More Related Content Similar to 7Ps of Marketing Mix and How to Use It (20) More from Fred Freeman Okpala. BA, MBA,... (20) 7Ps of Marketing Mix and How to Use It2. Objectives
Understand the Concept of Marketing Mix
Understanding how to Use 7Ps model (marketing Mix)
Understanding the Use of 7Ps through Practical Examples
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3. What is Marketing Mix?
The marketing mix is a familiar marketing strategy tool,
which was traditionally limited to the core 4Ps of Product,
Price, Place and Promotion.
Over time, it was expanded to 7Ps with Participants,
Physical evidence and Processes being included to the mix.
Participants was later renamed People.
Today, it is recommended that the full 7Ps of the marketing
mix are considered when reviewing competitive strategies.
The 7Ps helps companies to review and define key issues
that affect the marketing of its products and services. Now, it
is often now referred to as the 7Ps framework.
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5. How can I
use this
model?
Companies use the 7Ps model as a strategy
to set and achieve their marketing
objectives or undertake their competitive
analysis.
It's a practical framework to evaluate an
existing business according to the
elements of the mix as shown above.
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6. Questions to
ask When
Reviewing the
Marketing
mix
Products/Services: How can you develop
your products or services to gain competitive
advantage in the market?
Prices/Fees: How can we change our pricing
model to be attractive to the customers?
Place/Access: What new distribution options
are there for customers to experience our
product, e.g. online, in-store, mobile etc.?
Promotion: How can we add to or substitute
the combination within paid, owned and
earned media channels?
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7. Questions to
ask When
Reviewing the
Marketing mix
Physical Evidence: How we reassure our
customers, e.g. impressive buildings, well-
trained staff, great website?
People: Who are our people and are there
skills gaps?
Process: What are the systems and processes
that deliver the product to the customers
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8. Hilton Hotels
Marketing
Mix – 7Ps of
Marketing
Product/Service: Hilton Hotels and Resorts
provides to the customers a range of services that
include lodging rooms, meeting, wedding and
banquet facilities and special event services,
restaurants and lounges, food and beverage
services, swimming pools, gift shops, retail
facilities and other services.
As marketing strategy, Hilton Hotels and Resorts
divided its products and services into three levels:
Core, Facilitating and Supporting products.
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9. Hilton Hotels and Resorts Categories of
Products
Core products can be explained as a basic form of a product. Core products are
the main reasons for customers purchasing from a business. For Hilton Hotels &
Resorts core product is hotel rooms that customers stay in for a specific period
of time. Peripheral services can be explained as additional products and services
above the core products that businesses offer to get competitive edge in the
marketplace.
Facilitating products involve services that assist consumers in consumption of
core products. Hilton offers a set of popular facilitating products such as
customer services, bars and restaurants, and online reservation facilities.
Supporting products include additional products and services that are offered in
order to obtain competitive advantage for the business by increasing the value of
core products and services. A range of supporting products offered by Hilton
Hotels include 24/7 room service, free newspapers and magazines for business
travellers, concierge services etc.
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10. Place Element
of Hilton
Hotels
Marketing
Mix
Hilton Worldwide serves guests operating more than 745,000 rooms in
more than 100 countries and territories.[1] Hilton Hotels & Resorts brand
in particular operates 206,635 rooms in 85 countries and territories.
Hilton Hotels & Resorts distribution strategy heavily relies on
information technology and internet in various formats. Firstly, the official
website of the company serves as an effective platform for service
distribution as it is supplied with a wide range of features and capabilities
providing practical assistance to customers such as booking a room,
planning events, scheduling meetings and booking airport pick-ups.
Moreover, the distribution of Hilton Hotels & Resorts’ products and
services is also facilitated through mobile convenient applications made
available for iPhone and Android platforms. Social media is adapted as
another effective instrument by Hilton Hotels & Resorts in distributing its
products and services.
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11. Pricing Strategy
Pricing strategies used by businesses can be divided into
four broad categories within a Pricing Strategy Matrix:
economy, penetration, skimming and premium pricing
strategies.
