The concept of the marketing mix has been a foundational strategy for businesses to effectively reach their target audience with products and services. Traditionally, marketers would adhere to the 4Ps model: Product, Price, Place, and Promotion. However, as markets became more customer-driven and competitive, the need for an expanded framework became apparent. Enter the extended marketing mix, often referred to as the 7Ps of marketing, which includes additions to the original model to create a more comprehensive approach. This updated framework also incorporates People, Process, and Physical Evidence. In this article, we'll dive deep into what the extended marketing mix is, why it’s essential today, and how businesses can use it to their advantage.
The Traditional Four Ps of Marketing
To understand the extended marketing mix, it’s crucial first to have a firm grasp of the original “Four Ps,” which laid the groundwork for modern marketing strategies:
- Product – This element focuses on the goods or services offered by a business. It covers aspects such as design, features, quality, and the product lifecycle. The aim is to provide a product that meets the needs and desires of the market. More about creating customer-focused products can be found at Forbes.
- Price – This refers to the amount of money customers are willing to pay for the product. Pricing strategies may vary from penetration pricing, skimming, or competitive pricing based on factors like demand, competition, and product value.
- Place (Distribution) – The availability and channels through which customers can access the product. This could include physical locations such as stores or online avenues such as e-commerce websites.
- Promotion – The tactics that inform customers about the product’s existence and its benefits. Promotion can include advertising, public relations, sponsorship, sales promotion, and digital marketing.
Though the original 4Ps still serve their purpose, they primarily cater to businesses selling tangible products. As the market landscape evolved, especially with the rise of service-based economies, a need for additional elements became clear.
The Extended Marketing Mix: The 7Ps
The extended marketing mix builds upon the foundation laid by the original 4Ps and addresses the needs of modern businesses, particularly service-based industries. The additional three elements (People, Process, and Physical Evidence) reflect a focus on user experience, service quality, and customer interaction. Let's explore these new elements:
People
People refer to both the employees who represent the company and the customers themselves. In many industries, especially service-based businesses, customer experience is highly determined by the "people factor." Each employee interaction can impact the customer’s impression of the company and can influence their decision on whether or not to engage further.
When thinking about people in the marketing mix, businesses should consider employee training, motivation, and customer service. Companies with strong cultures of employee satisfaction often see a direct link to higher levels of customer satisfaction. For example, brands like Zappos are renowned for their excellent customer service, which can be traced back to their investment in employee training and workplace happiness.
Process
Process refers to the systems and operations that deliver the product—especially important when talking about services. It encompasses every step from the moment a customer shows interest in a product or service to after-sales support. This includes activities like order processing, handling complaints, and ensuring timely delivery.
Well-designed processes run smoothly and improve customer experience, while poorly managed processes lead to frustration and negative reviews. For example, companies like Amazon have set the gold standard when it comes to logistics and order fulfillment processes.
Physical Evidence
Physical Evidence is a term that refers to the tangible and intangible cues that influence a customer’s perceptions of the brand. For service-based businesses, this is particularly crucial as customers cannot “see” the service in advance. Physical evidence provides reassurance and helps build trust by creating a sense of professionalism and quality.
This could include:
- The design and layout of a retail space or office
- The cleanliness and professionalism of staff
- Digital touchpoints like mobile apps and websites
- Customer testimonials and reviews
Physical evidence acts as a signal of the brand’s identity and values. It plays a vital role whether the customer is walking into a store or interacting with a digital service.
Benefits of the Extended Marketing Mix
By expanding the original marketing mix to include People, Process, and Physical Evidence, businesses are better set up to navigate the highly complex modern marketplace. The customer experience has become just as, if not more, important than price or product in many industries. The extended marketing mix allows businesses to consider this area fully. Below are several reasons why companies should adopt the 7Ps strategy:
| Benefit | Explanation |
|---|---|
| Holistic Customer Experience | The extended mix ensures all touchpoints (both online and offline) are optimized to deliver an exceptional customer experience. |
| Competitive Differentiation | With so many businesses offering similar products, standing out often depends on factors like superior service, smooth processes, or an attractive storefront. |
| Adaptability | The 7Ps model is flexible enough to be adapted to products or services, allowing businesses across industries to design strategies that fit their business model. |
| Customer-Centric Approach | The "People" aspect emphasizes the importance of personalized, customer-first approaches to keep people returning for future engagements. |
Utilizing the 7Ps in a Service-Based Economy
With the rise of the service-based economy, businesses that do not invest in a holistic, experience-driven marketing mix will find it difficult to keep pace. Here's how the 7Ps can specifically benefit businesses in the service industry:
Service Delivery: Services are intangible, making elements like process and physical evidence even more important. Take the example of the airline industry. Customers cannot "own" the actual air travel. Therefore, airlines invest heavily in pre-boarding experiences (efficient check-in, comfortable lounges, etc.) and in-flight processes (hospitality services, in-flight entertainment) to make sure customers perceive the journey as valuable. In this case, the "Process" and "People" aspects are critical differentiators for brands like Singapore Airlines.
Customer Loyalty: Extended components like "People" and "Physical Evidence" can play a significant role in fostering long-term customer loyalty. Satisfied customers are more likely to become repeat buyers, provide word-of-mouth marketing, or leave positive online reviews, enhancing your business’s visibility.
Conclusion
The extended marketing mix, with its 7Ps framework, is one of the most comprehensive and effective strategies for modern-day businesses. It pushes companies to think beyond just selling a product or pricing it competitively. In a world increasingly driven by user experience, the extra focus on People, Process, and Physical Evidence allows businesses to craft a more customer-centric, refined approach.
As the business world continues its rapid evolution, particularly with the rise of services, digital platforms, and personalized experiences, the extended marketing mix is more than just a helpful framework – it’s a necessity for any business that wants to excel in a highly competitive environment.
