Augmented Marketing Mix in

Services Marketing
 Traditional Marketing Mix
• Product
• Price
• Place
• Promotion
 Expanded Mix for Services --
The 7 Ps
• Product
• Price
• Place
• Promotion
• People
– All human actors who play a part in service delivery and
thus influence the buyer’s perceptions
• Physical Evidence
– The environment in which the service is delivered and any
tangible components that facilitate performance
• Process
– The actual procedures, mechanisms, and flow of activities
by which the service is delivered
The Extended Marketing Mix
Marketing Mix - People
Marketing Mix - People
 Marketing Mix - People
• People refers to your customer service staff and the attitude
and appearance that is reflective of your organization, or
perceived by your customer.
• You cannot have strong corporate image without good
people; good people that listen to your customers, and good
people that communicate those comments, concerns, and
needs to your entire organization.
• Your people can determine whether your customer will
return.
 Marketing Mix - People
• How to develop PEOPLE into a competitive advantage?
– Recruitment and selection – choose the right people for the
right job (with good attitude)
– Training – product knowledge, customer service skills and
the processes
– Development – prepare employees to take on greater roles
and responsibilities in future
– Compensation – do not underpay in terms
of salaries and benefits.
 Marketing Mix - People
• How to develop PEOPLE into a competitive advantage?
– Treatment– treat employees well with dignity and respect
– Working environment - provide a safe and comfortable
working environment, foster teamwork and cooperation
– Empowerment – allow employees the power to
– make decisions that enables them to serve customers
better, make employees
– accountable for their actions
 Marketing Mix - Process
• Procedure, mechanism and flow of activities by
which services are used.
• Also the 'Procedure' how the product / service
will reach the end user.
• Always focus on simplifying the process for
your prospective customers.
 Marketing Mix - Process
• How to make PROCESS a competitive advantage?
– Simplify – make processes simple for customers to
understand and perform
– Convenient – make processes convenient for
customers from their perspective
– Reduce waiting time – do not let guests wait too
long for the service
 Marketing Mix – Physical Evidence
 The elements of 'marketing mix' which customers
can actually see or experience when they use a
service.
 Contribute to the perceived quality of the service
 Marketing Mix – Physical Evidence
 Include the following elements:
Furniture and furnishing of the rooms and all public
areas
Façade and appearance of building
Brochures, paperwork and stationery
 Lighting and ambience
 Signage
 Temperature and noise
 Appearance of staff
 Web pages
 Appearance of advertisements
Marketing Mix – Physical Evidence
• Physical Evidence must go in line with the
positioning of the co. eg. hotel.
• A luxury hotel MUST appear luxurious!
• A budget hotel however does not need to look
cheap!
• Physical evidence must make the customer
perceive the hotel offers value and comfort.