Marketing mix 7P - how does marketing evolve?

The 7P marketing mix was created through the evolution of marketing strategies. This can be compared to a cake recipe. There are certain ingredients that are necessary for a cake to succeed. However, you can modify the recipe and change the proportions of some of them. The same applies to marketing, where one of the best known terms is the marketing mix. The concept of the marketing plan has also changed over the years. Let's follow how.

While cash flow is the bloodstream of every business, without proper marketing to target audiences, there could be no cash flow. A business without a steady stream of customers will simply die. So marketing is also fuel for your company. His role has been recognized for many years. However, it was not the marketing mix of 7P right away. The term marketing mix was first used by Neil Borden in 1953. Seven years later, Edmund Jerome McCarthy proposed a classification of its key elements.

The beginnings of the marketing mix

The four basic elements of the marketing mix, distinguished by Edmund Jerome McCarthy, commonly function under the name 4P. On 4P concept the marketing mix consists of:

• Product (product),

• Price (price),

• Salaries (place, distribution),

• Promotion (special offer).

All these elements of the marketing mix are interrelated. These are activities, processes, methods and techniques used in companies, which together form an integrated system of influencing the market environment - customers, competitors, stakeholders, etc. Marketing as an economic and social phenomenon has changed along with the development of mass production, the increase in consumer income, etc.  Marketing activities Companies today, as in the past, aim to be better and more complete meeting the needs of consumers. This is only possible taking into account the changing market and customer expectations. Therefore, over time, the marketing strategy was enriched with another 3 elements. This is how the 7P marketing mix was born.

What is the 7P marketing mix?

The marketing mix 4P concept was designed when the role of customer service in supporting the company's development was not realized. Nevertheless, over time, the marketing mix toolkit has been expanded to include another 3Ps. Behind them are:

• People (people, and initially they were participants, i.e. participants),

• Physical evidence (physical evidence, material certificate),

• Processes (processes).

Today, it is recommended to conduct marketing activities taking into account the full set of marketing mix 7P tools. What is it about? Let's go back to the cake example. You can modify the amount of its ingredients to some extent. If you want it to be sweeter, you just add more sugar. It's the same with the marketing mix. It is up to you, for example, how you construct the offer for the client. If you sell premium brand products, you can increase the emphasis on promotion, which will soften the price like frosting - perhaps a bit harder to swallow.

Another way to think about the marketing mix is to compare it to the painter's palette. The marketer mixes the primary colors (elements of the marketing mix) in different amounts depending on what end color they want to achieve. And just as each painting is original, each marketing mix strategy will be different. There is no ready-made recipe for marketing success. However, let's look at the individual components of the marketing mix in more detail. These tools, when properly used, can realistically increase the chance of increasing brand awareness, and as a result increase product sales, which is the element at the heart of the marketing mix.

Marketing mix 7P tools

The 7p marketing mix includes all the elements of the 4p concept, which are:

Product

The product as an element of the marketing mix, is a term that refers to both a tangible item and a service that a company wants to sell. For a product to have any value, it must satisfy a specific need of the consumer. Otherwise even the best marketing strategy won't make anyone want to buy it. Only after identifying the true potential of the product can you move on to the next step, which is setting its price. 

Price

consumers calculate the value of a product in their minds even before they see the price. That is why it is worth looking at it through the eyes of potential customers. How much will they want to pay for it and why? If a product doesn't offer much, it will have little value to the consumer.

Distribution

i.e. the channels through which a product or service reaches the customer. To determine the best strategy, it is worth using marketing segmentation. Distribution includes both the physical location of stores or service outlets, as well as the arrangement of products on store shelves. If your customers are active online, and most of them are, take care of the most convenient payment methods and shipping conditions that are attractive in terms of time and cost.

Special offer

is the most visible "P" in the marketing mix 7P strategy, as it includes advertising, sales promotions, PR activities etc. After all, you can't sell a product if consumers don't know about it, right? There are many possibilities here, depending on what, where and to whom you sell. It is certainly worth planning a communication strategy, implementing engaging advertising campaigns and online marketing.

