Compound 7P NEW

**Compound 7P - Product Overview**  

**Definition:**  

Compound 7P refers to the seven key elements of the service marketing mix: **Product**, **Price**, **Place**, **Promotion**, **People**, **Physical Evidence**, and **Process**. This framework extends the traditional 4P model by incorporating additional factors critical to service-based industries, ensuring a comprehensive approach to marketing strategy.  

**Functions:**  

1. **Product:** Defines the scope, quality, and branding of the service offered.  

2. **Price:** Establishes pricing strategies, including discounts and payment terms, to reflect value and competitiveness.  

3. **Place:** Focuses on the accessibility and distribution channels for service delivery.  

4. **Promotion:** Utilizes advertising, sales promotions, and public relations to communicate value to customers.  

5. **People:** Emphasizes the role of employees and customers in service delivery and experience.  

6. **Physical Evidence:** Highlights the tangible aspects that influence customer perception, such as environment and equipment.  

7. **Process:** Ensures efficient and customer-friendly service delivery systems.  

**Applications:**  

1. **Service Industries:** Widely used in sectors like hospitality, healthcare, and finance to enhance customer satisfaction and operational efficiency.  

2. **Marketing Strategy Development:** Helps businesses create holistic marketing plans by addressing all critical aspects of service delivery.  

3. **Customer Experience Optimization:** Improves service quality by focusing on tangible and intangible elements that impact customer perception.