The 7Ps of the Marketing Mix

The 7Ps of the marketing Mix

The marketing mix and the 7Ps of it.

The marketing mix covers all the activities normally associated with marketing. These are often known as the 7Ps:

• Product: finding the right product or combination of products for that market (through research, design and development);
• Price: deciding the most profitable price possible, bearing in mind the competition and demand;
• Place: making the product available when and where necessary;
• Promotion: persuading customers to buy the product, with suitable means of communication;
• Positioning: how you are seen and thought about by your customers is the critical determinant of your success in a competitive marketplace. Attribution theory says that most customers think of you in terms of a single attribute, either positive or negative.
• Packaging: it refers to the way your product or service appears from the outside.
• People: refer to the staff and salespeople who work for your business, including yourself.

Product. Branding and packaging are two aspects of marketing strategies that consumers hardly ever notice but that serve to differentiate products, which may in fact be very similar. Branding Brand-naming agencies specialize in evaluating the product, the image the company wants to project to the consumer (perhaps its high-tech or homely nature, its price advantage, or style) and finding the best name for it. A good brand name should be memorable and appropriate, it should be pronounceable and hay no unpleasant connotations in any relevant language or culture where the product may he sold. Successful brand names are often the most important asset} a company may have as consumers will often pa; a lot more for a brand that has a good reputation. Since it is very difficult, time-consuming and expensive n create successful new brands, companies often find it quicker and cheaper to take over companies whose finance may not be in great shape, but whose products are well-known to consumers.
Packaging The type of packaging a product is sold in is determined by several factors: what best protects the characteristics of the product, what is perceived by the consumer as being practical or attractive, what the best size of packaging is for that product, how the product may be made to look different from its competitors.
Price. Good marketing means putting a product on the market at a price that is competitive (so in line with what competitors are charging), but still profitable. The final price depends not only on production and marketing costs, but also on the company’s general strategy: there are a lot of reasons for deciding on one price rather than another.
Pricing strategies Definitions. Loss leaders – products sold at less than cost to attract customers to buy other, more profitable products. Capturing pricing – selling the equipment cheaply and the consumable material necessary at a high price. Cost-plus pricing – price based on costs and a profit margin. Market-led pricing – setting prices according to competitors’ pricing. Market-oriented-pricing used to influence customer behaviour. Penetration pricing – cheap initial prices to gain market share. Market skimming – charging a high initial price for an innovative new product
Place. The “right place” is where and how you sell your product. You have to decide whether you want to distribute it directly to consumers (for example, through the Internet), or through wholesalers, agents or retailers. The choice will depend on the type of consumers you are targeting, your competitors’ choices, and your company’s resources (what you can afford).
Positioning, concerns the way you are seen and thought about by your customers and this aspect constitutes a critical determinant of your success in a competitive marketplace. Attribution theory says that most customers think of you in terms of a single attribute, either positive or negative. Sometimes it could be a “service.” or sometimes it could be “excellence.” Sometimes it’s “quality engineering,” as with Mercedes Benz, sometimes it’s “the ultimate driving machine,” as with BMW. Develop the habit of thinking about how you could improve your positioning. Begin by determining the position you’d like to have. If you could create the ideal impression in the hearts and minds of your customers, what would it be? What would you have to do in every customer interaction to get your customers to think and talk about in that specific way? What changes do you need to make in the way interact with customers today in order to be seen as the very best choice for your customers of tomorrow?
Packaging refers to your people and how they dress and groom. It refers to your offices, your waiting rooms, your brochures, your correspondence and every single visual element about your company. Everything counts. Everything helps or hurts. Everything affects your customer’s confidence about dealing with you.
When IBM started under the guidance of Thomas J. Watson, Sr., he very early concluded that fully 99 percent of the visual contact a customer would have with his company,
at least initially, would be represented by IBM salespeople. Because IBM was selling relatively sophisticated high-tech equipment, Watson knew customers would have to
have a high level of confidence in the credibility of the salesperson. He therefore instituted a dress and grooming code that became an inflexible set of rules and
regulations within IBM.
Promotion. Promotion is used to: • launch new products; • increase sales of existing products; • improve the company’s image and/or strengthen its brand, (or even to change it). Often more than one type of medium will be used. Informational items. These make up the company’s official face. Information about a company is regularly circulated in letterheads, business cards, on panels on the sides of company vehicles, in leaflets, flyers and catalogues. Public relations (PR). Another “informational” way of promoting a product, brand or the company is through public relations. PR can be in the form of press releases, sponsorships, advertisements (also called ads or adverts), etc. The final P of the marketing mix is people. Develop the habit of thinking in terms of the people inside and outside of your business who are responsible for every element of your sales and marketing strategy and activities. In his best-selling book, Good to Great, Jim Collins discovered the most important factor applied by the best companies was that they first of all “got the right people on the bus, and the wrong people off the bus.” Once these companies had hired the right people, the second step was to “get the right people in the right seats on the bus.” In fact to to be successful in business, you must develop the habit of thinking in terms of exactly who is going to carry out each task and responsibility, in other words you must find the right person at the right moment for the right purpose and task.

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About Carl William Brown

I'm Carl William Brown a holistic teacher, a webmaster, a trader, and a writer of aphorisms and essays. I have written more than 9,000 original quotations and at present I'm also working at my only novel, Fort Attack, which is also a wide and open blog project. At the moment I'm teaching English in a secondary school, but up to now I have done a lot of other things as well, both in business, educational, sport and social fields. Some years ago, in 1997 following the examples of the Rotary or the Lyons Clubs I founded the Daimon Club Organization to promote every sort of activities, creativity, art, literature, new technologies, informatics, business and marketing, public health and education and to meet new friends with these kind of interests.
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