The 7 P’s of Services Marketing - Product (Service Marketing 28.04.2021)

The 7 P’s of Services Marketing

 

The first four elements in the services marketing mix are the same as those in the traditional marketing mix. However, given the unique nature of services, the implications of these are slightly different in case of services.

Marketing mix means to collect and blend the resources to maximize the customers’ satisfaction and achieve the objective of the organization. The salient features such as intangibility, inseparability, heterogeneity and perishability make marketing of services a unique challenge. The traditional marketing mix which includes (1) product, (2) place, (3) price and (4) promotion could be extended to another 3Ps which are (5) physical evidence, (6) process and (7) people.

 

1. Product: In 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. Hence particular care has to be taken in designing the service offering.

Product / Service:

The service or activity itself is a product in service marketing. Since service products are intangible their performances are evaluated by the consumers based on features, quality, availability etc. of the services. On account of this intangibility, the firm may find it difficult to understand how consumers perceive their services. Therefore, in order to attract consumers towards a particular service, the services marketer should rely on tangible offerings to build an image of the organization and its services in the market.

The service product is therefore a package consisting of the intangible service and certain tangible offerings such as the brochures, the furniture at the service outlet etc.

 

 

 

A service package is also classified as follows:

 

i. The core service – This is the actual service which is absolutely intangible. It is this service which will enable the consumers to satisfy their needs. Examples – the consultation offered by a consultant, the counselling offered by a counsellor etc.

 

ii. The facilitating services – Since services are intangible, their delivery to the consumers requires certain facilitating aspects which may be physical entities also. These are the facilitating services. Examples – a consultant needs an office to interact with the client; a counsellor needs a room to counsel people etc.

 

iii. Supporting or supplementary or augmented services – These are the services which are offered by the service providers to enhance the value of the core services. Examples – a lodge offering travel guidance to its clients, a doctor offering general health tips etc. Providing such additional services makes the core services more attractive from a marketing point of view.