Introduction to the 7Ps

Product – the first P

 Service Product Concept

• Core Benefit
• Basic Service Product
• Expected Service
• Augmented Service
• Potential Service
 Service Product Concept

• Core Benefit
– Is was the buyer is really buying – Use, benefit or solution
– E.g. – Movie ticket  Entertainment, Airline  Travel,
Cosmetic  Hope, Mobile service  Connectivity

• Basic Service Product

– The intangible service through which the core benefit is received
– Consists of all those factors which consumers assume to be present
in the offering. E.g. Air travel  Aircraft & basic infrastructure to
implement the service
 Service Product Concept

• Expected Service
– Customers expect to get certain service quality or features when they
purchase service. They are the unwritten features in given context.
– E.g. : Expecting a good in-flight food, pleasant service from crew

• Augmented Service
– Consists of measures taken to differentiate the service from
competitors and provide service quality beyond expectations
– Customer delight is an objective of augmentation
– E.g.: Providing business centre in the airline lounge or discounted
snacks at airport lounge (Jet Airways to its frequent Flyers)
 Service Product Concept
• Potential Service
– Includes all the augmentations and the futuristic product
development
– Finding out better ways of delighting the customer
– E.g.: Providing added services like sight seeing & cultural activities
apart from normal lodging & boarding by hotels

• Another way of segregating service is

– Core Service  Minimum expectation
– Supplementary Services  Providing an edge that helps in
differentiating the service provider
 Classification of supplementary services

• Facilitating Services
– Information
– Order taking
– Billing
– Payment
• Enhancing Services
– Consultations
– Hospitality
– Safe keeping
– Exceptions
 Facilitating Services

• Information
– Timely and accurate information regarding service hours, prices,
reminders, warnings, documentations, confirmation of reservation
etc by means of brochures, instruction books, video tapes, touch-
screen video displays etc
• Order taking
– Politeness, speed and accuracy to save consumer’s time and
prevent unnecessary mental or physical effort
– Order taking elements include applications, order entry,
reservations & check-ins
 Facilitating Services

• Billing
– Bills should be clear, informative and itemized without any
ambiguity. Inaccurate, illegible or incomplete bills lead to
dissatisfied customers
• Payment
– Customers expect ease and convenience of payment including
credit  increased used of debit and credit cards
 Enhancing Services

• Consultations
– Involves a dialogue to probe customer requirement and then to
develop a tailored solution
– Consultation elements include advice, personal counseling, training
in product use
• Hospitality
– Reflects pleasure at meeting new customers and greeting old ones
when they return, that is treating customers as guests
– Courtesy and consideration are the two key elements
– Recruiting employees who are naturally warm and welcoming for
customer contact jobs
 Enhancing Services

• Safe keeping
– Elements – Caring for possessions customers bring with them 
parking facility, valet parking, storage space, child care, per care, etc
– Caring for goods purchased by customers  packaging,
transportation, delivery, installation, inspection, repairs, etc
• Exceptions
– Include services that fall outside the routine of normal service
delivery
– Elements – Special requests, problem solving, handling complains
and suggestions, restitution compensation for serious
performance failures
 Technology & Services

• Inspite of the arrival of new technology broad service or category

or need remain constant over a long period of time
• Technology changes have altered product form but basic need
category is same
– VHS cassette rental  DVD rental  Home entertainment
– Traditional cinema halls  Multiplexes  Entertainment
– Traditional banking services  ATM, Debit & Credit cards
• Though some technology has drastically alltered or deleted
certain pattern/category of services
– Mobile versus pagers
– Internet surpassing traditional postal services
DEVELOPING NEW SERVICE OFFERING
 Stage I – CONSUMER BENEFIT CONCEPT

• Assess the consumer benefit

• Consumers don’t buy products because of their attributes
rather they buy the benefits
• Problems encountered
– In articulate consumers
– Benefit sought change overtime
– Wrong interpretation of hierarchy of benefits
• Proper market research and appropriate information search
should be undertaken
 Stage II – SERVICE CONCEPT

• Consumer benefits have to be translated into core,

facilitating and support services
• Aim being defining what general benefits the service
organization would offer to it’s customers
 Stage III & IV - SERVICE OFFER & DELIVERY

• Service Elements – Tangible & intangible

• Service Form – In what way/how
• Service Levels – Quality (Image, Technology & Function)
• Service Quantity – Volume, timing

• Careful planning is essential to deliver the right service in

the right form in the right quality and quantity
 Stage V – MANAGING IMAGE & COMMUNICATION

• Appropriate market communication strategies should be

prepared and implemented to not only inform and
persuade the customers but to also enhance the company’s
image
 Developing new service offering

Stage I CONSUMER BENEFIT What benefits consumer seeks

CONCEPT
Stage II SERVICE CONCEPT What benefits the services organization should offer

Stage III SERVICE OFFER Sr. Elements – Tangible & intangible

Sr. Form – In what way/how
Sr. Levels – Quality (Image, Technology & Function)
Sr. Quantity – Volume, timing
Stage IV SERVICE DELIVERY Using benchmarks
SYSTEM Developing process, people and facilities

Stage V MANAGING IMAGE To support an enhance perceptions on service offers

&COMMUNICATION