THE MARKETING MIX: THE 7Ps OF MARKETING

MARKETING MIX
It is a tool used by businesses and Marketers to help determine a product or brands
offering. 
It refers to the set of actions, or tactics, that a company uses to promote its brand or
product in the market.

IMPORTANCE OF MARKETING MIX

All the elements of the marketing mix influence each other. They make up the business plan
for a company and handled right, can give it great success. But handled wrong and the
business could take years to recover. The marketing mix needs a lot of understanding,
market research and consultation with several people, from users to trade to manufacturing
and several other

2 KINDS OF MARKETING MIX

1. 4 Ps
PRODUCT, PLACE, PRICE, AND PROMOTION
2. EXTENDED 7Ps
PRODUCT, PLACE, PRICE, PROMOTION, PEOPLE, PACKAGING, AND PROCESS

PRODUCT
A product is an item that is built or produced to satisfy the needs of a certain group of
people. The product can be intangible or tangible as it can be in the form of services or
goods.
Marketers must also create the right product mix. It may be wise to expand your current
product mix by diversifying and increasing the depth of your product line.
All in all, marketers must ask themselves the question “what can I do to offer a better
product to this group of people than my competitors”.

THREE LEVEL CONCEPTS OF PRODUCTS AND SERVICES

1. CORE BENEFITS OF THE PRODUCT

 Are the major factors why a customer buys a product or avails of a service. It is
simply the benefits of the product.
2. PHYSICAL CHARACTERITICS OF THE PRODUCT OR SERVICE
 It is the tangible, physical product.
3. AUGMENTED BENEFITS OF A PRODUCT OR SERVICE
 These are only the additional benefits, It usually consists of lots of added value, for
which you may or may not pay a premium.

PLACE
It refers to a location or the medium of transaction.
Placement or distribution is a very important part of the product mix definition. You have to
position and distribute the product in a place that is accessible to potential buyers.

PRICE
It is the peso value that the entrepreneur assigns to a certain product or service.
The price of the product is basically the amount that a customer pays for to enjoy it.
It is the only P in the 7Ps that generates revenue for the business.
PRICING STRATEGIES
1. BUNDLING
This refers to two or more products or services in one reduced price.
2. PENETRATION PRICING
This refers to setting low prices to increase market share, but the entrepreneur will
eventually increase the price once the desired market share is achieved.
3. SKIMMING
This is where prices are initially high and then they are lowered to offer the product or
service to a wider market.
4. COMPETITIVE PRICING
This refers to benchmarking prices with the competitors.
5. PSYCHOLOGICAL PRICING
This considers the psychology and positioning of price in the market
6. PRODUCT LINE PRICING
This refers to pricing different products or services within a parallel product array using
varying price points
7. PREMIUM PRICING
This refers to setting a very high price to reflect elitism and superiority
8. OPTIONAL PRICING
This refers to adding an extra product or service on top of the original to generate more
revenue
9. COST-BASED PRICING
The basis of markup is the cost of sales.
10. COST PLUS PRICING
The markup is based on a certain percentage of cost.

PROMOTION
It involves publicizing of the product. This characterizes of all the communications that a
promoter can use in the marketplace to raise the awareness of the product along with its
benefits to the aimed segment.
It can boost brand recognition and sales. Promotion is comprised of various elements like:
Selling
Public Relations
Advertising
Sales Promotion

PROMOTIONAL TOOLS
1. SELLING
This is the act of trading a product or service for a price or a fee
AFTER SALES – costumer’s satisfaction.
2. PUBLIC RELATIONS
These are communications that are typically not paid for. This includes press releases,
exhibitions, sponsorship deals, seminars, conferences, and events.
3. ADVERTISING
This mode of promotion is usually paid, with little or no personal message. Mass media such
as television, radio or newspapers and magazines is most often the carrier of these
messages. Apart from these, billboards, posters, web pages, brochures and direct mail also
fall in the same category.
4. SALES PROMOTION
 These are usually short term strategic activities which aim to encourage a surge in sales.
These could be ‘buy one get one free’ options, seasonal discounts, contests, samples or even
special coupons with expiration dates.

PEOPLE
In today’s marketing arena, people play a vital role in servicing customers even though the
entrepreneur sells only physical goods.
It is not just about the quality of products anymore, but how employees serve their
customers.
The core job of the business owner is more of strategy implementation.
The entrepreneur must list the criteria of the following job offers.

PACKAGING
It is how the product or service is offered or presented to the customers.
It is the overall identification, on how it looks and how the customers feel on the services
you offer.
It also determines the uniqueness of the product or services.
Preserves the product and is also concern about the environment.
Its ultimate goal is to get the customers attention; it should be pleasing in the eye of the
customers.
Elements of packaging, color, shape, size, material, font and text, and graphics should also
be considered.
Servicescape was used to refer to the overall ambiance of the place where the service is
performed.
It persuades the customers, based on what he or she sees.

PROCESS
It is the step-by-step procedure or activity workflow that the entrepreneur or employees
follow to effectively and efficiently serve customers.
Its components include input, throughput and output or outcomes.
It is relevant to service industries
It is an element of service that sees the customer experiencing an organization’s offering. It’s
best viewed as something that your customer participates in at different points in time.

2 ASPECTS OF PROCESS
1. INTERNAL PROCESS
It is sometimes called as indirect activity/process
These are the back-office operations such as preprocessing, processing and post processing,
wherein employees or machines process customer’s requests without necessarily being seen
by the customer.
2. EXTERNAL PROCESS
It is also called Direct activity/process.
It is the actual servicing wherein customers are part of the process
It adds value at the customer interface as the consumer experiences the service.

OTHER 4 KINDS OF PROCESS

1. ELECTRONIC PROCESS
This includes the use of barcodes, receipts, and other forms or graphics or logos, and the
information about a product or a company that come with them. This may also include the
use of those codes that one can scan using an app on his phone.
2. TECHNOLOGICAL PROCESS
 It’s about the process of creating products that are tangible—that your customers could
really feel are theirs. Not only should the manufacturer create products that he wants, he
also should keep in mind that the products he makes should be ones that would fulfill the
client’s needs.
3. DIRECT ACTIVITIES
Mostly, this is about the reactions of the clients as they get to try your products, and how
you feel about what they have said. Think present time. That’s when direct activities happen.
4. INDIRECT ACTIVITIES
Talk about support that happens before, during, or after the service has been given. In short,
it is lengthy—it may last for a lifetime.