7P’s by Booms and Bitner
The 7-P’s is a marketing strategy tool from Booms and Bitner which is also known as extended marketing mix. This strategy expands the number of control variable to seven from the four in the original marketing mix model. Initially, there were only four control variables defined in the traditional marketing mix model which were mainly meant for tangible products. But, the 7-p’s model is also applicable to service industries and also for knowledge-intensive environments.
The four elements which were defined in the marketing mix model are:
- Product: it is any object or service which any organisation produces on a large scale with some specific volume of units. The intangible products are based, like hotel industry and tourism industry. For example, disposable razors.
- Price: it is the amount the customer pays for any service or product which he uses. The price is the major factor for marketing. The price of any service or product is determined by regarding all the factors the company invests during the product preparation. For example, material costs, market share, product identity and many more. The price of any product may increase or decrease depending upon time, and also the price of any particular product may differ from market to market.
- Place: it represents the location where the product is available for the customers. It may be possible that it is not available at every place.
- Promotion: it includes all the efforts which the company makes for the popularity of their product in the market, for example advertisement, promotional programmes, etc.
The other elements which the Booms and Bitner defined are:
- People: all people in market are involved in marketing directly or indirectly. They may be customers, developers, or in management, employees, etc.
- Process: it defines the way or procedure the product is prepared and all other processes involved in product preparation till their representation in the market. They define all the activities and services involved properly.
- Physical Evidence: it defines the environment in which the product is to be made available to the customers.
These three elements from Booms and Bitner helped the organisation in the proper management of their product.
Written by: Matt
We also suggest this relevant article if you have time: Extended Marketing Mix 7 P’s
Some other similar articles
Tagged as advertising, extended marketing mix, market share, marketing mix, marketing strategy, material costs, people, physical evidence, place, price, process, product, product identity, promotion + Categorized as Economy articles, Other, Marketing