What is the 7Ps In Marketing Mix? Application of Marketing Mix Model 7Ps 2022

Before going into the elements of 7Ps In Marketing and even to avoid confusion between 4Ps, 4Cs and 7Ps In Marketing Mix, you should pay attention to the image below:

7P In Marketing Mix1

The image above is a simple diagram of the elements that make up the Marketing Mix.

If you do not understand the details and details of the 7Ps of the Marketing Mix, you may miss out on the important factors that ensure the success of your business.

Many experts have concluded that:

In business, if you don’t know your target market well & find out exactly what your customers want, your business will definitely fail.

On the contrary, you will gain a lot of profit when you understand the above concepts. And moreover, you will know how to maximize profits and make the business grow in a sustainable way.

However, for many marketers, especially aspiring marketers, they think that the 7Ps In Marketing are basic knowledge, and do not bother to dig deeper into it.

So do you really understand what the 7Ps In Marketing Mix are? Let’s find out with me.

What is Marketing Mix?

Before learning about 7Ps marketing, you need to understand the definition of Marketing Mix.

What is Marketing Mix?

Put the right products or combinations of them in the right place at the right time at the right price.

The hard part is how you can do all 4 of these things well! You need to know every aspect of your business’s business plan first.

As I noted before, the Marketing Mix is ​​primarily concerned with the 4Ps of marketing, the 7Ps In Marketing, and the hypothesis that the 4Cs were developed in the 1990s.

So what is the 7Ps In Marketing?

What is the 7Ps In Marketing?

7Ps is a Marketing Mix model consisting of 7 elements: Product, Price, Place, Promotion, People, Process, Physical Evidence ( infrastructure, marketing support materials).

7P In Marketing Mix2

Marketing expert E. Jerome McCarthy created 4P marketing in the 1960s. The term was later expanded to 7Ps marketing & is widely used worldwide. Many business schools teach this concept in basic marketing classes.

The 7Ps model in marketing is developed from these 4Ps and is defined as follows:

1. Product (product)

A product is an item that is built or manufactured to satisfy the needs of a certain group of people.

The product in 7Ps marketing can be intangible or tangible as it can be in the form of a service or a good.

Make sure that the product you design and manufacture must meet the needs and trends of the market you are targeting.

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So, in the product development phase, marketers must do a series of extensive research into the product life cycle they are creating.

A product has a certain life cycle consisting of 4 stages:

1. Introduction
2. Growth stage
3. Maturity
4. Decline

It’s important that you find ways to improve your product to stimulate more demand when it reaches a period of decline.

Besides, you also have to create products with combinations. You can expand your existing products by diversifying & or increasing the depth of your product line.

In general, marketers must ask themselves what should be done in the product mix to deliver a better product than the competition.

What is product mix?
Product mix is ​​the product structure, product mix or product system. This concept is understood as the proportion of products that a business sells, a business may decide to provide a series of similar products to attract buyers in a market segmentation strategy.

To develop the right product you need to answer the following questions:

  • What do customers want from the service or product?
  • How will they use it?
  • Where will customers use it?
  • What features should the product have to satisfy the customer’s needs?
  • Are there any essential features you missed?
  • Are you creating features that customers don’t need?
  • What is the product name? Is it attractive?
  • Are the product sizes and colors attractive?
  • How is your product different from your competitors’ products?
  • Is the appearance (packaging) of the product eye-catching?

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2. Price (Price)

Price – The price of the product is basically the amount the customer has to pay to use it.

Product price is an extremely important factor that defines the Marketing Mix. Pricing in the 7Ps marketing model is also an important component of your marketing strategy as it determines the profitability and survival of your company.

Adjusting product selling prices will have a great impact on the entire marketing strategy. At the same time, it also greatly affects the sales and demand of the product.

If the company is new to the market and hasn’t made a name for itself, your target customers won’t be willing to pay high prices. Although in the future they may be willing to pay a large amount of money, it will be very difficult to do so at the start-up stage.

Pricing policy always helps shape the perception of your product in the eyes of consumers.

Always remember that a low price usually means a lower quality product when they compare your product to your competitors.
However, if the price is too high, the costs will outweigh the benefits in the eyes of customers. And so they will value their money more than your product.
=> Consider checking your competitors’ prices and offering them a fair price.
When setting prices for products, marketers should consider the perceived value that the product provides. There are three main pricing strategies:

What is market skimming?

Market-Skimming is a skimming pricing strategy: Set a really high price for a product when it hits the market, then gradually lower the price over time to maximize revenue.

