13-09-2017, 02:31 PM
The blend of marketing services is also known as an extended marketing mix and is an integral part of a service plan design. The service marketing mix is made up of 7 P's as opposed to the 4 P's of a product marketing mix. Simply put, the service marketing mix assumes the service as a product itself. However, it adds 3 more P's that are required for optimal service delivery.
The product marketing mix consists of the 4 P's that are product, pricing, promotions and placement. These are discussed in my article on Product Marketing Mix - 4 p.
The extended marketing marketing mix places 3 additional P's that include people, process and physical evidence. All these factors are necessary for optimal service delivery.
1) Product
The product in the service marketing mix is intangible in nature. Like physical products such as soap or detergent, service products can not be measured. The tourism industry or the education industry can be an excellent example. At the same time the service products are heterogeneous, perishable and can not be owned.
The service product has to be designed with care. Generally, blue service printing is done to define the service product. For example - a blue restaurant print will be prepared prior to establishing a restaurant business. This blue print of the service defines exactly how the product (in this case the restaurant) is going to be.
2) Place
Place in case of services determine where the service product will be located. The best place to open a gas pump is on the road or in the city. A place where there is minimal traffic is an incorrect place to start a gas pump. Likewise a software company will be best placed in a business center with a lot of nearby businesses instead of being placed in a city or rural area. Learn more about the role of business locations or the Place element.
3) Promotion
Promotions have become a critical factor in the mix of marketing services. The services are easy to duplicate and therefore it is usually the brand that establishes a service apart from its counterpart. You will find a lot of banks and telecommunications companies that are rigorously promoted.
Why is that? It is because the competition in this service sector is generally high and the promotions are necessary to survive. Thus, banks, IT companies and dotcom companies are placed above the rest by advertising or promotions.
4) Prices
Prices in case of services is considerably more difficult than in the case of products. If you were a restaurant owner, you can price people just for the food you are serving. But then who will pay for the pleasant environment you have built for your clients? Who will pay for the band you have for music?
Therefore, these elements must be taken into account when calculating costs. In general, the price of services involves taking into account labor costs, material costs and overheads. By adding a profit mark until you get your final price service. You can also read about pricing strategies.
Here we start toward the extended service marketing mix.
5 people
People are one of the elements of the service marketing mix. People define a service. If you have an IT company, your software engineers define it. If you have a restaurant, your chef and the service staff define it. If you are on the bench, your branch employees and their behavior toward customers define it. In the case of marketing services, people can make or break an organization.
Therefore, many companies today are involved in getting especially their staff trained in interpersonal skills and customer service with a focus towards customer satisfaction. In fact, many companies have to undergo accreditation to prove that their staff is better than the rest. Definitely a USP in case of services.
6) Process
The service process is the way a service is delivered to the end customer. Let's take the example of two very good companies - Mcdonalds and Fedex. Both companies thrive on their fast service and the reason they can do that is their confidence in their processes.
In addition, the demand for these services is such that they have to deliver optimally without loss of quality. Therefore, the process of a service company in the delivery of your product is of utmost importance. It is also a critical component of the service plan, where before establishing the service, the company defines exactly what the service product process that reaches the end customer should be.
7) Physical Evidence
The last element of the service marketing mix is a very important element. As we said before, services are intangible by nature. However, to create a better customer experience tangible elements are also delivered with the service. Take an example of a restaurant that has only chairs and tables and good food, or a restaurant that has ambient lighting, good music along with good seating arrangement and this also serves good food. Which prefer? The one with the friendly atmosphere. That is physical evidence.
Several times, physical evidence is used as a differentiator in marketing services. Imagine a private hospital and a government hospital. A private hospital will have luxurious offices and well-dressed staff. The same can not be said of a government hospital. Thus, physical evidence acts as a differentiator.
The product marketing mix consists of the 4 P's that are product, pricing, promotions and placement. These are discussed in my article on Product Marketing Mix - 4 p.
The extended marketing marketing mix places 3 additional P's that include people, process and physical evidence. All these factors are necessary for optimal service delivery.
1) Product
The product in the service marketing mix is intangible in nature. Like physical products such as soap or detergent, service products can not be measured. The tourism industry or the education industry can be an excellent example. At the same time the service products are heterogeneous, perishable and can not be owned.
The service product has to be designed with care. Generally, blue service printing is done to define the service product. For example - a blue restaurant print will be prepared prior to establishing a restaurant business. This blue print of the service defines exactly how the product (in this case the restaurant) is going to be.
2) Place
Place in case of services determine where the service product will be located. The best place to open a gas pump is on the road or in the city. A place where there is minimal traffic is an incorrect place to start a gas pump. Likewise a software company will be best placed in a business center with a lot of nearby businesses instead of being placed in a city or rural area. Learn more about the role of business locations or the Place element.
3) Promotion
Promotions have become a critical factor in the mix of marketing services. The services are easy to duplicate and therefore it is usually the brand that establishes a service apart from its counterpart. You will find a lot of banks and telecommunications companies that are rigorously promoted.
Why is that? It is because the competition in this service sector is generally high and the promotions are necessary to survive. Thus, banks, IT companies and dotcom companies are placed above the rest by advertising or promotions.
4) Prices
Prices in case of services is considerably more difficult than in the case of products. If you were a restaurant owner, you can price people just for the food you are serving. But then who will pay for the pleasant environment you have built for your clients? Who will pay for the band you have for music?
Therefore, these elements must be taken into account when calculating costs. In general, the price of services involves taking into account labor costs, material costs and overheads. By adding a profit mark until you get your final price service. You can also read about pricing strategies.
Here we start toward the extended service marketing mix.
5 people
People are one of the elements of the service marketing mix. People define a service. If you have an IT company, your software engineers define it. If you have a restaurant, your chef and the service staff define it. If you are on the bench, your branch employees and their behavior toward customers define it. In the case of marketing services, people can make or break an organization.
Therefore, many companies today are involved in getting especially their staff trained in interpersonal skills and customer service with a focus towards customer satisfaction. In fact, many companies have to undergo accreditation to prove that their staff is better than the rest. Definitely a USP in case of services.
6) Process
The service process is the way a service is delivered to the end customer. Let's take the example of two very good companies - Mcdonalds and Fedex. Both companies thrive on their fast service and the reason they can do that is their confidence in their processes.
In addition, the demand for these services is such that they have to deliver optimally without loss of quality. Therefore, the process of a service company in the delivery of your product is of utmost importance. It is also a critical component of the service plan, where before establishing the service, the company defines exactly what the service product process that reaches the end customer should be.
7) Physical Evidence
The last element of the service marketing mix is a very important element. As we said before, services are intangible by nature. However, to create a better customer experience tangible elements are also delivered with the service. Take an example of a restaurant that has only chairs and tables and good food, or a restaurant that has ambient lighting, good music along with good seating arrangement and this also serves good food. Which prefer? The one with the friendly atmosphere. That is physical evidence.
Several times, physical evidence is used as a differentiator in marketing services. Imagine a private hospital and a government hospital. A private hospital will have luxurious offices and well-dressed staff. The same can not be said of a government hospital. Thus, physical evidence acts as a differentiator.