In banking and financial services, the "7 Ps" refers to an expanded marketing mix specifically tailored to the unique characteristics of service industries. It's an elaboration on the traditional 4 Ps of marketing (Product, Price, Place, Promotion) with the addition of People, Process, and Physical Evidence. Banks, being service-oriented businesses, utilize these 7 Ps to effectively market their offerings.
Here's a breakdown of each element:
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Product: In banking, the "product" isn't a tangible good, but rather the financial services offered. These include:
- Checking and savings accounts
- Loans (mortgages, personal loans, business loans)
- Credit cards
- Investment products
- Insurance products
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Price: This refers to the fees, interest rates, and other charges associated with the bank's products and services. Pricing strategies must be competitive and transparent.
- Interest rates on loans and deposits
- Account maintenance fees
- Transaction fees
- Overdraft fees
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Place: This is where the bank's services are made available to customers. It encompasses physical branches, ATMs, online banking platforms, and mobile apps.
- Branch locations and accessibility
- ATM network
- Online banking platform usability
- Mobile app functionality
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Promotion: This includes all the marketing activities used to communicate with customers and promote the bank's offerings.
- Advertising (online, print, television, radio)
- Public relations
- Social media marketing
- Content marketing
- Sales promotions
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People: This refers to the bank's employees and their interactions with customers. Customer service quality is crucial in the banking industry.
- Employee training and knowledge
- Customer service skills
- Employee attitudes and professionalism
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Process: This refers to the procedures, mechanisms, and flow of activities by which the bank's services are delivered. Efficient and customer-friendly processes are essential.
- Loan application process
- Account opening process
- Complaint resolution process
- Online banking security procedures
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Physical Evidence: This refers to the tangible aspects of the service that customers can see and experience, which can impact their perception of the bank.
- Branch design and atmosphere
- Website and mobile app design
- Marketing materials
- Business cards
By focusing on all 7 Ps, banks can create a comprehensive marketing strategy that addresses the specific needs and expectations of their customers, ultimately building brand loyalty and increasing profitability. The "7 Ps" framework provides a structured approach to service marketing within the banking sector.
