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Rural entrepreneurship in Wales
Rural entrepreneurship in Wales

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3.4.14 Seven Ps

The four Ps model has been extended to seven Ps in recent years. If you feel they add value to your analysis then use the seven P model.

The additional three Ps are:

  • people
  • physical evidence, and
  • process.
Described image
Figure 18 Seven Ps

The people element acknowledges that service delivery (unlike manufacturing) involves a personal interaction between the supplier and the customer. Careful attention must therefore be given to the attitudes, demeanour and personality of those responsible for the service delivery. This characteristic is particularly relevant to small businesses that are predominantly service companies and are in regular contact with their customers (usually at an owner-manager/entrepreneur level).

Most offerings to customers now consist of a combination of product and service. This means that there are both tangible and intangible characteristics involved. Although most services are based on an intangible, emotional experience (e.g. the atmosphere and ambience in a restaurant) there are also important physical aspects (e.g. the appearance of the food, the quality of the decor and the appearance of the waiters). The area in which the restaurant is located will also provide physical evidence of the level of quality being offered.

Since services are usually carried out with the consumer present, the process by which the service is delivered is also an integral part of what the customer is paying for. For example, there is a significant difference between a silver-service meal in an upmarket restaurant and a hamburger bought from a fast-food outlet. A consumer seeking a fast process will prefer the fast-food outlet, whereas the consumer seeking an evening out might prefer the slower process of the restaurant.

Task 22: Match the Cs with the Ps

There is an alternative version of the four Ps that takes a more ‘customer-orientated’ view.

Using the following two lists, match each numbered item with the correct letter.

  1. Customer needs and want

  2. Cost to the customer

  3. Convenience

  4. Communication

  • a.Promotion

  • b.Price

  • c.Place

  • d.Product

The correct answers are:
  • 1 = d
  • 2 = b
  • 3 = c
  • 4 = a

Task 23: Marketing for your business

Select the four Ps , the seven Ps or the four Cs.

Consider the product or service you are hoping to launch.

For each tool of the marketing mix consider what will work for your new business. Be mindful of potential resource constraints but do not limit yourself in the achievement of your goals.