What Are The 7 Ps Of Marketing? (And How To Utilise Them)
By Indeed Editorial Team
Updated 14 September 2022
Published 1 May 2022
The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.
For launching a marketing campaign, companies often use effective techniques and approaches that follow various marketing theories. The seven Ps are principles that contribute a structure that marketing teams can apply to various campaigns. Marketing teams can collaborate and establish effective approaches to help a company achieve success with a marketing campaign, by understanding and implementing the seven Ps. In this article, we examine what the seven Ps of marketing are and how they differ from the four Ps of marketing, with some examples of how these principles can help a company succeed.
What Are The 7 Ps Of Marketing?
The answer to the question, "What are the 7Ps of marketing?" is that they constitute a set of seven unique principles that marketers can use to develop and implement strategies that may help attract and engage consumers, improve sales and increase revenue. The seven Ps are three additional marketing principles that build on the ‘four Ps of marketing'. As products, markets, customers and demands change so quickly, it is beneficial for companies to evaluate the seven Ps regularly to ensure that they are on track and getting the best outcomes possible in a market. The seven Ps of marketing include:
Products: A product is any good, service or idea that a business can offer to a market to satisfy a want or need. Physical products require considerations like design and quality, while services often prioritise quality and customer relations.
Pricing: The goal of the pricing principle in marketing is to help a company select a suitable price for a product or a service. Marketers apply this principle by analysing competitor performance, calculating costs and establishing product prices.
Placement: The placement principle concerns where a company makes its products available, such as a physical storefront or a website. This principle helps marketers to determine where they can promote their products to their company's target customers.
Promotion: This principle involves increasing public knowledge about a company and its products and services. Marketers use this principle to identify where and how to advertise relevant products and services to target customers.
Physical evidence: This principle refers to creating proof or reputation that enhances a brand image and product quality and builds general awareness of a business entity among consumers. All the seven Ps of marketing work together to help marketers apply this element.
People: People in marketing comprise those individuals who make up the marketing and sales teams applying the seven Ps of marketing. These individuals provide customer support, develop customer relationships and implement strategies to improve customer experience in all domains.
Processes: The seven Ps of marketing involves both the processes that a company goes through to create products and the processes that it goes through to promote and sell new products. This principle aids marketers in refining production processes, improving promotional activities and increasing product sales.
Why Are The 7 Ps Of Marketing Important?
The seven Ps of marketing can help a businesses that promote physical products and rely on consumer engagement and retention to generate product sales. Incorporating the seven Ps into your marketing activities can help you:
Plan, develop and execute effective marketing strategies
Increase brand awareness and generate interest in new markets
Strengthen your business market and industry presence
Expand your market and engage new customer leads
Maximise product sales, increase cross-selling and retain more customers
Effective Ways To Utilise The 7 Ps Of Marketing
For any business to succeed, it is essential to develop and implement a simple marketing framework. It allows you to plan your activities ahead of time, learn what works and then repeat the process as you require. The seven Ps of marketing aid companies in reviewing and defining key challenges that affect product and service delivery. These are some ways in which you can utilise the 7 Ps of marketing:
Prepare a budget and define your goal. Setting the right goal is the first step in developing an effective marketing strategy. Determine how much you are willing to spend, to achieve your objectives, which are typically reasonable and attainable goals.
Examine your target client. To create a product or service that your customers may want to buy, first understand who they are and what specific needs they may have. Develop different customer profiles for different user groups in your target audience.
Analyse your competitors. Perform an analysis on your competitors' performance, their business plans and marketing approaches. This information can be extremely useful when you develop your pricing strategy.
Identify your product's unique features. Make a list of your product's unique features and value points. When promoting the product to your customers, you can expand on these pieces of information.
Develop a pricing strategy. Create a pricing strategy based on competitor research. Review periodically to understand if you are underpricing or overpricing your product.
7 Ps Of Marketing Vs. 4 Ps Of Marketing
Although the seven Ps expand on the original concepts that the four Ps of marketing outline, there are two key differences. In the original concept of marketing principles, the four principles only include product, pricing, placement and promotion. The seven Ps build on these original four methods to include processes, people and physical evidence.
By adding these three principles, the seven Ps can now apply to businesses that provide services rather than physical products. The original four principles are more applicable to businesses that sell physical products. The additional principles make the seven Ps applicable for both service-based businesses and product-based businesses.
Examples Of Businesses And Their 7Ps
Examine the following examples to understand how both product-based and service-based businesses can apply the seven Ps of marketing:
Ayesha's Aromatherapy Shop
Ayesha's Aromatherapy Shop has an online store where she sells aromatherapy blends. The marketing team applies the seven Ps to each aspect of product development and sales cycles:
Product: The business focuses on its beautiful custom labels and designs for the products and the online shop provides custom blends upon customer requests.
Price: The company uses this P to analyse competitor's prices and develop a pricing strategy for both regular and custom blends.
Place: Ayesha owns a small business and makes its products available in both its small physical shop and online. If the store can only stock fresh ingredients and store products for a limited time, online sales may outnumber in-store sales.
Promotion: Promotional activities for Ayesha's aromatherapy may include both digital and physical marketing tactics, like social media advertising, content development initiatives and local craft fair events to raise brand awareness.
Processes: The marketing staff at the company finds out how long it takes the craftspersons to create products and identifies the average time between launching new items and customer purchases. This information then helps them develop effective strategies for reducing sales time.
People: The aromatherapy company hires two crafts persons who create the aromatherapy blends, four individuals on the marketing team, three sales and customer service specialists, a graphic designer, a web developer, an IT specialist, and a bookkeeper. The marketing team uses this principle to ensure that every employee contributes to the company's growth and development.
Physical evidence: Marketers create special offers, attend live trade shows, network with healthcare professionals and massage therapists and use a variety of digital marketing strategies to create a positive reputation and increase brand influence in the market.
KNJ Solutions is a small business that provides computer repair and troubleshooting services. The company's promotional team uses the seven Ps of marketing to analyse operations, service quality and efficiency in generating revenue:
Products: The marketing team examines the company's services, which include quick and dependable computer repair solutions. The company also prioritises quality, allowing customers up to three months to test repairs and seek further services as necessary.
Price: KNJ solutions has competitive prices, often lower than other local shops. They charge a higher price for overnight work or computers with rare or custom parts.
Place: KNJ solutions has one location near its city's community college and one on Main Street, and the marketing team evaluates the customers' perception of both storefronts to verify that they are clean and safe.
Promotion: One shop location advertises repair services on nearby billboards and signage, while the other arranges game nights to promote repair and maintenance services on high-performance personal computers. The company also has a strong social media presence and the IT department hosts a weekly web podcast to answer questions and promote their services.
Processes: The business has several key processes for answering in-person and online repair service claims. The marketing team uses this principle to guarantee that clients follow a simple process for answering concerns, requesting for repairs and paying service bills.
People: The company employs credentialed IT specialists, software and hardware developers, customer support technicians and accounting professionals to ensure that its staff is knowledgeable and up-to-date on technology trends, solution approaches and current applications in computer repair and diagnostics.
Physical evidence: KNJ solutions uses both digital and physical promotional strategies to raise awareness, introduce service discounts and engage with the community. The company has a social media presence and interacts with current and former clients who leave reviews on major business review sites.
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