7 Ps OF MARKETING

Product
Place
Price
Promotion
People
Packaging
Processing
PRODUCT

What product or service is the most

appropriate for the opportunity, and why will
customers buy or avail them?
PRODUCT

• Any physical good, service, or

idea that is created by an
entrepreneur or an innovator in
serving the needs of the
customers and addressing their
existing problems.
 PLACE
What location is best suited for the
business where there are more potential
customers? Can they conveniently transact on-
site or online? How is the process of distribution
of products or performance of services?
PLACE

•Refers to a location or the

medium of transaction
•A strategic location depends
on the nature of the
business and the primary
target market
• The place whether on-site or online,
should be presentable, appealing, and
catchy.

• One of the major objectives of the

entrepreneur for place is to provide
customers with pleasant experience
in buying product or availing of the
service so that they will keep on
coming back whether on-site or
online.
PRICE
What is the most appropriate price,
and what pricing strategies will be used for
the target customers?
PRICE
• The peso value that the entrepreneur
assigns to a certain product or service
after considering its costs,
competition, objectives, positioning,
and target market.

• It is the only P in the 7Ps that

generates revenue for the business.
Most Common Pricing Strategies:
1. Bundling – 2 or more products
or services in one reduced price

2. Penetration pricing – setting

low prices to increase market
share, but the entrepreneur will
eventually increase the price once
the desired market share is
achieved.
3. Skimming – opposite of
penetration pricing where prices
are initially high and then they are
lowered to offer the product or
service to a wider market

4. Competitive pricing –
benchmarking prices with the
competitors
5. Product line pricing – pricing
different products or services within
a parallel product array using
varying price points

6. Psychological pricing – this

considers the psychology and
positioning of price in the market
7. Premium pricing – setting a
very high price to reflect elitism and
superiority

8. Optional pricing – adding an

extra product or service on top of
the original to generate more
revenue
9. Cost-based pricing – basis of
mark-up is the cost of sales

10. Cost plus pricing – mark-up is

based on a certain percentage of
cost
PROMOTION
What is the most effective
advertisement or combination of
advertisements, and which advertising tool
should be used to drive awareness and
increase sales?
PROMOTION
• Involves presenting the products
or services to the public and how
these can address the public’s
needs, wants, problems, or
desires.

• The main goal of promotion is to

gain attention.
PROMOTION
• Key marketing messages for
promotion can be the following:
• Value proposition or unique
selling proposition
• Product or service image
• Business image
• Business value and philosophy
PROMOTIONAL TOOLS
1. Advertising – informing, educating, and
familiarizing the public with the product and service
offerings; building a trustworthy image; and
increasing sales
• Television
• Radio
• Internet
• Mobile phones
• Print
• Out-of-home
2. Selling – act of trading a product or
service for a price or a fee.

3. Sales promotion (below-the-line

promotion) – these are short-term
promotional gimmicks wherein practical
incentives and appealing activities are
incorporated to entice the customers to
buy the product or avail of the service.
Sample Sales Promotions in the Philippines
• Sales discounts or discount coupons
• Raffles
• Contest or games
• Promo items
• Product or service bundles
• Trade fair or exhibits
• Sample distributions or free taste/free trials
• Premiums
• Point-of-purchase promotions
• Advertising specialties
• Rewards
4. Public Relations – these are image-
building initiatives of the entrepreneur to
make the name of the business reputable to
stakeholders; do not directly promote the
products or services.

Examples: Press conferences,

launching events, strong media relations,
social responsibility events, lobbying, and
web public relation,
PEOPLE
What type of people need to be hired?
What are the basic skills needed for the job?
What leadership style will be applied by the
entrepreneur?
PEOPLE
• Plays a vital role in servicing the
customers

• Employees have become a major

influence in the customer’s buying
behaviour.
PEOPLE
• Potential employees need to be well-
compensated and provided with
benefits.

• The entrepreneur must list the criteria of

the following job offers, as well as
requirements such as academic
background, job experience, skills or
expertise, attitude, and other documents
(e.g. police and NBI clearance).
 PACKAGING
What is the best packaging for the product
that is attractive enough for customers and cost-
efficient at the same time? What physical
evidence does the entrepreneur need to set up
so as to sell the service?
PACKAGING
• How the product or service is presented to
customers; overall identification of the
product or service; determine the
uniqueness of the product from competitors

• In selling services, the term

“servicescape” was used to refer to the
overall ambiance of the place where the
service is performed.
PROCESSING
What is the most compelling feature of
the product or the business that will make a
difference in the lives of the customers?
What sets the product or service from the
rest?
PROCESS
• The step-by-step procedure or activity
workflow that the entrepreneur or
employees follow to effectively and
efficiently serve customers.

• Its components include: input,

throughput, and output.
PROCESS
• Internal process includes the back-
office operations wherein employees
or machines process customers’
request without necessarily being
seen by the customer.

• External process includes the actual

servicing where customers are part of
the process.
 BIG IDEA!
• The original 4ps (product, place, price, and
promotion) of the marketing mix already
evolved to 7ps, which now include people,
packaging, and process to cover service
businesses as well. When used effectively,
the 7ps of marketing will achieve the two
most important objectives of an
entrepreneur: CUSTOMER DELIGHT AND
PROFITABILITY.