What is Marketing Mix? Explain 7 Ps of Marketing Mix.

Answer: Marketing mix is the combination of controllable marketing variables that a firm uses to achieve its marketing objectives and satisfy its target market.

The term was popularised by Neil Borden, and E. Jerome McCarthy grouped the elements into the 4 Ps: Product, Price, Place and Promotion. For services, three more Ps (People, Process and Physical evidence) were added, giving the 7 Ps of marketing mix.

1. Product: Anything offered to the market to satisfy a need. Decisions include quality, design, features, variety, brand name, packaging, labelling and after-sales service.
2. Price: The money value charged for the product. It depends on cost, demand, competition and government policy. Decisions include list price, discounts, credit terms and pricing strategy.
3. Place: Making the product available to customers at the right place and time. It covers channels of distribution, transport, warehousing, inventory and coverage of markets.
4. Promotion: Communicating with customers to inform and persuade them to buy. It includes advertising, personal selling, sales promotion and publicity / public relations.
5. People: All persons involved in providing the service, such as employees and sales staff. Their skill, behaviour and attitude affect customer satisfaction, so recruitment and training are important.
6. Process: The procedures, systems and flow of activities through which the service is delivered, e.g. ordering, billing and delivery. A smooth process improves customer experience.
7. Physical evidence: The tangible elements that help customers judge a service, such as building, interiors, uniforms, brochures, website and receipts.

A proper blend of these 7 Ps helps a firm satisfy customers better than competitors and achieve its goals.