The 7Ps make up a comprehensive marketing mix that businesses can use to develop effective strategies. The 7Ps provide a framework to create integrated plans that drive business growth by considering all elements of marketing.
The 7Ps are:
- Product
- Price
- Place
- Promotion
- People
- Process
- Physical Evidence
This model expands on the original 4Ps (Product, Price, Place, and Promotion) proposed by Jerome McCarthy in 1960. Over time, the mix was adapted to also account for services marketing by adding People, Process and Physical Evidence elements (Booms & Bitner 1981).
The 7Ps comprise a mix of strategies and tactics that cover all aspects of taking products and services to market. The framework helps marketing professionals to systematically review, define and communicate complete plans.
Why the 7Ps Model is Effective
The 7Ps make up an all-encompassing structure to build marketing plans that connect with consumers at multiple touchpoints. Here are some of its key advantages:
- Strategic – It incorporates strategy elements like targeting, positioning and competitive advantage.
- Tactical – It covers tactical marketing mix decisions like pricing, distribution and promotion.
- Integrated – All 7Ps tie together to create synchronized plans.
- Flexible – Additional Ps can be added to suit specific industries.
- Memorable – The Ps create a catchy framework that’s easy to recall.
“The 7Ps marketing mix drives business success by providing a structured model to develop integrated strategies connected to organizational objectives.”
The model delivers an end-to-end perspective for creating plans. Later sections provide more details on how each P enables different marketing objectives.
First, let’s look at the origins of the framework.
A Brief History of the 7Ps
The principles behind the marketing mix date back to the 1950s when Neil Borden listed 12 elements he considered part of an effective mix.
| Borden’s 12 Elements of Marketing Mix |
|---|
| Product planning |
| Pricing |
| Branding |
| Distribution channels |
| Personal selling |
| Advertising |
| Promotions |
| Packaging |
| Display |
| Servicing |
| Physical handling |
| Fact finding and analysis |
In 1960, Jerome McCarthy condensed Borden’s extensive list to just four elements – what we now know as the 4Ps of marketing:
- Product – what the business offers
- Price – what it costs
- Place – where consumers can access it
- Promotion – how consumers are informed
The 4Ps framework quickly became a staple of marketing planning. However, by the 1980s it became clear that the model had shortcomings, particularly when applying it to service industries.
Services come with distinct challenges like inconsistent quality and the inability to store inventory. The 4Ps did not fully address these aspects.
In 1981, marketing researchers Bernard Booms and Mary Bitner recognized that the 4Ps mix needed to be expanded for services marketing. They added three more elements:
- People involved in service delivery
- Process used to provide the service
- Physical Evidence of the service experience
Adding these three elements created the 7Ps marketing mix that could be tailored both for product and service businesses.
The 7Ps model has since become widely adopted as a framework for developing integrated marketing plans across all industries.
Now let’s look at the function of each P in more detail.
Core Elements of the 7Ps Mix
While the 4Ps remain central components, the additional 3Ps enrich the model with service-oriented features. Here’s an overview of the 7Ps:
| 7Ps Marketing Mix | Definition |
|---|---|
| Product | Goods or services offered to customers |
| Price | Amount charged for products |
| Place | Channels used to distribute offerings |
| Promotion | Activities to communicate with target markets |
| People | Staff who interact with customers |
| Process | Procedures involved in service delivery |
| Physical Evidence | Tangible representations of products and services |
Let’s explore the strategic significance of each element.
Product
The Product P entails defining the core offerings delivered to customers. The main decisions involve:
- What products or services to sell
- The features and quality levels
- Whether to offer product ranges
- Developing new products
“The Product P enables strategic decisions on market offerings that solve customer needs.”
Elements like branding and packaging also fall under this P. Product strategy aims to deliver quality offerings differentiated from competitors.
