very heart. It should solve a problem for them, or be something they need or want. It’s worth asking yourself, ‘What is it about my product that makes your customers want to buy it?’ Do you need to change or tweak your products in any way to meet your customers’ needs?

Your products should also be of good quality, and the research that you have done on your target market will give you the information you need to know about their tastes and their buying habits, so you can market your product in the best way possible to get the most sales.

Price  

There are lots of different things to consider when setting your price for a particular product or service you provide. Obviously it needs to be deemed as good value for money by your customers, but you need to take into consideration the costs of producing, promoting and delivering your product.

You also have to take the cost of a similar product that is sold by your competitors. Finding the right price for your goods is not just about undercutting the competition or offering a cheaper alternative. It’s about finding out, during your market research, what price your customer is willing or used to paying for products or services that are similar to yours.

For example, when you go to the supermarket to buy shampoo, whether you’re aware of it or not, you will probably buy a brand that is in what you consider to be in your price range. But, at the same time, you’ll probably look at other similar products on the shelf and are likely to try something outside of your habitual price range, just to try it…even though a cheaper alternative might be available! So, people don’t always go for the cheapest option.  

Place

Your product should be where your customers expect to find it. So where and how are you going to sell your products? Do you sell them yourself or outsource them to retail outlets? Do you sell from home via an online shop, sell online from your own website, or do you put them on a big selling website like Amazon? You might be a small concern and sell via party plan or on Social Media sites. It might be a combination of several ways.

Whichever way you choose, it must be where your customers will expect to find your products, and you need to take into account the shelf life of your products, so if you stock them yourself, you don’t find yourself with hundreds of products coming to the end of their shelf life and you can’t shift them.

Promotion

This links into the place because, just as you need to put your product where potential customers can find it, you need to think about how you will let them know about your products through advertising.  And it needs to be where they will look and also what they look for. For example:

  • Social Media sites
  • Content marketing
  • Influencer marketing
  • Promotions and campaigns
  • Exhibitions or trade stands
  • PR
  • Direct mail
  • Personal selling
  • Advertising in newspapers, magazines, on radio etc.

People

This refers to the people who get your products out in the public eye, which includes you! Anyone who you employ or enlist help from to promote your business, or deliver a promotion or campaign need to have the necessary skills, qualities and drive to ensure its success.

You, and they, need to have excellent communication skills and deliver excellent customer service. After all, this is your reputation at stake and how you and anyone you employ behaves, impacts the way your customers will perceive you and your brand. You might need to delegate some of the work to a Social Media Manager, for example, who will know when and how to promote, and importantly, what will work best for your business. So, you need people around you who are like-minded, will effectively market your brand and encourage customers to spread the word about your products or services. And, never forget to keep learning and training yourself and your employees to develop new and relevant skills that will further enhance your business.

Process

The processes are what is involved in delivering your products to your customers. How your products are delivered will have a huge impact on the overall customer experience, their satisfaction levels and whether they will be loyal to your business in future. It’s absolutely vital to get this right from the very start.

Processes include:

  • Website experience – is your website easy to navigate? Are your contact details in a prominent or obvious place so you are easy to do business with?
  • Delivery time – do you have a good delivery process? Is it reliable? Does your website and product description (if selling online), tell people about delivery times and what they should expect?  
  • If your products are in a physical shop, what are the waiting times? Do they have to pre-order or can they just find the product in stock and in-store?
  • Aftercare – this is important too. Do you follow up after a sale to ask if the customer is happy with the product? If you do, and they are happy with your product, ask for a review to be left on your website or social media pages, or ask them to recommend their friends and family. You could even offer a 10% discount off their next purchase if they recommend you and that person buys from you.

Physical evidence

Finally, the last P, is physical evidence. This refers to absolutely everything that your customers see and feel when interacting with your business. From the feelings your customers have when visiting a physical environment, such as a shop or office, to the area where you show your products or services, which may be online.

It cover all the physical equipment, such as invoices, receipts, confirmation emails, ‘thank-you’ cards, packaging and branding. All of these things make up the impression that customers will have at every stage of an interaction with you and your company or brand. People expect excellence in every aspect of business and they should get the quality and service that they expect…and of those that are set as industry standards.

It also includes how you act and relate to your customers. Are you awkward and aloof, or relaxed and friendly?

All these factors contribute to the overall customer experience, so make sure that your customers have a great one!   

Benefits of using the 7 Ps in your marketing planning

The 7 Ps gives you a fantastic framework for your marketing planning. It will help you do a thorough job, so for each product you sell, or service you provide, ensure that each one follows the best practices of the 7 Ps. After all, it is referred to as the ‘Marketing Mix’ – it is the right marketing mix to put in place to make sure that each campaign, each project, each product will be successful. The 7Ps can also help you look at previous projects or campaigns that were not successful. I’m sure you’ll find that they weren’t in line with the 7Ps.