People

is the first ingredient highlighted in the modernized marketing concept. Marketing mix 7p assumes that in order to provide excellent and consistent customer service, companies must hire and train the right people. In many industries, employees are the direct point of contact between the consumer and the brand. Their competences, the way they communicate with the client, is often crucial in building brand image in the mind of the consumer.

Processes

automation, systems and processes are of great importance in the marketing mix. They reduce costs while playing a vital role in achieving customer satisfaction and measuring results. The success of many companies is largely attributed to the processes and logistics they use. Often, it is the focus on performance and costs that allows a brand to offer lower prices than the competition. Processes also include carefully observing the customer journey, i.e. the customer's shopping path or journey.

Material certificate

although this element of the marketing mix 7p sounds quite serious, it simply means all the visual aspects of the brand image that affect how it is perceived by the customer. It is important that the whole picture is consistent - from the company's headquarters, through the clothes of employees, to the appearance of the website. So the last P refers to all the physical elements that consumers will interact with your company and build their experience.

Marketing mix 7P on the example of a company

Now that you know what elements make up the 7P marketing mix, let's follow their application in practice. Let's do it on the example of an American company that is one of the world's largest producers and sellers of non-alcoholic beverages and food products.

Product

the analyzed company is mainly known as a producer of a dark soda, but also offers savory snacks, such as corn chips, and other food products - breakfast cereals, cakes and cake mixes.

Price

in principle, the products offered by the concern should be available to everyone. However, expenses related to transportation, ingredients and labor continue to put pressure on the beverage industry to increase prices. Despite this, the company tries to lower or maintain current prices by reducing overheads and redesigning the manufacturing process.

Distribution

products are available at stationary points selling food and beverages. The company is headquartered in the US, where approximately 50% of its revenue is generated. Current expansion to international markets is aimed at reducing the dependence of the entity's condition on sales in the United States.

Special offer

advertisements accompany the brand from the beginning of its existence. In the beginning, what turned out to be effective in winning over consumers was emphasizing the low price of the drink. For almost 80 years, the company's marketing strategy has portrayed the company's beverage as part of a lifestyle. After many years of the brand's strategy based on a price advantage over the competition, it was decided to reposition the brand. The most promising group of recipients was selected, i.e. young people - not only in terms of age, but also in spirit. The aim of the campaign was to build a generation faithful to the brand, open-minded people with an optimistic attitude towards the world. Famous people from the world of entertainment, celebrities from the headlines have become the faces of the brand. Promotional strategy The company's strategy is also based on sports, and advertising campaigns are signed with the most popular names from the world of football.

People

the company supports a corporate culture that values employees and emphasizes diversity in the workplace. It was listed among "Best Companies for Women to Promote Multiculturalism" by Working Mother magazine. She is also recognized for her commitment to sustainable talent development and dedication to Asian workers. She was also listed among the top 20 "Ideal MBA employers" by Fortune magazine.

Processes

the company tries to meet the expectations of consumers in terms of brands' care for the natural environment. In the analyzed case, it is about the ingredients used and the packaging that must meet the highest standards. All production steps take place in a closed, controlled environment which helps to ensure quality throughout the entire process. Particular attention is also paid to the purification of water that is used in the production of beverages. A critical part of the production sequence are quality control audits carried out by specially trained technicians.

Material certificate

the brand is well recognized and its logo is known to millions of people around the world. The website on the web contains comprehensive information about the company, including its rich history and details related to the production process. The brand is a leader in the packaging industry – it helps promote and implement sustainable packaging standards. It follows a clearly defined philosophy: reduce, reuse, recycle, delete and renew.

In conclusion - what is the 7P marketing mix? Marketing components can be viewed as building blocks of a car. In the 1960s, when the marketing mix made its debut, all cars were fitted with wheels and an engine. Power windows, not to mention the fuel injector, are standard nowadays. It's the same with marketing. It is changing and evolving. If you are thinking about tuning your previous activities or you are just going to implement them, contact us. We will propose the best and most modern solutions.

The 7P marketing mix concept - where will it be useful?

Marketing mix7P is useful for companies to set goals, conduct SWOT analysis and conduct competition analysis. It is a practical tool for assessing existing processes, allowing you to improve individual activities in the company. Concept 7P marketing mix can be used to ask the following questions in each area:

Products/ services: how can you develop products or services?

