THE 7 P’s – MARKETING MIX
The term ‘marketing mix’ was first introduced by Jerome McCarthy in 1960. He grouped the main ingredients that are vital for the target market into 4 categories that are known today as the four P’s. This provides instructions for effective marketing and consists of:
• Product
• Price
• Place
• Promotion
These are the four main elements that the market manager can control. The main goal is to centre the 4 P’s onto the customers within the target market in order to achieve a positive response and perceived value from them.
PRODUCT The product is the main physical object that is meant to satisfy all customers’ needs, and it must also be designed to match these needs. The main elements that a company must offer and a product must consist of are:
- QUALITY - It must be high in quality in order to make people more buy it and be happy with it.
- STYLE - It must have style and be up to date with the latest trends.
- PACKAGING - The packaging must be attractive as this will persuade people to buy it and it also provides instructions and information about the product.
- DURABLE - The Company also needs to ensure that the product is durable and provide a warranty to ensure that it will last a specific amount of time.
- INSTALLATION - The Company can also offer to install the product and help with any setting up.
- AFTER SALES - After sales can also be offered to ensure the customer is still happy with the product or would like to upgrade to a newer version.
- BRANDING - The product must also be branded with the name of the company that created it, this also allows customers to see which brands are better than others in some cases.
- FEATURES - The product must also contain features and the company can provide information about these features to allow the customer to get the most out of it.
First Direct ensure that they offer the highest quality services and try to make sure all their customers are happy by ensuring their product is of the highest standards and meets the needs of all consumers.

PRICE The price is the amount of money the product is being sold for. In order to ensure the product is being bought by lots of customers, the company must make sure the price has a:
- BASIC PRICE – The company must ensure the product has a basic price
- DISCOUNTS – The company can offer discounts to attract more customers
- PRICING POLICY – The company must follow a specific pricing policy
- PRICE VARIATIONS – This changes depending on the price of the product
- PRICE DISCRIMINATION – This is when sales of identical goods or services are taken out at different prices from the same provider.
- TRADE IN TERMS – these are known based on the country’s export to import, and related to international trade and economics.
- PAYMENT TERMS – Discounts or reductions made to the price of products.
- CREDIT TERMS – The number of days between delivery and payment.

First Direct tries to ensure that their prices won’t be beaten by having a basic price and offering money to people who want to switch to them, it is also free to join.

PLACE
This covers the overall location, channels and logistics, and also the distribution of the product.
- CHOICE OF CHANNELS AND OUTLETS – The customers are given the choice about where to shop. E.g. the same company can open outlets and stores in more than one place, to make it more convenient for customers to shop.
- CHANNEL OF DISTRIBUTION – This links the manufacturer and customer through a product that is made available for potential customers to buy.
- CHANNEL VARIETY – Customers can choose from a variety of places to go.
- MARKET COVERAGE – This is when a number of outlets sell a specific brand.
- DEALER SUPPORT – support is offered to the dealers who need it.
- LONG AND SHORT CHANNELS – The variety of channels that can be used and offered.
- ROLE OF THE INTERMEDIARY – People or organisations who try and help resolve issues or problems that may occur.
- PHYSICAL DISTRIBUTION/LOGISTICS – They offer information and discussions about the various developments currently happening in the field.
- LOCATION – The place where the outlet itself is situated.
- PUSHING AND PULLING THROUGH THE CHANNELS – This is when the company may have to pull/push the product or service through the channel to the customer. =]

First Direct ensures that all customers know where and how to get in contact with them through their website (http://www.firstdirect.com/). Advertising like this lets customers communicate with first direct more easily and therefore gives them the chance to ask and find out what they need.

PROMOTION This is how the provider communicates with the consumer and represents itself to the public.
- MARKETING COMMUNICATIONS – How the product is portrayed to the market.
- ADVERTISING – This can be done through messages and also the media.
- PERSONAL SELLING – This is when the provider may choose to sell the product themselves, or sell the product door to door.
- SALES PROMOTION – This is when you can promote the product and try to represent it more, and also offer discounts to increase sales.
- PUBLIC RELATIONS/PUBLICITY – This shows how the provider communicates with its customers and maybe how it can manage it better.
- SPONSORSHIP – This is when the company may get another provider to sponsor them, or the company itself sponsors another in order to gain advertising.
- DIRECT MARKETING – this is marketing through that can be through a promotion delivered straight to the customer.

First Direct promotes themselves by advertising on their website and in papers, billboards and other websites. This portrays them in a positive way because they try to communicate with their customers. On their website they also stress the fact that their online banking is easy to use, secure and completely free to join.

The four P’s of Product, Price, Place and Promotion PLUS People, Process, and Physical Evidence create the overall 7 P’s. The 7 P’s are considered to be more appropriate than the 4 P’s in the marketing of services.

PEOPLE –
The people are mainly the customers, management, employees, and also anyone else who is involved.
- The people offer help to deliver services, and they also help to promote and sell the products.
- The people believe that service quality and standard are the key sources to retention and also brand differentiation.
- They also believe that skills, appearance and manner are important especially in the marketing of services.
First Direct ensures that all customers who are involved with them are satisfied, for example they insist on having real people answer telephone calls, instead of automated machines. This shows that they are there for customers whenever they need them, ‘365 days a year, 7 days a week’!

PROCESS -
This is how the customers are treated from the first to last stage of contact.
This process covers:
- Procedures
- Accessibility
- Controls
- Information Flows
- Booking
- Payments
- Speed and timing of delivery.
First Direct ensures that all customers are treated and assisted with whatever problem they may have for example they make sure that all telephone calls to them are always answered within 2 minutes, they also do online banking which brings all online finances together in one place so customers can manage their accounts with just the click of a button.

PHYSICAL EVIDENCE -
The Physical form of the service, e.g. bank statement or train ticket.
This also covers:
- Place of availability
- Ambience
- Facilities
- Décor
- Layout
This is mainly the tangible evidence of a service provided.
First Direct carries out physical evidence by only delivering services to residents in the United Kingdom. =]