The seven Ps of the marketing mix

The good or service a business offers to customers — without a wanted product, nothing else matters.

Products at different life cycle stages reduce risk — if one declines, others carry the business.

Introduction (launch, low sales), Growth (rapid increase), Maturity (peak, stabilise), Decline (sales fall).

Tangible vs intangible, product portfolio.

Product launches, sales are low, heavy promotion needed, costs are high.

Unique Selling Point — what makes the product different from competitors.

Maturity → Decline.

A diagram showing where products sit vs competitors — usually with price and quality axes.

The full range of products a business sells — a balanced portfolio reduces risk.

Updating, finding new markets, rebranding, cutting prices or new advertising.

Gaps in the market — areas where no competitor currently operates.

Sales peak and level off, competition is intense, profits stabilise.

Label BOTH axes clearly and plot ALL products/competitors mentioned in the data.

USP, product design, tangible vs intangible products, product portfolio.

Actions to extend the life of a product to avoid decline — e.g. new features, new markets, rebranding, price cuts.

Where products sit versus competitors — usually price and quality.

Update/improve product, find new markets, change packaging/branding, reduce price, new ad campaigns.

BCG Matrix (Unit 6) — stars, cash cows, question marks and dogs.

Features, aesthetics, function and quality — all affect customer choice.

Unique Selling Point — what makes the product different from competitors.

Add a percentage mark-up to the cost of making the product.

It's the only P that directly generates revenue — all others cost money.

Penetration pricing — low price attracts customers quickly.

Revenue — all other Ps cost money.

Price skimming — charge high while you're the only option, lower when rivals appear.

Set a LOW price at launch to attract customers, then raise it later.

HIGH entry price — opposite strategies for different situations.

Costs, competitors' prices, customer demand/willingness to pay, brand image, product life cycle stage.

Set a HIGH price at launch (for early adopters), then lower over time.

Cost-plus, penetration, skimming, competitive, loss leader, premium, dynamic.

To make a profit — if price is below cost, the business loses money on every sale.

Competitive pricing — match or slightly undercut rivals.

Premium/strong brands can charge more because customers trust them and perceive higher value.

Match or slightly undercut competitors' prices.

Brand image and life cycle stage.

Premium pricing — permanently high to reflect quality and exclusivity.

WHY the strategy suits the specific business — don't just describe it.

New products may use penetration or skimming; mature products may need competitive pricing.

Mark-up percentage.

Loss leader = sell at a loss to attract buyers. Premium = permanently high for quality. Dynamic = prices change with demand.

Customer; channels.

Limited reach + must handle all logistics yourself.

How the product gets from the business to the customer — distribution channels.

Nature of product, target market preferences, cost, control, coverage needed.

The path a product follows from producer to final customer.

Intermediaries — fewer middlemen = higher margins for the producer.

They spoil quickly — fewer intermediaries means faster delivery to customers.

Lower profit margins + less control over how the product is sold.

Direct (Producer→Customer), One intermediary (via Retailer), Two intermediaries (via Wholesaler+Retailer), Agent.

Cuts out intermediaries (higher margins), reaches global customers 24/7, but competition and logistics are challenges.

Reach — access to more customers through retailers/wholesalers.

Direct = more control/profit. Indirect = wider reach.

Digital products, premium brands wanting control, or businesses with strong online presence.

Less — each middleman takes a cut, reducing the producer's margin.

Costs and how much control the business wants.

Online sales or farm shops — producer sells straight to customer, no middlemen.

The shift to e-commerce and online distribution — it's increasingly important.

Mass-market products needing wide coverage — retailers and wholesalers extend reach.

Direct, one intermediary (retailer), two intermediaries (wholesaler+retailer), agent.

A middleman between producer and customer — retailers, wholesalers or agents who help sell/distribute.

Budget, target audience, product type, life cycle stage, competitors.

Mass media advertising aimed at a wide audience — TV, radio, newspapers, billboards. Expensive but broad.

Using platforms like Instagram, TikTok, X for organic posts, paid ads, influencer marketing, viral content.

How a business communicates with customers to inform, persuade and remind them about products.

Persuade and remind customers about products.

