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The service marketing mix

Services Marketing

Basit Afzal

what is significant about services

are the relative dominance of

intangible attributes in the make-up
of the service product. Services
are a special kind of product. They
may require special understanding
and special marketing efforts.

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The service marketing mix

The services marketing mix is an

extension of the 4-Ps framework. The

essential elements of product, promotion,
price and place remain but three
additional variables people, physical
evidence and process are included to
7Ps mix.

The need for the extension is due to the
high degree of direct contact between the
providers and the customers, the highly
visible nature of the service process, and
the simultaneity of the production and
consumption.

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The service marketing mix

While it is possible to discuss

people, physical evidence and

process within the original 4-Ps
framework (for example people can
be considered part of the product
offering) the extension allows a
more thorough analysis of the
marketing ingredients necessary for
successful services marketing.

The service marketing mix

People because of the simultaneity of

production and consumption in services

In fact the service quality is inseparable
from the quality of service provider. An
important marketing task is to set
standards to improve quality of services
provided by employees and monitor their
performance.

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The service marketing mix

Without training and control

employees tend to be variable in

their performance leading to
variable service quality. Training is
crucial so that employees
understand the appropriate forms
of behaviour and trainers adopt the
best practises

The service marketing mix

Physical evidence this is the

environment in which the service is

delivered and any tangible goods that
facilitate the performance and
communication of the service.
Customers look for clues to the likely
quality of a service also by inspecting the
tangible evidence.

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The service marketing mix

Expanded Marketing Mix for Services

Process this means procedures,

mechanism and flow of activities by

which a service is acquired. Process
decisions radically affect how a service
is delivered to customers.

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Characteristics of Services Compared to Goods

Implications of Intangibility

Services cannot be inventoried

Intangibility

Simultaneous
Production
and
Consumption

Heterogeneity

Services cannot be easily patented

Services cannot be readily displayed or

Perishability

communicated

Pricing is difficult

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Implications of Heterogeneity

Implications of Simultaneous Production and

Consumption

Service delivery and customer

satisfaction depend on employee and

customer actions

Service quality depends on many

uncontrollable factors

There is no sure knowledge that the

service delivered matches what was

planned and promoted

Customers participate in and affect the transaction

Customers affect each other

Employees affect the service outcome

Decentralization may be essential

Mass production is difficult

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Implications of Perishability

It is difficult to synchronize supply and

demand with services

Services cannot be returned or resold

Challenges for Services

Defining and improving quality

Designing and testing new services

Communicating and maintaining a

consistent image

Accommodating fluctuating demand

Motivating and sustaining employee
commitment

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Challenges for Services

Coordinating marketing, operations, and

human resource efforts

Setting prices

Finding a balance between
standardization versus personalization

Ensuring the delivery of consistent
quality

Ways to Use the 7 Ps

Overall Strategic Assessment

How effective is a firms

services marketing mix?
Is the mix well-aligned with
overall vision and strategy?
What are the strengths and
weaknesses in terms of the
7 Ps?

Specific Service Implementation

Who is the customer?

What is the service?
How effectively does the
services marketing mix for a
service communicate its
benefits and quality?
What changes/
improvements are needed?

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The 7Ps:
Physical Environment
Designing the Servicescape and providing tangible
evidence of service performances

Create and maintaining physical appearances

buildings/landscaping

interior design/furnishings

vehicles/equipment

staff grooming/clothing

sounds and smells

other tangibles

Select tangible metaphors for use in marketing communications

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