The 7Ps of Marketing

By: Julie Ann M. Gallego,DBA

At the end of this lesson, you are expected to:

• Determine the Importance of Marketing Mix

• Identify the 7Ps of Marketing
• Distinguish a Product vs Service
• Understand the meaning of 7Ps
 Traditional Marketing Mix
 One of the most basic concepts in marketing is the marketing
mix, defined as the elements an organization controls that
can be used to satisfy or communicate with customers.
 The traditional marketing mix is composed of the four Ps:
product, place (distribution), promotion, and price.
 These elements appear as core decision variables in any
marketing text or marketing plan. Careful management of
product, place, promotion, and price will clearly also be
essential to the successful marketing of services.
 However, the strategies for the four Ps require some
modifications when applied to services.
 For example, traditionally promotion is thought of as
involving decisions related to sales, advertising, sales
promotions, and publicity.
 In services these factors are also important, but because
many services are produced and consumed simultaneously,
service delivery people (such as clerks, ticket takers, nurses,
and phone personnel) are involved in realtime promotion of
the service even if their jobs are typically defined in terms of
the operational functions they perform.
 Importance of the Marketing Mix

 The essence of every marketing strategy is the marketing

mix.
 For service marketing, due to special and unique
features the marketing mix is extended to include the 3
P’s.
 Expanded Mix for Services
 Because services are intangible, customers will often be
looking for any tangible cue to help them understand the
nature of the service experience.
 For example, in the hotel industry the design and decor of the
hotel as well as the appearance and attitudes of its
employees will influence customer perceptions and
experiences.
 In addition to the traditional four Ps, the services marketing
mix includes people, physical evidence, and process.
 Importance of the Marketing Mix

• The 7Ps helps companies to review and define key issues

that affect the marketing of its products and services.

• Makes up the business plan for a company and if handled

right, can give great success. But if handled wrongly, the
business could take years to recover.
 PRODUCT

A product is anything that can be offered for satisfaction.

It may be an idea, a physical satisfaction which the buyer
receives as the result of a lease or purchase.

 It refers to either a physical product or service.

Physical Product

• Consumer goods as an
example of physical
product
• A product is a tangible
item that is put on the
market for acquisition,
attention, or consumption
Service
• Health Services as an
example
• A service is an
intangible item, which
arises from the output
of one or more
individuals
 PLACE

Place is making the products available in the right

quantities and locations where customers want them.

It refers to the process and facilities to move the product

from production stage to consumption, or from the factory
to the hands of the consumers.
 PRICE

Refers to what the seller  The pricing, therefore,

would like to charge the would be the strategy and
buyer in exchange for the process to determine the
product. optimal charge for its
product in the market.
 PROMOTION

Promotion is any form of

communication which is
used to inform, persuade
and remind people about
an organization or
individual’s goods, service,
image, ideas, community
involvement or impact on
the society.
 People
Anyone directly or indirectly
involved in the business side of
the enterprise.
That means anyone involved in
selling a product or service,
designing it, marketing,
managing teams, representing
customers, recruiting and
training.
 People

All human actors who Excellent customer service not

play a part in service only converts to sales, but can
delivery and thus increase your customer base
influence the buyer’s by referrals. Acquiring these
perceptions: namely, referrals by people who love
the firm’s personnel, your brand can also be a great
the customer, and example of how your marketing
other customers in the efforts can support your sales
service environment. process.
 Process

The process of delivering your With the rise in online

product to the consumer shopping, digital
should be designed for partnerships and
maximum efficiency and logistics have become
reliability, but may also include an essential part of
features that are in line with the marketing mix.
your brand, such as being
environmentally or sustainably
focused.
 Physical Evidence

Physical evidence
incorporates aspects that
proves your brand exists
and that a purchase took
place.
 Examples of Physical Evidence

Examples of proof that your brand exists can include

things like a physical store or office for your business, a
website if your business operates solely online, and
printed business cards that you exchange when meeting
people.
Examples of proof of purchases can include physical or
digital receipts, invoices, or follow-up email newsletters
that you send to customers as a retention exercise.
 Important Points
Your marketing mix must also take into consideration all the
things your customer sees, hears – sometimes even smells –
in relation to your product or service.
This, of course, includes packaging and branding, but should
also bring in the ways products are displayed in stores, where
they are placed, and the context in which they sit, as well as
digital placement, including on your website and social media.
When it comes to creating a solid and strategic marketing mix,
it’s important to understand how the 7 Ps of marketing fit into
the whole picture.
 The Name Game Activity

Mechanics:
1. Identify the given pictures or examples either a
product, price, promotion, people, place, process, and
physical evidence.

2. Each item is equivalent to five points.

The Name Game Activity
The Name Game Activity
The Name Game Activity
The Name Game Activity
The Name Game Activity
 Activity #2

Discuss the 7p’s of marketing for a [group 1: restaurant

service] [ group 2: grocery store] [group 3: resort] [group 4:
hospital] [group 5: convenient store] [group 6: cinema] that
you previously or recently experienced.

Mention the name of the establishment, its location and

attach documentation.
 References

• Alhabeeb, M.J., (2015) Entrepreneurial Finance:

Fundamentals of Financial Planning and Management for
Small Business, Wiley Inc.
• Rao, K. (2011) Services Marketing, 2nd Edition
• https://assemblo.com/guides/what-are-the-7-ps-of-
marketing/
Thank you!