Model Strong 7P Marketing is considered to be one of the effective support tools, creating a competitive advantage for businesses. The introduction of the 7P marketing strategy model has helped companies adapt quickly to all the impacts of the external environment. In this article, Blog Tran Phu will share with Marketers the most useful information to better understand this model.
What is the 7P model in marketing?
What is the 7P model in marketing?
7P in Marketing is a marketing strategy model that includes different elements: product, place, price, promotion, physical evidence, people, and process. The 7P marketing model is implemented and extended from the 4P model. It is a Marketing model created by Marketing expert E. Jerome McCarthy in the 1960s. Inheriting and developing from the traditional model, the 7Ps in Marketing have combined more modern elements with mainstream human factors. . With this useful strategic model, companies create, reach out to, and build customer trust in their brand.
7P Model in Marketing
The elements that make up the 7P strategic model in Marketing
7P in Marketing is the result of a combination of many different factors to help companies achieve the best business results, survive and grow sustainably. So what are the factors that make up the 7P strategic model?
The elements that make up the 7P strategic model
Product (service, commercial product)
Product in Marketing 7P is one of the factors that directly determine the choice behavior of customers. Customers only find and choose products or services that best meet their needs. That’s why companies need to do research and learn about what customers want. It is only when companies ensure that their products/services meet their needs that customers can recognize, appreciate and trust them.
Location (place of broadcast)
Location – The location or distribution channel is a very important factor in a company’s marketing strategy. In fact, customers are very likely to use products/services located close to home. Therefore, businesses must locate and determine the appropriate product distribution channel to easily reach the target customers, thereby generating the best revenue. The basic distribution strategies available today: exclusive distribution, intensive distribution, selective distribution and franchising.
Price (price of the product or service)
The 7P model in marketing cannot miss the pricing element of products and services. It is the factor that determines the revenues, profits and survival of a business. Pricing of products depends on many factors such as price segments in the market, production costs of products and services. Businesses need to balance factors to generate profits and increase business competitiveness.
7P Marketing Model
The Price Factor in the 7P Strategy Model
Promotion (trade promotion/product promotion)
Business promotion or promotion of products through communication channels is an effective way to improve brand awareness among customers. With just small changes in how to promote products and services, businesses can increase their sales. All the messages that companies want to convey to customers must be consistent and clear so that customers can feel the value of products and services and trust them to choose them.
Physical evidence
The 7P model in marketing combined the physical evidence. What is physical evidence in 7P? It can be understood simply as follows, the specificity of the service industry group is the intangible and abstract nature. For customers to easily feel and visualize the services they provide, companies need to combine many factors to create certain hard evidence. As a result, businesses can improve the customer experience, helping them feel the maximum value delivered by the service.
The people (the people)
People are one of the very important factors in implementing the 7P strategy in marketing. It is only when those who provide products and services bring satisfaction as well as the best experience to customers that the business activities of companies can expand and grow. The human factor in the 7P directly affects the image and brand of the company. In order to improve their position in the market, many companies now attach great importance to training their employees in customer service and give them priority.
Process (Process of providing products and services)
The system and process of organizing and delivering products and services will greatly affect customer perception and satisfaction. An efficient distribution and payment system along with a streamlined workflow will help businesses be appreciated by customers. Moreover, refining and improving the procurement process also helps companies reduce their costs, thereby maximizing their profits.
From the above analysis, it can be seen that the 7P strategy in marketing is a complete marketing strategy. The effective development of this model will create an advantage to help companies approach and attract target customers, increase their competitiveness against competitors in the market. More important again, 7P Model in Marketing will be an effective tool to help businesses survive and grow sustainably in the face of market fluctuations.