Service-Marketing-Mix-7-Ps (1)

The 7Ps of Marketing

• By: Julie Ann M. Gallego, DBA

Learning Objectives

• Determine the Importance of Marketing Mix

• Identify the 7Ps of Marketing

• Distinguish a Product vs Service

• Understand the meaning of 7Ps

Traditional Marketing Mix

• Defined as elements an organization controls to satisfy or communicate with customers.

• Composed of the four Ps: product, place, promotion, and price.

• Key decision variables in marketing texts and plans.

Modifications for Services

• Strategies of the four Ps change for services due to simultaneous production and consumption.

• Real-time promotion involves service delivery personnel (e.g., clerks, nurses).

Importance of the Marketing Mix

• Core of every marketing strategy.

• For services, includes an extension to the 3 additional Ps: people, physical evidence, and process.

Expanded Mix for Services

• Intangibility of services leads customers to seek tangible cues (e.g., hotel decor).

• 7Ps include:

  • People

  • Physical Evidence

  • Process

Components of the Marketing Mix

• Product: Anything offered for satisfaction, includes both physical products and services.

• Place: Involves making products available in the right quantities and locations for consumers.

• Price: Refers to the seller's charge for the product, including strategy and process.

• Promotion: Communication used to inform, persuade, or remind about goods and services.

• People: Involves anyone directly/indirectly in the business (selling, designing, managing).

• Process: Delivery process of products to consumers, focusing on efficiency.

• Physical Evidence: Tangible proof of purchase and service existence (e.g., ambiance, receipts).

Important Considerations

• Marketing mix must address customer perceptions (visual, auditory, other sensory aspects).

• Essential to craft a strategic marketing mix considering the 7Ps.

Activities

• Name Game Activity: Identify examples corresponding to each P (5 points each).

• Discussion on the 7Ps for various service establishments.

Quotes for Motivation

• "There is no such thing as overnight success or easy money... Success is a combination of hard work, good credit, opportunity, readiness, and timing." - Henry Sy

References

• Alhabeeb, M.J., (2015) Entrepreneurial Finance: Fundamentals of Financial Planning and Management for Small Business, Wiley Inc.

• Rao, K. (2011) Services Marketing, 2nd Edition.