Services Marketing notes part 3of5
Marketing mix in service marketing
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| Team discussing the various elements of the service marketing mix represented in the pie diagram |
The Marketing Mix is an essential tool for any service business. It is a set of controllable variables that a company can use to influence customers’ perceptions and decisions. The 7p's of the marketing mix are Product, Price, Place, Promotion, People, Process and Physical Evidence. Product is the service that the business provides, Price is the cost associated with the service, Place is where the service is offered, Promotion is how the service is communicated to customers, People are the people behind delivering the service, Process is how the service is delivered, and Physical Evidence is tangible evidence that the service was delivered. By understanding how these elements interact, marketers can create a powerful marketing mix that will help to ensure success.
Concept of service marketing mix
- To Attract Customers: The marketing mix helps to create a unique marketing strategy that can attract potential customers and build a loyal customer base.
- To Increase Brand Awareness: By using the marketing mix, businesses can create a unique brand identity that can stand out from the competition.
- To Increase Revenues: By using the marketing mix, businesses can create effective strategies that can help to increase revenues.
- To Improve Customer Satisfaction: The marketing mix helps businesses to develop strategies that can improve customer satisfaction and loyalty.
- To Influence Customer Decisions: By using the marketing mix, businesses can influence customer decisions and create positive experiences.
- To Develop Competitive Advantage: The marketing mix helps businesses to create competitive advantages that can help them stand out from their competitors.
- To Identify Opportunities: The marketing mix helps businesses to identify opportunities in the market and develop strategies to capitalize on them.
- To Generate Positive Word-of-Mouth: By using the marketing mix, businesses can create strategies that can help to generate positive word-of-mouth, which can help to spread the word about the business.
- To Maximize ROI: The marketing mix can help businesses to maximize the return on their investment by creating strategies that deliver the best results.
- To Communicate the Value Proposition: The marketing mix helps businesses to communicate their value proposition to customers in a way that resonates with them.
Definition
The most famous definition of the service marketing mix was provided by Booms and Bitner in 1981: “The service marketing mix consists of the elements that the firm can control in order to create the desired response in the market. The marketing mix is an adaptation of the classic marketing concept, namely, product, price, place, and promotion, to the particular characteristics of services.”
Characteristics
- Intangibility: Services are intangible, meaning that they cannot be seen, touched, tasted, or heard. Therefore, they must be communicated to customers in other ways such as through advertising, word of mouth, or customer reviews.
- Inseparability: Services are inseparable from their providers, meaning that they cannot be separated from the people who provide them. This means that the quality of the service is highly dependent on the skill and experience of the service provider.
- Variability: Services can be variable, meaning that they can vary in quality depending on the people providing them. This means that the same service can be perceived differently by different customers.
- Perishability: Services are perishable, meaning that they cannot be stored or saved for later use. This means that services must be provided in a timely manner to ensure customer satisfaction.
- Heterogeneity: Services are heterogeneous, meaning that no two services are exactly the same. This means that each service must be tailored to the individual customer in order to meet their needs.
- Simultaneity: Services must be provided and consumed simultaneously. This means that services must be provided in real-time to meet customer needs.
- Customers Participation: Customers play an active role in the service delivery process. This means that businesses must be prepared to provide a personalized service experience to each customer.
- Specialization: Services require specialized skills to deliver them. This means that businesses must have the right people with the right skills to provide the service.
- Image: Services are highly reliant on image. This means that businesses must create a positive image in order to attract customers.
- Personalization: Services must be personalized to meet customer needs. This means that businesses must be prepared to customize their services to meet customer needs.
Components of service marketing mix
The components of the service marketing mix are:
- Product: The service that the business provides.
- Price: The cost associated with the service.
- Place: Where the service is offered.
- Promotion: How the service is communicated to customers.
- People: The people behind delivering the service.
- Process: How the service is delivered.
- Physical Evidence: Tangible evidence that the service was delivered.
7P’s
Product in services
Product in services is the offering of a service to consumers. It includes the features, branding, and packaging of the service, as well as the customer experience associated with the service. Examples of product in services include hotel stays, restaurant meals, and online courses.
- Branding: The process of creating a unique identity for a service, which includes the design of logos, slogans, and other elements that will be used to differentiate the service from competitors.
- Features: The tangible and intangible benefits that a service provides, such as the location of a hotel or the quality of a restaurant meal.
- Packaging: The design of how a service is presented to consumers, such as the presentation of a hotel room or the layout of a restaurant meal.
