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Report 6. 7 PS

The document discusses the marketing mix, also known as the 7P's - product, place, price, promotion, people, packaging, and positioning. It provides details on each of the 7P's. For product, it notes goods and services can be consumer or business products. For place, it outlines three distribution channels between producers and consumers. For price, it defines pricing strategies like penetration pricing. For promotion, it lists promotional methods. For people, it emphasizes the importance of people in selling products and services. For packaging, it describes packaging's functional roles. For positioning, it explains how positioning creates different images for a single product to attract various customers.

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Sheryl Lou Angeles
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Download as DOCX, PDF, TXT or read online on Scribd
38 views

Report 6. 7 PS

The document discusses the marketing mix, also known as the 7P's - product, place, price, promotion, people, packaging, and positioning. It provides details on each of the 7P's. For product, it notes goods and services can be consumer or business products. For place, it outlines three distribution channels between producers and consumers. For price, it defines pricing strategies like penetration pricing. For promotion, it lists promotional methods. For people, it emphasizes the importance of people in selling products and services. For packaging, it describes packaging's functional roles. For positioning, it explains how positioning creates different images for a single product to attract various customers.

Uploaded by

Sheryl Lou Angeles
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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The Marketing Mix (7P’s) in Relation to

the Business Opportunity

Marketing Mix is a set of controllable and connected variables that a company


gather to satisfy a customer better than its competitor. It is also known as the “Ps” in
marketing. Originally, there were only 4Ps but the model has been continually
modified until it became 7P’s. The original 4 P’s stands for product, place, price and
promotion. Eventually, three elements have been added, namely: people, packaging
and positioning to comprise the 7 P’s.

The 7 P’s of Marketing Mix


1. PRODUCT
Marketing strategy typically starts with the product. Marketers can’t plan a
distribution system or set a price if they don’t know exactly what the product will be
offered to the market.
Product refers to any goods or services that are produced to meet the
consumers’ wants, tastes and preferences. An example of goods includes tires, MP3
players, clothing and etc. Goods can be categorized into business goods or
consumer goods. A buyer of consumer goods may not have thorough knowledge of
the goods he buys and uses. An example of services includes hair salons and
accounting firms. Services can be divided into consumer services, such as hair
styling or professional services, such as engineering and accounting.

2. PLACE
Place represents the location where the buyer and seller exchange goods or
services. It is also called as the distribution channel. It can include any physical store
as well as virtual stores or online shops on the Internet.

STAGES OF DISTRIBUTION CHANNEL

Channel 1 contains two stages between producer and consumer - a wholesaler and
a retailer. A wholesaler typically buys and stores large quantities of several
producers' goods and then breaks into bulk deliveries to supply retailers with smaller
quantities. For small retailers with limited order quantities, the use of wholesalers
makes economic sense.

Channel 2 contains one intermediary. In consumer markets, this is typically a retailer.


A retailer is a company that buys products from a manufacturer or wholesaler and
sells them to end users or customers. In a sense, a retailer is an intermediary or
middleman that customers use to get products from the manufacturers.
Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels.
In this case the manufacturer sells directly to customers.

3. PRICE
The price is a serious component of the marketing mix. What do you think is the
meaning of a Price?
In the narrowest sense, price is the value of money in exchange for a product
or service. Generally speaking, the price is the amount or value that a customer
gives up to enjoy the benefits of having or using a product or service. One example
of a pricing strategy is the penetration pricing. It is when the price charged for
products and services is set artificially low in order to gain market share. Once this is
attained, the price can be higher than before. For example, if you are going to open a
Beauty Salon, you need to set your prices lower than those of your competitors so
that you can penetrate the market. If you already have a good number of market
share then you can slowly increase your price.

4. PROMOTION
Promotion refers to the complete set of activities, which communicate the
product, brand or service to the user. The idea is to attract people to buy your
product over others. Advertising, Personal Selling, Sales Promotion, Direct
Marketing, and Social Media are examples of promotion.

5. PEOPLE
Your team, a staff that makes it happen for you, your audience, and your
advertisers are the people in marketing. This consists of each person who is involved
in the product or service whether directly or indirectly.
People are the ultimate marketing strategy. They sell and push the product.
People are one of the most important elements of the marketing mix today. This is
because of the remarkable rise of the services industry. Products are being sold
through retail channels today. If the retail channels are not handled with the right
people, the product will not be sold. Services must be first class nowadays. The
people rendering the service must be competent and skilled enough so that that the
clients will patronize your service.
Therefore, the right people are essential in marketing mix in the current
marketing scenario.
6. PACKAGING
Packaging is a silent hero in the marketing world. Packaging refers to the
outside appearance of a product and how it is presented to the customers. The best
packaging should be attractive enough and cost efficient for the customers.
Packaging is highly functional. It is for protection, containment, information, utility of
use and promotion.

7. POSITIONING
When a company presents a product or service in a way that is different from
the competitors, they are said to be “positioning” it. Positioning refers to a process
used by marketers to create an image in the minds of a target market.
Solid positioning will allow a single product to attract different customers for not
the same reasons. For example, two people are interested in buying a phone; one
wants a phone that is cheaper in price and fashionable while the other buyer is
looking for a phone that is durable and has longer battery life and yet they buy the
same exact phone.

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