Marketing communicates the value of goods and services to the customers. While marketing is often thought of as the end promotional activity, marketing is a combination of activities that delivers an optimal mix of pricing, product development, distribution, and advertising for a business to achieve success. It is both a science and an art, and overlaps, but is not synonymous, with the concepts of advertising, promotion, market research, and sales. Several marketing models are available that help develop and implement the marketing strategies as per the business requirements and customer needs. To begin with, here are some of the most common marketing models.
Top 12 Marketing Models
Some of the popular marketing models that have stood the test of time and are relevant in today’s era of omnichannel marketing have been listed below:
- 7 Ps of marketing
- USP (Unique Selling Proposition)
- Boston Consulting Group Matrix
- Brand positioning map
- Customer Lifetime Value marketing models
- Growth strategy matrix
- Loyalty ladder marketing models
- PESTLE (Asses impact on political, economic, social, technological, legal, and economic factors)
- Porter’s Five Forces
- Product Life Cycle
- Segmentation, Targeting, and Positioning
- PR Smith's SOSTAC (Situation, Objectives, Strategy, Tactics, Actions, Control) model
In this article we will learn about one such commonly used marketing model mix, i.e., 7 Ps of marketing!
7 Ps Of Marketing
The 7 Ps of marketing is a set of recognized marketing tactics, which can be used in any combination to satisfy customers in the target market. Combining these marketing tactics to meet the customers' needs and wants is known as using a 'tactical marketing mix'.
This marketing mix is a familiar marketing strategy tool that was traditionally limited to the core 4Ps - Product, Price, Place, and Promotion. In the 7 Ps, the new additions are People, Process, Physical evidence.
Let's dive into these marketing tactics, starting with the most important one, product.
It definitely goes without saying that your product must be at the centre of your entire strategy. The entire marketing mix is about the product itself. Concentrate on what is the pain point that your product or service is solving. How your product is more efficient than other similar ones in the market.
You can use research and development to help your company develop new products or create awareness about the existing one. The digital marketing mix is ideal for showcasing your products, such as through SEO, blogs or articles, paid advertising, influencer marketing, and viral video campaigns.
This refers to your pricing strategy for products and services, as well as how it will affect your customers. You should determine how much your customers are willing to pay, how much you need to mark up to cover overheads, your profit margins and payment methods, and other costs. You may also want to consider the possibility of discounts and seasonal pricing, subscription and membership programmes, or email marketing of promotions and sales to attract customers and maintain your competitive advantage.
The location of your products and services is where they are seen, made, sold, or distributed. Customer access to your products is critical, and it is critical that customers can find you.
You can distinguish yourself from the competition by designing your retail space and employing effective visual merchandising techniques. Even if you are not a retail business, location is an important part of your marketing strategy. Your customers may require a quick turnaround or prefer to purchase locally manufactured goods.
Finding the right business location will be an important marketing tactic if you are starting a new business.
All promotional activities across the marketing mix, including advertising, direct marketing, and in-store promotional activities, are included in successful marketing strategies. Digital promotion is only limited by your imagination and can include online events, chats, social media groups, and livestreams.
People refer to the employees and salespeople who work for your company, including you.
When you provide excellent customer service, you create a positive experience for your customers and, as a result, market to them. As a result, current customers may spread the word about your excellent service, and you may receive referrals.
Give your company a competitive advantage by hiring the right people, training them to improve their skills, and retaining good employees.
The process of getting your product to the consumer should be designed for maximum efficiency and dependability, but it should also include features that are consistent with your brand, such as being environmentally or sustainably focused.
With the rise of online shopping, digital partnerships and logistics have become critical components of the marketing mix. Having a good process in place ensures that you consistently provide the same level of service to your customers while also saving time and money through increased efficiency.
Physical evidence includes elements that demonstrate your brand's existence and that a purchase occurred.
A physical store or office for your business, a website if your business only operates online, and printed business cards that you exchange when meeting people are all examples of proof that your brand exists. Physical or digital receipts, invoices, or follow-up email newsletters sent to customers as a retention exercise are all examples of proof of purchase.
Your marketing mix must also account for everything your customer sees, hears, and sometimes even smells in relation to your product or service.
This includes, of course, packaging and branding, but it should also include how products are displayed in stores, where they are placed, and the context in which they sit, as well as digital placement, such as on your website and social media.
Importance Of 7 Ps Of Marketing
The marketing mix of 7Ps is the mix of tactics applied and coordinated that positions the organization clearly in the minds of the customer.
The 7Ps model helps us to:
- Set objectives and provide a roadmap for your business objectives.
- Conduct SWOT analysis, and undertake competitive analysis.
- Review and define key issues that affect the marketing of its products and services.
- Evaluate existing business and work through appropriate approaches whilst evaluating the marketing mix elements.
- Market the right product, to the right people, at the right price and time.
- Help develop products and services that better serve the wants and needs of the target market.
- Help customers understand why the product or service is better than those of competitors.
The advantages of using the 7Ps model can be achieved only if each of the Ps is correctly understood and appropriate strategies are devised for them. It will be unwise to ignore an area unless it is completely outside one’s control.
Steps to Develop a Successful Marketing Mix
The following 10 steps will assist you in developing the perfect marketing mix:
Step 1. Set the Goals and Objectives - Clearly define the required result. For example, more customers, brand awareness, higher sales, etc. Every marketing plan will have its own marketing goals. Set a specific time frame in which to achieve the results.
Step 2. Prepare the Budget – Identify the amount that will be spent on product innovation, consumer research, product promotion, etc.
Step 3. Determine the Unique Selling Proposition (USP) - Identify the benefits users will experience from using your product or service. Also, determine the unique problem that the product/ service is solving better than anyone else.
Step 4. Identify the target Target Market – Understand the target audience and know who they are and how they prefer to be communicated. Create an in-depth profile of the ideal customer.
Step 5. Seek Customer Feedback – Understand from the customers what they think of the product, how satisfied they are with the quality, is the product effectively meeting their needs, etc. This will help to make the products more relatable and approachable to the audience.
Step 6. Define the Product in Detail - Describe the specific qualities and value of your product. Look for the unique features that define the product’s worth.
Step 7. Know the Distribution Channels - Identify the places your product will be marketed and which distribution channels you’ll make use of. This will influence your pricing and your promotion decisions.
Step 8. Create Pricing Strategy - Discover ways of differentiating your product on price. Know the competitors and make sure the customers are not overcharged. Also, understand what the target audience might be willing to pay and what it costs to produce the product.
Step 9. Choose Promotional Techniques - The target audience needs to be made aware of the product offering. Successful promotion of the product includes various elements, like direct marketing, public relations, advertising, personal selling, sales promotion, word of mouth, etc.
Step 10. Use Inbound Marketing - Inbound marketing also plays a vital role in developing your marketing mix.An effective inbound marketing mix includes a website, email marketing, social media, and blogging.
Every business, whether local or international, requires well-versed marketing professionals. Hence, an MBA in Marketing Management is one of the sought-after disciplines among students. The MBA program offered by Simplilearn will make the students job-ready for the marketing industry. Upon completion of an MBA in marketing management, they will be able to skillfully identify the market choice and requirements through deep analysis of competition, economics, and demands