The 7Ps marketing mix is the set of controllable, marketing tools that a company uses to produce the desired response from its target market. It consists of everything that a company can do to influence demand for its product. The seven pillars of the extended marketing mix are as follows:
Product: What are you selling, and how will it meet the needs of your target customers?
Price: What will you charge for your product or service?
Place: Where will you sell your product or service?
Promotion: How will you raise awareness of your product or service?
People: Who will be responsible for marketing your product or service?
Process: How will you deliver your product or service?
Physical evidence: What tangible evidence will you provide to support the claims you make about your product or service?
Over time, the marketing mix has evolved as the ways in which buyers buy and sellers sell have changed. Digital marketing has been a significant driving factor in these changes.
The internet changed how customers receive information about products and how they purchase these products. Customers became more empowered, and companies needed to consider how to reach these individuals. Digital marketing channels such as social media, email marketing, marketing automation, and content marketing marketing have changed the way we do business.
More recently, artificial intelligence (AI) has become a tool that companies are utilising to further evolve the marketing mix. Here are some ways that AI can be used across the 7Ps within your marketing strategy:
1. AI can be used to create personalised products that are more aligned with customer wants and needs.
2. AI-enabled products can be developed to be more intuitive and easy to use.
3. AI can be used to create products that are more engaging and interactive (particularly digital apps).
4. AI can be used to develop products that are more responsive to customer feedback.
1. AI can be used to monitor competitor pricing and adjust the pricing strategy accordingly.
2. AI can be used to create dynamic pricing models that take into account real-time demand.
3. AI can be used to identify customer segments that are willing to pay a premium for a product.
4. AI can be used to optimise pricing strategies to maximise profits.
1. AI can be used to create targeted marketing campaigns that reach the right customer with the right message.
2. AI can be used to personalise marketing messages to individual customers.
3. AI can be used to create marketing content, such as email subject lines or advertising copy.
4. AI can be used to optimise marketing spending by allocating budgets to the most effective marketing channels.
1. AI can be used to identify the most effective channel for marketing and selling a product.
2. AI can be used to create a seamless omnichannel experience for potential customers.
3. AI can be used to optimise inventory levels and manage stock in real time.
4. AI can be used to optimise the distribution and delivery of products.
1. AI can be used to screen job applicants and identify quality candidates.
2. AI can be used to train employees on company procedures and best practices.
3. AI can be used to monitor employee performance and identify areas for improvement.
4. AI can be used to coach employees and provide real-time performance feedback.
1. AI can be used to automate marketing processes and tasks.
2. AI can be used to streamline sales processes and close deals faster.
3. AI can be used to improve customer service and support.
4. AI can be used to manage and monitor supply chains.
1. AI can be used to create virtual showrooms and product demonstrations.
2. AI can be used to generate realistic images and product simulations.
3. AI can be used to create and customise packaging.
4. AI can be used to develop interactive and engaging digital experiences.
Use AI to Take Your Marketing Mix to the Next Level
The marketing mix is constantly evolving, and AI is one of the driving forces behind these changes. By utilising AI across the 7ps of the marketing mix, companies can create more personalised, targeted, and effective marketing campaigns.
Additionally, AI can be used to automate marketing activity, improve customer service, and optimise supply chains. As AI continues to develop, the possibilities for how it can be used to improve the marketing mix are endless.
Example: Amazon, AI, and the Marketing Mix
Here are some ways in which Amazon uses artificial intelligence across the marketing mix.
Product: Amazon developed Alexa, the AI voice assistant, to be a central part of its product offerings. Alexa is integrated into Amazon devices like the Echo and the Fire TV Stick and can be used to order products, play music, and more.
Place: Amazon uses AI to power its Amazon Go cashier-less stores. Customers can simply walk in, pick up the products they want, and walk out, with their purchases being charged to their Amazon account automatically.
Price: Amazon uses AI to help it price products competitively. By analysing data on prices, demand, and other factors, Amazon can price its products to be very appealing to customers.
Promotion: Amazon uses AI to personalise the content that users see on its websites and in its apps. By showing customers content that is relevant to their interests, Amazon can keep them engaged with its platforms.
People: Amazon uses AI in its Amazon Web Services business to help developers build and deploy AI-powered applications. By making AI tools easily accessible to its customers, Amazon can position itself as a leader in the AI space. Amazon also employs a team of Developer Advocates to help promote the AI capabilities of AWS.
Processes: Amazon uses AI to streamline its internal processes, like its supply chain and logistics operations. By using AI to automate these processes, Amazon can improve its efficiency and better meet customer expectations.
Physical Evidence: Amazon uses AI in its warehouses to pick and pack orders quickly and accurately. By using robots and other automated technologies, Amazon can get orders out to customers quickly and efficiently.
Utilising AI in your business
If you want to stay ahead of the competition, you need to start using AI across the 7Ps marketing mix. By doing so, you'll be able to collect more data, understand your customers better, and create more personalised and relevant content.
If you're not sure where to start, book a marketing AI consultation with us, and we'll help you create an AI marketing strategy that works for your business.
November 18, 2022