What is Service Marketing Mix?

Service Marketing Mix

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Service Marketing Mix

The Service Marketing Mix, also known as the Extended Marketing Mix or 7Ps, is an extension of the traditional 4Ps (Product, Price, Place, Promotion) model for marketing. The extended model has been designed specifically for businesses and industries that offer services instead of tangible products. The additional three Ps are People, Process, and Physical Evidence.

Here’s a breakdown of the 7Ps in the context of service marketing:

  • Product: This refers to the actual service provided to the customer. Unlike tangible products, services are intangible, so this aspect emphasizes the features, benefits, and unique selling propositions of the service.
  • Price: This includes pricing strategies, discounts, membership offers, or bundling. It’s about determining the value exchange that’s fair for both the service provider and the customer.
  • Place: Since services are intangible, “place” in a service context often relates to the channels through which the service is delivered. This could include physical locations, online platforms, or direct channels like home delivery.
  • Promotion: This encompasses all communication strategies and techniques used to promote the service. It includes advertising, sales promotions, public relations, and more.
  • People: People are crucial in service delivery since services often involve direct human interaction. This P emphasizes the importance of hiring, training, and retaining the right staff to ensure that the service is delivered effectively.
  • Process: This refers to the systems and procedures that dictate how a service is delivered. A well-organized process ensures that the service is consistent, efficient, and meets the customer’s expectations.
  • Physical Evidence: Since services are intangible, physical evidence pertains to tangible elements associated with the service that can help customers evaluate the service’s quality. This could be the ambiance of a restaurant, the cleanliness of a hotel room, the user interface of a software application, or any tangible aspect that complements the service experience.

Understanding and effectively managing these seven components can help service-based businesses offer better value to their customers, stand out in a competitive market, and enhance their overall brand perception.

Example of Service Marketing Mix

Let’s use the example of a high-end spa and wellness center to demonstrate how the Service Marketing Mix (7Ps) might be applied.

Spa Name: “Serenity Retreat”

  • Product: Serenity Retreat offers various services, including therapeutic massages, facials, body treatments, and yoga classes. They have specialized treatments like aromatherapy, hot stone massage, and hydrotherapy. The spa also offers wellness packages that combine different treatments for a full day of relaxation.
  • Price: The pricing is set at a premium level, reflecting the high quality of services and products used. They offer discounts for weekday bookings to encourage visits during typically less busy times. Additionally, there are membership packages available for regular clients that offer better value.
  • Place: Serenity Retreat is located in a serene part of the city, away from the bustling urban noise. They also have an online booking system, making it easier for clients to make reservations. For exclusive members, home services are also available.
  • Promotion: They run regular advertisements in lifestyle magazines and on local radio stations. The spa has collaborated with local influencers for sponsored content and testimonials. They also offer referral discounts to existing customers who bring in new clients.
  • People: All therapists and staff at Serenity Retreat undergo rigorous training. The front desk staff is trained to be courteous and informative, while therapists have certifications in the treatments they offer. Periodic training ensures they are up-to-date with the latest techniques and customer service standards.
  • Process: When a client arrives, they are greeted and given a brief consultation to understand their preferences and needs. They’re then guided through the treatment process. After their treatment, there’s a feedback mechanism where they can share their experience, helping the spa continuously improve.
  • Physical Evidence: The ambiance of Serenity Retreat reflects luxury and tranquility. There are water features, calming music, and a soothing scent throughout the spa. Treatment rooms are immaculate, with high-quality linens and equipment. After treatments, clients are given herbal teas in a relaxation lounge, enhancing the overall experience.

Using the 7Ps, Serenity Retreat crafts an integrated approach to service marketing, ensuring that clients receive a holistic, high-quality spa experience, from the moment they learn about the spa to the moment they leave the facility.

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