7 P’s Model Concept
7 P’s Model, also known as “Extended Marketing Mix”, is a model introduced by Booms and Bitner and that expands the number of 4 traditional marketing variables (4 P’s Model: Product, Price, Communication and Distribution) to 7, adding the variables People, Processes and Physical Perception.
According to the authors of the model, the original 4 P’s model was though for tangible products, presenting some shortcomings as to services or sectors of intensive use of knowledge-
The additional 3 P’s introduced by Booms and Bitner are the following:
- People: all people directly or indirectly involved in providing a service are an important part of the marketing mix – the value understood by the client depends in large measure from the employees and managers involved.
- Processes: represents activity procedures and flows needed for providing the service, whose form an indispensable element for marketing mix.
- Physical Perception: represents the circumstances/environment in which the service is provided to the client.
According to the authors, the first two variables (people and processes) are explicit, while the third (perception) forma an implicit value.