Widened Marketing Strategy Framework
In the ever-evolving world of business, the marketing mix theory continues to hold relevance, but with a twist. Business owners must adapt to advancements in communication and technology, devising creative ways to blend the marketing mix with new marketing platforms like social media, and keeping it dynamic to meet customers' needs in a constantly evolving setting.
Originally introduced by E. Jerome McCarthy in 1960, the marketing mix consisted of the four Ps: product, pricing, placement, and promotion. However, as the focus shifted towards services marketing, an extended marketing mix, also known as the 7Ps, was developed to address the unique challenges presented by intangible offerings.
The traditional marketing mix, or the 4Ps, is primarily designed for physical goods marketing. The Product is the tangible goods or core offering. Price is the amount charged to customers. Place refers to distribution channels where the product is made available. Promotion involves communication and advertising to persuade buyers.
The extended marketing mix, on the other hand, adds three additional Ps—People, Process, and Physical Evidence—to the original four, tailoring the framework for services marketing. People encompass employees or those directly involved in delivering the service and interacting with customers. Process refers to the procedures and flow of activities by which the service is delivered, impacting customer experience. Physical Evidence includes the tangible cues or environment that support the intangible service, such as the physical setting or packaging.
The application of these two mixes varies significantly. The 4Ps are best suited for products where customer interaction and service delivery nuances are limited. In contrast, the 7Ps are designed for services, which are intangible and involve customer participation, requiring greater emphasis on the employees delivering the service, how the service is delivered, and physical surroundings that influence customer perceptions.
The seven factors help businesses develop a complete method for determining whether a product will work in the market by focusing on the triangle of people, price, and product. Each of the seven pillars provides a unique perspective on the marketing strategy, aiding in cost determination for each area and creating a cost hierarchy.
Moreover, the sales and customer service parts of the marketing mix provide essential information about what customers want, generating leads and increasing sales. Physical Evidence is the product a customer receives or what they expect from a service, including packaging and customer service materials. The people element refers to the customer experience, focusing on how customers interact with the product or service and ensuring a good customer experience. Processes refer to the methods used when developing and marketing products or services, including production and order processes.
In summary, the extended marketing mix (7Ps) builds on the traditional 4Ps by including elements that address the unique challenges of marketing services, focusing on the human element and delivery process alongside the core product, price, place, and promotion components. The adaptable structure of the expanded marketing mix offers an informative approach to marketing strategy, allowing marketers to create plans that address both company goals and consumer wants.
[1] McCarthy, E. J., Perreault, R. G., & Shultz, D. L. (2006). Basic marketing: a managerial approach. McGraw-Hill. [2] Kotler, P., & Armstrong, G. (2019). Kotler's marketing management. Pearson Education. [3] Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1988). Delivering quality service: Balancing customer expectations and employee productivity. Free Press. [4] Gronroos, C. (1994). Relationship marketing. Journal of Marketing Management, 10(3), 193-210. [5] Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multi-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-40.
- To ensure the success of their services, businesses must consider the extended marketing mix (the 7Ps), which includes the traditional marketing mix (the 4Ps) but also addresses the unique challenges of services marketing, focusing on the People, Process, and Physical Evidence involved in delivering and marketing services effectively.
- In education and self-development, understanding the 7Ps marketing mix can provide valuable insights for those seeking to improve their business skills, as it equips them with a comprehensive framework to assess the viability of product ideas, develop effective marketing strategies, and maintain a focus on both company goals and customer needs.
