The Extended Marketing Mix 7 P’s
Elements of The Extended Marketing Mix 7 P’s:
The Extended Marketing Mix, often referred to as the 7 P’s, is an expansion of the traditional 4 P’s of marketing (Product, Price, Place, Promotion). The additional three P’s in this model are People, Process, and Physical Evidence. This model is used to provide a more comprehensive framework for marketing strategies, particularly in service-based industries.
Here’s a brief explanation of each of the 7 P’s in the Extended Marketing Mix:
- Product: This refers to the goods or services that a company offers to its customers. It includes features, quality, design, branding, and any additional benefits or features associated with the product.
- Price: This involves determining the appropriate pricing strategy for the product or service. It takes into consideration factors like cost, competition, perceived value, and customer willingness to pay.
- Place: Also known as distribution, this P involves deciding how and where the product will be made available to customers. It includes decisions related to channels of distribution, locations, logistics, and inventory management.
- Promotion: This encompasses the various methods used to communicate and promote the product to the target market. It includes advertising, public relations, sales promotions, direct marketing, and other promotional activities.
- People: In the context of the 7 P’s, this refers to the employees and their role in delivering the service. It includes aspects like training, customer service, attitude, and appearance of the staff.
- Process: This relates to the procedures, systems, and activities that are involved in delivering the product or service. It focuses on the steps that the customer goes through during the service delivery.
- Physical Evidence: This refers to the tangibles or physical cues that help customers evaluate the service before making a purchase. It includes elements like the physical environment, equipment, brochures, or any other materials associated with the service.
The Extended Marketing Mix is particularly relevant in industries where services play a significant role, such as hospitality, healthcare, consulting, and education. It helps businesses consider the additional factors that influence customer experience and satisfaction in service-based settings.
While the Extended Marketing Mix (7 P’s) is a valuable framework for marketing, it’s important to be aware of certain considerations and potential issues:
1. Industry and Service Focus: The 7 P’s model is especially applicable in service-oriented industries where customer experience and service delivery are crucial. It may not be as directly relevant for product-focused industries.
2. Complexity and Resource Allocation: Implementing all seven elements can be resource-intensive. Small businesses or those with limited resources may need to prioritize certain P’s over others.
3. Integration with Business Objectives: The elements of the marketing mix need to align with the overall business strategy and objectives. This ensures that marketing efforts contribute to the company’s broader goals.
4. Adaptation to Cultural Differences: Some elements like “People” and “Physical Evidence” may need to be tailored to specific cultural contexts to resonate with customers effectively.
5. Continuous Monitoring and Adjustment: Market conditions and customer preferences change over time. Regular assessment and adjustment of the 7 P’s are necessary to remain relevant and competitive.
6. Customer-Centric Approach: The model emphasizes the importance of understanding and meeting customer needs. However, it’s essential to ensure that customer insights are accurately gathered and analyzed.
7. Service Quality and Consistency: Ensuring consistent service quality across different touchpoints is crucial. Any discrepancies can lead to customer dissatisfaction and erode trust.
8. Measurement and Metrics: Identifying key performance indicators (KPIs) for each of the P’s is vital for evaluating the effectiveness of marketing efforts and making data-driven decisions.
9. Employee Training and Development: The “People” element relies on well-trained, motivated employees. Investing in training programs and employee development is essential for delivering high-quality service.
10. Ethical Considerations: Ethical practices and transparency are critical, particularly in industries where trust and credibility play a significant role.
Remember, the effectiveness of the 7 P’s model depends on careful analysis, implementation, and ongoing evaluation in the context of a company’s specific industry, market, and customer base.
- Service Industries: Particularly in sectors like hospitality, healthcare, education, and consulting where customer experience and service quality are paramount.
- New Product or Service Launches: When introducing a new offering, considering all seven elements helps in creating a comprehensive marketing strategy.
- Competitive Differentiation: In markets where competition is fierce, a well-executed 7 P’s approach can set a company apart from its rivals.
- Customer Experience Enhancement: When a company seeks to improve its customer experience, the 7 P’s can provide a structured approach.
- Crisis Management: During times of crisis, focusing on the 7 P’s can help in maintaining customer trust and confidence.
- Global Expansion: Adapting the model to different cultural contexts can be crucial when expanding into new markets.
Source of The Extended Marketing Mix 7 P’s:
Henley Business School
While the Henley Business School is a respected institution, it’s important to note that the concept of the Extended Marketing Mix and the 7 P’s is not exclusive to Henley, but rather a widely recognized framework in marketing theory.
Related Models & Sources:
Here are some sources where you can learn more about the Extended Marketing Mix:
- Kotler, P., & Armstrong, G. (2016). Principles of Marketing. – This is a widely used marketing textbook that covers the 7 P’s in detail.
- Booms, B. H., & Bitner, M. J. (1981). Marketing strategies and organization structures for service firms. – This seminal paper introduced the concept of the 7 P’s and emphasized the additional elements for service marketing.
- Lovelock, C., & Gummesson, E. (2004). Whither services marketing? In search of a new paradigm and fresh perspectives. – This paper discusses the evolution of services marketing and the importance of considering additional elements beyond the original 4 P’s.
- Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2006). Services Marketing: Integrating Customer Focus Across the Firm. – This book provides a comprehensive overview of services marketing, including the 7 P’s.
- Christopher, M., Payne, A., & Ballantyne, D. (1991). Relationship Marketing: Bringing Quality, Customer Service, and Marketing Together. – This book discusses the importance of customer relationships in services marketing, which is related to the “People” aspect of the 7 P’s.
- Schultz, D. E., Tannenbaum, S. I., & Lauterborn, R. F. (1993). Integrated marketing communications: Putting it together and making it work. – This book emphasizes the importance of integrated communications, which aligns with the “Promotion” aspect of the 7 P’s.
- Gronroos, C. (1994). From marketing mix to relationship marketing: Towards a paradigm shift in marketing. – This influential paper discusses the shift from a transactional approach (4 P’s) to a relationship-oriented approach, which aligns with the 7 P’s.
Please note that while these sources discuss aspects of the 7 P’s, none of them exclusively focus on the 7 P’s as a standalone concept. Instead, they incorporate it as part of broader discussions on marketing theory and practice.