7ps of service organization:

The first four elements in the services marketing mix are the same as those in the traditional marketing mix. However, given the unique nature of services, the implications of these are slightly different in case of services.

1. Product:
In case of services, the product is intangible, heterogeneous and perishable. Moreover, its production and consumption are inseparable. Hence, there is scope for customizing the offering as per customer requirements and the actual customer encounter therefore assumes particular significance. However, too much customization would compromise the standard delivery of the service and adversely affect its quality. Hence particular care has to be taken in designing the service offering. If we take the example of doctors treatment is the product, hair cut, airline service.

2. Pricing:
Pricing of services is tougher than pricing of goods. While the latter can be priced easily by taking into account the raw material costs, in case of services attendant costs - such as labor and overhead costs - also need to be factored in. Thus a restaurant not only has to charge for the cost of the food served but also has to calculate a price for the ambience

provided. The final price for the service is then arrived at by including a mark up for an adequate profit margin. The pricing of doctors treatment is difficult because it is difficult to measure costs of goods sold.

3. Place:
Since service delivery is concurrent with its production and cannot be stored or transported, the location of the service product assumes importance. Service providers have to give special thought to where the service would be provided. Thus, a fine dine restaurant is better located in a busy, upscale market as against on the outskirts of a city. Similarly, a holiday resort is better situated in the countryside away from the rush and noise of a city.

4. Promotion:
Since a service offering can be easily replicated promotion becomes crucial in differentiating a service offering in the mind of the consumer. Thus, service providers offering identical services such as airlines or banks and insurance companies invest heavily in advertising their services. This is crucial in attracting customers in a segment where the services providers have nearly identical offerings.

We now look at the 3 new elements of the services marketing mix - people, process and physical evidence - which are unique to the marketing of services. The challenges encountered by the service marketers -like heterogeneity the requirements of the customers while delivering service and perishability and absence of inventory , intangibility of offers and absence of patent protection , etc necessitate the extension of the marketing mix to include PEOPLE, PROCESS and PHYSICAL EVIDENCE

5. People:
People are a defining factor in a service delivery process, since a service is inseparable from the person providing it. Thus, a restaurant is known as much for its food as for the service provided by its staff. The same is true of banks and department stores. Consequently, customer service training for staff has become a top priority for many organizations today. People in Service In service, the personnel come in contact with the process of production and consumption of services. The service marketing mix applies not only to personnel but also recognises the role of participants. In service business , the service personnel reflects the organisational realities, it is through the interaction with the staff, the customers forms an opinion of the organisation. People are an essential

ingredient in service provision; recruiting and training the right staff is required to create a competitive advantage. Customers make judgments about service provision and delivery based on the people representing your organisation. This is because people are one of the few elements of the service that customers can see and interact with. The praise received by the volunteers (games makers) for the London 2012 Olympics and Paralympics demonstrates the powerful effect people can create during service delivery. Staff require appropriate interpersonal skills, aptititude, and service knowledge in order to deliver a quality service. In the UK many organisations apply for the "Investors in People" Accreditation to demonstrate that they train their staff to prescribed standards and best practices.

6. Process:
The process of service delivery is crucial since it ensures that the same standard of service is repeatedly delivered to the customers. Therefore, most companies have a service blue print which provides the details of the service delivery process, often going down to even defining the service script and the greeting phrases to be used by the service staff. Service Process Refers to how a service is provided or delivered to the customer For this the service process must be designed Designing a service process system involves issues such as location, facility design and layout for effective customer and work flow, procedures and job definitions, measures to ensure qwlty, extend of customer involvement, equipment selection and adequate service capacity. This element of the marketing mix looks at the systems used to deliver the service. Imagine you walk into Burger King and order a Whopper Meal and you get it delivered within 2 minutes. What was the process that allowed you to obtain an efficient service delivery? Banks that send out Credit Cards automatically when their customers old one has expired again require an efficient process to identify expiry dates and renewal. An efficient service that replaces old credit cards will foster consumer loyalty and confidence in the company. All services need to be underpinned by clearly defined and efficient processes. This will avoid confusion and promote a consistent service. In other words processes mean that everybody knows what to do and how to do it.

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. Thus, there are hair salons that have well designed waiting areas often with magazines and plush sofas for patrons to read and relax while they await their turn. Similarly, restaurants invest heavily in their interior design and decorations to offer a tangible and unique experience to their guests. Physical evidence: Physical evidence A service encounter does not take place in a vacuum A service transaction generally involves the interaction of the service provider with the customer in a service environment. The service environment along with the tangible cues is termed as

physical evidence . There are 2 perspective to physical environment: Process of operation perspective Marketing perspective. Physical facilities .. Like building, furniture, equipments, stationery, brochures. it reinforces the proposed image of the service organisation. The elements of physical evidence are: Essential Evidence Peripheral Evidence Essential Evidence- Constitutes a dominant part of the service facility. Technical facilities based on which service takes place. Cannot be passed on to consumer, except may be on temporary basis (eg: hotel building, aircraft in airlines, office and furniture in consultancy firm). Peripheral Evidence- Not very visible in relation to dominant physical evidence. They definitely have an impact on the consumer perception about the qwlty of the service These include business cards, stationery, brochures, etc These evidences are passed over to customers in the course of transaction the service is provides without these items yet can be used to enhance corporate image Physical Environment the physical setting or the service environment within which the service takes place. The service space Includes_ the exterior attributes (the parking area, front elivation of the building, landscape) the interior attributes (the design, ambiance, layout, etc)The important elements of physical settings are as follows: Ambiance Dcor and Artifacts Spatial Layout and Functionality Physical evidence is about where the service is being delivered from. It is particularly relevant to retailers operating out of shops. This element of the marketing mix will distinguish a company from its competitors. Physical evidence can be used to charge a premium price for a service and establish a positive experience. For example all hotels provide a bed to sleep on but one of the things affecting the price charged, is the condition of the room (physical evidence) holding the bed. Customers will make judgments about the organisation based on the physical evidence. For example if you walk into a restaurant you expect a clean and friendly environment, if the restaurant is smelly or dirty, customers are likely to walk out. This is before they have even received the service. There are many examples of physical evidence, including some of the following:

The building itself (such as prestigious offices or scenic headquarters). This includes the design of the building itself, signage around the building, and parking at the building, how the building is landscaped and the environment that surrounds the building. This is part of what is known as the servicescape. The interior of any service environment is important. This includes the interior design of the facility, how well it is equipped, internal signage, how well the internal environment is laid out, and aspects such as temperature and air conditioning. This is also part of the servicescape. Packaging. Internet/web pages. Paperwork (such as invoices, tickets and dispatch notes). Brochures. Furnishings. Signage (such as those on aircraft and vehicles). Uniforms and employee dress. Business cards. Mailboxes. Many others . . .