Marketing Mix - 8Ps & its Uses
Marketing Mix
The concept of marketing mix was created by E. Jerome McCarthy in 1960.
Marketing mix is a tool used by businesses and marketers to help determine a product or brands offerings.
4Ps of Marketing
1) Product
2) Price
3) Place
4) Promotion
Let us understand each P (Product, Price, Place and Promotion) in detail.
1) Product
Product refers to a physical product or service or an experience or anything that a marketer provides to customer. A product is the soul of marketing activity it should provide physical and psychological satisfaction to customers.
2) Price
Price is the value of a product expressed in terms of money. Price attracts both buyers and sellers. It is not necessary that the product should be cheapest available ;one of the main tenets of Marketing concept is that customers are usually happy to pay a little more for something that really works for them.
Deciphering the right price for product which benefits both consumers and business is generally achieved by business through clever Market Segmentation. segmenting your audience's according to their Demographic,Geographic, Psychographic or Behaviour in variables is a surefire way to discover and confirm that the prices you set and the people you are targeting are most appropriate and most likely to offer you optimal value in return.
Another key factor to take into account is market competition ; whats the pricing strategy of your competitor's ? Is your prize to high , low or is it on - the - mark ?
3) Place
It signifies where you choose to distribute or allow access to your product or service. It could refer to anything from a warehouse or High Street store to an E-Commerce shop or cloud - based platform.
4) Promotion
Promoting means informing general public about our product and its speciality, features. It refers to your advertising, marketing and sales techniques. This could mean traditional advertising via TV, radio ,billboards etc.. or more modern methods like email marketing ,ads on podcast ,ads within web content and push notifications.
3Ps - (service marketing)
In 1981 ,Booms and Bitner brought the extended version of marketing mix : 7ps. The 7ps comprise McCarthy's 4 original elements and extended to include a further three factors. They are as follows:
5) People
6) Processes
7) Physical evidence
5) People
The people involves anyone directly or indirectly involved in the business side of the enterprise. Having right people is essential because they are as much a part of your business offering as the products or services you are offering.
6) Processes
It describes a series of actions that are taken in delivering the product or service to the customer. In short, it means - How the service is delivered?
7) Physical evidence
It often takes place in two forms. Evidence that the service or purchase to place and Proof / Confirmation of existence of your brand. For example any services /product received count as physical evidence. As do the likes of your receipts ,packaging , invoices , tracking information ,PDF's .
Confirmation / validation refers to visual aspects such as your Logo, website ,business card.
The Eighth P
8) Performance or Productivity
This accounts for your ability to deliver to your customers what you have promised. Are they satisfied? Are you are offering them value? This is important as 92% of consumers believe suggestions from friends and family more than advertising.
Performance also involves things like quality, how are you compete in Marketplace and whether or not your financial targets are met?
After learning all the 7 Ps of marketing you might be questioning if how could this information help me in my business or how can i apply these 7Ps in my business. So here's the answer to your question of how to use the 7Ps of marketing.
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