Most marketing strategies and business activities are based on the theory marketing mix. This theory can be generally defined as all the actions taken by an organisation to market its products or services. The marketing mix proves helpful to companies as it allows them to organize their marketing efforts according to the various departments and tasks. Consequently, it leads to more impactful marketing campaigns.
History of the Marketing Mix
According to Hurree, the concept developed when Neil Borden elaborated James Culliton’s marketing mix concept in 1960. The latter described business executives as ‘mixers of ingredients. He considered the ingredients to be various marketing concepts, procedures, and aspects. But today James McCarthy is known to found the concept. He introduced the 4Ps of Marketing: Product, Price, Place, and Promotion.
However, in the ’70s, the idea to update the Marketing Mix was widely supported by all the marketers. As a result, Booms & Bitner created the Extended Marketing Mix in 1981. This led to the addition of 3 new elements which were services, unlike the earlier 4Ps which were physical elements. Hence, 7Ps were formed.
These 7Ps aids the companies to find the major issues that impact the marketing of products or services. With the changing conditions in business, it has become crucial to revisit the 7Ps in order to beat your competitors. So here’s a detailed explanation of the 7P’s of the Marketing Mix.
7Ps of the Marketing Mix
The first P, i.e. ‘Product’, can be easily explained as what your business sells. It can be a product(s), service(s), or even both. To excel in this first element of the marketing mix, a company should conduct considerable research and develop the product. They should understand the need for that particular product.
Consequently, a product launch plan along with the timeline should be developed. After finding the purpose of the product, it’s important to aware the customers and employees about the same. Moreover, product managers or marketers do this work.
This element signifies the price point at which you are selling your product to consumers. Deciding the price is an extremely crucial decision. Keeping the price too high would result in losing a significant portion of consumers. Whereas a price too low will lead to losing profits. Hence, multiple factors need to be kept in mind while pricing your product.
Firstly, the price should do two things. One being it should correspond to your budget. Then it should also reflect your customer’s perceived value of the product. In order to find the correct price for both you and your customer, one needs to conduct market segmentation.
This segmenting groups your audience according to various aspects. Through this, the company can be sure of two things:
- Prices that you have set will provide good results
- People that you are targeting are most suitable for you
Another major factor is how your competitors choose to price the product. However, if you wish to establish yourself as a luxury brand, then your price and quality should support the same.
‘Place’ refers to where you decide to sell or distribute your product. The place where you choose to allow access to your products should be accessible and suitable for your brand. A simpler way to decide is to think about where your customers will look for your product or where they spend their major time.
Additionally, the place where your competitors distribute their products should also be considered. This place can be a cloud-based platform, store in a mall, warehouse, or e-commerce shop. The place that you decide can be influenced by multiple factors like your budget or the type of your product. However, the best decision can be made if you really research your consumers – their demands and wishes.
The fourth element, promotion, refers to all the activities aimed at creating awareness and excitement among consumers about your product. This includes marketing, advertising, and sales techniques. So the range of promotional activities can extend from traditional methods like billboards, TV to the more modern ones. It can be email marketing, advertisements on podcasts; etc.
Moreover, the approach and method you choose to interact with consumers can have a direct impact on the future of the brand.
In simple words, this element means all the employees that work for your organization. It refers to people involved in all the departments, doing different tasks, be it selling or designing products.
Having the correct human resource helps you build a strong business. Even having a great brand, popular social media following, or the best product requires employees to help survive the business. Hence, it’s crucial that every employee has adequate training and a proper understanding of their role as well as duty.
A business needs employees who have the same vision of the company. Additionally, a company should also focus on retaining people who can contribute to the success of the company.
It is important as a customer to know that the brand they are purchasing is real and actually exists. This is why this element – physical evidence. In simpler words, it includes all the elements that a customer can see, hear, and in some cases smell, with relation to your product.
This includes branding and packaging. Additionally, where and the way products are displayed in the store also comes under this. On digital platforms, it exists in the form of their placement on websites and social media.
The seventh element involves all the actions involved in delivering the product to the consumer. This process should be carried out in a way that reduces costs for you and increases benefits for the customer.
The marketing mix is essential to master the complete marketing process. A company should begin with developing a product, followed by determining its price. When the product is ready to sell, decide where you want to sell it and start promoting it.
The 7Ps of the marketing mix are an important lesson for every marketer. For a business, the crucial lesson is to make the smart decision of including effective marketing. So for marketing solutions, contact us at Shaktiki today and make the smart move.