Service marketing mix or 7Ps of Services

1. The Service Marketing Mix
or
Extended/Augmented Marketing Mix
or
7P’s of Services
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Dr. Amitabh Mishra

2. The Services Marketing Mix
• Marketing mix is
“a tools available to a business to gain the reaction
it is seeking from its target market in relation to its
marketing objectives”.
• Traditional 4P’s can not be applied to services,
because services are different from physical
goods. Hence, 4P’s need to be extended.
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3. • The need for the extension arise due to-
– The high degree of direct contact between the service
providers and the customers,
– The highly visible nature of the service process, and
– The simultaneity of the production and consumption.
• “Booms and Bitner” suggested 7 P’s marketing mix
model for service firm in 1981.
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4. The Service Marketing Mix
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5. 1. PRODUCT
• Service is an intangible product. It consist of bundle of
feature & benefits that has relevance to a specific target
market.
– Physical goods feature.
– Accessories.
– Product line.
– Branding.
– Packaging. Etc.
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6. Product
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7. 2. Price
Customer’s sensitivity to price would be higher in services than goods.
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8. • Price component addresses management of all the
outlays incurred by customers in obtaining benefits
from service product.
• These outlays may include-
• Additional monetary cost (travel expenses to service location)
• Time expenditure.
• Unwanted mental and physical efforts.
• Exposure to negative sensory experience.
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9. 3. Place or Distribution
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10. Place
• The means by which products/services get from
producer to consumer and where they can be
accessed by the consumer.
• The more places to buy the product and the easier
it is made to buy it, the better for the business (and
the consumer?)
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11. • Services are intangible as well as inseparable.
• These two characteristics do not allow a service firm to
follow the same channel options available for goods
marketing.
• Services can not be stored and can not be separated
from producer.
• Hence, retailing can not be an independent activity in
service marketing.
• Direct selling is not a single way of selling services.
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12. • Other channel of distribution for services
are-
– Agents & Brokers
– Electronic channel
– Franchisers
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13. Place
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14. 4. Promotion
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15. 4. Promotion
• Since consumers are co-producers, it is
responsibility of service organisation to educate
and train consumers so as to make them prepared
to use services.
• In services marketing, promotion is educative in
nature.
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16. Promotion
• Strategies to make the
consumer aware of the
existence of a product
or service
• NOT just advertising.
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17. • Promotion can be delivered by –
– Individuals
• Sales people
• Front line staff
• Etc.
– Media
• TV
• Radio
• News papers
• Etc.
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18. Promotion
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19. 5. Process
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20. 5. Process
• A Process is
Functional activity that assures service
availability and quality
The method & sequence of actions in the
service performance
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21.  The process determines-
 The way people consume services
 The way functions are scheduled and routed
to provide promised services
 The way the physical setting is designed
technically
Service Marketing Mix Dr. Amitabh Mishra

22. Process
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23. 6. Physical Evidences
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24. 6. Physical Evidences
• Most services can not be offered with out the support of
tangibles.
• Though, customers can not see the services, they can
definitely see the tangibles associated.
• Customers look for clues to the likely quality of a service
also by inspecting the tangible evidence.
– For example: prospective customers may look to the design of learning materials, the
appearance of facilities, staff, etc.
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25. • All physical objects are used as physical evidence by the
customer to asses & expect performance from the service
provider.
• Some visible cues are-
• Appearance and building.
• Landscaping.
• Interior furnishing.
• Equipments.
• Staff members.
• Sign and printed materials.
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26. Physical Evidences
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27. 7. People
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28. 7. People
• Every employee of service organisation is a
marketing person, who undertake either full time
or part time marketing activity
• Without training and control employees tend to be
variable in their performance leading to variable
service quality
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29. People
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30. Service Marketing Mix Dr. Amitabh Mishra