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 7–Ps mix.
The need for the extension is 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.

Characteristics of Services compared to goods:

 Intangibility
 Heterogeneity
 Simultaneous production and consumption
 Perishability

Services are defined by user needs and demands and as services are intangible
hence the requirement of engulfing factors such as people who take part in service
delivery, the environment in which the service is delivered and the process of
carrying out the function is realised so as to sell service in form of a tangible
experience.

People

Everyone who take part in delivery of service are relevant to the service quality and
consistency. Here customers can influence service delivery thus affecting service
quality as they influence other customers choice of service along with their
individual perception and expectations of the service.

E.g.,- Employees(Recruiting, Training, Teamwork, Motivation, Rewards),

Customers(Training and Education).

Process

All Processes are concerned with the consistent creation and delivery of customer
value.

The Customer’s experience is affected directly at those points at which he/she

interacts with the organisation.

Processes should be continuously reviewed and co-ordinated to improve the

customer experience and demonstrate customer orientation and empathy.

E.g.,- Standardization, Customization, Simplex Method.

Process Decisions

 Enquiry or Information Search

 Point of Purchase
 Delivery
 After sales
Physical Evidence

 Corporate Identity
 Evidence of Ownership
 Environment
 Product Design
 Packaging

Should provide physical evidence of delivered quality. Should be consistent

through entire customer experience. Provides conformation of customer’s
expectations.

E.g.,- Servicescape(Facility Interior and Facility Exterior), Other Intangibles.

Equitable Relation

The 7 Ps The 7 Cs

<Organisation Facing Customer Facing>

Product = Customer Value

Price = Cost

Place = Convenience

Promotion = Communication

People = Caring

Processes = Co-ordinated

Physical evidence = Confirmation

ILLUSTRATION OF 7 P’S –McDonalds Outlets

Product

Burgers, French Fries, Salads, Desserts.

Price

Burgers (20-100)

Chicken (50-80)

Desserts (30-120)

Cost based and competitive pricing

Promotion
Advertising (tv commercials, hoardings and banners)

Sales Promotion (Coupons and Happy meals)

Public Relations (Ronald McDonald Foundation)

Place

Branches are evenly spread out all over the country offering delivery services and
drive-thru services.

People

Employees have a standard uniform and they focus on friendly and prompt service
to their customers.

Process

The food manufacturing process at McDonalds is completely transparent.

Physical Evidence

They focus on clean, etiquette and hygienic interiors which are spacious and
attractive to the consumer