The 4Ps vs The 7Ps

The 4Ps were designed at a time where businesses were more likely to sell products, rather than services and the role of customer service in helping brand development wasn’t so well known. Over time, Booms and Pitner added three extended ‘service mix P’s’: Participants, Physical evidence and Processes, and later Participants was renamed People. Today, it’s recommended that the full 7Ps of the marketing mix are considered when reviewing competitive strategies.

The 7Ps helps companies to review and define key issues that affect the marketing of its products and services and is often now referred to as the 7Ps framework for the digital marketing mix.

How can I use this model?

Although it’s sometimes viewed as dated, we believe the 4Ps are an essential strategy tool to select their scope and is particularly useful for small businesses. For startups reviewing price and revenue models today, using the Business Model Canvas for marketing strategy is a great alternative since it gives you a good structure to follow.

Companies can also use the 7Ps model to set objectives, conduct a SWOT analysis and undertake competitive analysis. It’s a practical framework to evaluate an existing business and work through appropriate approaches whilst evaluating the mix element as shown below and ask yourself the following questions:

• Products/Services: How can you develop your products or services?
• Prices/Fees: How can we change our pricing model?
• Place/Access:What new distribution options are there for customers to experience our product, e.g. online, in-store, mobile etc.
• Promotion:How can we add to or substitute the combination within paid, owned and earned media channels?
• Physical Evidence:How we reassure our customers, e.g. impressive buildings, well-trained staff, great website?
• Processes: Are there internal process barriers in the way to delivering the best customer value?
• People: Who are our people and are there skills gaps?
• Partners:Are we seeking new partners and managing existing partners well?.

What to watch for

When using the 7Ps as a model to conduct a marketing audit, I look at each of the Ps. It’s unwise to ignore an area unless it is completely outside your control.

9Ps of marketing?

Since 2007, Larry Londre’s 9Ps of marketing has included:

• Planning, Process or Marketing Process
• People/Prospects/Potential Purchasers/Purchasers (Target Market)
• Product
• Price/Pricing
• Place/Distribution
• Promotion
• Partners/Strategic Alliances
• Presentation
• Presentation

Original References and sources of 7Ps?

Bitner, M. J. and Booms, H. (1981). Marketing Strategies and Organization: Structure for Service Firms. In Donnelly, J. H. and George, W. R. (Eds). Marketing of Services, Conference Proceedings. Chicago, IL. American Marketing Association. p. 47- 52.

McCarthy, E. J. (1964). Basic Marketing. Richard D. Irwin. Homewood, IL.