7Ps Marketing Mix (Extended/Service Marketing Mix)

 

Figure: 7Ps Marketing Mix

The 7Ps Marketing Mix is an extended version of the traditional 4Ps, incorporating additional elements to address the unique characteristics of service-based industries. Because of that, this marketing mix is calling as Extended Marketing Mix also in some cases. The 7Ps include Product, Price, Place, Promotion, People, Process, and Physical Evidence. This framework is particularly relevant in sectors where services play a significant role. Hence, this theory can be named as Service Marketing Mix accordingly.

Below are elements of 7Ps Marketing Mix/Extended Marketing Mix / Service Marketing Mix.

Product: The product refers to the tangible or intangible goods or services that a company offers to meet the needs and wants of its target market. (Kotler P. & Armstrong G., 2018).

Price: Price is the amount of money customers are willing to pay for a product or service. It involves determining the right pricing strategy to achieve business objectives (Nagle T. & Holden R., 2002).

Place: Place, also known as distribution, involves making the product available to the target customers through appropriate channels. It includes decisions related to distribution channels, logistics, and inventory management (Coughlan A. T. et al, 2006).

Promotion: Promotion refers to the activities undertaken to communicate the value of the product and persuade customers to buy it. This includes advertising, sales promotions, public relations, and personal selling (Belch G. E. & Belch M. A., 2018).

People: The personnel, their skills, and their interactions with customers, influencing the customer experience (Zeithaml V. A., Bitner M. J. & Gremler D. D., 2006).

Process: The systems and procedures used to deliver the product or service, impacting the overall customer experience (Chase R. B. & Jacobs F. R., 2019).

Physical Evidence: The tangible cues that serve as evidence of the service, influencing customers' perceptions (Zeithaml V. A., Bitner M. J. & Gremler D. D., 2006).

The marketing mix is crucial for a business as it provides a comprehensive framework for strategically managing and optimizing key elements that directly impact a product or service’s success in the market. By carefully addressing the four fundamental components - product, price, place, and promotion - businesses can effectively meet customer needs, differentiate themselves from competitors, and create a compelling value proposition. Additionally, the extended 7Ps model incorporates people, process, and physical evidence, especially vital in service-oriented industries. A well-considered marketing mix ensures that a business aligns its offerings with target market demands, sets competitive prices, selects appropriate distribution channels, and implements effective promotional strategies. This strategic approach not only enhances customer satisfaction but also contributes to the overall success and sustainability of the business in a dynamic and competitive marketplace.

References

1.      Belch, G. E., & Belch, M. A. (2018). Advertising and Promotion: An Integrated Marketing Communications Perspective. McGraw-Hill Education.

2.      Chase, R. B., & Jacobs, F. R. (2019). Operations and Supply Chain Management. McGraw-Hill Education

3.      Coughlan, A. T., Anderson, E., Stern, L. W., & El-Ansary, A. I. (2006). Marketing Channels. Pearson/Prentice Hall.

4.      Kotler P. & Armstrong G. (2018). Principles of Marketing. Pearson.

5.      Nagle, T., & Holden, R. (2002). The Strategy and Tactics of Pricing: A Guide to Growing More Profitably. Prentice Hall

6.      Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2006). Services Marketing: Integrating Customer Focus Across the Firm. McGraw-Hill Education.