7Ps Marketing - Quick Reference

The 7Ps of Marketing

  • Definition: Strategic tool that combines the 4Ps (Product, Place, Price, Promotion) with the additional 3Ps (People, Packaging, Positioning). (Jerome McCarthy)
  • Purpose:
    • Set clear marketing objectives
    • Develop strategies and tactics
    • Plan a successful product offering

Product

  • A product is any physical good, service, or idea created to meet customer needs and address problems.
  • Three levels:
    • Core benefits
    • Physical characteristics
    • Augmented benefits

Place

  • Place refers to the physical and human characteristics of a location; strategic relevance depends on the business and target market.
  • Covers product distribution and logistics (distribution channels, fulfillment; physical and cyber channels).

Price

  • Price is the peso value assigned after considering costs, competition, objectives, positioning, and target market.
  • It is the only P that generates revenue for the business.
  • Pricing strategies include:
    • Bundling
    • Penetration pricing
    • Skimming pricing
    • Competitive pricing
    • Product-line pricing
    • Psychological pricing
    • Premium pricing
    • Optional pricing
    • Cost-based / Cost-plus pricing

Promotion

  • Promotion involves presenting products/services to the public and addressing needs, wants, or problems.
  • Requires a strong Integrated Marketing Communications (IMC) plan to deliver compelling messages.
  • Key messages can include: value proposition / USP, product/service image, business image, and business values/philosophy.
  • Promotional tools include:
    • Advertising
    • Selling
    • Sales promotions
    • Public relations

Costs

  • Variable/Controllable costs: vary with the number of products/services produced.
  • Fixed/Uncontrollable costs: not directly proportional to production or service delivery.

People

  • People play a vital role in servicing customers, even when selling tangible goods.
  • Focus on human resources, direct interactions, and CRM (Customer Relationship Management): strategies and systems that build customer loyalty.
  • Contract: an agreement between two or more parties creating obligations in exchange for money or other consideration.

Packaging

  • Packaging is how the product/service is presented and identified to customers ("servicescape" concept).
  • Includes product packaging design and labeling.
  • Design questions: what is the product? who is buying? how are people buying?

Positioning

  • Positioning defines where your product stands relative to competitors and in the mind of the consumer.
  • Five main strategies:
    • Based on product characteristics
    • Based on price
    • Based on quality or luxury
    • Based on product use or application
    • Based on competition

Brand

  • A brand is the name or symbol associated with a product/service that communicates messages to target customers.
  • Brand messages are conveyed through advertising, distribution, and packaging.
  • A strong brand evokes positive images or emotions; brand name value is a key asset.