4.5 Seven P's

Marketing mix

The combination of marketing elements a business uses to meet customer needs and achieve objectives.

Seven Ps of the marketing mix

Product, Price, Promotion, Place, People, Processes, Physical evidence.

Product

A good or service designed to satisfy customer needs and wants.

Price

The amount of money customers pay for a product or service.

Promotion

Activities used to inform and persuade customers to buy a product.

Place

How a product is distributed from producer to consumer.

People

Employees and customers involved in service delivery and customer interaction.

Processes

The procedures and systems used to deliver a product or service.

Physical evidence

Tangible and sensory elements that shape customer perceptions of a service.

Dynamic pricing

Selling the same product at different prices depending on customer, time, demand, or conditions.

Price discrimination

Charging different prices to different customers for the same product.

Competitive pricing

Setting prices at the same level as competitors.

Contribution pricing

Pricing based on direct costs, where remaining revenue contributes to fixed costs.

Contribution

The difference between selling price and direct costs per unit.

Demand

The quantity consumers are willing and able to buy at different prices.

Price elasticity of demand (PED)

A measure of how responsive demand is to a change in price.

Price elastic demand

Demand that changes proportionally more than price (PED > 1).

Price inelastic demand

Demand that changes proportionally less than price (0 < PED < 1).

Unitary elastic demand

Demand that changes proportionally the same as price (PED = 1).

Substitutes

Alternative products that satisfy similar needs.

Above the line promotion (ATL)

Mass media promotion aimed at large, non-targeted audiences.

Below the line promotion (BTL)

Promotion that does not use mass media and targets specific customers.

Through the line promotion (TTL)

A combination of ATL and BTL promotion methods.

Direct marketing

Promotional messages sent directly to customers using personal data.

Sales promotion

Short-term incentives to encourage immediate purchases.

Loyalty cards

Reward systems encouraging repeat purchases.

After-sales service

Support provided after purchase to increase satisfaction and loyalty.

Public relations

Activities that manage a business’s public image and reputation.

Merchandising

Branded items used to increase brand awareness.

Exhibitions and trade fairs

Events where businesses display products to potential customers.

Social media marketing

Using social platforms to promote products and interact with customers.

Paid advertisements

Promotional content businesses pay platforms to display.

User-generated content

Content created by customers rather than the business.

Influencers

Individuals with large followings who affect consumer opinions.

One-to-one messaging

Direct communication between a business and customers via social media.

Distribution channel

The path a product takes from producer to consumer.

Intermediary

A business or person that helps distribute products.

Wholesaler

Buys in bulk from producers and sells to retailers.

Breaking bulk

Buying large quantities and selling smaller amounts.

Retailer

Sells products directly to final consumers.

Agent

Sells products on behalf of producers for commission without owning them.

Direct distribution

Producer sells directly to consumers without intermediaries.

Indirect distribution

Distribution using one or more intermediaries.

Customer service

Interaction between employees and customers during service delivery.

Cultural differences

Variations in values and behaviour affecting customer service expectations.

Induction training

Training given to prepare employees for their roles.

Continuing professional development (CPD)

Ongoing learning to improve employee skills.

Process

Activities involved in delivering a service to customers.

Ordering and payment processes

Systems used to place orders and make payments.

Delivery systems

Methods used to deliver products to customers.

Customer feedback

Information provided by customers about products or services.

Q-commerce

On-demand delivery with very short delivery times.

Dark stores

Warehouses used only for online order fulfilment.

Sensory experience

What customers see, hear, smell, and touch when using a service.

Sustainability

Meeting present needs without harming future generations.

Target market

The specific group of customers a business aims to serve.

Marketing objectives

Goals a business wants to achieve through marketing.

Ethical marketing

Marketing practices based on moral principles.

Product life cycle (PLC)

The stages a product goes through from development to withdrawal.

Introduction stage

When a product is first launched.

Growth stage

When sales increase rapidly.

Maturity stage

When sales level off and competition is high.

Decline stage

When sales fall and products are phased out.

Product portfolio

The range of products a business sells.

BCG matrix

A tool that classifies products based on market share and growth.

Question mark

Product with low market share and high market growth.

Star

Product with high market share and high market growth.

Cash cow

Product with high market share and low market growth.

Dog

Product with low market share and low market growth.