7 Ps of Services Marketing

1. 7 Ps OF SERVICES MARKETING
TRADITIONAL MARKETING MIX
- 4 P’s of Marketing was created by E.Jerome McCarthy
in 1960s.
- Product, Place, Price, Promotion
- Additional 3 P’s of Services marketing were
developed in the 1990s.
- Traditional 4 P’s are adequate for product marketing,
but inadequate for Services marketing – because:
- Products are tangible; services are intangible
- Lack of ability to store services for future sale
- Greater variability in service delivery
- Greater variability among service customer’s
expectation.

2. 7 Ps OF SERVICES MARKETING
MARKETING STRATEGY FOR SERVICES
STRATEGY
SELECTION : S, T, P
-Segmentation
-Target Market
Selection
-Positioning
STRATEGY EXEUTION
7 P’s of Services Marketing
-Product
-Price
-Place
- Promotion
- People
- Process
- Physical Evidence

3. 7 Ps OF SERVICES MARKETING
7 ‘P’s of
Service
Marketing
4.PROMOTION
5. PEOPLE
6. PROCESS
7. PHYSICAL
EVIDENCE
1. PRODUCT
2. PLACE
3. PRICE

4. 7 Ps OF SERVICES MARKETING – 1.PRODUCT
1. PRODUCT :
A product can be defined as a mix of
intangibles and tangibles offered by the
marketer at a price.
Ex. You are buying a bike from Suguna
Automobiles, Coimbatore. You are given the
bike and offered free services. The bike is a
tangible product and the free services offered
is intangible services.

5. 7 Ps OF SERVICES MARKETING – 1.PRODUCT
1. PRODUCT :
 Bundle of utilities; build or produced to satisfy
the needs of a certain group of people
 Tangible or intangible – in the form of goods or
services
 No use of developing a product or service that no
one wants to buy
 Successful companies produce what the
customers wants or need at present & future
 Perfect product provides value for the customer
 There are differences between products and
services

6. 7 Ps OF SERVICES MARKETING – 1.PRODUCT
SERVICE PRODUCT CONCEPT:
Theodore Levitt’s Product Concept Model helps to
understand how service can be differentiated.
Core Benefit
Basic Service
Expected
Service
Augmented
Service
Potential
Service

7. 7 Ps OF SERVICES MARKETING – 1.PRODUCT
SERVICE PRODUCT CONCEPT:
• Core Benefit:
- Core benefit is what the buyer really buying. It is
the need or want that is being fulfilled.
Examples: when you buy a movie ticket the core
benefit is entertainment
- When you go to gym, you get health and fitness
as the services
- When you buy a airline ticket, you get the core
benefit of travelling from one place to other.

8. 7 Ps OF SERVICES MARKETING – 1.PRODUCT
SERVICE PRODUCT CONCEPT:
• Basic Service: The intangible service
through which the core benefit is called basic
service.
Example: An airline has aircraft and other
infrastructure to implement their service. Low
cost airlines Indigo, Air Asia will provide its
customers only with basic service.

9. 7 Ps OF SERVICES MARKETING – 1.PRODUCT
SERVICE PRODUCT CONCEPT:
• Expected Service:
- Customers expect to get certain service
quality or features when they purchase
services.
Example: When you go to a hotel, you can
expect rest rooms.
When you book a flight ticket, you can expect
good in-flight food, pleasant service from well
trained crews.

10. 7 Ps OF SERVICES MARKETING – 1.PRODUCT
SERVICE PRODUCT CONCEPT:
• Augmented Service:
- An augmented service is enhanced by its provider with
added features or services.
Example:
you order a Non-veg meal in a restaurant. The food is a
product. But everything else involved in the experience
is the service: the quality of the serving staff (people),
how quickly the food is served (process), and the
restaurant’s ambiance (Physical evidence)
You are booking a chef and his team for preparing food
for a marriage function. But he helps you in booking
for photography, orchestra, etc. This is augmented
service

11. 7 Ps OF SERVICES MARKETING – 1.PRODUCT
SERVICE PRODUCT CONCEPT:
• Potential Service:
- The service firm tries to find out better ways of
delighting customers.
Example : A hotel unit in a tourist location
providing boarding and lodging can expand itself
to the residents on sight seeing tours, arrange
cultural evenings.
A College providing the core benefit of education
has the potential to provide great placements,
bring out latest developments in its curriculum,
developing its alumni into brand ambassadors.

