I still remember the day I learned about the 7 Ps of marketing. I was sitting in an auditorium for my undergrad marketing class. The professor opened up the session by pointing to a pair of Nike shoes placed front and center on a table.
“Tell me what you think of when you see these shoes,” he said in a slightly Southern drawl.
The answers came quickly.
“Just do it,” the swish logo, Tiger Woods, athletic gear, running shoes, expensive all came in succession.
The answers continued for a while, but the point was clear — everyone had thoughts about Nike. And those musings varied from the company’s promotional strategies to its products and cost.
It was a memorable way to introduce the 7 Ps and why they should matter to businesses. Done well, a strong mix of the 7 Ps can solidify a company’s standing in its industry, driving up revenues and turning it into a household name. So, exactly what are the 7 Ps of marketing, and how can you apply them to your business? Here’s what to know.
What are the 7 Ps of marketing?
Think of the 7 Ps as the basis for your comprehensive business marketing strategy. They provide a framework of seven attributes that make up your unique sales proposition (USP). The USP differentiates your company (and products or services) from competitors.
Product
The first ‘P’ is product — the item or service your business sells. The product fills the needs of a consumer. That might be anything from a pair of shoes for running to a hot meal. To make your product stand out, you need to differentiate it somehow. You can do that through its features and branding, warranties, image, quality, customer service, and availability.
Price
What do you want customers to pay for your products? The amount is the price, or what your goods sell for. Your price covers the cost of making your product, plus a little extra for profit. While setting the price may seem straightforward, careful research can help you nail down an amount that differentiates you from competitors.
A product’s price also impacts where it falls in the luxury/value matrix. If you price it well above your cost to produce, clients may begin to perceive your company as a luxury brand. But if you opt for the lowest prices, it can pin your brand into the value category. Both of those have implications for the amount of products you need to sell to generate a sustainable, revenue-generating business.
Place
The place is where customers can find your products and buy them. That might be a physical storefront, online website, app, or some other location. You may use a combination of multiple places to reach clients.
Like with price, it’s smart to do some research before settling on a place. It should tie into where a customer would look for your products. If there’s a mismatch, it can impact your total sales.
Promotion
A great product at the right price only goes so far. You need a clear promotion strategy to communicate with your target buyers. That way, they’ll know your product exists and can learn more about what it offers.
Your promotion strategy consists of the sales channels you use to reach your target audience. That can be a combination of online and offline methods, from social media marketing to direct mailers and word of mouth. Tied in is your messaging — the logos, phrases, descriptions, images, and words you use to connect with your audience.
People
Who do you count on to represent your brand with your target audience? Those are your people. They include anyone who interacts with clients on behalf of your company. That might be your customer service and sales reps, business partners, and operations team. It also includes you, as the business owner. You’re essentially the face of your products, even if you rely on others for promotion.
Choosing the right people to represent your company boils down to your mission and values. You want people who fit nicely into your brand identity and believe in your goals and what your products offer. A mismatch hire may detract from a customer’s overall perception of your brand.
Physical evidence
Physical evidence is anything someone can see or touch that’s associated with your product. That might be a purchase receipt, product packaging, or the interaction with your sales staff. It can also include thank-you notes, how-to guides, and informational webinars. These things roll into a customer’s overall experience with your brand. Think of them as the finishing touches during and after the purchase process.
An emphasis on physical evidence may add value and enhance the customer’s overall experience. Something as simple as custom packaging or a hand-written thank you note goes above and beyond what your customer might expect, and only benefits your brand.
Processes
Your business processes are internal, but they tie all the other Ps together. They’re the blueprint for delivering a superior product and customer experience. While processes vary from one company to another, some that may apply to your business include:
- Your delivery and shipping methods
- How frequently you replace stock
- The technology used to improve efficiency
Sales processes like product demos and follow-ups also fit into this category.
What is a marketing mix?
The 7 Ps of marketing have a long history. They first began as the 4 Ps of marketing in 1960. That’s when E. Jerome McCarthy published “Basic Marketing: A Managerial Approach.” The textbook identified product, place, promotion, and price as the four keys to any solid marketing strategy.
McCarthy’s approach to the 4 Ps of a marketing mix stayed the same for over 20 years. It changed during the 1980s when they evolved into the 7 Ps.
The four core Ps still form the basis of any solid marketing strategy. Whatever product or service you offer includes some blend of each P. But the updated 7 Ps of marketing provide other considerations fit for today’s business.
Examples of companies that use the 7 Ps of marketing well
Let’s look at a few brands that offer stand-out examples of the 7 Ps of marketing.
Spotify
Where would we be without Spotify? The music streaming giant boasts over 250 million premium subscribers, all clamoring to listen to their favorite tunes and podcasts. Its rise to success is partly due to its excellent implementation of the 7 Ps.
- Product: Spotify is an extensive music, audiobook, and podcast library featuring numerous artists and influencers. You can find just about any album you’re interested in through Spotify, from 1940s jazz to today’s pop hits.
