The 7 Ps
From Online Marketing Theory – The 7 Ps
To successfully plan the right marketing mix, there are seven marketing mix tools available. From the abbreviations, a mnemonic from the English terms can be remembered as the '7 Ps'.
1. Product: The product policy or product design + −
Product conception focuses on the product and its features. Here, decisions are made about whether the product represents a new development or an enhancement, what functions it should fulfill, which design is chosen, what sizes and quantities will be marketed, the desired quality of the product, its image and brand positioning in the market, as well as the services and warranties associated with the product.
The goal is to develop a product that provides added value for customers, fulfills an existing need, or solves a specific problem. Valuable insights into the demand, which functions and content make sense, can be provided by sources such as keyword research and user data from web analytics. The end of product development always includes product tests on the technical aspects and functionality of the product.
2. Price: The pricing policy or strategy + −
In this second pillar of the marketing mix, prices and conditions for the product are determined (also known as pricing policy). It is important to calculate the costs of the product itself, distribution, and customer service.
Additionally, the market environment and target audience are crucial as they influence which prices customers will accept. The pricing strategy also includes setting discounts, volume surcharges, and payment terms. Special conditions of online sales should also be taken into consideration.
3. Placement: Distribution Policy or Sales Strategy + −
In distribution policy, it is determined through which channels and in what manner the product reaches the customer. Basically, a distinction is made between direct and indirect sales. In direct sales, issues concerning the availability of personnel and their costs are prioritized, while in the indirect sales channel, the focus is on the control of independent sales bodies and the management of sales. Questions regarding storage, transportation, and locations also need to be addressed in this area.
In the field of online marketing, online sales are particularly interesting. Specifically, internet shop systems and the technology behind them, which ensure a smooth process and optimal presentation of the products, are crucial. Essential components at this step also include content marketing, on-page optimization of the shop, and conversion optimization, which ensures that products are actually purchased.
4. Promotion: Communication Policy + −
The communication policy or product promotion defines the advertising and sales promotion activities as well as possible personal sales. This involves determining advertising channels and PR activities, and setting a budget. Equally important here is identifying the target audience for each advertising activity in the communication strategy.
This pillar includes classic (online) marketing measures to increase visibility and brand awareness. The goal is to be discovered by the target audience using relevant channels and keywords. Search (SEA + SEO), display, video, social media, affiliate marketing, and email marketing are the primary channels for distributing new products. Online PR measures aimed at brand building and generating backlinks are also part of this fourth step.
5. Person: Human Resources Policy + −
To scale the company's revenue after a successful market launch, qualified personnel is a crucial factor. Only those who plan the recruitment and qualification of employees right from the start can achieve optimal results without a growth slowdown. Online marketing channels can also be used here to acquire qualified personnel.
6. Process: Process Management + −
Continuous optimization of all processes should be a given in every company. This is especially true in the digital age, with the possibilities of data collection and analysis. Effective optimization loops with A/B testing are essential for economic success.
All available performance data should be consolidated into one platform, enabling quick and agile responses to insights from performance analysis and allowing for the planning of optimization measures.
7. Physical Facilities – Equipment + −
Of course, the point of sale also plays an important role. Depending on the company and business model, this can be the retail store or the online shop. What impression does your customer gain of your company while they are contemplating their purchasing decision? Does the design of your shop match your service or product? If you want to place a product in the high-price segment, for example, you should also pay attention to a premium environment.
What should the right marketing mix
for your company look like?
The terms mentioned above already raise many interesting questions. Unfortunately, there is no universal formula for success. Rather, the right marketing mix strongly depends on the company, the target audience, the competition, the product or service, and much more. In recent years, we have seen companies from various industries and have successfully planned and implemented campaigns. With our best practices, we can support you in strategic planning and operational implementation. We help you turn marketing strategies into concrete actions. Depending on the product, target audience, and existing offline activities, we develop the optimal mix of marketing measures!
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