Service Product

Meaning of Service /Service Product

Services refer to those activities and services which are designed and offered to
customers to meet their requirements. They are intangible product. They are
inseparable, variable, perishable in nature. Service organizations offers service
product. For example; hotel, banks, communication, transportation, hospitable,
school and colleges are service organization. Services are also essential for selling
the tangible product such as warranties, repair and maintenance are given for
selling high priced electronic or capital or other product, such as an organization
adds warranties, repair and maintenance services in the bike or vehicle.

Types of services

1. Personal or business service

2. Customer presence or absence service
3. People based or equipment-based service
4. Profit motive or non- profit motive service

Features of Services

1. Tangibility
2. Inseparability
3. Perishability
4. Variability
5. Needs 7ps

Strategies of Service Product

The service marketing mix consists of the seven P’s i.e. Product, Pricing, Place, Promotion,
People, Process and Physical Evidence. The service marketing mix, also known as the extended

marketing mix.

1. Service product mix strategies

 Limited line strategy or broad line strategy
 Service line length expansion or contraction strategy
 Service line modernization through service improvements
 Service line featuring by focusing high-price or low-price services
 Managing product support services: pre-sale, during-sale and post-
sale service
2. Service Price mix strategies
 One price or fixed price strategy
 Flexible pricing strategy
 Competition based pricing
3. Service Place mix strategies
 Provide good locations which are convenient to consumers
 Direct channel is used
 One level channel is also used
4. Service Promotion mix strategies
 Personal selling is given a dominant role
 Advertising, publicity, public relation and sales promotion are used
for promotion
5. People mix strategies

Employees (people) provide services to customers/clients. Training and

motivation of employees is important for service marketing. People mix strategies
include three marketing/components, that is also known as service marketing
triangle framework or model, where internal marketing, external marketing and
interactive marketing are involved by which organizational goal can be achieved
through satisfying customers' need.

1. Internal Marketing (between organization and employees)

Internal marketing take place between organization and employees.
Employees must be taken as internal customer. Internal service quality is
created by internal marketing. Empower employees are very important to
deliver the best information and services to customers. Organization should
be focused on education and training to employees for enhancement their
knowledge and skills as well as motivation to employees is must for
providing higher performance or to provide better/quality service to their
customers. Higher performance of employee satisfies them. It is said that if
employees are educated, motivated and satisfied, they can satisfy to their
customer through providing quality services.

2. External marketing (Between organization and customers)

Service organizations use external marketing to make promises to
customers. It is the general marketing. This marketing communicates to its
customers about its services.
3. Interactive Marketing (Between employees and customers)
Interacting marketing refers how an employee (service provider) interact
with customers while delivering the services. In service marketing, service
quality depends on both the service deliverer and quality of delivery.
 Satisfaction of customers depends very much on employees behavior, how
they behave while delivering the services to their customers.

Organization
(Management)

Interacting marketing
Employees (delivering the promise) Customers

6. Physical evidence strategies

 Premises, building of service organization
 Decoration and cleanliness of the service providing place
 Furniture and furnishing
 Gardening, layout of office
 Smartness of employees or service providers

7. Process mix strategies

 Service delivering process: it depends on nature of product
 Channel design
 Image of the provider