Marketing Planning and Practice
aman_2910
Week6Lecture6.2TheProductandServiceMix.pptxMarketing Planning and Practice UMKDQD-15-2 Week 6 Lecture 6.2
Presented by
Michelle Jackson
Module Leader
w/c 15 March 2021
Tactics – the 7Ps
The tactics section covers the marketing activities of a marketing plan
Marketing mix
7Ps
Linkages between aspects are important
Integrated marketing activities
Product needs promotion. Promotion needs place. Different emphasis for different strategies. All 7Ps should be considered.
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Planning Tactics – the 7Ps
Traditional Mix
Service Mix
Product
Price
Place
Promotion
People
Process
Physical evidence
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The 7Ps: Traditional Mix (B2C)
PRODUCT
Product – brand name, position
Price – responsive to market and consumer; brand positioning
Place – intensive, selective, exclusive
Promotion – advertising, sales promotion; variety of media; loyalty reward schemes
SERVICE
Product – benefits, psychological aspects
Price – according to demand, service value proposition, perception of quality
Place – link with physical environment; service delivery, internet
Promotion – can be difficult, reflect positioning/core value
The 7Ps: Traditional Mix (B2B)
PRODUCT
Product – can be simple or complex; reliability of supply, brand name, position
Price –varied, subject to negotiation
Place – likely to be a distributor network; incentivised and supported
Promotion – trade advertising, direct marketing, personal selling
Just because an organisation offers a service rather than a product does not mean that the traditional mix cannot be applied.
Customers’ expectations
Service specifications
Employee performance
Managing customer expectations.
The 7Ps: The Service Mix
PRODUCT and SERVICE
People – staff, customer service, training, recruitment
Process – delivery of the service element
Physical Evidence – place where service received, quality perception of service/organisation, leaflets/brochures, website
The extended marketing mix, also known as the service mix. As with tangible goods – focus on benefits.
Marketing Planning for Services:
Intangible – no physical product; once provided it cannot be used/done again
Inseparability - consumed as purchased
Perishability – produced and consumed at the same time, cannot be stored
Heterogeneity – variance in the service delivery; human behaviour variable
Lack of Ownership – transfer of ownership
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The 7Ps: Not-for-Profit
Product – benefit to donors/supporters
Price – money generated vs cost of programme
Place – charity shops/online/meetings
Promotion – PR, sponsorship, promotions, direct marketing (gain donations)
People – critical as many interact with public
Physical Evidence – quality literature, shops
Process – make it easy to donate money, volunteer
The extended marketing mix, also known as the service mix. As with tangible goods – focus on benefits.
Marketing Planning for Services:
Intangible – no physical product; once provided it cannot be used/done again
Inseparability - consumed as purchased
Perishability – produced and consumed at the same time, cannot be stored
Heterogeneity – variance in the service delivery; human behaviour variable
Lack of Ownership – transfer of ownership
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The 7Ps: International/Global
Product – branding, packaging
Price – economic situation, local tariffs, costs, price sensitivity
Place – appropriate market entry strategy, influenced by costs/investment, management of distribution
Promotion – influenced by local conditions, global advertising
Physical Evidence – product, website
Process – more complex
People – issues of language, training, customer service
Factors influencing international promotion – culture, language, product range, product image, packaging, literature, corporate identity, tolerance of advertising, advertising methods, available media, relationships, marketing ethics.
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