MARKETINGMIX MARKETING MIX – 4P’S VS.

7P’S

Place
Price
Product Price
4P
Promotion

4P Product
7P
3P Physical
Promotion Place Evidence

People
Process

Classic Consumer Goods Marketing Expanded Service Marketing

4 P’S MARKETING MIX EXISTING IN PROGRESS

PRODUCT

Discounts

PRICE
Features Quality
Payment terms

Packaging Allowances

PROMOTION
Inventory
PLACE

Public relations Direct marketing

Transportation

Market coverage Advertising

 04 PRODUC
7 P’S MARKETING MIX T
• Design
• Technology

01 PLACE •
•
Usefulness
Convenience

• Retail • Warranties

• Wholesale
•
•
Mail Order Place 05 PEOPLE
Internet
• Direct Sales • Employees

Physical • Management
Price
02 PRICE Evidence •
•
Culture
Customer Service

• Skimming • Personnel

• Penetration
• Psychological 06 PROCESS
• Cost-Plus TARGET
• Loss leader, etc. • Especially relevant to service
MARKET industries
Process Promotion
03 PROMOTION •
•
How are services consumed?
Performance & analytics

• Special Offers • Validation

• Advertising
• Endorsement 07 PHYSICAL
• User Trials EVIDENCE
• Leaflets/posters People Product • Interface
• Comfort
• Facilities
• Foot traffic
• Store lines
 8P’S MARKETING MIX

PERFORMANCE PRODUCT
How well the service competes in the marketplace, including Includes design, packaging, usability, quality,
measuring the company’s financial goals features, colors and size options

PROCESS PRICE
Activities and actions involved in delivery of Depends on packing, discounts, timing, location,
the product to the customer shipping and other offer elements

TARGET CLIENT

PHYSICAL EVIDENCE PLACE

Environment in which service occurs and customers and Includes retail, wholesale, internet, phone and
service personnel interact other multi-channel options

PEOPLE PROMOTION
Includes employees, customer service, and Advertising, communications, messaging and content
everyone with customer contact to persuade the customers to buy
 PROMOTION MIX

MASS OR CUSTOMIZED PAYMENT STRENGTHS WEAKNESSES

• Efficient means for reaching large • High absolute costs

Advertising Mass Fees paid for space or time
numbers of people • Difficult to receive good feedback

• Immediate feedback
• Extremely expensive per exposure
Fees paid to salespeople as either salaries • Very persuasive
Personal selling Customized • Messages may differ between
or commissions • Can select audience
salespeople
• Can give complex information

• Often most credible source in the

Public relations Mass No direct payment to media • Difficult to get media cooperation
consumer’s mind

• Effective at changing behavior in • Easily abused

Wide range of fees paid, depending on
Sales promotions Mass short run • Can lead to promotion wars
promotion selected
• Very Flexible • Easily duplicated

• Messages quick to prepare

Cost of communication through mail, • Declining customer response
Direct marketing Customized • Facilitates relationship with
telephone, or computer • Database management is expensive
customers
 PRODUCT
PRODUCT LEVELS

POTENTIAL
PRODUCT
This provides additional tangible and intangible features

AUGMENTED PRODUCT
Goes beyond physical product and sets it apart from competitors

EXPECTED PRODUCT
This offers generic product plus other attributes consumer wants.

GENERIC PRODUCT
This provides actual product with tangible qualities

Core Product
CORE PRODUCT
This fulfills basic benefits consumers want
 PRICING STRATEGIES
THE MOST COMMON APPROACHES

01 02 03 04 05 06 07 08

PENETRATI ECONOMY PROMOTIONA COMPETITI VALUE- COST-PLUS SKIMMING PREMIUM

ON L VE BASED

To enter the market and Budget pricing of a Discounts, gifts, Price based on Price based on what Calculating prices based Set a high price to start Product is priced higher
gain market share product or a service coupons, buy-one-get- competitor prices customer believes the on costs and adding a and lower it as market based on unique branding
one-free offers product is worth markup evolves strategy
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