The service marketing mix is also known as an extended marketing mix and it is an integral part of a service blueprint design. The service marketing mix consists of 7 P’s as compared to the 4 P’s of a product marketing mix required for optimum service delivery.
Product – The product in service marketing mix is intangible in nature. Like physical products such as soap or a detergent, service products cannot be measured. Tourism industry or the education industry can be an excellent example. At the same time service products are heterogeneous and perishable in nature. The service product thus has to be designed with care. Generally a service blue print is drawn to define the service product. For example – a restaurant blue print will be prepared before establishing a restaurant business. This service blue print defines exactly how the product (in this case the restaurant) is going to be.
Place – In case of services marketing, Place determines, where and how the service product is to be delivered. The best place to open up a petrol pump is on the highway or in the city. Similarly a software company will be better placed in a business hub with a lot of companies nearby rather than being placed in a town or rural area.
Promotion – Promotions have become a critical factor in the service marketing mix. Services are easy to be duplicated and hence it is generally the brand which sets a service apart from its counterpart. You will find a lot of banks and telecom companies promoting rigorously. Why is that? It is because, competition in this service sector is generally high and a promotion is necessary to survive.
Pricing – Pricing in case of services is rather more difficult than in case of products. If you are a restaurant owner, you can charge the price from people only for the food you are serving. But then who will pay for the nice ambience you have built up for your customers? Who will pay for the band you have for music? Thus these elements also have to be taken into consideration while setting price for a product.
Here on we start towards the extended service marketing mix.
People – In case of service marketing, people can make or break an organization. Thus many companies nowadays are involved into specially getting their staff trained in interpersonal skills and customer services with a focus towards customer satisfaction. In fact many companies have to undergo accreditation to show that their staffs are better than the rest, definitely an USP in case of services.
Process – Service process is the way in which a service is delivered to the end customer. Let’s take the example of two very good companies – McDonalds and FedEx. Both the companies thrive on their quick services and the reason is their confidence on their processes. On top of it, the demands of these services are such that they have to deliver optimally without a loss in quality. It is also a critical component in the service blueprint, wherein before establishing the service, the company defines exactly what should be the process of the service product reaching the end customer.
Physical Evidence – The last element in the service marketing mix is a very important element. As said before, services are intangible in nature. However, to create a better customer experience tangible elements are also delivered with the service. Take an example of a restaurant which has only chairs and tables and good food, or a restaurant which has ambient lighting, nice music along with good seating arrangement and good food. Which one will you prefer? Definitely the next one, that’s the example of physical evidence. Several times, physical evidence is used as a differentiator in service marketing. Imagine a private hospital and a government hospital. A private hospital will have plush offices and well dressed staff. Same cannot be said for a government hospital. Thus physical evidence acts as a differentiator.