Prices/ fees: how can you change the pricing model?

Place/ access: what new distribution options are available for customers to familiarize themselves with the product, e.g. online, in-store, on mobile devices, etc.?

Special offer: how to improve it and make it more attractive in paid, owned and earned media channels?

Physical evidence: How do you retain customers, e.g. with well-trained staff, great website?

People: who are your employees and are there skills gaps that should be filled, for example with appropriate training?

Partners: are you looking for new partners and are you managing relations with existing partners well?

When using the marketing mix7P as a model for conducting a marketing audit, pay attention to every P. It is not worth ignoring any of the areas that can be improved.

Marketing 7P - processes that determine success

Ever since it was formulated in the mid-20th century, every aspect of this amazing little acronym like 7P's Marketing Mix brings you one step closer to success. How? By analyzing and thus optimizing your business for each "P" of the marketing mix. By improving your business in all of these areas, you can be sure that your marketing strategy is as specific as possible. It ensures employee satisfaction, customer satisfaction and smooth business operations. An effectively streamlined marketing strategy also engages and retains consumers. It meets and implements your goals and develops your brand to the maximum extent.

The 7P formula in the marketing mix is something that should accompany you constantly after developing a marketing strategy. It should be used to continuously evaluate business activities as products, markets, customers and their needs change rapidly. When used on a regular basis, the 7P marketing mix concept means keeping an eye on the pulse. This is all to make sure you are always on the right track and achieving the maximum possible results in a turbulent market.

The 7P marketing mix concept and campaign planning

Anyone working at a strategic level in the area of marketing should know all 7 points of the marketing mix. For what purpose? Whether it is to be used as a basis for testing and formulating ideas or simply to deepen your understanding of marketing theory. First of all, the 7P marketing mix and its tools can help distinguish between instinct driven marketing and process driven marketing. In most cases, this will mean more success for your marketing projects. The great benefit of using 7P in your campaign planning is that it helps you get the job done right.

If any of the 7Ps are not carefully planned, the project is sure to suffer. Methodically reviewing each P is a great safeguard against strategic mistakes. In addition to helping you get the right marketing kit, the 7Ps can also help you assess why failed projects have failed. Marketing mix 7P, analyzing each of its areas in turn, will help to get to the bottom of the problem.

The role of price in the marketing mix 7P

Price is usually the element that most businesses believe is the greatest. This is the amount customers pay - or are willing to pay - for a product or service. It includes factors such as payment methods, financing / credit terms, rebates, price match, referral bonuses, affiliate payments, loyalty rebates, free trials, subscription options, etc. For a business to be profitable, the price must lead to profit. In fact, price is a seemingly simple way to fuel growth as even an 1% increase in price can increase profits by an average of 11%. However, many companies still do not optimally price their products.

Starbucks is definitely not in this group. His approach to pricing gives an insightful look at how a business can grow and operate profitably all the time. Knowing that its customers are not price sensitive, Starbucks raises them successively but in small steps. This is an excellent example of how a company can constantly raise prices, toward the highest amount that customers are willing to pay, but which will not deter them from purchasing.

The 7P formula in the marketing mix is not everything

Now that you know how the 7P marketing mix can help you perfect your marketing strategies and keep your brand on top, don't think it's over. It turns out that the 7P formula in the marketing mix is an open set. There is talk of the existence of ... an eighth "P", which would be the last piece of the puzzle. It enriches 7P marketing, the processes that are included in it, with P for productivity. This area is responsible for your ability to deliver what you promised to your customers. He answers questions about whether they are satisfied. Are you offering them the value they expected? "Performance" also includes issues such as quality, how to compete in the marketplace, and whether your goals are being met, including your financial goals. All your marketing activities must be aligned with your marketing goals. But the importance of the marketing mix goes beyond that. By examining the individual P's, you can identify the leverage - the single element that stands out - that will drive your business growth.

The benefits of analyzing the marketing mix can make a huge difference when it comes to growing your business. With the marketing mix model at hand, you can start figuring out how to apply the 7P. Consider each element - product, price, location, promotion, people, processes, and physical evidence - and the way your business approaches each of them. What about the competition's approach? Can you see opportunities to apply any of the 7Ps in a different way to gain an advantage over it?

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