Strategy tool: Extended Marketing Mix

The Extended Marketing Mix or 7P-model by Booms and Bitner is a complement to the traditional Marketing Mix Model (4P’s).

What is it for?

Just like the traditional 4P-model, the 7P-model can be helpful in defining your product, service, market or organisation. By thinking about and defining the 7 main concepts in your market, you’ll be able to visualize the boundaries of that market and find new ways of acting on that market.

On the first look on the tool, you might wonder what this tool is doing on a blog about sustainable entrepreneurship since Planet is not defined as one of the P’s. A truly environmentally conscious organisation will not approach sustainability as an add-on but as a condition. Make sure you define your impact on both the planet and society in every of the 7 P’s.

The 7 p’s

Product

Do the characteristics of your product (or service) meet the demands of your customers? How does your product (or service) impacts (both positive and negative!) the ecological and social environment in which it is produced, used, recycled (or discarded)? Are there certain rules or assumptions attached  to the product (or service)? What relation do you want to create with your customers by selling/renting/leasing… this product (or service)? Functionality, Quality, Appearance  Packaging, Brand, Service, Support, Warranty, Transport

Price

 How much are your customers willing to pay? How much does this product cost to produce? How much does the competiion charge? Are there special features why you can demand a higher (or lower) price? Who are your concurrents? How can you alter the offer in order to penetrate the market? List Price, Discounts, Financing, Leasing, Options, Allowances

Place

 Where do you produce? Where do your customers live? Where do your raw materials come from? How are your logistics organized? Locations (every phase in the product life cycle can have a different location), Logistics, Transportation, Market Coverage, Service levels, Internet

Promotion

How will people know what you’re doing? Promotion goes from place where you sell over adds, marketing, campaigns, PR… . Where the three P’s before focussed on your orgnazition, thos one focusses on the perception of it by others. Advertising, Public Relations, Message, Sales, Media, Budget, Website, Blog, Social Media

People

 EVERY stakeholder (customers, employees, cooperants, shareholders, suppliers, distributors, recycle organisations…). How does your product (or service) affects your stakeholders? You can define the groups of stakeholders by using the term First stakeholders (directly involved), Second stakeholders (indirectly involved) and Third Stakeholders (Directly involved with Second stakeholders).  Employees, Leadership/managment syle, Customers, Customer relations, Suppliers and distributors (+ relation), society, Public services

Process

 The entire Life Cycle of your product (or service). From raw material up untill (and including) disposal (recycle or waste). What’s the relation between your product and the cusomer? Between you (as a producer) and the raw material? What stages does your product or service goe through in its entire life? Procedure, Mechanisms, Flow of activities, Use, Waste/recycle, Production Process, Materials used, updates vs new versions

Physical evidence

 Where do you implement this product (or service)? How will it react on its environment? What will happen to the community when confronted with the product (or service)? Just like with promotion, Physical evidence is less tangible (it’s not completely in your hands). Clear definition of the social, ecological and economical environment in which you operate. Ask your target audience about this one!!

How to use?

This model can be used in every phase of your company (innovation, production, relaunch…). Even though it will not model your new product or service, the tool can be a great support to make you sure you’ve looked at the different sides of producing something.

Every organisation will use this tool differently, according to their mission and vision. A company with a strong focus on price will put a strong emphasis on price and promotion, an NGO will strongly focus on process and people, but in the end every organisation has to think about these 7 different aspects in order to penetrate your market successful .

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About leyssensjan

WHY I DO WHAT I DO As a designer and entrepreneur, I want to develop systems that have a strong impact on short term and will guide society towards a more sustainable, social and economically different system in the long term. WHAT I DO I blog about and do projects with people and organisations driven by passion. I'm always on the look for new projects, ideas and people to meet, contact me!

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