7 ps of the Product

The 7Ps includes the traditional elements, plus three new elements. In the services marketing
concept, these are defined as following.

1. Product
In the service industry, the production and consumption of the product are simultaneous and the
product is intangible, diverse and perishable. The nature of this product allows for on the spot
customization. This also means that the point at which this activity is occurring becomes very
important. Ideally, to ensure repeat experiences of similar quality and a consistently good user
experience, most service providers aim to give some customization within an overall
standardized mode of delivery.

2. Pricing
Since a service cannot be measured by what material goes into its creation nor is the actual
tangible cost of production measurable, it can be challenging to put a price tag on it. There are
some tangibles of course, such as the labor costs and overheads. But additionally, the ambiance,
the experience and the brand name also factor into the final price offering.

3. Place
As mentioned, the service is produced and consumed in the same place. It cannot be owned and
taken away from the location. This is why the place at which this transaction occurs is of vital
importance. The location of the service provision is carefully analyzed to allow ease of access
and the desire to make the effort to reach it. Fast food restaurants and sales and service centers
may be located in busy main streets to allow walk in customers, while a fine dining restaurant
may be located in a quiet street to maintain exclusivity and privacy.

4. Promotion
Promotion fulfills the same role as it does in any other marketing context. A service may be more
easily replicated than a physical product. To prevent a service becoming interchangeable with its

competitors, it becomes vital to create a desirable brand image and name in the market.
Differentiation becomes a key goal in order to attract both new and repeat customers.

The New Elements

5. People
This is a vitally important element of the service marketing mix. When a service is being
delivered, the person delivering it is not unique from the service itself. When dining at a
restaurant, if a rude waiter is encountered, the entire experience will be labeled as bad service.
This is why many businesses invest in defining the right kind of person to fill their service role
and then making efforts to find or train people to fit this definition.

6. Process
Since service provision needs to strike a balance between customization and standardization, the
processes involved in the activity require special mention and attention. A process needs to be
clearly defined for the service provider. This basic process should ensure the same level of
service delivery to every customer, at any time of day, on any day. Within this process, there
should be defined areas where a customer preference can be accommodated to provide a unique
experience.

7. Physical Evidence
The location of the service delivery also takes on significance. The level of comfort and
attractiveness of a service location may make a lot of difference to the user experience. A calm
and soothing environment with thoughtful comfort measures may provide a sense of security to a
new customer which will make them return.

EXAMPLE 7Ps MARKETING MIX AT McDonalds

The McDonalds Marketing Mix

An effective and relevant marketing mix has enabled the restaurant to flourish while remaining
true to its think global, act local philosophy.

1. Product
The product offered is a standard set of items that are similar in taste and appearance wherever in
the world they are being sold. There is some adaptation according to local tastes and laws. For
example, a more vegetarian menu is offered in India, where a majority does not eat meat. In
Muslim countries, any pork products are eliminated and halal meat is used. There are also taste

adaptations such as beer in Germany, yogurt drinks in Turkey and espresso in Italy. There are
also burger variations in different countries. Despite these differences, the menu is structured in
the same way which allows for the same experience everywhere.

2. Price
The organization attempts to price differently across its operations. This means that the right
price is selected for the right market. Pricing decisions are made by setting a pricing objective,
determining demand, estimating costs, analyzing competing offers, deciding on a pricing method
and then finalizing a price. By following this method and primarily assessing competitors, the
company can understand what the customer is willing to pay and what value they attach to the
product.

3. Place
McDonalds has presence in 116 countries of the world. The organization believes in strategic
expansion that focuses on a locations long term potential.

4. Promotion
By first understanding cultural differences, a localized promotion strategy is employed. The
focus is on both the brands global image and its local sensitivity.

5. Process
In all of the thousands on McDonalds worldwide, the same process is used for making the food.
The food specifications for size, weight and content are the same everywhere. All suppliers need
to meet these specifications. Kitchen and restaurant layouts are the same. To cater to language
differences, the menu displays contain images that help create similarities everywhere. There are
also defined processes for service delivery such as all orders need to be filled within 90 seconds
in the restaurant while drive through wait time is 3.5 minutes.

6. People
The company staffs locally and also promotes from within. This allows the team managing the
operations to understand local cultures as well as the corporate philosophy. The people chosen
are trained in both technical skills and customer focus. A Hamburger University in the USA as
well as other training centers in different parts of the world teach standard practices that are to be
employed in restaurants all over the world. This training helps standardize product and service
delivery.
7. Physical Evidence
All McDonalds locations are similarly created with a family friendly environment. There is a
play area for children, and service is always provided with a smile. All menus are structured in
similar ways with fries and drink combos. The childrens meal always has toys. These are all
elements of physical evidence that are standard in all McDonalds locations.