  • Market Penetration Price
  • Skimming price
  • Neutral price

Here are some 7Ps marketing pricing questions that you should ask yourself when setting prices for products:

  • How much did it cost you to produce the product?
  • According to customers, how much is the product worth?
  • Do you think a slight price drop can significantly increase your market share?
  • Can the product’s current price keep up with competitors’ prices?

3. Place (Location)

Place is Channel of Distribution – an important part of the Marketing Mix definition.

You must position and distribute the product in a place that is easily accessible to the potential target. This often requires a deep understanding of the market.

From there, you will find distribution channels that can connect directly with your target customers.

7P In Marketing Mix3

There are many distribution strategies including:

  • Intensive distribution
  • Exclusive distribution
  • Selective distribution strategy
  • Franchise

Here are some questions that you should answer in developing your distribution strategy:

  • Where do customers find the service or product?
  • What types of stores do potential customers usually go to? Do they shop in a mall, a regular store, in a supermarket, or online?
  • How do you access the different distribution channels?
  • How is your distribution marketing strategy different from the competition?
  • Do you need a powerful sales force?
  • Do you need to attend trade fairs?
  • Or should you build an online sales channel?

4. Promotion (Promotion)

Promotion – Promotion is a very important component of marketing as it can increase brand awareness and sales.

Promotion in 7Ps includes various elements such as:

  • Sales organization
  • Public Relations
  • Advertisement, promotion
  • Sales promotion

Advertising usually includes paid media such as TV advertising, radio advertising, print media or internet advertising to bring in a large number of customers in a short time. In this day and age, most marketing resources are focused on online advertising.

Public Relations is communication with customers and is usually unpaid. It includes press releases, exhibitions, sponsorship agreements, seminars, conferences and events.

Word of mouth marketing is also a type of product advertising. Word of mouth is a way of communicating product benefits through the satisfaction of customers and individuals. Salespeople play an important role in public relations and word of mouth.

Word of mouth can happen through the internet. To create an effective product promotion strategy, you need to answer the following questions:

  • How can you send marketing messages to your potential customers?
  • When is the best time to promote a product?
  • Will you reach your potential audience and buyers through TV commercials?
  • Is it good to use Social Media in promoting products?
  • What is your competitor’s promotional strategy?

The combination of promotional strategies and how you conduct your advertising will depend on your budget, the message you want to convey, and your target market.

5. People

People – People include both the target market and the people directly related to the business.

As for the people factor, thorough research is very important to discover if there is a sufficient number of people in your target market who are in need for certain types of products & services. or not.

Company employees are very important in marketing, they are service providers.

It’s important and you have to recruit and train the right people whether it’s support, customer care, copywriters, programmers, etc. Well recruited and trained employees will contribute to growth. business development for enterprises.

When you find customers who truly believe in your products, chances are your employees are doing the best job they can.

In addition, good, open employees give honest feedback about the business and offer thoughts on their own passions. From there, they also contribute to the expansion and development of the business.

This is a secret, the benefits of internal competition within a business can affect the position of that business in the market.

6. Process

Process – Process in marketing 7Ps is one of the important elements of marketing. Organizational systems and processes that affect service implementation.

So make sure you have a proper process in place to minimize costs. Mitigation here can be your entire sales funnel, payment system, distribution system, and processes and steps that play a role in ensuring your business runs efficiently.

Process refinements and improvements can come later to help businesses minimize costs and maximize profits.

7. Physical Evidence

Because the specificity of the service industry group is an abstraction, businesses need “tangible” evidences so that customers can easily visualize the services provided.

In addition, the physical evidence in 7Ps marketing is also related to the branding of businesses and their products to be perceived in the market.

It is physical proof of the presence and establishment of a business. One concept of this is branding.

For example, when you think of fast food, you think of Mcdonald’s. When you think of sports, the names Nike and Adidas come to mind.

You immediately know the exact presence of your business in the market as it is a market leader and has established a physical as well as a psychological proof in their marketing.

They manipulate consumer perception so well that their brands appear first when an individual is asked to name a brand in their niche or industry.

Is your product/service marketing campaign enough to attract customers? Applying 7Ps of Marketing in Inbound Marketing will be an effective solution for you right now.

Now let’s explore how to use 7Ps In Marketing strategy!

The role of the 7Ps model in marketing

7Ps strategy is a comprehensive marketing strategy that is very important for businesses, this model will be present in all business activities of the business from the time of conception to the stage of product delivery. consumer hands.

