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Successful marketing depends
Upon addressing a number of key
Issues. These include: what a
company is going to produce; how
much it is going to charge; how it is
going to deliver its products or
services to the customer; and how it is
going to tell its customers about its
products and services.
Traditionally, these considerations
were known as the 4Ps Product,
Price, Place and Promotion. As
marketing became a more
sophisticated discipline, a fifth P was
added People. And recently, two
further Ps were added, mainly for
service industries Process and
Physical evidence.
These considerations are now known
as the 7Ps of marketing, sometimes
referred to as the marketing mix.

I qukhlakh-


We would like to express our special thanks of gratitude to our prof. Mr. Gautam Chitnis
who gave us the golden opportunity to do this wonderful project on the topic 7 ps of
service marketing mix, which also helped us in doing a lot of research and we came to
know about so many new things we are really thankful to them.
Secondly we would also like to thank our friends who helped us in finalizing this project
within the limited time frame.


What is service?
A service is any activity or benefit that one party can offer to another that is intangible in
nature to fulfill their wants and needs.
Services are activities, benefits, or satisfactions which are offered for sale, or provided in
connection with sale of goods.
- American Marketing Association (1960)
Features of service
1) Intangible
2) Inseparable
3) Heterogeneous
4) Perishable


Services marketing is a sub field of marketing which covers the marketing of both
goods and services.
Goods marketing includes the marketing of fast moving consumer goods (FMCG)
and durables.
Services marketing typically refers to the marketing of both business to consumer
(B2C) and business to business (B2B) services.
Common examples of service marketing are found in telecommunications, air
travel, health care, financial services, all types of hospitality services, car rental
services, and professional services.

The service marketing mix is also known as an extended marketing mix and is an
integral part of a service blueprint design. The service marketing mix consists of 7
Ps as compared to the 4 Ps of a product marketing mix. Simply said, the service
marketing mix assumes the service as a product itself. However it adds 3 more Ps
which are required for optimum service delivery.

The product marketing mix consists of the 4 Ps which are Product, Pricing,
Promotions and Placement. These are discussed in my article on product
marketing mix the 4 Ps.

The extended service marketing mix places 3 further Ps which include People,
Process and Physical evidence. All of these factors are necessary for optimum
service delivery.


In the previous page we discussed the
characteristics of a service. In this
project we look at how the marketing
mix for marketing a service is different
to the marketing mix for products. Just
like the marketing mix of a product the
service marketing mix comprises of
Product, Price, Place and Promotion.
However as a service is not tangible the
marketing mix for a service has three
additional elements: People, Process
and Physical Evidence.

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.

For example- The main product of a hotel are
Food and Beverage
Conference room(Meeting rooms/ Conference rooms/ Board rooms)
Restaurants & Bars
SPA & Swimming pool
Ambulance etc.
2. Pricing: Pricing in case of services is rather more difficult than in case of

products. If you were a restaurant owner, you can price 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 have to be taken into consideration while costing. Generally service
pricing involves taking into consideration labor, material cost and overhead costs.
By adding a profit mark up you get your final service 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. In services there is no variable
cost since services are not manufactured but delivered. The service prices heavily
depends on reputation and goodwill of the service provider. The service pricing
differs place to place.
For example- The prices are being charged according to facilities provide by a
hotel. The charges vary from Hotel to Hotel. Pricing is the only mix which
generates a turnover for the organization.
3. Place: Place in case of services determine where the service product is going to be
located. The best place to open up a petrol pump is on the highway or in the city.
A place where there is minimum traffic is a wrong location to start a petrol pump.
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. 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.
For example- Metropolitan cities, Near Sea, Near Tourist place Etc.
Panoramic Sea Resort is located on Beach Road in Alleppey about 4 km from the
main Alleppey city. The nearest airport is Cochin international airport, which is
about 95 kilometres away and the Alleppey railway station is just 2 kilometres
away from the hotel. Another major railway station in Kochi is located at a
distance of 60 km from the resort.
Nearby tourist locations to visit from Lake Haven Island Resorts Alleppey:
Kuttanad, Pathiramanal, Karumadikkutan temple, Mannarasala temple,
Mararikkulam, Punnapra, Ambalapuzha Temple, Krishnapuram Palace, Alleppey