Examples
- Starbucks sells premium coffee beverages and food items
- Mercedes Benz manufactures high-end vehicles
- Netflix provides on-demand video streaming services
Price
Price covers decisions around:
- Pricing structures and ranges
- Price flexibility and discounts
- Financial modeling and profit margin targets
Pricing should account for perceived value, consumer sensitivity levels and competitor benchmarking. Digital tools now enable dynamic pricing backed by analytics.
“Smart pricing strategies can drive competitive advantage while optimizing profitability.”
Examples
- Budget airlines offer discounted fares to stimulate demand
- Ecommerce platforms use dynamic pricing algorithms
- Hotels and airlines frequently offer promotional prices
Place
The Place P involves distribution strategy with focus areas that include:
- Marketing and sales channels
- Market access to wider geographic areas
- Developing supply and logistics infrastructure
- Omni-channel presence across brick-and-mortar and digital
“An effective Place strategy improves customer access and convenience.”
Examples
- Tesla sells directly to consumers online and via retail stores
- Amazon has invested heavily in storage and transport capabilities
- Banks operate through branch networks and digital platforms
Promotion
This P covers communications used to inform, persuade and remind consumers. Core promotion activities include:
- Advertising – ATL, digital, content
- Personal selling – sales teams
- Sales promotions – discounts, coupons
- Public relations – press releases, events
“Promotions amplify reach to connect with target audiences.”
Examples
- Red Bull deploys extreme sports sponsorships to promote brand image
- Consumer brands use influencer campaigns on social media
- Retailers send email and app notifications to stimulate purchases
People
The People element focuses on staffing issues like:
- Recruiting suitable employees
- Training personnel to deliver service
- Incentivizing and retaining talent
For many companies, frontline service staff are the face of the brand for consumers. People strategies aim to enable delivery of a superior customer experience.
“Engaged and motivated employees lead to happy customers.”
Examples
- Ritz Carlton hotels are renowned for highly trained staff
- Apple store assistants showcase in-depth knowledge
- Lexus dealers present exceptional levels of service
Process
Key Process considerations include:
- Service design and delivery procedures
- Integrating digital channels and data
- Managing customer experiences
- Continuously improving processes
Establishing efficient and automated processes is vital for delivering consistent quality at scale. Smooth processes also enable employees to handle higher transaction volumes.
“Customer-centric processes create seamless service experiences.”
Examples
- Banks implement straight-through processing for transactions
- Airlines focus on fast boarding and baggage handling
- Disney theme parks deploy RFID bracelets to manage patron data
Physical Evidence
The physical evidence P entails tangible representations of intangible services. This includes:
- Visual elements like branding and signage
- Digital assets like websites and apps
- Physical environments such as retail stores and offices
In essence, physical evidence signals brand qualities and shapes consumer perceptions. Its aim is to reinforce positioning.
“Strategic design of environments and collateral signals quality.”
Examples
- Singapore Airlines exudes premium experiences via uniforms, lounges and cabins
- Apple stores showcase cutting-edge designs aligned to brand image
- Restaurants invest in furnishings and crockery to denote fine dining
While each element concentrates on specific objectives, the 7Ps work together synergistically to create integrated plans.
Bringing the 7Ps Together
The true value of the 7Ps model lies in its comprehensive inclusion of strategy, tactics and execution. While the 4Ps remain core components, the additional 3Ps incorporate vital services-oriented considerations.
In isolation, each P has its purpose. Collectively, they enable businesses to develop cohesive blueprints covering all aspects of planning.
The framework supports core aspects of modern marketing like positioning, differentiation, customer experience management and omnichannel presence.
It brings order and structure to translate organizational goals into executable activities across the customer journey.
Here is an example of how the 7Ps align to create an integrated hotel marketing plan:
Hotel Marketing Plan 7Ps Example
“The true power of the 7Ps model lies in its application as an end-to-end planning framework.”
The mix can be adapted to specific business contexts and by adding more Ps like Packaging, Partnerships and Politics. However, the core 7Ps structure provides a proven template for most situations.
By considering each P during planning, marketers can develop synchronized strategies connected to overarching goals. The 7Ps provide a timeless model for business growth in the modern marketing era.
