IB Business Management Marketing 4.6 The Extended Marketing Mix - Seven Ps Model

*Product* in the marketing mix

Consumers require the right product. This might be an existing product, an adaptation of an existing product or a newly developed one.

People

People are the organisation's employees who interact with actual and potential customers.

*Physical evidence* in the marketing mix

Physical evidence means allowing customers to see for themselves the quality of the service being provided. This will reduce the element of risk in buying a service as opposed to a tangible product. For example, a clean and well-presented reception area in a hotel would raise appropriate expectations in the mind of the customer.

*Place* in the marketing mix

Place refers to how the product is distributed to the consumer. If it is not available at the right time in the right place, then even the best product in the world will not be bought in the quantities expected.

*Promotion* in the marketing mix

Promotion must be effective - telling consumers about the product's availability and convincing them that 'your brand' is the one to choose. Packaging is often used to reinforce this image.

*Processes* in the marketing mix

The processes that a business has in place to satisfy customers' wants reliably and consistently form an important part of marketing services. For example, banks replacing an out-of-date debit card without the customer having to ask for one.

*Price* in the marketing mix

The right price is important too. If set too low, then consumers may lose confidence in the product's quality; if too high, then many will be unable to afford it.

Physical evidence

The tangible features of a service, buildings, signage, etc.

Examples of physical evidence

-The building itself -Packaging -Internet/web pages. -Paperwork (such as invoices, tickets and dispatch notes). -Brochures. -Furnishings. -Signage (such as those on aircraft and vehicles). -Uniforms and employee dress.

The different processes involved in services marketing include:

1. Payment methods 2. Wait times (queuing) 3. Customer services 4. Delivery 5. After sales care and servicing

Services

A service is an intangible (unable to be touched; not having physical presence) product supplied by an organisation; examples include: haircuts, photography, banking, insurance, transport, repairs and maintenance.

*People* in the marketing mix

Selling services successfully requires people who can interact positively with customers and create the correct impression to encourage them to return. This is particularly relevant in the hotel and restaurant industry.

Measuring the effectiveness of *people*

The effectiveness of an organisation's people in delivering or marketing a service can be measured in four ways: 1. Appearance (including body language) 2. Attitudes and aptitudes (capabilities) 3. Customer feedback 4. Efficiency

The extended marketing mix (the seven Ps model)

The extended marketing mix - the seven Ps model - is made up of seven interrelated decisions − the 7Ps. The four key ones are *product*, *price*, *promotion* (including advertising and packaging) and *place* (where and how a product will be sold to consumers). The other 3Ps largely relate to marketing services - *people*, *process* and *physical evidence*.

Coordinated marketing mix

The key marketing decisions complement each other and work together to give customers a consistent message about the product.

The Marketing Mix

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. It is a planned mix of the controllable elements of a product's marketing plan and is commonly termed as the 4Ps: product, price, place, and promotion.

Processes

The methods of delivering or providing the service

Aspects of physical evidence:

The physical environment Ambiance Spatial Layout Corporate branding