Introduction of 5P and 7P of Marketing
If you’re familiar with marketing basics, you’ve probably heard of the “4Ps of Marketing”—Product, Price, Place, and Promotion. These pillars have been the foundation of marketing strategies for decades. But as the business landscape evolved, particularly with the rise of service-based industries, it became clear that these four elements were not enough to cover the full scope of marketing.
That’s where the 5P and 7P marketing models come in. In this article, I’ll explain how these two frameworks add depth and clarity to your marketing strategy, helping you expand your thinking beyond the traditional four. We will dive deep into how adding People, Processes, and Physical Evidence can revolutionize your business. I’ll also share case studies, insights, and some of my favourite quotes to keep things relatable and actionable.
Before we move forward, let’s get a quick refresher on the 5P of Marketing, and then, we’ll gradually expand into the 7Ps.
The 5Ps of Marketing: A Refresher
The 5Ps of Marketing represent the essential components any marketer should focus on when building a strategy. Let’s break them down one by one:
1. Product
Your product is at the core of your marketing strategy. It’s the item or service you’re offering to your target market. The most successful businesses understand that their product must meet customer needs or solve a specific problem.
To make your product stand out, you must understand your competitors, analyze customer feedback, and continue innovating. As Steve Jobs once said, “People don’t know what they want until you show it to them.” Innovation should be at the heart of every product strategy.
2. Price
This is what your customers are willing to pay for your product. Pricing strategies can vary—from premium pricing for luxury goods to penetration pricing when entering a new market. Pricing isn’t just about covering costs but also about understanding perceived value.
Case Study: Take Apple as an example. They charge premium prices not just because of high production costs but because they understand their brand’s perceived value. By marketing themselves as a premium product, they maintain a strong customer base willing to pay the extra dollar.
3. Place
This involves distributing your product to your customers. Whether through physical stores, online marketplaces, or direct shipping, the place should align with where your target audience spends their time.
With the rise of e-commerce, physical location has become less important. But knowing where and how to sell is crucial. For instance, companies like Nike have mastered omnichannel distribution—making their products accessible everywhere from online to physical stores.
4. Promotion
Promotion includes all the ways you communicate your product’s value to your target audience. This could be through advertising, social media, public relations, or email marketing.
An effective promotion strategy addresses what message you want to convey and what mediums you will use to do so. Successful promotions connect emotionally with consumers—think about the way Coca-Cola’s “Share a Coke” campaign tapped into personalized marketing.
5. People
People represent your internal team and customers. It’s impossible to succeed in business without the right team behind you, nor can you succeed without understanding your customers.
Consider Zappos, an online shoe retailer that built its entire brand around excellent customer service. They realized that to succeed, they needed happy, dedicated employees who, in turn, would create satisfied customers. This focus on “people” has been instrumental in their business model.
Let’s Take a Look: The 7P Model of Marketing
Now that we’ve refreshed the basics, let’s expand into the 7Ps of marketing by adding Process and Physical Evidence to our model.
6. Process
The process is the workflow or journey your customers experience from discovering your product to making a purchase. Whether it’s through your website, customer service, or user experience, a smooth and efficient process can enhance customer satisfaction and retention.
Research: According to a 2022 study by HubSpot, businesses that streamline their processes for simplicity are 20% more likely to see customer retention. This is especially important in service industries where customers don’t just purchase products—they experience them.
Take Starbucks, for example. The process of ordering, payment, and receiving your coffee is seamless, and the company has streamlined it further with mobile app integration. This user-friendly process keeps customers returning and fosters brand loyalty.
7. Physical Evidence
Physical evidence is the tangible proof that your product or service exists and delivers what it promises. This could include the layout of your physical store, the design of your website, packaging, and even your social media presence.
In the service industry, where customers often buy experiences rather than products, physical evidence provides reassurance. For example, a well-maintained, aesthetically pleasing gym is evidence of professionalism in a fitness service. Similarly, excellent packaging can elevate the perceived value of a product.
Case Study: Consider how luxury brands like Tiffany & Co. emphasize packaging. Their iconic blue box is part of the brand experience, and for many, it’s the first “physical evidence” they see, immediately signalling quality and luxury.
Expanding Beyond: How People, Process, and Physical Evidence Elevate Marketing Success
At this point, you’re probably wondering, “Why should I bother with these extra Ps?” Let’s take a closer look and I am sure you’ll love this section because many businesses have succeeded simply by mastering these extra Ps.
1. People: The Heart of Service-Based Industries
In service-based industries, your people aren’t just your employees—they are the face of your brand. A great team creates great experiences.
Quote to Remember: As Richard Branson famously said, “Take care of your employees, and they will take care of your business.”
A people-centric culture creates a positive work environment that trickles down to customer satisfaction.
2. Process: Efficiency Leads to Profitability
Processes aren’t just about getting things done—they are about getting things done well. A poorly designed process frustrates customers and can harm your brand.
Pro Tip: If you’re in the service industry, map out your customer journey from discovery to conversion. Where are the bottlenecks? Fixing these can lead to a smoother process, and as a result, higher customer satisfaction.
3. Physical Evidence: Proof of Your Brand’s Value
Whether in the form of customer reviews, your website’s design, or even your product packaging, physical evidence reassures your customers that they’ve made the right choice.
Data Insight: A 2021 study by the Journal of Marketing found that businesses with a well-crafted visual identity and branding were 30% more likely to see repeat customers. Simply put, people buy what they can trust.
Let’s Take a Look at the Differences Between 5P and 7P of Marketing
| Aspect | 5P of Marketing | 7P of Marketing |
|---|---|---|
| Core Elements | Product, Price, Place, Promotion, People | Product, Price, Place, Promotion, People, Process, Physical Evidence |
| Application | Primarily product-based industries | Service and product-based industries |
| Customer Focus | Transactional | Transactional and experiential |
| Purpose | Marketing the product to the right audience | Creating a holistic customer experience |
Conclusion
Understanding the 5P and 7P models can transform how you approach marketing, especially as businesses continue to evolve in a digitally driven world. Incorporating People, Process, and Physical Evidence into your strategy creates a more comprehensive approach that allows you to connect with customers on multiple levels.
Marketing isn’t just about promoting a product; it’s about crafting experiences and providing proof that your brand is trustworthy and reliable.
I hope this deep dive has given you some actionable insights into expanding your marketing strategies with the 7P model. Let’s wrap up and take a step forward into the next article of our “Marketing Unstoppable” series where we’ll explore the power of branding and how to create a brand that truly resonates with your audience. I’m excited about it because it has worked wonders for so many businesses, and I can’t wait to share it with you!