- Customer Experience: The overall experience a customer has when engaging with a service, such as the feeling of being welcomed at a hotel or enjoying a restaurant meal.
- Pricing: The cost of a service, which is typically based on the features, quality, and customer experience associated with the service.
Pricing in Services
Pricing in services is the process of setting a price for a service. It typically involves determining the cost of the service, taking into account the features, quality, and customer experience associated with the service, as well as the competitive landscape in the market.
- Cost of Service: The amount of money it costs to produce and deliver a service, which includes things like direct costs, overhead costs, and profits.
- Features: The tangible and intangible benefits that a service provides, such as the location of a hotel or the quality of a restaurant meal.
- Quality: The level of excellence associated with a service, which is typically based on the customer experience, the features of the service, and the pricing of the service.
- Competitive Landscape: The other services that are available to consumers in the same market, which may influence the price of a service.
- Customer Experience: The overall experience a customer has when engaging with a service, such as the feeling of being welcomed at a hotel or enjoying a restaurant meal.
Promotion
Promotion is the process of marketing a service to potential customers. It typically involves the use of advertising, public relations, and other marketing tactics to create awareness of the service and generate interest among potential customers.
- Advertising: The use of paid media to promote a service, such as TV commercials, radio ads, and print ads.
- Public Relations: The use of PR tactics to promote a service, such as press releases, media interviews, and events.
- Social Media: The use of social media platforms to promote a service, such as using Twitter to share information about a service or using Instagram to showcase photos of a service.
- Content Marketing: The use of content such as blog posts, videos, and podcasts to promote a service.
- Direct Marketing: The use of direct mail and email campaigns to promote a service.
Place
Place is the location where a service is offered to customers. It typically involves the physical location of the service, such as a hotel or restaurant, as well as the online or digital platform that the service is offered on, such as a website or app.
- Physical Location: The physical location where a service is offered, such as a hotel or restaurant.
- Online Platform: The digital platform where a service is offered, such as a website or app.
- Accessibility: The ease with which a customer can access the service, such as the convenience of a hotel or the availability of a restaurant meal.
- Logistics: The processes and systems that are in place to ensure the service can be delivered in a timely and efficient manner.
- Customer Experience: The overall experience a customer has when engaging with a service, such as the feeling of being welcomed at a hotel or enjoying a restaurant meal.
People
People are the individuals who are involved in the delivery of a service. This includes employees, contractors, and other service providers who are responsible for providing the service to customers.
- Employees: The people who are employed by the organization to deliver the service, such as hotel staff or restaurant staff.
- Contractors: The people who are hired to provide specific services, such as janitors or security guards.
- Service Providers: The people who are responsible for providing the service, such as tour guides or chefs.
- Training: The process of teaching employees and service providers the skills they need to deliver the service.
- Customer Experience: The overall experience a customer has when engaging with a service, such as the feeling of being welcomed at a hotel or enjoying a restaurant meal.
Physical Evidence
Physical evidence is the tangible elements of a service that customers can see, touch, and experience. Examples of physical evidence include the physical space of a hotel or restaurant, the quality of the furnishings, and the presentation of a service.
- Physical Space: The physical location where a service is offered, such as a hotel or restaurant.
- Furnishings: The furniture and fixtures that are used to create an atmosphere for the service, such as the beds in a hotel or the tables in a restaurant.
- Presentation: The way that a service is presented to customers, such as the presentation of food in a restaurant or the presentation of a hotel room.
- Quality: The level of excellence associated with a service, which is typically based on the customer experience, the features of the service, and the pricing of the service.
- Customer Experience: The overall experience a customer has when engaging with a service, such as the feeling of being welcomed at a hotel or enjoying a restaurant meal.
Processes
Processes are the systems and procedures that are used to deliver a service. This includes things like customer service processes, operational processes, and quality control processes.
- Customer Service Processes: The processes that are used to provide customer service, such as responding to inquiries or resolving complaints.
- Operational Processes: The processes that are used to ensure the service is delivered in a timely and efficient manner, such as scheduling or inventory management.
- Quality Control Processes: The processes that are used to ensure the quality of the service, such as inspecting the quality of a hotel room or checking the temperature of a restaurant meal.
- Training: The process of teaching employees and service providers the skills they need to deliver the service.
- Customer Experience: The overall experience a customer has when engaging with a service, such as the feeling of being welcomed at a hotel or enjoying a restaurant meal.
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