The 7P marketing model is a complete version of the 4P marketing model when it fully meets the requirements of the business. If the 4P model focuses on product marketing activities, the 7P model in marketing is more comprehensive when adding service elements. If you want to understand What 7P in marketing is? How to make the 7P marketing mix strategy effective, follow the article below by Optimal Agency!
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What are the 7Ps in Marketing?
Also known as marketing mix, it was originally built on 4 basic elements: Product, Price, Place, and Promotion. With the development of modern marketing, the marketing mix has been supplemented with 3 more elements: People, Process, and Physical evidence. This meets complex marketing needs and helps businesses achieve larger goals. The 7P marketing strategy is applied by businesses to promote products and services to potential customers. To better understand the 7P model, let’s analyze each element:
Product
Similar to the 4P model, the first P in the 7P model is the product. It is the core factor that affects customers’ purchasing decisions. Now, products are not only limited to tangible goods, but the 7P in marketing also includes intangible goods expressed in services.
Whether it is a product or a service, businesses need to meet the needs of target customers. To better understand the nature of the product, marketing experts have divided it into 3 different versions:
Core product: This is an intangible product and it is expressed in the values and benefits that the product and service bring to customers. That is also the benefit that customers are looking for in products and services.
Actual product: This is a tangible product that users can completely feel. It is shown in factors such as function, design, packaging, brand, … to meet the needs of customers.
Added product: This is the additional value that the product brings to customers such as transportation, warranty, repair, and customer care, …. These are the factors that make the product different from competitors.
Price
Or price is the cost that customers have to pay for a product of the business. This is the most important factor that makes up the 7P marketing. This P is important in the marketing strategy because it determines the profit and existence of the business.
When there is an adjustment in product price, it will directly affect the entire marketing strategy, customer demand, and sales of the business. Therefore, new businesses entering the market need to plan and develop an appropriate pricing strategy. By increasing the perceived value of the product’s benefits and real value. At the same time, consider the cost of supply, discounts, prices of competitors, etc. To determine the appropriate price for your product, you need to answer the following questions:
- Determine where your brand’s products and services are in the market.
- Is the value that the product or service brings to customers commensurate with the money they spend?
- Are the prices and quality of the business’s products in line with competitors?
- Are the incentives and promotions enough to attract new target customers and retain old customers?
- Do product discounts help increase market share for the business?
- …
Place
The next P is the distribution channel – where goods and services are transferred from the manufacturer/supplier to the consumer. To have a successful marketing campaign, you must position and distribute the product in a place that is easily accessible to target customers. This requires you to have a deep understanding of the market. Based on that understanding, find a potential distribution channel to help create a connection between the business and the customer.
For the distribution channels to operate most effectively, businesses need to determine a product distribution strategy. There are 3 most popular product distribution strategies including:
Wide distribution: In this strategy, businesses will find as many points of consumption as possible. The goal is to increase the presence of the product and attract the attention of target customers everywhere.
Exclusive distribution: The manufacturer will only sell to exclusive distributors to enhance the brand image. This strategy is often applied to high-end products such as Chanel or Ferrari.
Selective distribution: The distribution channels are carefully selected and there are very few stores in a certain location chosen to distribute the product.
Promotion
Promotion plays an important role in the marketing mix, including activities such as advertising, public relations (PR), personal selling, etc. It is carried out to bring products and services closer to the public as well as provide reasons for customers to choose the brand’s products instead of competitors. The purpose of promotion is to raise customer awareness of products and services and increase sales.
If you want customers to know about the products/services that your business provides, you need to build an effective promotion strategy. All messages need to be consistent so that customers can recognize the brand among hundreds of thousands of competitors in the market.
People
This is the first additional element in the 7P model that emphasizes the role of people. Marketing methods are gradually moving towards customer-centricity. Researching and carefully analyzing market data is very important to ensure that you are targeting the right audience.
People here not only refer to target customers but also refer to those who are directly involved in the marketing process such as marketers, salespeople, customer service staff, etc. Customers often evaluate a brand based on their experience with employees. Therefore, businesses need to ensure that their employees have enough knowledge, skills, and professional attitudes to provide quality products and services to customers. Process Process is the 6th element in the 7P marketing model and it affects the performance of the service that the business provides. It includes all the necessary processes to provide the business’s products and services to customers such as customer care process, ordering – payment process, etc. Businesses need to focus on building effective and optimal operating processes and workflows. This not only enhances professionalism but also reduces costs for the business.
