5G — 7Ps model: Product, Price, Place, Promotion

What are the 7Ps of the marketing mix?

Product

Price

Place

Promotion

People

Physical evidence

Process.

What is a product?

A product is a good or service offered to consumers to satisfy a need or want.

What is a tangible product?

A tangible product is a physical product that can be touched and stored, such as a computer or shoes.

What is an intangible product?

An intangible product is a non-physical product that cannot be touched or stored, such as a service or experience.

What product considerations does the textbook identify?

branding

design

quality

positioning.

What is branding?

Branding involves creating a recognisable and memorable name, design or logo so consumers can easily identify the product or business.

What is product design?

Design involves creating and developing a product with appropriate features and functions to fulfil its intended purpose and customer needs and wants.

What is product quality?

Quality is the degree to which a product fulfils its purpose without defects or inefficiencies. High-quality products are more likely to meet customer expectations and encourage repurchase.

What is product positioning?

Positioning involves establishing the image of the product or business and the needs it fulfils, including its features and benefits, compared with competitors.

What is price in the marketing mix?

Price involves selecting an appropriate price for the product being sold to customers.

What is competition-based pricing?

Competition-based pricing involves setting a product's price at a price similar to, above or below competitors' prices

What is price skimming?

Price skimming involves setting a high initial price for a product and then lowering the price over time.

What is price penetration?

Price penetration involves using a relatively low price to quickly gain market share, particularly when introducing a product.

What is psychological pricing?

Psychological pricing uses prices such as $11.95 rather than $12.00 to make the price appear lower to consumers. The textbook notes that customers may eventually recognise such perceived deals as less significant.

What is place?

Place is the marketing mix element concerning how a business distributes its product to customers.

What is a direct distribution channel?

A direct distribution channel is producer → customer, meaning the product is sold directly from the business to consumers without intermediaries. The business has the highest degree of control over the channel.

What is an indirect distribution channel?

An indirect distribution channel involves intermediaries between the producer and customer, such as retailers and wholesalers.

What are the three distribution channels in the textbook?

Producer → customer

Producer → retailer → customer

Producer → wholesaler → retailer → customer.

What is promotion?

Promotion involves implementing appropriate promotional strategies to sell a product and showcase the brand.

What are the promotional strategies covered in the textbook?

Advertising

Sales promotion

Direct marketing

Personal selling

Public relations.

What is sales promotion?

Sales promotion involves providing customers with short-term incentives to encourage trial or use of a product. Examples include price reductions, free samples, demonstrations and buy-one-get-one-free offers.

What are advantages and disadvantages of sales promotion?

Advantages: can increase sales in the short term and its effectiveness is easy to monitor.

Disadvantages: may not create long-term sales increases and competitors can copy the techniques.

What is direct marketing?

Direct marketing involves selling products straight to the public, including physical mail-outs, telemarketing and door-to-door sales.

What is personal selling?

Personal selling involves a sales representative meeting a customer in person and selling the business's product. It is typically used for high-priced products or products with complex features.

What is public relations as a promotional strategy?

Public relations involves communicating an intended message and building strong relationships with stakeholders. Strategies may include social media, sponsoring events and newsletters.