Describe the 7 Ps of marketing and provide examples with which you are familiar. Question 2
Discuss the importance of the ‘marketing mix’ to the success of a firm. 7Ps of marketing:
Philip Kotler elaborated McCarthy’s (1960) traditional marketing mix; according to him it consists of 4Ps namely Product, Price, Place and Promotion. These 4Ps of marketing mix were considered as the main areas where marketing managers try to use limited business resources to achieve their objectives. On the other hand services have some distinctive features i.e. Intangibility, heterogeneity, indivisibility and expiry. So in order to eliminate the differences between services and physical products, Booms and Bitner(1981) suggested the extension of the 4Ps and places 3 further P’s which include People, Process and Physical evidence as marketing mix variables for services marketing. Mohammed and Pervaiz (1995) explain the application of 7Ps framework can be to consumer goods. They account the results obtained from a study of UK and European marketing academics, the results show the presence of extreme discontent with 4Ps conclude. They also proposed that the 7Ps framework won extreme acceptance amongst both sets of participants as a standard marketing mix. In short, it has been proved that Booms and Bitner's 7Ps framework must swap McCarthy's 4Ps framework.
Adapted from: Palmer (2004)
Product can be tangible (if we produce goods), or intangible (if we produce/generate services). It is something seller offers to satisfy his customers’ wants and needs. For example, Dell laptops, Apple iphones, and Dominos are few examples of tangible products in current UK market. And Thomson Travel Company, British Gas and Co-Operative Insurance are the examples of intangible product. Goldsmith (1999) suggested that in the goods/services range, many products may have tangible goods and intangible services, features all together. In marketing mix this P refers to introduce new products or to manage the existing products in the market. 2. PRICE:
The second variable is price; competitive pricing decisions are critical to a business. Continuous monitoring of the prices of the products or services is required to compete in the market. This variable deals with the offers, discount prices, terms and conditions of sale, and the price sensitivity of market. At times need arises to lower the prices but at other times, it may be suitable to increase prices. Change in the terms and conditions of sale are required in specific scenario. Similarly introducing combine products and services together with special offers and special promotions can be helpful. The basic need is to remain open to revise the prices whenever needed, to keep them competitive, in order to endure and succeed in a fast-changing market and make profit. 3. PLACE:
Place is the exact location where the products or services are actually sold. It commonly refers to the distribution channels as Internet, wholesalers and retailers place. Decisions to select these channels are vital because right selection of a very best location or place can increase the profit and vice versa. Companies like Talk Talk or Sky use direct selling; they send salespeople door to door to talk with the customers personally. RBS or NatWest use telemarketing to sell their services. Next sell through catalogues. Many companies use retail distributors. Other encourage online- selling of their good. To survive in the market companies use a combination of one or more of these methods.
Promotion comprises of all the ways of marketing and communicating to the customers. It is important to considering its relationship with the other variables to choose the appropriate promotion tool. There are many different promotional techniques, each with its own pros and cons they can broadly be divided into four groups; Advertising; Public Relations; Sales Promotions; and Direct Selling. It...