12. 7 Ps OF SERVICES MARKETING – 1.PRODUCT
SERVICE PRODUCT CONCEPT:
• What does the customer want from the product/service?
• What customer needs does it satisfy?
• What features does it have to meet these needs?
- Are there any features you have missed out?
- Are you including costly features that the customer
won’t actually use?
- How and where will the customer use it?
- What size(s), colour(s), and so on, should it be?
- What is it to be called?
- How is it branded?
- How is it differentiated from your competitors?

13. 7 Ps OF SERVICES MARKETING – 2.PLACE
2. PLACE :
- Place refers to the accessibility of the service to customers.
- Location is the key to successful marketing of services.
- A customer is often present at the same place where a
service is ‘manufactured’ and delivered. (example : Beauty
saloon, restaurant, hotel etc.)
- Customers will choose a conveniently located supplier of
services over the best service provider located far away
because transportation is not cheap.
- Position and distribute the product in a place that is
accessible to potential buyers
- The product or service must be available in the right place,
at the right time and in the right quantity.

14. 7 Ps OF SERVICES MARKETING – 2.PLACE
2. PLACE :
- Place also means ways of displaying product to
customer groups. This could be in a shop window, but
it could also be online.
- For physical locations, convenience, ambience and
facilities matter
- For online services, a user-friendly website or app is
essential
- The location strategy of D’Mart is one of the reasons
for its success. There is an ambience of parking
vehicles, near to Bus stand, Airport, situated on the
main road etc.

15. 7 Ps OF SERVICES MARKETING – 2.PLACE
2. PLACE
Factors to be considered for location and place:
What locations do buyers look for your product?
How can I locate the finest distribution
channels?
The placement / location of rival businesses
If you are rendering service online, do you offer
your services using your business website or
online marketplace like amazon, flipkart, ola,
uber etc.

16. 7 Ps OF SERVICES MARKETING – 3.PRICE
3. PRICE
Price involves determining the right amount
customers should pay for the service.
Considering various factors like cost, competition,
and perceived value is crucial. Pricing strategies,
such as discounts, memberships, or packages, can
attract different customer segments.
The price should reflect the service’s value,
ensuring it’s affordable for customers while
generating revenue for the business.

17. 7 Ps OF SERVICES MARKETING – 3.PRICE
3. PRICE
While deciding on a price, marketers should consider the
worth of the services and consider the various aspects
of different pricing strategies.
• What is the price of your service?
• The cost of the services offered by competitors
• Does the customer have to adhere to any credit terms?
• Whether any kind of discount is offered to the
customers?
• Cost of materials, labour and other overhead expenses
for rendering the service.

18. 7 Ps OF SERVICES MARKETING – 3.PRICE
3. PRICE
- The service is only worth what customers are prepared
to pay for it.
- The price need to be competitive
- Pricing is the only element of the marketing mix that
generates revenue ( earns profit)
- Price helps to position a service in the market
- The more price, the more value or quality customers
expect for their money
- Existing customers are generally less sensitive about
price than new customers.
Example : Service in automobiles, hospitals, hotels etc.

