Extended Marketing Mix 7 P’s
The Extended Marketing Mix model (also known as the 7 P’s) is a tool which marketers use to define their marketing strategy. It is constructed of the original 4P’s (Product, Price, Place and Promotion) and has an added three more elements (People, Process and Physical Evidence) in order to expand its applicability from strictly tangible products, to encompass service related offerings as well. Typically, a marketer will attempt to optimize for five or six of the P’s, as it rarely possible to excel in all seven. The seven P’s can be adjusted for varying conditions in one’s market, or different targets.
Product – It has been said that a good product will sell itself. However, since there are many good products available today for any given use, it becomes more important for the seller to ensure that his product is, indeed, what the buyer wants. The marketer must define the characteristics of his product or service that meets the needs of his customers. Function, quality, appearance, packaging, brand, service, support and warranty all come into play.
Price – The “going price” for a product or service is not always the best target to focus on. A pricing strategy needs to address competitive pricing, of course, but often, a more expensive product may be seen as superior. Consumers still succumb to discounts and special offers, and most are sensitive to warranty and return questions. All these aspects should be considered when formulating the pricing strategy, as price wars are rarely successful for a company, in the long run.
Place – Delivery and timing are important aspects, carrying lot of weight with the consumer. If an order is received late or with missing items, or if one must wait two to three weeks for delivery, a customer may be lost.
Promotion – Advertising is increasingly more important, as multiple options on many products become available. The best of ALL the other P’s will do little good, if the consumer isn’t made aware. Today, this is quite possibly the most important factor of all.
People – Particularly when the offering is a service, the people involved in the offering, including the consumer, take on an importance that should not be ignored, as they can offer significant additional value to the product or service.
Process – The manner of handling sales, order processing and after-sale service can also be essential elements of the overall marketing strategy.
Physical Evidence – Satisfied customers can be the best advertisement, with either tangible products or services. The marketing strategy should include effectively communicating their satisfaction to potential customers.
Written by: Matt
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