Physical Evidence
The last P in the 7P model is facilities, which refers to where customers use the business’s services. Investing in modern, professional facilities to bring the best service experience to customers is essential. From there, you can make a difference in customers and effectively enhance your competitive advantage.
Similarly, on our website there are other useful related articles such as the 4p marketing construction process.
The role of the 7P model in marketing
Once you understand what 7P in Marketing is, you need to learn about the importance of the 7P model in marketing. The 7P model provides a comprehensive marketing strategy and has outstanding improvements compared to the 4P model. In addition to product promotion, 7P in marketing also focuses on service marketing activities. This creates the foundation for establishing effective overall marketing strategies for businesses.
First, the 7P strategy helps businesses accurately identify market needs and how to organize activities to meet those requirements. This model also helps businesses better understand the products and services they provide in the market. The competitiveness, differentiation, and value of the product are carefully evaluated to ensure that the product/service meets the needs of customers.
Businesses will have an overview of the factors that determine success.
The 7P model is the basis for businesses to analyze and evaluate the effectiveness of marketing strategies, helping businesses know what needs to be improved. From there, they can propose appropriate adjustments for each stage of development and market demand.
By applying the 7P marketing strategy, businesses will become more prominent and different from their competitors. Thanks to quality products and services, professional services help attract more customers and improve sales efficiency, expand market share. Not only that, businesses can also take advantage of their advantages to optimize costs.
Steps to build a 7P Marketing strategy effectively
If you have clearly understood the importance of 7P in Marketing, let’s explore the process of building an effective 7P marketing strategy as follows:
Market analysis
When implementing any marketing strategy, businesses need to research the market carefully. Through that, identify the needs and desires of customers as well as the strengths and weaknesses of competitors, … From there, get an overview of the market to implement an effective marketing strategy. Because the market is always changing, businesses need to build a continuous monitoring process to adapt promptly.
Determine the target audience
The foundation for a successful marketing strategy is the target customer. You not only need to analyze the market but also need to identify the right target audience to reach. Through that, you can build a suitable promotion and marketing strategy.
Product Development
Products are the key factor in determining customer purchasing behavior. To promote the purchasing process, you need to focus on creating products that solve customer problems. Customer needs also change over time, so businesses need to regularly research and improve products based on customer feedback.
Pricing Strategy
Not only do businesses need good products, but they also need to have appropriate pricing strategies. By researching the market, customer base, and competitors, you can choose the appropriate pricing model.
Distribution Plan
For the marketing strategy to be most effective, you not only need quality products and good pricing strategies, but you also need an appropriate distribution plan. If you want to increase sales, you need to ensure a consistent and smooth shopping journey for customers no matter which channel they interact with the brand through.
Promotional activities
If a business wants its products to reach many target customers, it can implement a multi-channel advertising strategy. Creating valuable content that both demonstrates the business’s expertise and builds customer trust naturally, expressed through blogs, instructional videos, etc., will promote interaction and increase the conversion rate to orders. You can use tools such as Google Analytics (website) to track the level of access, interaction, etc. to adjust the campaign more effectively.
Improve customer experience
Customer experience is an important factor in determining customer loyalty. The communication style and dedicated, professional service of employees contribute greatly to improving the customer experience. Businesses need to pay attention to these factors to adjust their marketing strategies effectively.
Monitor, evaluate, and adjust
During the process of implementing a marketing campaign, you need to monitor customer feedback and measure it with indicators. Through that, you can evaluate the effectiveness of the campaign and come up with appropriate adjustment methods.
The question: “What are the 7Ps in Marketing?” has been answered in detail by Optimal in the article. In addition, we also share with you how to effectively implement the 7P marketing strategy. Hopefully, you can apply our knowledge to implement a marketing campaign to achieve the best results successfully.
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Frequently asked questions
If you want to measure the effectiveness of each 7P element, you can do it through different indicators and measurement methods including sales, customer response rate, or market research.
Yes, people working in marketing often need to know and understand the concept of 7P. Because it helps marketers to clearly understand and manage all aspects of their business’s marketing strategy.
