The 7 P’s —
Renee S. Belina, Director
We’ve already covered the 4 P’s: product, price, place and promotion. Oddly enough, two decades passed before this basic concept, conceived in 1960, was updated. In 1981, Booms & Bitner created the Extended Marketing Mix by adding three new elements. The broader approach helped to more accurately apply the theory to services, not just physical products.
People: In service-based businesses, people are a critical success factor. From those on the front line to management, it’s essential to recruit, train and retain the right people in the right positions.
Processes: With physical products, you may think of this as the supply chain process. But when you deliver a service, the process typically happens with the customer being present. How you deliver your service is paramount.
Physical evidence: Your service may be intangible, such as insurance coverage, but you probably still provide proof the service paid for was delivered. This may take the form of a printed or electronic document.
But wait, there’s more! How about the possibility of an eighth P? Some experts propose adding Productivity and Quality to the list. This P comes from the Services Marketing Mix and asks the question: Are you offering your customer a good deal? It implies striving for maximum business productivity so you can pass those savings along to customers.