7 p of Service

8/13/2019 7 p of Service

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7 Ps of Service Marketing


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Product

Product Decisions

Branding Quality Features

Customer Value = the bundle of benefits delivered to the customer

Need to change benefits as customers needs change

Benefits offered


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Price

Pricing Strategies

Penetration

Skimming

Competition

Product Line

Bundle

Psychological

Only Price generates income

Price must support costs of all other Ps

Price also must reflect the relationship

of supply and demand within the marketplace

Price = Cost the customer is prepared to pay


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The task of Promotion is to targetcustomers and Communicate with

them

An integrated mix of promotionaltechniques should reach

customers by all available

channels

Promotion

Promotional Mix

Advertising

PublicRelations

Sales

Promotion

Personal

Selling

Direct

Marketing

Internet/

E-commerce


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Place

Manufacturer

Consumer

Manufacturer

Retailer

Consumer

Direct Distribution Indirect Distribution

The task of Place is deliver the Product to thecustomer at the right Price

There are many options of channel design

Channel design should take into account Cost

and Convenience for the customer

Manufacturer

Franchisee

Consumer


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An expanded marketing mix for services

Customers PricePlace &

Time

Promotion

Product

(service)PeopleProcess

Physicalevidence

Customers PriceCustomers

Place,

cyber-

space &

time


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People

All human actors who play a part inservice delivery and thus influence the

buyers perceptions: namely, the firms

personnel, the customer, and othercustomers in the service environment.

customer

service employeesother customers


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Physical Evidence

The environment in which the service isdelivered and where the firm and customer

interact, and any tangible components that

facilitate performance or communication

of the service.

Atmosphere

equipment

facilities

uniforms


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Process

The actual procedures, mechanisms, andflow of activities by which the service is

deliveredthe service delivery and

operating systems.service delivery systems

back stage

front stage

procedurespolicies


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Expanded Marketing Mix for

ServicesPEOPLE PHYSICAL

EVIDENCEPROCESS

Employees Facility design Flow of activities

Customers Equipment Number of steps

Communicatingculture and values

Signage Level of customerinvolvement

Employee research Employee dress

Other tangibles


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7 p of Service

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