19. 7 Ps OF SERVICES MARKETING – 3.PRICE
3. PRICE
Difference names for prices in service industries.
• Interest rates, Processing fees in bank or other loans
• Fees in education, consultancy
• Service charge in hotels
• Nursing charge in hospitals
• Loading – entry / exit in mutual fund products
• Brokerage / Commission in sale or purchase of securities
• Toll in road or bridge usage
• Premium in insurance
• Commission in advertising
• Entry ticket in trade fairs, museums
• Honorarium for guest speakers
• Fare for air or bus travels

20. 7 Ps OF SERVICES MARKETING – 4.PROMOTION
4. PROMOTION
• Promotion involves creating awareness and
interest in the service.
• Effective promotional strategies include
advertising, social media marketing, public
relations, and sales promotions.
• Clear, compelling messages communicate the
service’s benefits, attracting customers and
encouraging them to engage with the business.
• Consistent, targeted promotion increases
visibility and builds a strong brand image.

21. 7 Ps OF SERVICES MARKETING – 4.PROMOTION
4. PROMOTION
• In the service marketing mix, the components
of promotion refers to what is communicated
(advertising), who receives it (general public),
how that audience is reached (time, frequency,
place), and how often it is advertised.
• Therefore, the selection of media, selection of
message and deciding on a promotional cycle
(timing and the frequency) are most significant.
• The selection of medium should be most cost-
effective.

22. 7 Ps OF SERVICES MARKETING – 4.PROMOTION
4. PROMOTION
The prominent media options available include:
Televisions, (Audio-visual)
Print media - Newspapers, Magazines or Jounals
Hoardings or Billboards
Cinema Theatre Commercial
Posters
Direct mails / Direct marketing
Event sponsorship
Flyers in newspapers or at shopping centres (inserting
pamphlets, brochures )
Personal visits for promotion / sales (Real estates)
• The purpose and guiding principle of the promotion
mix are to raise sales and brand recognition.

23. 7 Ps OF SERVICES MARKETING – 4.PROMOTION
4. PROMOTION
Promotion strategy strategy should be created
answering to these questions:
• When and where can you deliver your
marketing messaging to your target audience?
• How do your rivals market their businesses?
• How do your competitors' marketing strategies
affect the ones you choose?
• When should your product be marketed for
maximum effect?

24. 7 Ps OF SERVICES MARKETING – 4.PROMOTION
4. PROMOTION
Special considerations in promotion of services
1. Clear focus on the benefits while advertising or
communicating
2. Emphasis on tangible elements – appearance of
personnel, testimonials, photographs of the facilities
etc.
3. Promotion can create tangible metaphors for the
intangible service – a logo or a slogan that creates an
image in the mind
4. Information can be provided in the communication to
train customers ‘how to use’
Example : Maggi, Aachi Briyani Masala (cooking recipe
printed on the package) etc.

25. 7 Ps OF SERVICES MARKETING – 5.PEOPLE
5. PEOPLE
• In addition to generating sales, providing
satisfactory customer service helps increase your
customers and increase sales.
• People are defining factors in a service delivery
process, since a service is inseparable from the
person providing it.
• Anyone who interacts with customers and
represents your brand, even chatbots that aren't
people, needs to be an adequately qualified sales
expert with good knowledge of your product and
services how it can better their lives or resolve
their issues.

26. 7 Ps OF SERVICES MARKETING – 5.PEOPLE
5. PEOPLE
Various strategies can be implemented to
improve customer services, such as:
• Giving the employees vital information
regarding their interests, careers, and recurring
clients
• Teaching salespeople how to solve problems
with the product or service
• Establishing a framework for the sale of goods
or services to customers that will make them
feel at ease

27. 7 Ps OF SERVICES MARKETING – 5.PEOPLE
5. PEOPLE
People are given training in technical skills needed in
service jobs. Few corporate service providers
training their employees to provide fairly high
quality services to customers.
For example:
The air hostess needs physical stamina, pleasant
disposition, and the ability to cope with odd working
hours, in return for reasonably high compensation.
Teachers require an ability to control large classes,
sometimes of unruly students, and fairness to treat
the students alike when grading.