As I said at the very beginning of this article, the 7 Ps are a set of key principles that are at the heart of all marketing strategies. They help make the different between instinct-led marketing and process-led marketing, which in most cases is a more sure-fire way to success.

I hope this article has helped you to understand how the 7 Ps fit in and why they are such an important part of marketing theory. Let me know what you thought about this article in the comments below.

Pulling together your marketing strategy for 2019

2018 is fast coming to a close…can you believe it? If you haven’t already started to think about it, now is the time to be planning what you’re going to do with your business next year. It’s also a time to look back on what has happened this year – what worked well, what didn’t. So, before Christmas is here, it’s time to take stock, get your thinking cap on and decide what you want your business to achieve next year.

OK, what’s first?

The Seven Ps

If you haven’t already got a mission or vision statement, now is the time to write one. A mission/vision statement is just a couple of sentences stating what your business is, who you’re selling to (your target market), what you’re selling and what makes you stand out from the crowd. Once you have this, you can start working on how to market your business…to help me focus on every aspect of my business, I use the seven Ps…

money-2696234_640

  1. Product(s) – what is it about your product that makes your customers want to buy it? Do you need to change your products in any way to meet your customers’ needs?
  2. Pricing – how do you aim to compete with your competitor’s pricing? Do you want to match it… undercut them… or do you want to charge more for a more quality product and service?
  3. Place– where and how are you going to sell your products? Do you sell them yourself or outsource them to retail outlets?
  4. Promotion– how are you going to let your existing and potential customers know about your products? This includes thinking about advertising, PR, direct mail and personal selling.
  5. People – this refers to who works for your business, including yourself! Do you create the right impression and provide excellent customer service, so your customers have a good customer experience? I’m sure you do, but never forget to keep learning, training yourself and any employees to develop relevant skills to deliver your brand and excellent customer service.
  6. Process – this includes the processes involved in delivering your products to your customers. Are you easy to do business with? Is it easy for customers to find your products? If you have a website, is it easy to navigate? Are your contact details prominent, so you are easy to contact?
  7. present-2891870_640Physical – everything your customers see and feel when interacting with your business. This can be from the physical environment of your shops, office or wherever you provide and showcase your products or services, to meeting you face to face and how you come across to them, how you act and relate to your customers. It also includes your packaging and your branding.

Set your objectives

Now you can plan the future of your business. What objectives do you want to achieve? Get yourself a cup of tea or coffee and sit down with your laptop, tablet or good old pen and paper, so you can write each one down.

Each objective should include a description of what you intend to achieve, a goal if you like, and should include numbers to aim for. For example you might want to sell more of February-Stok-Photoa particular product, but just saying you want to sell more isn’t enough – you need to be specific, so you have something concrete to aim for. For example, say you have a crafting business and you make rag dolls. An objective might be to sell 40% more rag dolls in 2019, than you did in 2018. This gives you a solid and specific objective.

Don’t be tempted to write a long, long list of goals or objectives – aim for a maximum of five to six or you will find it all overwhelming and you won’t achieve any of them. As you achieve each objective throughout the year, you can add more then.

beard-2286440_640Once you have your list of objectives, put them into a timeline – what you want to achieve and by when. This makes it much easier for you to review at a later date. I usually put a date in my diary at the beginning of the year to review my business objectives every three months…of course, I’m not always brilliant at keeping to that date, but by having it in my diary, at least it’s a reminder and I do review things…even if it’s a couple of weeks after the date I originally set!

How will you achieve your objectives?

Now, go through each objective in turn – you already know what you want to achieve and when you want to achieve it by. Next on the list is how you are going to achieve each of those objectives. Let’s go back to that earlier example – you want to sell 40% more rag doll-1043499_640dolls over the next 12 months. You know what you want to do – you know when you want that result. How are you going to sell that extra 40%? These could be some of your options…

  • Get your rag dolls into a retail outlet, café or craft shop
  • Start selling your dolls at a local craft market or at craft fayres
  • Start an online shop on Etsy or Ebay
  • Sell the dolls using party plan – people have an evening at their own home and invite their friends. You show the dolls and potential customers get to see them, touch them and hopefully put in an order

Put all your objectives, what you want to achieve, your timescale and how you’re going to do it into your timeline. This makes it easier for you to see at a glance what your business and marketing plan is for next year for each of your objectives. It also makes it easier for you to review at a later date.

Measure your success

tape-measure-1186496_640The last thing on your list is how will you measure the success of each of your objectives? Sticking with the rag doll example, this is an easy one – each quarter, measure how many more dolls you have sold compared to the same time last year. To achieve your 40% increase over the course of the year, you need to see a steady increase in sales from the new selling strategies you’ve put in place.

I hope this has helped you to start planning your business and marketing strategy for 2019.

If you would like to receive a free Goal Setting Timeline template, please fill in your name and email below and I’ll be happy to send it to you…Happy Planning!