The 7Ps of Marketing and Why Every Department is in the Marketing Business
The classis 4Ps of marketing Product, Placement, Promotion and Price have evolved in the last decade to add Process, Physical Environment and People.
I agree with Peter Drucker, the Father of Management, that marketing something embedded in every function across the company. He also said a company has two key functions, innovation and marketing. Most other stuff is relatively easy because it requires less creativity and intellectual rigor.
Marketing is a guiding force in product development to ensure differentiation, in sales to help get the message, process and channel right, in execution/finance to balance and create appropriate pricing, cost effective promotions and campaigns. It is infused in customer delivery to support the brand promise, Unique Selling Proposition (USP) and values of the organization to deliver on their promise/brand.
The 7Ps is just a model used to test your approach is focused and comprehensive. It is a tool. Tactical - yes, but it can be used strategically to validate marketing plans too.
Marketing today is also constant trial and error and benchmarking in a rapidly changing world to stay effective. Scientific, data driven marketing, decades ago done mostly in direct mail, is replacing brand building and image advertising of the 1960s to 1970s. Back then running TV campaigns was used to launch new products. This model does not work well now as it costs $500 million to reach the equivalent audience (Gross Rating Points of viewer share) as advertising on the 3 major networks then for $10 million. Today media fragmentation requires online presence and hundreds of "channels".
Investment in marketing must be a measurable ROI today. Google has also been a major game changer because for the first time you can invest in "active buyers" at the right time, not spend money reaching 90%+ non-buyers to prepare them years in advance to rememer your brand (brand building).
Another tool to cross-check the thinking and approach is looking at your marketing as four functions: Specialization, Differentiation, Segmentation and Concentration. You must implement and execute well in all four areas to survive and thrive in your business. Most people need complex problems broken down into component parts. That is what these tools/models do well.
Every executive and manager must be responsible for some part of marketing today and the CEO must drive this. They all must understand the brand and marketing message and act accordingly. Small companies, without a dedicated marketing executive require that the CEO infuse marketing thinking in every department or area of the business.
Companies live and die on their marketing today. Many companies with inferior products but superior marketing dominate their space. Microsoft versus Apple in the 1990’s, Betamax versus VHS in the 1980s, quality independent movies that have insufficient marketing budget or effective marketing messages that flop then become “classics” later.
Every company from start-up to multi-billion conglomerate must bring rigor to their marketing process on each individual product offering. They must have a well-defined target market, not all customers, an ideal customer profile, tested messaging and a product that is differentiated and provides value. If all of these things are not consistent with each other than the product will fail or underwhelm its potential.
We have tools that add structure to this process from our Strategic Planning process, as well as decades of experience to use them well. Call us for a free strategy session on your marketing.
Bob Norton, Founder of AirTight Management, has been designing dashboards since 1992 and trains and certifies all AirTight consultants and coaches. Bob Norton has been a CEO since 1989 and a CEO Coach, Consultant and Thought Leader in Leadership, Management and Systems since 2002. He is also the creator of The CEO Boot Camp and hundreds of training programs for executives and managers.