Marketing Models Explained
In the first of a series of short explanatories of the various models we use to analyse a business or a marketing plan, we’re going to look at the most commonly known one…
The 7Ps of the Marketing Mix
The marketing mix, defined by these 7Ps, are the variables in a business that a marketer can manipulate to ensure the optimum balance of supply and demand. It’s really just a series of business decisions that need to be evaluated and made periodically.
When this model was first developed in 1964 it consisted of only 4Ps – namely Product, Price, Place, Promotion. This remained the basic approach until 1981 when it was extended to cover the intangible elements in service businesses – Participants, Physical Evidence and Processes. Sometime later, Participants became People.
The goal here is to ensure you are marketing the right product to the right person at the right price in the right place at the right time.
Today, as competitive advantage is harder to deliver on product alone, the focus has shifted for all sectors on to the other elements. Differentiation can rarely be achieved on the features of your product or service. Always review each of these to see where adjustments can or need to be made to ensure you remain competitive. The more mature a company is the more of these 7Ps that your marketing people should be involved in setting.
Product
This covers things like quality, image, brand, features, support, customer service, availability and warranties.
Promotion
Marketing promotions, word of mouth, sale promotion, PR, branding, direct marketing.
Price
Includes positioning, discounts, credit, payment options, value added.
Place
Trade channels, sales support, distribution.
People
Anyone involved in your marketing activities or with customer contact. Your recruitment and company culture policies, training and staff remuneration.
Process
Research and development, customer focus, IT support. Your order and delivery systems and your customers’ experience of them.
Physical Evidence
Your staff’s experience of your brand, packaging, online experience, social validation (reviews). It also covers the image your business portrays through its premises, vehicles and staff appearance.
We’ve applied this process to many companies in the Salisbury and wider Wiltshire areas; so if you’d like help in understanding how to differentiate your business from your competitors give us a call, we’re here to help.
For further info on how we use SOSTAC check out Smart Insights.
