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Service Marketing Mix

• The term and concept of marketing mix was introduced by Neil
Borden in the 1950s.
• According to Borden(1991), the marketing mix is defined as
“those activities that show similarities to the overall process of
marketing, requiring the combination of individual elements”.

• The 7P’s in Service marketing are:

• Product
• Place
• Promotion
• Price
• People
• Physical Evidence
• Process
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Service Product
 Kotler et al.(2006)defines product as “anything that can be
offered to market for attention, acquisition, use, or consumption
that might satisfy a need or want. It includes physical objects,
services, place, organizations and ideas”.
 It includes both tangible and intangible offerings. It also

places emphasis on meeting the customer expectation.

 According to AMA product is defined as, “Anything that can be
offered to a market for attention, acquisition or consumption
including physical objects, service, personalities, organizations
and desires”.
 In this the focus has been on the offerings o the consumers
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Service Product
 A service product is a complex set of value satisfactions
 Consumers buy services to satisfy their needs
 They attach value to the offers in proportions to the perceived
ability of the offers to satisfy their need
 There is often not a single need- instead there is a set of needs-
customers want many things at the same time.
 Consequently, service is not a single basic service- but a bundle
of service offers
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What constitutes a service?

 Supporting facility
The physical resources that must be in place before a service can be
offered. Golf course, hospital, aero plane
 Facilitating goods
Material purchased and consumed by consumer. Food, legal
documents, medical supplies
 Explicit service
Benefits that are readily observable by the senses. Absence of pain
after tooth repair or smooth-running automobile after a tune-up.
 Implicit service
Psychological benefits that the customer may sense only vaguely or
extrinsic features of a service. Status of a degree from Shaoxing
University / MUJ. Worry-free auto repair.
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Example of Supporting facility

 Architectural Appropriateness
Renaissance architecture for Univ. Campus
Massive granite façade of downtown bank
 Décor
Is the proper mood established
Quality and coordination of the furniture
 Facility Layout
Is there a natural flow of traffic?
Are adequate waiting areas provided?
Is there unnecessary travel or back tracking?
 Supporting equipment
Does the dentist use mechanical or air drill?
What type and age of aircraft does the charter airline use?
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Example of Facilitating Goods

 Consistency
Crispness of French fries
Portion control
 Quantity
Small medium or large pizza
Free Checks
 Selection
Menu items available
Rental skies
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Example of Explicit Services

 Training of service personnel
Is the auto mechanic professionally qualified?
Does the professor has a PhD degree?
 Comprehensiveness
Fast food compared with cafeteria
City hospital compared with neighbourhood clinic.
College vs. University
 Consistency
Airline´s on-time record
Professional standards review
 Availability
24 hour banking
Location of fire station
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Example of Implicit Services

 Attitude of service personnel
Cheerful flight attendant
Police officer issuing traffic citation with tact
Bearer in a restaurant
 Privacy and security
Attorney advising client in attorney´s office
Magnetic key card for Hotel room
 Convenience
Use of appointments
Free parking
 Atmosphere
Restaurant décor
Use of standardized forms
Sense of confusion rather than order
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Service Product

Potential

Augmented

Expected

Core

Product

Product

Product
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Service Product
 The Core Product
The core or generic product consists of basic service product.
 The Expected Product
Includes the minimal purchase conditions that need to be met.
 The Augmented Product
This is where the offer is differentiated from competition.
 The Potential Product
All potential added features that are or may be of utility to
buyers. It includes a potential for redefinition of the offer
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Service product concept

Product level Customer’s View Marketer’s View
Core product Customer’s generic need Basic benefits which make a
which must be met offer of interest

Expected Customer’s minimal set of Marketer’s product decisions

product expectations tangible and intangible
components

Augmented Seller’s offering over and Marketer’s other mix decisions

product above what customer expects on price, distribution,
or is accustomed to promotion

Potential Everything that potentially Marketer’s actions to attract and

product can be done with the product hold customers regarding
that is of utility to the changed conditions or new
customer applications
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Product level: Example Hotel

Product level Customer value

Core benefit Rest and sleep

Expected Hotel room, bathroom, towel, desk, closet and
so on
Augmented Clean bed, fresh towels, working lamps and a
relative degree of quiet
Potential Food that is good for health, flowers,
complementary drinks, and any thing that
delights customer
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Service Package
 Customization
 Is that nature of service same for all customers?

 Customer Contact
 What is the level of customer contact in the service

delivery process? High or low

 Tangibility mix
 How would the offer be tangibilised? What

tangibles are to be included?

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Differentiation
Product
Price
 Superior quality
 Value added
 Trusted brand image
 Special discounts
 Unusual or additional
 Preferential credit terms
features
 Extended guarantees

 Tangibilisation
Place
Promotion  Extensive availability
 Innovative advertising
 More outlets than
campaigns
competitor
 Loyalty promotions
 Innovative methods, e.g.,
 Special offers
tele-banking
 Direct mail
 Careful selection of
 PR, sponsorships quality channels
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Differentiation
People Process
 Highly trained staff  Advances in technology,

 Better customer care e.g., ATMs, Call centres,

 Greater efficiency  Systems, e.g., cash

 Personal attention dispenser, ticket vending

 Specialist skills machines,
 Fast response time
Physical evidence
 Comfortable

surroundings
 Superior décor

 Qualifications

 Evidence of professional

standing, e.g.,
membership of
professional bodies
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New Product Development

New Service Idea

Concept development and Testing

Service Design and Development

Strategy Formulation

Commercialization

Post Launch Review

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Product Life Cycle

Strategies in Different Phases
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