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Services Marketing Mix

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Services Marketing Mix:

7 Ps for Services Traditional Marketing Mix

Expanded Mix for Services: 7 Ps

Building Customer Relationships Through

People, Processes, and Physical Evidence

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Traditional Marketing Mix

All elements within the control of the firm that

communicate the firms capabilities and image to

customers or that influence customer satisfactionwith the firms product and services:

Product

Price

Place

Promotion

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Expanded Marketing Mix forServices

PRODUCT PLACE PROMOTION PRICE

Ph sical oodfeatures

Channel type Promotionblend

Flexibility

Quality level Exposure Salespeople Price level

Accessories Intermediaries Advertising Terms

Packaging Outlet location Salespromotion

Differentiation

Warranties Trans ortation Publicity AllowancesProduct lines Storage

Branding

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PEOPLE PHYSICALEVIDENCE

PROCESS

Employees Facility design Flow of activities

Customers Equipment Number of steps

Communicatingculture and values

Signage Level of customer involvement

Employee research Employee dress

Other tangibles

Expanded Marketing Mix for

Services

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The 7Ps:(1) Product Elements

All Aspects of Service Performance that CreateValue

Core product featuresboth tangible and

intangible elements Bundle of supplementary service elements

Performance levels relative to competition

Benefits delivered to customers (customersdont buy a hotel room, they buy a good nightssleep)

Guarantees

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The 7Ps:(2) Place

Delivery Decisions: Where, When, and How

Geographic locations served

Service schedules

Physical channels

Electronic channels

Customer control and convenience

Channel partners/intermediaries

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The 7Ps:(3) Promotion

Informing, Educating,Persuading,and Reminding Customers Marketing communication tools

media elements (print, broadcast, outdoor, retail, Internet, etc.)

personal selling, customer service

sales promotion publicity/public relations

Imagery and recognition

branding

corporate design Content

information, advice

persuasive messages

customer education/training

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The 7Ps:(4) Price

Pricing Tasks

Selling price, discounts, premiums

Margins for intermediaries (if any)

Credit terms

Identify and Minimize Other Costs Incurred by Users

Additional monetary costs associated with service usage (e.g.,

travel to service location, parking, phone etc.)

Time expenditures, especially waiting

Unwanted mental and physical effort

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The 7Ps:(5) 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

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7Ps:(6) Process

Method and Sequence in Service Creation and Delivery

Design of activity flows

Number and sequence of actions for customers

Nature of customer involvement

Role of contact personnel

Role of technology, degree of automation

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The 7Ps:(7) People

Managing the Human Side of the Enterprise The right customer-contact employees

performing tasks well

job design

recruiting/selection

training

motivation evaluation/rewards

empowerment/teamwork

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The right customers for the firms mission

fit well with product/processes/corporate goals

appreciate benefits and value offered

possess (or can be educated to have) needed skills

(co-production)

firm is able to manage customer behavior

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Managing the 7Ps Requires Collaboration between

Marketing, Operations, and HR Functions

Customers

Operations

Management MarketingManagement

Human Resources

Management

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Challenges for Services

Defining and improving quality

Communicating and testing new services

Communicating and maintaining a consistentimage

Motivating and sustaining employee commitment

Coordinating marketing, operations and human

resource efforts

Setting prices

Standardization versus personalization