One Line Summary of 7Ps
The 7Ps framework is a marketing strategy model that extends the traditional 4Ps (Product, Price, Place, Promotion) to include People, Process, and Physical Evidence, providing a comprehensive perspective on how a product or service interacts with the market.
Why Is 7Ps Important?
The 7Ps framework is crucial as it goes beyond the classical scope of marketing. The original 4Ps model, while instrumental, primarily focused on tangible products. However, as the service sector grew and the customer-business interaction became increasingly important, the need for a more comprehensive framework became evident.
The added three Ps – People, Process, and Physical Evidence – allow businesses to consider their service delivery and customer experience, which are vital for building relationships, encouraging customer loyalty, and establishing a competitive edge in today’s service-focused economy.
Detailed Explanation of 7Ps
Let’s delve into each component of the 7Ps framework for a more detailed understanding:
- Product: This is what a company offers to meet customer needs. The product should deliver a significant value, solve a problem, or provide a solution for the customer. Key aspects include quality, design, features, branding, and the value it brings to the customer. When shaping a product, businesses should ask: What is the customer buying, and what needs or wants does this product satisfy?
- Price: Price refers to how much a customer pays for the product. It’s not just about the actual cost; it also communicates the product’s perceived value. Pricing strategies can range from competitive pricing, penetration pricing, to premium pricing. Crucial considerations include cost of production, market conditions, competitor pricing, and customer perceived value.
- Place: Place is about how the product gets to the customer, including distribution channels and locations. It could be physical stores or online platforms. Businesses need to understand where their customers shop and ensure their product is readily available in those spaces. The goal is to make the buying process as easy as possible for the customer.
- Promotion: Promotion is all the methods used to communicate the benefits and value of the product to the customers. This could include advertising, public relations, content marketing, social media, SEO, and sales promotions. The promotional strategy should effectively reach the target audience and persuade them of the product’s value.
- People: People refers to everyone who directly or indirectly influences the customer’s experience, including employees, management, and even other customers. In the service industry, people are crucial as they can enhance or harm the customer experience. The right personnel should be recruited, trained, and motivated to ensure they deliver a high level of customer service.
- Process: Process is the series of actions that lead to the delivery of the product or service to the customer. It includes order processing, delivery, customer service, and any other activities that impact the customer’s experience. Efficient and customer-friendly processes can improve customer satisfaction and increase operational efficiency.
- Physical Evidence: This term refers to the tangible elements that customers use to evaluate the product or service before and after purchase. For a physical product, this could be packaging or the product itself. For a service, it could be the ambiance of a restaurant or the cleanliness of a hotel room. Physical evidence can greatly impact a customer’s perception of the product or service’s quality.
The 7Ps framework provides a holistic view of marketing, incorporating product strategy, pricing, distribution, communication, and service delivery. By carefully considering each of the 7Ps, businesses can create a comprehensive marketing strategy that takes into account every element of the customer interaction, ultimately leading to greater customer satisfaction and business success.
How to Use 7Ps in Marketing?
The 7Ps framework is a tool that can guide your marketing strategy. Here’s how you can utilize each ‘P’ in your marketing efforts:
- Product: Define the value your product provides clearly. This could involve distinguishing features, quality, or the particular problem it solves for your customer. Regularly review your product offerings based on customer feedback and changing market conditions.
- Price: Set a price that reflects the value of your product to the customer and covers the cost of production. Also, consider what the market is willing to pay and what your competitors charge. Evaluate your pricing strategy regularly and make adjustments as needed.
- Place: Determine where your target customers prefer to shop and make your product available there. This could be online, in-store, or both. Ensure your distribution strategy is effective and efficient to deliver products promptly to customers.
- Promotion: Craft a communication strategy that reaches your target audience and persuades them of your product’s value. Use a mix of promotional methods such as social media, public relations, advertising, SEO, and content marketing.
- People: Invest in recruiting, training, and motivating your staff. Ensure they deliver excellent customer service and represent your brand effectively.
- Process: Streamline your processes to enhance efficiency and improve the customer experience. Review your processes regularly and look for ways to make them more customer-friendly.
- Physical Evidence: Pay attention to all tangible aspects that customers can see or experience related to your product or service. This could be the packaging of your product, the layout of your store, or the design of your website.
By considering all the 7Ps in your marketing strategy, you can create a cohesive plan that enhances your market presence and customer satisfaction.
Further Reading Materials
To deepen your understanding of the 7Ps marketing model, you may find the following resources helpful:
- “Marketing Management” by Philip Kotler and Kevin Lane Keller: This book, often referred to as the marketer’s bible, provides an in-depth exploration of various marketing concepts, including the extended marketing mix.
- “The Marketing Book” by Michael J. Baker and Susan Hart: This is another comprehensive resource that covers a broad range of marketing strategies, including a detailed discussion of the 7Ps.
- “Service Management and Marketing: Customer Management in Service Competition” by Christian Grönroos: This book, written by one of the pioneers of service marketing, explores how traditional marketing principles have been extended and redefined to suit the service industry, including an insightful look at the extended marketing mix.
- “Rethinking the Future” by Rowan Gibson: This book includes an insightful analysis of modern business concepts, including an extended view of marketing principles.
By exploring these materials, you can gain a more profound understanding of the 7Ps framework and how to effectively implement it in your marketing strategy.