Social media and digital marketing — young people spend time online, not watching TV.

Advertising, sales promotion, personal selling, public relations (PR), direct marketing, digital marketing.

Targeted promotion for specific groups — sales promotions, direct mail, loyalty schemes, trade shows. Cheaper and targeted.

BTL = targeted (specific groups). TTL = integrated mix of both.

Low cost vs traditional ads, reaches younger demographics, highly targeted, measurable (clicks, views, engagement).

Highly targeted and measurable (track clicks, views, engagement rates).

Aspirational advertising — creating desire and exclusivity through premium imagery.

Brand reputation risk (influencer scandal), may miss older demographics, negative feedback is public.

An integrated approach combining BOTH ATL and BTL methods for maximum impact.

Short-term incentives like discounts, BOGOF, free samples, competitions — to boost sales quickly.

Misbehaves or is involved in scandal — brand suffers by association.

Heavy — lots of advertising and awareness-building because nobody knows the product yet.

Building a positive image through press coverage, events and sponsorships — not direct advertising.

Paying social media personalities to promote products to their followers.

TV campaign (ATL) combined with social media competitions and email follow-ups (BTL).

Brand reputation damage if the influencer misbehaves or is involved in scandal — the brand suffers by association.

Advertising, sales promotion, personal selling, PR, direct marketing, digital marketing.

Be specific about WHICH method and WHY it suits this particular business.

Social media, SEO, influencer marketing, content marketing — online promotion methods.

TTL (Through the Line) — integrating mass media with targeted digital methods.

The staff who deliver the service — their skills, attitude and appearance shape customer experience.

Services can't be tried before buying — People, Process and Physical evidence provide reassurance.

People, Process, Physical evidence.

Services are intangible — three extra Ps (People, Process, Physical evidence) help build customer confidence.

Skills/attitude; systems/steps; quality clues (decor, uniforms, website).

People, Process, Physical evidence — added to Product, Price, Place, Promotion for service businesses.

Product — the way the service is delivered IS what the customer is buying.

The systems and steps used to deliver the service — smooth processes = happy customers.

Service — hotels, airlines, restaurants, schools, etc.

Services are intangible — you can't touch or see them. The extra Ps provide clues about quality.

Tangible clues showing service quality — decor, cleanliness, uniforms, website design, packaging.

Make or break a service business — physical evidence shapes perception.

People, Process and Physical evidence — not just the basic 4 Ps.

People, Process, Physical evidence.

Trust (before buying) and differentiation (from competitors).

Online booking systems, check-in procedures, delivery tracking, appointment scheduling.

Poor quality — physical evidence shapes customer perception before they even taste the food.

Friendly trained staff (People), seamless online booking (Process), elegant decor + quality toiletries (Physical evidence).

Service businesses — hotels, schools, airlines, restaurants, banks, etc.

Differentiate — unique staff, smooth processes and distinctive environment set you apart.

Circumstances — competition, technology, trends, business strategy.

Redesign, add features, change quality level, rebrand for a new market.

Markets, competition, customer preferences and circumstances constantly change — adapt or fall behind.

They tell the same story — premium product + low price = confusing. All Ps must align.

Switch strategy (skimming → competitive), offer discounts, adjust for new market expectations.

Entering a new market, targeting a different segment, responding to a new competitor, technology changes, life cycle stage changes.

Confusing brand message — customers won't trust it. Ps must be consistent.

People, process, physical evidence.

Others too — they're interconnected and must all tell the same story.

Changes — for consistency. All Ps must tell the same brand story.

Product features, pricing, distribution channels and promotion methods all may need adjusting.

Move online, find new retailers, expand internationally, change distribution channels.

Lower price, simplify product, sell online (not specialist shops), advertise on social media (not music magazines).

Two Ps and how they connect/affect each other.

Discussing each P in isolation — always explain how changes to one affect the others.

Constantly adjusted in response to changes in markets, competition and customer needs.

Missed opportunity — the Ps aren't aligned. Need digital promotion to reach online customers.

Price (reduce), promotion (new campaign), product (update features) or place (new channels).

Inconsistent — confusing brand message. All Ps must align.

Retrain staff, improve delivery systems, refresh branding/premises/website.