28. 7 Ps OF SERVICES MARKETING – 5.PEOPLE
5. PEOPLE
Examples continued:
The marketing people at telecom service provider require the
skill of calling on strangers who are potential customers,
and converting them into customers
The call centre personnel require a good voice and the ability
to answer questions effectively with strangers over the
phone.
A TV anchor needs to have a personality that gets the desired
responses from the guests and the live audience.
A radio announcer needs a pleasant & clear voice which
people like to hear

29. 7 Ps OF SERVICES MARKETING – 6.PROCESS
6. PROCESS
• Process includes how your goods and services are
introduced to the customers.
• Process involves the procedures, mechanisms, and
flow of activities by which the service is
delivered.
• Efficient, customer-friendly processes enhance
the service experience, ensuring satisfaction.
• Streamlining operations, minimizing wait times,
and ensuring reliability in service delivery
contribute to a positive customer experience and
encourage repeat business.

30. 7 Ps OF SERVICES MARKETING – 6.PROCESS
6. PROCESS
The old process of opening of a bank account was a
humiliating experience for the customer. The bank
employees hesitated and they consider it as a nuisance. But
now-a-days, they are sending their employees to the homes
of customers to open a new account in a bank or it is done
through online easily.
The process of service delivery can be mapped with a flow
chart or a ‘service blueprint’
This diagrammatic representation helps to know the time
required for each process, overlapping, unnecessary steps
or just right. This helps to make improvement in the process
of service delivery system through re-engineering. (BPR)
Examples : After sales service of a vehicle
Loan application process of a bank

31. 7 Ps OF SERVICES MARKETING – 7. Physical evidence
7. PHYSICAL EVIDENCE
Since services are intangible in nature most service
providers strive to incorporate certain tangible
elements into their offering to enhance customer
experience.
The brochure of a vacation destination can create
images about the place, and may end in desire to
visit the place.
The physical evidence includes the appearance of
people, stationery, bills sent to customers, visiting
cards, ambience and other tangible evidence may
result in creating an impression about the service
brand.

32. 7 Ps OF SERVICES MARKETING – 7. Physical evidence
7. PHYSICAL EVIDENCE
Examples:
Hair Saloons have well designed waiting areas often with
magazines and plush sofas for awaiting customers.
Restaurants, Bakery shops invest heavily in their interior
design and decorations to offer a tangible and unique
experience of ambience to their guests.
Light music is played in some restaurants, live music and
dancing may provide a certain king of ambience in
hotels.
A theme restaurant with an aquarium, waterfall, different
seating arrangements may provide one kind of
ambience.

33. 7 Ps OF SERVICES MARKETING – 7. Physical evidence
7. PHYSICAL EVIDENCE
Examples:
Theme parks are built around cartoon characters
like Mickey Mouse and Donald Duck to attract
the children – Disneyworld , Disneyland etc.
The seashore parks conducts shows with marine
animals like seals, sea lions, dolphins etc.
Petroleum outlets created uniform for employees
Ambience is different in public transport and
private transport
Movie theatres create ambience by providing
comfortable seats, A/c, surround sound, pleasant
interiors etc.

35. DIFFERENCE BETWEEN 7 P’S OF SERVICE MARKETING
AND 7 P’S OF PRODUCT MARKETING
Aspect Service Marketing Product Marketing
Product
Focuses on selling intangible services,
consumed immediately and cannot be
owned.
Centers on tangible goods that can be
seen, touched, and owned by consumers.
Price
Uses subscriptions, hourly rates, or
bundled services reflecting immediate
consumption.
Involves cost of production, distribution,
and physical attributes like size, quality.
Place
About accessibility and convenience,
often digitally or at a comfortable
location.
Focuses on physical distribution channels
including stores, warehouses, and logistics.
Promotion
Emphasizes benefits, experience, and
value, using testimonials and case
studies.
Highlights features, specifications, and
physical attributes of the product.
People
People play a crucial role as service
providers, impacting customer
experience.
People are involved in sales and customer
service, but their role is less direct.
Process
Vital to ensure efficient and satisfactory
service delivery, often in real-time.
Involves manufacturing, distribution, and
sales, not immediate service delivery.
Physical
Evidence
Includes the environment and elements
that support and enhance the service
experience.
Relates to the actual product, packaging,
and branding elements.