Describe the Decision Making Process of 8P’s

Each company has its own marketing formula, depending on the market formula’s combination and its
effectiveness every company has failure and success. This combination is called marketing mix. The
marketing mix is the set of controllable, tactical marketing tools that a company uses to produce a
desired response from its target market. It consists of everything that a company can do to influence
demand for its product. It is also a tool to help marketing planning and making decision. Basically
marketing mix was developed with 4Ps and 4 Ps of marketing are product, price, place and promotions.
For services, additional 3 Ps were added to consider the nature of services such are physical evidence,
people and process. Marketing training and consulting firm Mansmith and Fielders Inc. recently
launched a marketing mix book entitled “The 8 Ps of Marketing,” emphasizing the importance of
purpose as the eighth P. The 8th P is productivity and also known as performance. Describing how
the decision making process of 8Ps works in below, so the 8Ps are

Product

The first P deals with the goods-and-services combination the company offers to the target market.
By this we can know how can we develop our products or services that satisfies the customer needs
and wants. A private college, for example, is selling higher education. Its competitors are other private
schools, and substitutes include public universities. To market a service, consider the tangible and
intangible benefits it provides and any tangential products or services that can be co-marketed. Product
considerations affect every other.

Price

Price is the amount of money customers must pay to obtain the product. How can we change our
pricing model? Or how much price should be charge for the product/ service? Services are perishable.
If a hotel doesn’t rent Room 546 tonight, that revenue is lost forever. Pricing includes strategies for
managing inventory and staffing.

Promotion

Promotion means activities that communicate the merits of the product and persuade target
customers to buy it. How can we add to or substitute the combination within paid, owned and earned
media channels? Companies that are strive to match the media to the message. Law firms specializing
in international procurements don’t advertise on city buses, for example. Promotion strategy includes
developing branding, slogans and logos that deliver the intangible benefits the service provides. A
criminal defense attorney might choose images of open handcuffs to deliver her message.
Place

Place includes company activities that make the product available to target consumers. Because
services usually are acquired and used at the same time, the location where the service is delivered
plays a role in the promotion, price and product. What new distribution options are there for
customers to experience our product, e.g. online, in-store, mobile etc. Part of the reason plumbers
and other home-repair professionals charge so much is that they must deliver their service one
customer at a time away from their office or shop.

People

Marketing decision depends on two types of people (internal and external) who are connected with
the company. Much of how customers rate the service experience turning point on the person
delivering it. Who are our people and are there skills gaps? Professionalism and courtesy go a long
way in any service business.

Process

Process is the standard operating technique in delivering the service. Are we following the right
Process? Depending upon the situation and location, luxury hotels may require employees to smile,
nod, bow, shake hands or otherwise greet guests.

Physical Evidence

Physical evidence is the environment in which the service is delivered and where the firm and the
customer interact and any tangible commodities that facilitate performance or communication of the
service. This is determined in large part by which generic business strategy the firm employs. How we
reassure our customers, e.g. impressive buildings, well-trained staff, great website? It may determine
low costs will be its path to profitability.

Productivity

Productivity/Performance observes how well a company’s services compete in the marketplace. This
may include how consistent the service is and how well its features translate into benefits as it is being
delivered. In what way is your offering a good deal for the customer? A carpet cleaning service may
employ state-of-the-art equipment but have trouble attracting repeat customers. Performance also
considers how to measure the company’s financial goals and whether they are being achieved.