Mastering the 7 Ps of Service Marketing Mix

Definition of Services

Services are acts, actions, or performances that are essentially intangible. They may or may not be connected to a physical product, but the end result is always a feeling or experience.

Key Characteristics of Services

Services possess four core features that distinguish them from physical products:

• Intangibility: Services are abstract (i.e., they have no weight, color, or shape), which makes quality assessment more difficult for the customer.
• Inseparability (Perishability): Services cannot be stored like products. Their production and consumption are linked and often occur simultaneously.
• Heterogeneity (Variability): Services are variable because they are produced by people who are inherently unstable by nature, leading to inconsistent delivery.
• Simultaneity: Production and consumption occur at the same time. The client often participates as a resource in the production process.

The Service Bundle Components

The service bundle involves a core (principal) service and peripheral (assistant) services. It is divided into four main components:

1. Facilities Support: The plant and equipment where the service is provided.
2. Physical Goods Facilitators: Physical items provided to customers to be consumed or handled (e.g., a magazine).
3. Explicit Service (Core): This is the main reason for the service. Sensorial benefits are clearly perceived by the customer (e.g., punctuality).
4. Implicit Services: Intangible accessories, also called psychological benefits (e.g., feeling of comfort or security).

Service Processes

A service process is a particular method of operation or a series of actions that typically involves several steps. Examples include visiting a supermarket or filling a vehicle's fuel tank.

The 7 Ps of Service Marketing Mix

The service marketing mix expands the traditional 4 Ps (Product, Place, Promotion, Price) by adding three essential elements (People, Process, Physical Evidence) crucial for effective service delivery.

Product (Details)

Aspects that create value in services, focusing on the core offering and supplementary features.

Place (Distribution)

Refers to the location and time of service delivery (distribution).

Promotion

The supplier must inform, educate, persuade, and remind customers using various communication tools (e.g., radio, TV, outdoor advertising, internet).

Price

Establishing the sale price, including rebates, incentives, and deadlines for claims.

Physical Evidence (Physical Environment)

Establishing and maintaining physical appearances (e.g., buildings, sounds, smells, and employee clothing) that provide tangible cues about service quality.

Process

The method and sequence of actions resulting in the creation and delivery of the service.

People

The interaction between the provider and clients. This includes crucial HR functions like recruitment, selection, training, motivation, and rewards.

Note on 7 Ps Management

Effective management of the 7 Ps requires strong collaboration, interaction, and interface among the fields of Marketing, Human Resources (HR), and Operations.