IB Business Management Marketing 4.6 The Extended Marketing Mix – Seven Ps Model

The Marketing Mix
The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. It is a planned mix of the controllable elements of a product’s marketing plan and is commonly termed as the 4Ps: product, price, place, and promotion.
Services
A service is an intangible (unable to be touched; not having physical presence) product supplied by an organisation; examples include: haircuts, photography, banking, insurance, transport, repairs and maintenance.
The extended marketing mix (the seven Ps model)
The extended marketing mix – the seven Ps model – is made up of seven interrelated decisions − the 7Ps. The four key ones are *product*, *price*, *promotion* (including advertising and packaging) and *place* (where and how a product will be sold to consumers). The other 3Ps largely relate to marketing services – *people*, *process* and *physical evidence*.
*Product* in the marketing mix
Consumers require the right product. This might be an existing product, an adaptation of an existing product or a newly developed one.
*Price* in the marketing mix
The right price is important too. If set too low, then consumers may lose confidence in the product’s quality; if too high, then many will be unable to afford it.
*Promotion* in the marketing mix
Promotion must be effective – telling consumers about the product’s availability and convincing them that ‘your brand’ is the one to choose. Packaging is often used to reinforce this image.
*Place* in the marketing mix
Place refers to how the product is distributed to the consumer. If it is not available at the right time in the right place, then even the best product in the world will not be bought in the quantities expected.
People
People are the organisation’s employees who interact with actual and potential customers.
*People* in the marketing mix
Selling services successfully requires people who can interact positively with customers and create the correct impression to encourage them to return. This is particularly relevant in the hotel and restaurant industry.
Processes
The methods of delivering or providing the service
*Processes* in the marketing mix
The processes that a business has in place to satisfy customers’ wants reliably and consistently form an important part of marketing services. For example, banks replacing an out-of-date debit card without the customer having to ask for one.
Physical evidence
The tangible features of a service, buildings, signage, etc.
*Physical evidence* in the marketing mix
Physical evidence means allowing customers to see for themselves the quality of the service being provided. This will reduce the element of risk in buying a service as opposed to a tangible product. For example, a clean and well-presented reception area in a hotel would raise appropriate expectations in the mind of the customer.
Coordinated marketing mix
The key marketing decisions complement each other and work together to give customers a consistent message about the product.
Measuring the effectiveness of *people*
The effectiveness of an organisation’s people in delivering or marketing a service can be measured in four ways:
1. Appearance (including body language)
2. Attitudes and aptitudes (capabilities)
3. Customer feedback
4. Efficiency
The different processes involved in services marketing include:
1. Payment methods
2. Wait times (queuing)
3. Customer services
4. Delivery
5. After sales care and servicing
Aspects of physical evidence:
The physical environment
Ambiance
Spatial Layout
Corporate branding
Examples of physical evidence
-The building itself
-Packaging
-Internet/web pages.
-Paperwork (such as invoices, tickets and dispatch notes).
-Brochures.
-Furnishings.
-Signage (such as those on aircraft and vehicles).
-Uniforms and employee dress.