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Marketing Mix for Services –

Traditional
D r. R . Ve n k a t e s h
Professor - Higher Academic Grade
VIT Business School Chennai

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• The services marketing mix is an extension of the 4Ps framework.

• The essential elements of product, promotion, price and place remain but three
additional elements – people, physical evidence and process are included to the 7Ps
mix.
• The need for the extension is due to the high degree of direct contact between service
providers and its customers, the highly visible nature of the service process, and the
simultaneity of the production and consumption.

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Product

• In the 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.
• Therefore, particular care has to be taken in designing the service offering.

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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 the case of
services there are attendant costs–such as labor and overhead costs–that
also need to be factored in.
• A restaurant not only has to charge for the cost of the food served but also
has to calculate a price for the ambiance provided.

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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 as to where the service is
provided.
• A fine dining restaurant is better located in a busy, upscale market as
opposed to the outskirts of a city. A holiday resort is better situated in the
countryside away from the rush and noise of a city.

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Promotion

• Since a service offering can be easily replicated, promotion becomes

crucial in differentiating a service offering in the mind of the consumer.
• 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.

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People

• People are a defining factor in a service delivery process, since a service is

inseparable from the person providing it.
• 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.

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Process

• The process of service delivery is crucial since it ensures that the same
standard of service is repeatedly delivered to the customers.
• 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.

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Evidence

• Since services are intangible in nature, most service providers strive to

incorporate certain tangible elements into their offering to enhance
customer experience.
• Many hair salons 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.

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• Showcasing the Philosophy

• One of the 8 P's of marketing, according to the American Camp Association, is philosophy.
• This is integral to marketing services because it encompasses the "why" element.
• Since services are directly tied to their service providers, it's essential for customers to understand
the mission, vision and values of a business.
• Why does the business offer this service, and what makes this business unique?
• Service-based businesses that promote their philosophies differentiate themselves from their
competitors.
• For example, a mechanic's philosophy may be to help customers reduce the stress associated with
their vehicles.
• A doctor's philosophy may be to ensure each patient feels heard.
• Learning the philosophy of a business may be the deciding factor for a customer.
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Marketing MixMaster title style
for Banks

• Product
• The main products of Banks are Saving Account, Current Account and Demat Account.
The other products are Home loan, personal loan, Insurance, Credit cards, etc.
• Products under Bank are
• Saving Account
• Current Account
• Forex Department
• Salary Accounts
• Products under Sales are
• Home loan
• Personal loan,
• Demat Account

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• Price
• The price of the product depends upon the services provided by the Bank on the
respective product to the customers.
• Detailed pricing changes from time to time and the same can be found on the banks
website.

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• Place
• Place plays an important role in tangibilizing service offerings. Quality of service is
perceived by many customers in the form of place of delivery- locational appeal,
interiors, ambience, etc.
• If a bank is located in a crowded market the place or location will be a negative
tangibilizes. Providing excellent tangibles in the form of place or location and interiors
is particularly important for appealing to the customers segment.
• Some of the private banks in India provide very attractive tangibles in the form of their
locations, exteriors and interiors.

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• Promotion can tangibilize services in different forms:

• Visualization
• Association
• Physical representation
• Documentation.
• Visualization tangibilizes services through hoardings, TV and print campaigns or
advertisements.
• Physical representation in services has a good promotional appeal to customers like use
of colors to symbolize wealth and status.
• Service providers use documentation in their promotions in support of their claims for
dependability, popularity and responsiveness

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• People
• People are a common factor in every service. And people tangibilize services.
• Good people (means good performance) make good or successful services.
• Bad performers deliver bad services

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• Process
• Customer defined business process- Process innovations and continuous
improvement through people involvement.
• Result oriented approach- Each process has been designed by first planning the
desired results.
• Axis Bank is constantly taking initiatives to offer the best in class service that seek
to enhance customer experience.

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• Physical Evidence
• Reduce paper usage- Due to technological innovations such as use of Finacle
software for core banking solutions.
• It has positioned it self as a bank which gives higher standard of services through
product innovation
• Satisfies the diverse need of individual and corporate clients.
• It is customer centric, and service oriented.

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Thank You

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