The problem is that $\phi(a \cdot b) = \phi(a) \cdot \phi(b)$ works if $a$ and $b$ are relatively prime, but it doesn't work in general.
Thus, it is true that $\phi(7000) = \phi(2^3) \cdot \phi(5^3) \cdot \phi(7)$. However, we cannot break $\phi(2^3)$ down to $\phi(2)^3$. (You can check that $\phi(2^3) = 4$ and $\phi(2)^3 = 1$.)
Thus, the problem reduces to figuring out how to evaluate $\phi(p^k)$ where $p$ is a prime. There is a nice formula for this, which isn't very tricky to find. Try some examples. Do you see a pattern?