Beach, Arthunkal Church, St George Church Edathua, Chavara Bhavan,
Chettikulangara Devi temple
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.
For example- here, personal selling occupies a place of significance in the hotel
industry. A hotel receptionist plays the role of a salesman not only for selling the
accommodations but for the entire establishment. The nerve center of a hotel is the
receptionist. An efficient receptionist must give equal importance to internal
selling. He should possess an impressive personality, ambitious, enthusiastic, and
respectful to the guest. Even travel agent help in promoting the hotel business.
T.V, Newspapers, Internet also help in promoting the hotel business.

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.
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. In all Ps this is most important P
because service cannot be separated from service provider. In commercial services
like Banking, Insurance, Airlines, Hotels etc. are at two levels with the service
Front Office Staff
Back office staff
The front office staff is called as a contact staff while back office staff called as
support staff. They normally related to customer services executives i.e. Cook in a
restaurant. Basically service staff are who visible to the service consumer front
office staff, i.e. Waiter, Receptionist etc. Service consumer evaluates the service
quality on the way the front office staff behaves. Back office staff are the actual
service provider i.e. cook etc. the service quality actually depends on the back
office staff therefore both Front office and Back office staff are critically
important for delivering the service. A front office should never commits what
cannot delivered. And back office must always delivers what has been committed.
And the line that divides back office and front office staff is called as line of
visibility. It is an invisible line which divides contact personnel from support
personnel. The Front office is the nerve center of a hotel. Members of the front-
office staff welcome the guests, carry their luggage, and help them register, give
them their room keys and mail, answer questions about the activities in the hotel
and surrounding area, and finally check them out. In fact, the only direct contact
most guests have with hotel employees, other than in the restaurants, is with
members of the front-office staff. The front office functions can be divided into
five general areas:
For example-front office staff for hotel are-.1 Receptionist 2. Bell service 3.
Mail and information 4.Waiters 5. Cashiers and night auditors.
Back office staff for hotel are- Cooks etc.

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. The process is concerned with the ways in which service provided to the
service receiver.

Welcome the
carry their luggage,
help them register,
give them their
room keys and mail
if any
answer questions
about the activities
in the hotel
finally check them

Physical Evidence: Generally a service transaction involves the interaction of the
service provider with the customer in a service environment. Services like hotels
services and hospitals are delivered in physical environment created by the
service firm. Physical evidence is termed as the social environment along with
the tangibles cues. 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. 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 Hotels which has only chairs and tables and good food, or
a Hotel which has ambient lighting, nice music along with good seating
arrangement and this also serves good food. Which one will you prefer? The one
with the nice ambience. Thats 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.

The Service Marketing Mix involves Product, Price, Place, Promotion, People, Process
and Physical Evidence. Firms marketing a service need to get each of these elements
correct. The marketing mix for a service has additional elements because the
characteristics of a service are different to the characteristics of a product. The
Characteristics of a service are:

(1) Intangibility
(2) Inseparability
(3) Perishability
(4) Heterogeneity.
To certain extent managing services are more complicated then managing products,
products can be standardised, to standardise a service is more difficult as there it can be
affected by factors outside the service providers control.


Service Marketing mix analysis is a fundamental step towards effective strategy.
Where other analysis are more related to environment and feasibility analysis,
The 4 Ps of marketing including the product itself, pricing, placement and
promotion are the four wheels of the vehicle on which the path of an
organizations marketing success is actually dependent.
The services marketing mix adds 3 new elements of - people, process and physical
evidence - which are unique to the marketing of services.
The marketing mix for a service has additional elements because the
characteristics of a service are different to the characteristics of a product
It create awareness of product in market

Service Sector management
And marketing