The Seven Ps is an extended version of the marketing mix, originally developed by E. Jerome McCarthy, that adds three additional elements to the traditional Four Ps model: People, Process, and Physical Evidence. This extended mix is particularly useful for the service industry, where these additional components play a critical role in delivering value to customers.
Origin and Evolution
Historical Context
The concept of the marketing mix was first introduced by Neil Borden in 1953. E. Jerome McCarthy later refined it into the Four Ps model — Product, Price, Place, and Promotion — in 1960. Recognizing the unique characteristics of services, Bernard H. Booms and Mary J. Bitner extended this model to the Seven Ps in 1981 to address the intangible nature of services.
Components of the Seven Ps
1. Product
The tangible good or intangible service offered to meet customer needs. In services, this often includes the service experience itself.
2. Price
The amount charged for the product or service, including considerations for perceived value and competitive positioning.
3. Place
The channels through which the product or service is delivered to customers, encompassing both physical and digital environments.
4. Promotion
The strategies used to communicate the value proposition and benefits of the product or service to the target audience.
5. People
Employees and all human actors who play a part in service delivery and influence buyers’ perceptions. This highlights the importance of training and motivation.
6. Process
The procedures, mechanisms, and flow of activities by which services are consumed. Efficient processes ensure consistency and quality in service delivery.
7. Physical Evidence
The environment and tangible cues that aid in conveying the quality and nature of the service. This includes everything from the physical environment where the service is delivered to any other form of tangible proof of service (receipts, brochures, etc.).
Special Considerations
Intangibility
Services are inherently intangible, making elements like Physical Evidence and People paramount in creating a tangible perception of the service.
Inseparability
Services are typically produced and consumed simultaneously, emphasizing the role of People and Process in the customer experience.
Variability
Service quality can vary, necessitating standardized Processes and training for People to ensure consistent delivery.
Perishability
Services cannot be stored for later use, making it crucial to manage demand through dynamic pricing and scheduling.
Examples of the Seven Ps in Practice
Hospitality Industry
- People: Trained and hospitable staff are essential for delivering exceptional guest experiences.
- Process: Efficient booking systems and smooth check-in/check-out procedures.
- Physical Evidence: Clean and well-maintained facilities, decor, and ambience.
Healthcare Services
- People: Competent and empathetic healthcare professionals.
- Process: Streamlined patient intake, diagnosis, and treatment procedures.
- Physical Evidence: State-of-the-art medical equipment and clean facilities.
Applicability Across Industries
While originally applied to services, the Seven Ps model can be adapted for product-based businesses seeking to enhance customer experiences through better service integration.
Related Terms and Definitions
Marketing Mix
The set of controllable elements a company uses to influence a target market. Traditionally comprised of the Four Ps: Product, Price, Place, and Promotion.
Services Marketing
A specialized branch of marketing that focuses on the unique challenges of marketing services, emphasizing the extended marketing mix.
Customer Experience
The overall perception of a customer based on their interactions with a company, heavily influenced by the Seven Ps in the context of services.
FAQs
Q1: Why were the additional Ps added to the traditional marketing mix?
Q2: Can the Seven Ps be applied to product-based businesses?
Q3: How important is training in the Seven Ps framework?
References
- Borden, Neil H. “The Concept of the Marketing Mix.” Journal of Advertising Research, 1964.
- McCarthy, E. Jerome. “Basic Marketing: A Managerial Approach.” Richard D. Irwin, 1960.
- Booms, Bernard H., and Mary J. Bitner. “Marketing Strategies and Organization Structures for Service Firms.” Marketing of Services, American Marketing Association, 1981.
Summary
The Seven Ps model extends the traditional marketing mix to better address the complexities of service marketing by incorporating People, Process, and Physical Evidence. This comprehensive approach helps businesses deliver higher quality services and enhance customer satisfaction, ensuring a competitive edge in service-dominant industries.
