If you work in or are closely involved with the world of marketing, you are probably already familiar with the 7Ps concept in marketing.
Also known as the marketing mix, this is a method that encompasses seven different principles that can be used to create and implement compelling strategies.
Its purpose is to engage customers more effectively, drive customer purchases, and increase revenue.
This article will discuss the 7Ps in marketing in detail, from their definition to practical examples.
What Is the 7P in Marketing?
The marketing mix, introduced by Harvard University marketing professor Prof. James Culliton in 1948 and later expanded by Jerome McCarthy, has been a fundamental theory in the marketing industry for more than 70 years.
The 7Ps in marketing consist of three additional principles built upon the original 4P marketing concept, namely:
- Product
- Price
- Place
- Promotion
- Physical evidence
- People
- Process
Explanation of Each Component of the 7Ps
1. Product
There is no point in developing a product, whether a physical item or a service, that no one wants to buy.
Unfortunately, many businesses decide on the product they want to offer first and only hope to find a market for it afterward.
In reality, successful businesses first identify what customers need or want and then develop a product with the right level of quality to meet those expectations.
2. Price
A product must offer value that aligns with the price customers are willing to pay. While it should remain competitive, this doesn’t mean your product has to be the cheapest on the market.
Believe that small businesses can compete with larger ones by offering more personalized service or better added value.
After all, the business you run needs to generate profit, making pricing the only element of the 7Ps in marketing that directly generates revenue.
3. Place atau Tempat
A product must be available at the right place, at the right time, and in the right quantity. This is crucial for effectively managing storage, inventory, and distribution costs.
The locations where customers purchase the product, as well as the channels used to distribute it, must also be appropriate and convenient for the customer.
4. Promotion
Promotion is how a business communicates what its product has to offer to customers. This includes branding, advertising, public relations, business identity, social media outreach, sales management, and special offers.
Promotion must capture attention, deliver a consistent message, and most importantly, provide customers with a compelling reason to choose your product over others.
Read also: Advertising is an Important Form of Marketing in Business. Here are its benefits and types!
5. Process
Many customers no longer simply buy a product or service; they see their purchase more like an investment.
The entire experience they go through, from discovering your product to making the purchase, is a process they will evaluate.
6. People
Every employee who interacts with customers leaves an impression. Many customers cannot separate the product from the service provided by the staff delivering it.
This means that the people you employ can have a significant impact—positive or negative—on customer satisfaction.
7. Physical Evidence
Choosing an unfamiliar product or service can be risky for consumers, as they won’t know its quality until after the purchase.
You can reduce this uncertainty by helping potential customers “see,” even indirectly, what they are about to purchase.
Why Are the 7Ps Important?
To this day, the 7Ps concept is still considered important because it helps businesses review and refine their marketing strategies.
It can serve as a component to ensure that the marketing techniques being used are either optimized or have challenges that need to be addressed.
Additionally, applying this marketing theory to business activities can help you to:
- Stay up-to-date with current trends to continuously meet customer needs.
- Strengthen your business’s position within the market and industry.
- Expand market reach and attract new potential customers.
- Build and enhance brand awareness in new markets.
- Increase product sales and retain more customers.
Read also: Campaigns are an Important Marketing Method for Business Success. Here are the benefits, components, and types!
Examples of Applying the 7Ps in Marketing
If your business wants to start selling aromatherapy blends through an online store, the marketing team can apply the 7Ps to every aspect of product development and the sales cycle as follows.
- Product
This business focuses on a variety of aromatherapy products and offers custom blends tailored to customer requests.
- Price
Analyze competitor pricing and develop a pricing strategy for both regular products and custom blends.
- Place
Since the products are sold exclusively online, provide fresh ingredients that can be stored for a shorter period.
- Promotion
Promotional activities for these aromatherapy products can be both digital and physical, such as social media posts, content marketing strategies, or participating in local craft fairs to build brand awareness in the market.
- Process
Determine the average time required to produce the products, introduce them to customers, and complete the purchase process. By understanding this information, the marketing team can identify effective strategies to shorten the sales cycle.
- People
If the business has multiple artisans creating the aromatherapy products, ensure that the marketing team, sales specialists, customer service staff, graphic designers, web developers, IT specialists, and finance managers all contribute to the growth and development of the business.
- Physical Evidence
To build brand awareness, you can create special offers, attend bazaars or trade fairs in person, and network with other players in the industry.
You can also implement various digital marketing strategies to build a positive reputation and enhance the influence of your aromatherapy brand in the market.
That concludes the explanation of the 7Ps in marketing. In addition to applying this concept in your business, make sure to use a business management application to support its growth and development, such as Labamu.
You will experience ease and flexibility in running your business anytime and anywhere, all through a single app that offers a wide range of valuable features.
One of the latest features, called Product Bundle, can boost your business sales by offering selected product packages at attractive prices.
Simply download Labamu on Google Play or the App Store and join over 84,000 entrepreneurs from various industries who are benefiting from this app.