- Price: The library offers several subscription options catered to different audiences. The Student subscription provides discounted access to Spotify’s platform. Subscribers can combine accounts for extra savings through the Duo and Family plan, emphasizing its value approach.
- Place: You can stream Spotify through any mobile device that supports the app and has an internet connection.
- Promotion: Spotify uses a combination of social and email marketing to reach new subscribers and existing ones.
- People: The company emphasizes its approach to hiring with its “Band Manifesto.” It wants people who work together to provide a great product.
- Physical evidence: You can find extensive help guides and a community platform for assistance using Spotify’s products.
- Processes: Signing up for Spotify is as easy as downloading the app and paying a subscription fee.
AriZona Tea
AriZona’s combination of low prices and flashy packaging make it attractive to its devoted fan base.
- Product: AriZona offers a variety of teas and juices in recognizable tall cans and bottles.
- Price: Its standard iced tea is $0.99. The price hasn’t changed since the company first started selling the cans in 1992, despite inflation and increased production costs.
- Place: You can find AriZona teas in pretty much any convenience or grocery store. They’re also available online through Amazon and the company’s website.
- Promotion: AriZona’s messaging revolves around the $0.99 price point for iced tea. It also uses fancy packaging that catches the eye.
- People: Despite its large reach and huge fan base, AriZona remains a family-owned and operated company. That’s different from other drink producers in its class, which are major corporations.
- Physical evidence: The fun designs on an AriZona can of tea instantly stand out. The company also offers a range of merchandise like t-shirts and hoodies.
- Processes: The company invests in ways to lower its costs and keep prices reasonable through improved manufacturing and transporting drinks at night when fewer drivers are on the road.
Hyundai
Hyundai’s vehicles are a staple for drivers seeking a high-quality, reasonably priced car.
- Product: Hyundai’s product line includes sedans, SUVs, a pick-up truck, and electric vehicles (EVs). One of its key product features is its warranty, which is the best available in the US and includes 10 years for its powertrain.
- Price: The company caters to budget-conscious buyers. Its cheapest sedan model starts at a mere $21,625, much less than what you’ll find through other car companies.
- Place: Hyundai sells vehicles throughout the US and many other countries.
- Promotion: Hyundai’s messaging focuses on its low prices, excellent warranty, and dependable cars.
- People: You can reach Hyundai’s customer service team anytime online. The company also offers a 24/7 roadside assistance hotline.
- Physical evidence: Hyundai provides its vehicle manuals online, so they’re always accessible. It also has an extensive library of how-to guides for its technology features like Bluetooth and Bluelink.
- Processes: Buying a Hyundai is straightforward with its shopping tools. You can build and price your ideal vehicle or search through the company’s inventory to find one nearby.
Real-world examples of a great marketing mix
The marketing mix includes the 4 Ps: price, product, place, and promotion. Here are a few companies that use it well.
Walmart
Love it or hate it, Walmart is ubiquitous for its huge array of affordable products and vast stores. The only retailers that come close to the size of its product catalog are Amazon and Target.
Walmart made its name for its everyday low prices and discounts. You can find at least one Walmart in every major U.S. city, and sometimes multiple stores. Walmart’s messaging stays the same in every ad it uses — “Save Money, Live Better.”
Walmart also has an app to make shopping easier. You can use the app to sort through available products, view weekly ads, and even try on clothes. Manufacturers share coupons through the app for extra savings.
Netflix
Netflix revolutionized movies and television in the space of just 10 years. Because of its existence, consumers can stream their favorite movies and TV shows from the comfort of their homes, without needing to visit a cinema or subscribe to cable. Netflix is relatively inexpensive — monthly subscriptions start at $6.99. It’s available worldwide, with content catered to the user’s language and interests.
Kate Spade New York
Kate Spade’s mix of moderately-priced purses, jewelry, wallets, and apparel come in fun, girlish designs that stand out from its competitors. It mixes things up — you’ll find the standard go-to black crossbody handbags alongside purses shaped like a parrot or sandwich.
Kate Spade has numerous physical stores, but the company’s fans can also purchase online. It promotes its products through multiple channels, including social media, email, and online ads.
Converse
If street-friendly, walkable shoes are something you buy pretty frequently, there’s likely a pair of Converse in your closet. Converse is everywhere — you’ll find its shoes at pretty much any footwear shop. It’s also available online. One of its newest features is custom-designed kicks, which allows users to create their own pair of Converse sneakers. The company rarely puts its footwear on sale but sometimes offers special deals around the holidays or to its email subscribers.
Elevate your marketing strategy with the 7 Ps
A clear-cut marketing blueprint that follows the 7 Ps can take your business to new heights. Learning how the 7 Ps interact together is the first step to your new strategy. Hopefully, our examples will inspire you as you introduce the 7 Ps into your brand.
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