1. The document discusses the service marketing mix, also known as the 7Ps, which extends the traditional 4Ps marketing mix to account for the unique characteristics of services. 2. The 7Ps include Product, Price, Place, Promotion, Process, Physical Evidence, and People. Each P represents an important consideration for marketing services, such as the role of customers in service delivery and the importance of employee training. 3. The service marketing mix framework was developed by Booms and Bitner in 1981 to better capture all the elements that impact a customer's experience with a service beyond just product, price, place, and promotion.

1. The Service Marketing Mix
or
Extended/Augmented Marketing Mix
or
7P’s of Services
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Dr. Amitabh Mishra

2. The Services Marketing Mix
• Marketing mix is
“a tools available to a business to gain the reaction
it is seeking from its target market in relation to its
marketing objectives”.
• Traditional 4P’s can not be applied to services,
because services are different from physical
goods. Hence, 4P’s need to be extended.
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3. • The need for the extension arise due to-
– The high degree of direct contact between the service
providers and the customers,
– The highly visible nature of the service process, and
– The simultaneity of the production and consumption.
• “Booms and Bitner” suggested 7 P’s marketing mix
model for service firm in 1981.
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4. The Service Marketing Mix
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5. 1. PRODUCT
• Service is an intangible product. It consist of bundle of
feature & benefits that has relevance to a specific target
market.
– Physical goods feature.
– Accessories.
– Product line.
– Branding.
– Packaging. Etc.
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6. Product
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7. 2. Price
Customer’s sensitivity to price would be higher in services than goods.
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8. • Price component addresses management of all the
outlays incurred by customers in obtaining benefits
from service product.
• These outlays may include-
• Additional monetary cost (travel expenses to service location)
• Time expenditure.
• Unwanted mental and physical efforts.
• Exposure to negative sensory experience.
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9. 3. Place or Distribution
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10. Place
• The means by which products/services get from
producer to consumer and where they can be
accessed by the consumer.
• The more places to buy the product and the easier
it is made to buy it, the better for the business (and
the consumer?)
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11. • Services are intangible as well as inseparable.
• These two characteristics do not allow a service firm to
follow the same channel options available for goods
marketing.
• Services can not be stored and can not be separated
from producer.
• Hence, retailing can not be an independent activity in
service marketing.
• Direct selling is not a single way of selling services.
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12. • Other channel of distribution for services
are-
– Agents & Brokers
– Electronic channel
– Franchisers
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13. Place
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14. 4. Promotion
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15. 4. Promotion
• Since consumers are co-producers, it is
responsibility of service organisation to educate
and train consumers so as to make them prepared
to use services.
• In services marketing, promotion is educative in
nature.
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16. Promotion
• Strategies to make the
consumer aware of the
existence of a product
or service
• NOT just advertising.
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17. • Promotion can be delivered by –
– Individuals
• Sales people
• Front line staff
• Etc.
– Media
• TV
• Radio
• News papers
• Etc.
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18. Promotion
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19. 5. Process
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20. 5. Process
• A Process is
Functional activity that assures service
availability and quality
The method & sequence of actions in the
service performance
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21.  The process determines-
 The way people consume services
 The way functions are scheduled and routed
to provide promised services
 The way the physical setting is designed
technically
Service Marketing Mix Dr. Amitabh Mishra

22. Process
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23. 6. Physical Evidences
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24. 6. Physical Evidences
• Most services can not be offered with out the support of
tangibles.
• Though, customers can not see the services, they can
definitely see the tangibles associated.
• Customers look for clues to the likely quality of a service
also by inspecting the tangible evidence.
– For example: prospective customers may look to the design of learning materials, the
appearance of facilities, staff, etc.
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25. • All physical objects are used as physical evidence by the
customer to asses & expect performance from the service
provider.
• Some visible cues are-
• Appearance and building.
• Landscaping.
• Interior furnishing.
• Equipments.
• Staff members.
• Sign and printed materials.
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26. Physical Evidences
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27. 7. People
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28. 7. People
• Every employee of service organisation is a
marketing person, who undertake either full time
or part time marketing activity
• Without training and control employees tend to be
variable in their performance leading to variable
service quality
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29. People
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30. Service Marketing Mix Dr. Amitabh Mishra