The 7 Ps of Marketing Patsy Perry George Davies Centre for Retail Excellence School of Management & Languages Heriot-Watt University Edinburgh, UK Lecture Aim To understand the 7 Ps of marketing and their relevance to the fashion apparel industry What is marketing? Marketing is the management process for identifying, anticipating and satisfying customer requirements profitably (Chartered Institute of Marketing) Essential requirements of marketing Identification of consumers’ needs & wants Definition of target market segments Creation of a differential advantage within target markets by which competitive advantage can be established What do consumers buy? Consumers do not buy products, they buy benefits Tangible – e.g. coat to keep warm Intangible – e.g. body piercing to ‘look cool’ “In the factory we make cosmetics; in the store we sell hope “ (Charles Revlon) The extended marketing mix Manipulating the 7 elements of the marketing mix enables the firm to achieve and sustain a differential advantage Product Price Promotion Place People (staff) Processes Physical evidence Product Product management New product development Branding Packaging E.g. style, colour, fabric, price, size Price Pricing strategy Discount structures Terms of business Promotion Advertising Above the line: magazines, billboards, TV Below the line: free samples to celebrities, magazine editors Sales promotion Public relations – link to brand reputation Merchandising Personal selling e.g. 1 to 1 in department store, party planning Place Channel management In store Online Mail order Concession in department store Location Physical distribution – supply chain People The importance of staff to design, source, sell… Customer service HR policies: Employee selection Employee training Employee motivation Processes Customer management procedures: how the firm handles customers from first point of contact with the firm to the very last point of contact The procedure, mechanism and flow of activities by which products/services are consumed Physical evidence Layout Décor Ease of access Forms of presentation – tangible goods that help to communicate the product or service new season collection brochures in retail store clean professional reception area in factory