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Service marketing mix or 7Ps of Services

1. The document discusses the service marketing mix, also known as the 7Ps, which extends the traditional 4Ps marketing mix to account for the unique characteristics of services. 2. The 7Ps include Product, Price, Place, Promotion, Process, Physical Evidence, and People. Each P represents an important consideration for marketing services, such as the role of customers in service delivery and the importance of employee training. 3. The service marketing mix framework was developed by Booms and Bitner in 1981 to better capture all the elements that impact a customer's experience with a service beyond just product, price, place, and promotion.

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The Service Marketing Mix or Extended/Augmented Marketing Mix or 7P’s of Services Service Marketing Mix 1 Dr. Amitabh Mishra
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. Service Marketing Mix 2 Dr. Amitabh Mishra
• 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. Service Marketing Mix 3 Dr. Amitabh Mishra
The Service Marketing Mix Service Marketing Mix 4 Dr. Amitabh Mishra
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. Service Marketing Mix 5 Dr. Amitabh Mishra
Product Service Marketing Mix 6 Dr. Amitabh Mishra
2. Price Customer’s sensitivity to price would be higher in services than goods. Service Marketing Mix 7 Dr. Amitabh Mishra
• 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. Service Marketing Mix 8 Dr. Amitabh Mishra
3. Place or Distribution Service Marketing Mix 9 Dr. Amitabh Mishra
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?) Service Marketing Mix 10 Dr. Amitabh Mishra
• 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. Service Marketing Mix 11 Dr. Amitabh Mishra
• Other channel of distribution for services are- – Agents & Brokers – Electronic channel – Franchisers Service Marketing Mix 12 Dr. Amitabh Mishra
Place Service Marketing Mix 13 Dr. Amitabh Mishra
4. Promotion Service Marketing Mix 14 Dr. Amitabh Mishra
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. Service Marketing Mix Dr. Amitabh Mishra 15
Promotion • Strategies to make the consumer aware of the existence of a product or service • NOT just advertising. Service Marketing Mix 16 Dr. Amitabh Mishra
• Promotion can be delivered by – – Individuals • Sales people • Front line staff • Etc. – Media • TV • Radio • News papers • Etc. Service Marketing Mix Dr. Amitabh Mishra 17
Promotion Service Marketing Mix 18 Dr. Amitabh Mishra
5. Process Service Marketing Mix 19 Dr. Amitabh Mishra
5. Process • A Process is Functional activity that assures service availability and quality The method & sequence of actions in the service performance Service Marketing Mix 20 Dr. Amitabh Mishra
 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
Process Service Marketing Mix 22 Dr. Amitabh Mishra
6. Physical Evidences Service Marketing Mix 23 Dr. Amitabh Mishra
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. Service Marketing Mix 24 Dr. Amitabh Mishra
• 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. Service Marketing Mix 25 Dr. Amitabh Mishra
Physical Evidences Service Marketing Mix 26 Dr. Amitabh Mishra
7. People Service Marketing Mix 27 Dr. Amitabh Mishra
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 Service Marketing Mix 28 Dr. Amitabh Mishra
People Service Marketing Mix 29 Dr. Amitabh Mishra
Service Marketing Mix Dr. Amitabh Mishra