Answer:
Marketing mix: Marketing mix is the combination of controllable marketing variables that a firm uses to achieve its marketing objectives in the target market. The term was introduced by Neil Borden, and E. Jerome McCarthy classified it into 4Ps: Product, Price, Place and Promotion. For services, three more Ps were added (People, Process and Physical evidence), making 7Ps.
7Ps of marketing mix:
- Product: Anything offered to the market to satisfy a want or need, including goods and services. Decisions relate to quality, design, features, brand name, packaging, labelling and after-sales service.
- Price: The amount of money paid by the customer for the product. Price decisions consider cost, demand, competition, government policy and discounts or credit terms.
- Place: The activities that make the product available to the customer at the right place and time: choice of channels of distribution (wholesalers, retailers), transport, warehousing and inventory.
- Promotion: Activities that inform, persuade and remind customers about the product: advertising, personal selling, sales promotion and publicity.
- People: All persons involved in delivering the product or service, such as employees and salespersons, and also customers. Their skill, behaviour and attitude affect customer satisfaction.
- Process: The procedures, systems and flow of activities through which the service is delivered to the customer, e.g. ordering, billing, delivery. A smooth process gives a better customer experience.
- Physical evidence: The tangible elements and environment in which the service is delivered, such as the building, interiors, uniforms, brochures, website and receipts, which help customers judge the quality of the service.
