Marketing 7P: a Comprehensive Approach for Your Business

Marketing is a system of consistent actions that lead to results. When a brand enters the market or changes its positioning, various factors are considered for its promotion: the product itself, pricing, sales locations, target audience, and more.

In other words, comprehensive marketing is crucial, not random actions. This is the only way to build relationships with customers who will keep coming back to purchase again and again. To structure the work of marketers, the concept of the marketing mix was developed — a system that reflects all the aspects that need to be worked on to maintain and strengthen a brand's position in the market.

In this article, we will explain what the 7P concept is and why it is important for business.

How the marketing mix was created

The term "marketing mix" was first introduced in the mid-20th century in the United States. Harvard professor Neil Borden proposed a system of marketing tools needed to promote a brand in 1953. Later, another scholar, Jerome McCarthy, rethought and simplified the idea in the 1960s. This led to the creation of 4P marketing — a set of tools that form a brand strategy to increase product value and profitability.

The concept included the following elements: Product, Price, Place, and Promotion. It was believed that these components were sufficient to conduct comprehensive marketing and achieve results. However, over time, marketers realized that other factors — environment, processes, and people who interact with customers — were also important. Thus, the concept gradually expanded to 5P, 6P, and today, the marketing mix exists as the 7P model. This version was proposed in the 1980s by J. Bitner and B. Booms.

7P concept

The 7P marketing mix incorporates the elements of the classic 4P and is supplemented with new ones for a more extensive approach to brand management. Let’s take a detailed look at each aspect of the concept.

Product

This is what the brand will offer to customers and sell. Marketing begins with developing products or services that meet market demands. The product must solve a consumer’s problem and satisfy their needs. No one will buy something entirely unnecessary, minimally useful, or unclear. Therefore, the marketing mix concept starts with developing the attributes of the product or service:

• Visual style: This includes the design of the product itself and its packaging (brand style, logo). A clear presentation of what you are selling is crucial.

• Positioning: This defines the role the product will play in the market and who it is created for: whether it is for the mass market or a niche for a specific sector or group of people.

• Product features: This involves the benefits for customers and the uniqueness that will be marketed.

• Quality: This parameter influences not only the price but also how the product is presented. Luxury goods and mass-market products differ in quality, and customers in these segments focus on different criteria. Therefore, it is essential to build in the features that will meet the target audience’s expectations.

• Assortment: The product should adapt to customer needs and offer various options. Variety increases the chance of reaching more people and raises the likelihood of sales.

Price

The cost of the product is the second component included in the 7P marketing mix. Pricing is determined by the business's strategic goals, product quality, competitive environment, production costs, brand recognition, and other criteria.

Key considerations in pricing:

• Profitability: The product's price should cover the costs of its creation and generate profit. It’s essential to calculate all expenses accurately.

• Variability: Depending on the seller's operations and the type of sales (wholesale, retail), prices are set to be market-appropriate and consider different marketing channels. The price may also vary based on the product or service's configuration.

• Product status: Premium segments are initially priced higher than economy ones. Therefore, it's crucial to determine the category in which the product will be sold right from the start.

• Promotion: Pricing includes marketing costs: promotions, discounts, events, etc. Possible conditions for customers are outlined, such as a brand never reducing prices by more than 20% or avoiding sales altogether.

• Seasonality: Some products are not in demand year-round, which should also be considered when setting prices. During the peak season, it’s important to generate enough income to offset the decline in demand during less active periods.

Promotion

This includes the marketing strategy and all the tools used to increase brand awareness and sales. This element of the 7P concept is responsible for the information the customer receives about the product, as well as the right place and time.

Promotion typically involves the following components:

• Audience segmentation: The customer base and potential buyers are divided into groups based on similar characteristics to provide the most accurate offer to each. Personalization is also used to improve results.

• Advertising budget: A set amount is allocated in the promotion for attracting new customers. The return on investment is also calculated.

• Communication channels: Tools and platforms where the company interacts with the audience, including email newsletters, SMS, push notifications, messaging apps, media, and other online and offline resources.

• Event marketing: Events are a part of brand promotion, so planning and including them in the strategy is essential.

• Analytics: Marketing activities should be quantified to monitor promotion, adjust strategies, and understand their effectiveness. Brands collect audience data for analysis and offer personalization. For example, CDP platforms are used for this purpose.

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Place

These are the points where the product will be sold: online and offline platforms. Locations are chosen where potential buyers are present. The method of distribution depends on the product's characteristics, price, and storage conditions. The sales location should be accessible to the target audience, and the purchasing process should be clear and simple.

Key considerations when choosing a distribution method:

• Product features: Most products can now be sold online, but there are categories that buyers prefer to evaluate offline, especially expensive items. There are also digital products that are only sold online.

• How customers search for products: To determine the sales platform, it’s essential to understand where potential buyers search for information about the product or service. Based on this data, distribution channels are selected: online or offline stores, social media, and other platforms.

• Geography: The territory where the product is sold and the ambitions for expanding the product's location are considered.

• Sellers of your product: There are options to sell through your own outlets or to distribute products through partners and dealers. In this case, a motivation system for distributors and working conditions are developed.

People

Brands are created and promoted by people, which is why this element was added to the expanded marketing mix concept. This refers to everyone who interacts with customers directly and indirectly, as well as those who influence product choices. This includes salespeople, company managers, "opinion leaders," and brand advocates — consumers who buy from you and promote your brand without payment. It’s important for a business to establish effective communication between these people and the potential audience.

Methods and tools used for this include:

• Corporate culture: Internal processes and communication within the company reflect on customer interactions. Therefore, building a strong culture is essential for providing high-level service.

• Training: To communicate effectively with customers, employees must be knowledgeable in their field and possess communication skills. Thus, it is the responsibility of the leadership to organize training that aligns with business goals.

• Motivation: Maintaining high levels of service and sales is possible when employees are motivated and perform their duties diligently. For this, businesses need a system of incentives (both material and non-material) that keep the staff "in shape."

• Loyalty programs: To encourage customers to continue buying and recommending your brand, it’s important to motivate them as well. This usually involves bonuses, special conditions, promotions, and well-established communication.

• Working with opinion leaders: Strategies for working with influencers aren’t limited to paid advertising. This can include joint media projects, product creation, or even becoming a brand ambassador.

Physical evidence

A customer's purchase decision is often influenced by what they see around them: from the product's packaging to the store's interior and the staff's appearance. The design of your office and branded promotional materials also plays a role.

All of these elements create an atmosphere and the right mood that encourages purchases.

In the online world, factors like a well-designed, visually appealing website, social media pages, and other brand accounts, as well as digital materials from the company, have an impact on the customer.

Process

This refers to the system of interaction between the company and the customer, including communication processes that influence purchasing decisions. This encompasses the speed and quality of service, delivery, and other elements that guide the customer through the sales funnel.

Interaction processes should be as convenient and comfortable as possible for users of the product or service. This helps maintain customer loyalty, encourages repeat purchases, and prompts customers to recommend your brand to others. To improve service quality, customer feedback is collected, and analytics are used to identify areas where processes may be "lagging."

Summary

The 7P marketing mix is an expanded version of the 4P model, which includes additional elements for brand strategy. The concept consists of marketing tools and methods that work to promote products and services, as well as to increase sales and brand awareness.

Originally, the 4P model included the following components: Product, Price, Promotion, and Place. In the 7P concept, three more elements were added to reflect the modern realities of the market and business development: People, Physical Evidence, and Process.