In addition, it also helps businesses create competitive advantages over competitors, attract customers, and carry out activities to create sustainable development. The 7Ps model in marketing will help businesses adapt to market changes, deal with impacts from the external environment, and create long-term development.

In addition, the 7Ps strategy shows businesses where the market needs are and organizes activities to meet consumers’ wishes through searching and researching the market through different methods. In 7Ps there are activities, market research, research and development of new products and many more activities.

Marketing mix helps consumers quickly find product information, satisfy their needs and desires beyond expectations. Through the 7Ps strategy to help domestic consumers easily access foreign products/services and vice versa. Thereby helping the products/services of Vietnamese enterprises to access international markets, improve the efficiency of exchange and trade activities with international friends.

How to use 7Ps in planning marketing strategies

7Ps Ideal model for your business to plan marketing strategy. Now imagine you are preparing to market a SaaS product. An outline consisting of 7 important elements will be established as follows:

#1. Introduction stage

  • Product: The purpose is to help businesses check the creditworthiness of their customers
  • Price: The target audience is the group of customers who want SaaS products with a cost of 4,000,000 million per month
  • Place: Products will be marketed through the website
  • Promotion: Which ads are most relevant to users?
  • People: Consultants and customer care professionals must be highly trained in software
  • Processes: Small business customers are provided with access to the service
  • Physical evidence: Conduct opinion surveys, user experience and encourage customers to leave product reviews on the website

#2. The growth phase

  • Product: User-friendly product (suitable for all audiences)
  • Price: Conduct a one-month free trial for customers
  • Place: Should the service be available as an app for Android/iOS?
  • Promotion: Conduct advertising with content focusing on any important advantages of the product that customers are interested in.
  • People: The hiring process should be fast enough. At the same time, ensure that customer support can be scaled up step by step along with sales growth
  • Processes: Larger customers will have separate portals for all their agents to use
  • Physical evidence: Website requires an SSL certificate

#3. Maturity stage

  • Product: Must be compatible with multiple operating systems
  • Price: Should economies of scale be offered (discount per user for the largest customer)?
  • Place: Where else can customers expect our products to be available?
  • Promotion: How are competitors promoting their products?
  • People: Implement recruitment policy on Social Media
  • Processes: Always support customers 24/7
  • Physical evidence: Invoices are smartly presented and branded

#4. Decline (decline)

  • Product: Must match or be of higher quality than current market leader
  • Price: What is the target profit margin?
  • Place: How will the user’s device type affect their experience on the website?
  • Promotion: How do you measure the effectiveness of each strategy and activity?
  • People: What are the qualities employees need to achieve?
  • Processes: Multi-language support is required for international customers
  • Physical evidence: Prestigious company address in the eyes of customers

As you can see, using the 7Ps makes strategic planning more comprehensive. In addition it can also help you assess why projects fail. That’s why you go deeper into the problem to be solved.

You have just learned the details of the 7 P’s in the 7Ps Marketing Mix. Let’s explore the expansion model of the 7Ps marketing model with me right away!

Marketing Mix 4C’s – An extension of the 7Ps Marketing Mix model

The 4C marketing model was developed by Robert F. Lauterborn in 1990, which is a modification of the 4Ps model.

This is not a fundamental part of the Marketing Mix definition but rather an extension. Here are the components of this Digital Marketing model:

1/ Cost

According to Lauterborn, price is not the only cost incurred when purchasing a product. Conscience or opportunity costs are also part of the cost of product ownership.

2/ Consumer wants and needs

A company should only sell one product that meets a consumer need. Therefore, marketers and business researchers should thoroughly understand consumer needs and trends.

3/ Communication

According to Lauterborn, promotion is difficult while communication is cooperative. Marketers should aim to create an open dialogue with potential customers based on their needs and desires.

4/ Convenience

The product should be available to consumers. Marketers should place products where their customers can see them.

Conclusion

Whether you are William Review or what product or service you are providing, whether you are using 4P, 7Ps or 4C, your Marketing Mix strategy still plays an important role.

You should come up with a plan that balances profitability, customer satisfaction, brand awareness, and product availability. It is extremely important that you consider the overall aspect of the method. It will determine your success or failure.

By understanding the basic concept of the 7Ps of the Marketing Mix, and applying it effectively, you’ll be sure to achieve financial success whether it’s your own business or you’re supporting the success of your business. Karma.

The ultimate goal of business is to make a profit. And the 7Ps strategy in the Marketing Mix is ​​a sure-fired proven way to achieve this goal.

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