The seven Ps of the marketing mix

Tangible vs intangible, product portfolio.

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

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

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

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.

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

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

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

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

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

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

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

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

Where products sit versus competitors — usually price and quality.

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

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

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

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

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.

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

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.

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

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

Competitive pricing — match or slightly undercut rivals.

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

Premium pricing — permanently high to reflect quality and exclusivity.

Match or slightly undercut competitors' prices.

Brand image and life cycle stage.

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

Mark-up percentage.

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.

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

Customer; channels.

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

Limited reach + must handle all logistics yourself.

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.

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

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

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

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

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

Costs and how much control the business wants.

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

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

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

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

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

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

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

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

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

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

Persuade and remind customers about products.

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.

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

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

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

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

Aspirational advertising — creating desire and exclusivity through premium imagery.

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

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

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

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

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

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

Paying social media personalities to promote products to their followers.

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

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

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

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

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

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

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

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

People, Process, Physical evidence.

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

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

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

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.

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

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

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

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

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

People, Process, Physical evidence.

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

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

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

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

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

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

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

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

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

Circumstances — competition, technology, trends, business strategy.

People, process, physical evidence.

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.

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

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

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

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

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

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.

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.

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

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

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

Inconsistent — confusing brand message. All Ps must align.

Dynamic, competitive, contribution — each with different trade-offs.

Prices change in real time based on demand, time, customer profile or supply. Used by airlines, Uber, hotels.

Maximises revenue when demand high, fills capacity when low. BUT can damage trust if seen as unfair.

Skimming, premium, loss leader — SL strategies focus more on market positioning.

Setting prices based on what competitors charge, not costs. Used in highly competitive markets with similar products.

Easy to implement, avoids price wars. BUT ignores costs — could sell at a loss.

Each unit contributes to fixed costs, useful for special orders. BUT doesn't guarantee profit.

Setting price above variable cost per unit so each unit contributes to fixed costs. Price must exceed VC.

Same seat: $200 in January, $800 in July — algorithm adjusts based on demand, booking time, remaining seats.