ENTREPRENEURS

HIP
 THE 7Ps of
MARKETING
 PRODUCT
 In the manufacturing industry, the production and consumption
of the product are not simultaneous and it is tangible, not always
diverse nor usually perishable.
 In the service industry, the production and consumption of the
product are simultaneous and the product is intangible, diverse
and perishable. The nature of this product allows for on the spot
customization. This also means that the point at which this
activity is occurring becomes very important.
 PRICE
 With a product, the materials that go with it can be measured and
its actual tangible cost of production is also measurable.
Therefore, it is not that difficult to put a price tag on it. However,
since a service cannot be measured by what material goes into its
creation, nor is the actual tangible, cost of production
measurable, it can be to put a price tag on it. There are some
tangibles, of course, such as the labor costs and overheads. But,
additionally, the ambiance, the experience, and the brand name
also factor into the final price offering.
 PLACE
 The product is not necessarily produced and consumed in the
same place. The place of production or the plant site can be
different from the place of distribution or selling. As mentioned,
the service is produced and consumed in the same place. It
cannot be owned and taken away from the location. This is why
the place at which transaction occurs is of vital importance.
 PROMOTION
 Itfulfills the same role as it does in any other marketing context.
A service may be more easily replicated than a physical product.
To prevent a service becoming interchangeable with its
competitors, it becomes vital to create a desirable brand image
and name in the market. Differentiation becomes a key goal in
order to attract both new and repeat customers.
 PEOPLE
 In the production of a product, the people needed to do the tasks
are not directly dealing with the customers, so that customer
service training is not a priority, but production related training
is. People element is vitally important in the service marketing
mix. “When a service is being delivered, the person delivering it
is not unique from the service itself.
 PEOPLE
 When dining at a restaurant, if a rude waiter is encountered, the
entire experience will be labeled as bad service. This is why
many businesses invest in defining the right kind of person to fill
this service role and then making efforts to find or train people to
fit this definition.
 PROCESS
 Production of a product can be standardized, customized/
personalized or both. The process of production can involve
steps/procedures that require precision and standard measures of
inputs to produce the desired quality and quantity of product.
However, “since service provision needs to strike a balance
between customization and standardization, the processes
involved in the activity require special mention and attention.
 PROCESS
A process needs to be clearly defined for the service provider.
This basic process should ensure the same level of service
delivery to every customer, at any time of day, on any day.
Within this process, there should be defined areas where a
customer preference can be accommodated to provide a unique
experience.
 PHYSICAL EVIDENCE
 With a product, the location of the manufacturing site or plant
site is dependent on the availability and accessibility of
materials, manpower, machineries, nature of the product, and the
target market. With service, the location of the service delivery
also takes on significance . The level of comfort and
attractiveness of service location may make a lot of difference to
the user experience. A calm and soothing environment with
thoughtful comfort measures may provide a sense of security to a
new customer which will make them return.