Economy pricing strategy involves selling products of basic
features and characteristics to consumers with low budgets.
Penetration pricing strategy, on the other hand, involves
offering high quality products and services in low prices than
the competition in order to increase market share.
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12. Pricing Strategy Continues
Skimming, as a pricing strategy is opposite to penetration in
a way that products and services are offered for a higher price
levels than the competition. The main rationale for the choice
of skimming pricing strategy may include the desire to
associate products or services with exclusiveness and a high
quality.
Premium pricing strategy involves charging high level prices
for products and services that are perceived to have excellent
quality and additional characteristics and features.
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13. Hilton Pricing Model
The majority of rooms owned by Hilton Worldwide belong to
upper upscale and upscale pricing categories.
Accordingly, on the basis of classification above the type of
pricing strategy adopted by Hilton Hotels & Resorts can be
specified as premium.
Hilton only offers five-star and four-star rooms and the company
is able to charge its customers at premium levels because beyond
the core product, Hilton also ‘sells’ a set of intangible benefits
such as sense of achievement, high status and luxury.
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14. Hilton
Promotional
Strategies
Promotional strategies are needed to market a brand. Hilton
enjoys a dedicated promotional team. Advertising and
promotions of Hilton Hotels & Resorts is done mainly through
the internet. Public relations and publicity has been given a
major role to play to ensure that the promotion mix is realized.
Below are few promotions and communication channels used by
hotels:
Brochures
Hotel Websites
Twitter Channel
Facebook Page
Google + Page
Hotel pens & pencils
Scratch pads with hotel logo
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15. Hilton’s People
Hilton Hotels & Resorts maintains an excellent work culture. It has earned several awards and
recognitions for its focus on managing people. Has industry-leading rewards and benefits in place
for the employees.
Benefits offered to the employees include:
Competitive Starting Salaries.
Best in class paid time off.
Educational Assistance programs
Health and wellness programs.
Retirement savings.
Paid Parental Leave.
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16. Hilton’s Process
Hilton guests can use the Hilton website or
app to book hotels and manage their stay.
The focus is on extra customer convenience.
Hilton App allows to make reservations, select
rooms, and use a mobile device as the room
key.
Eliminates the need for the front desk.
Guests can check-in and out using the app.
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17. Physical
Evidence
Hotel services are mainly intangible except
for the tangible parts like the products guests
use during the stay.
Other forms of physical evidence include
bills. Digital services have replaced paper
bills.
Hilton app offers paperless check-in and
check-out.
Physical evidence also includes room
amenities and furniture.
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18. Talent &
Skills HuB
T&S-HuB is an enabling environment that supports people
in the development of their talents and skills and in the
actualisation of their personal passions and ambitions.
We help learners and individuals sharpen and exhibit their
talents and skills while exploring relevant and life
changing opportunities that suit their passions.
You can be supported by our instructors, counsellors, and
mentors on employability skills and other personal and
professional development.
Book an appointment for one-to-one or group tutoring
through our website; ts-hub.com
You can also contact us via email: contactus@ts-hub.com
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19. References and Further Reading
Dudovskiy, J. (2016) Hilton Hotels Marketing Mix – 7Ps of Marketing, [Online] available at:
https://research-methodology.net/hilton-hotels-marketing-mix/, accessed: 10/06/20
Hanlon, A. (2019) How to use the 7Ps Marketing Mix [Online] available at:
https://www.smartinsights.com/marketing-planning/marketing-models/how-to-use-the-7ps-
marketing-mix/, accessed: 10/06/20
Pratap, A. (2020) Marketing Mix of Hilton Hotels & Resorts: 7P’s [Online] available at:
https://notesmatic.com/2020/01/hilton-hotels-and-resorts-marketing-mix/, accessed: 10/06/20
20. Further Support
At Talent and Skills Hub, you can be supported by our instructors, academic
skills advisors and mentors for 7Ps marketing mix. You can book an appointment
for one-to-one or group tutoring through our website; ts-hub.com
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