Marketing mix in Services Marketing

Marketing mix is a set of tactics and tools that companies use to promote their products or services to target customers. However, when it comes to services marketing, the traditional 4 P's of marketing mix (product, price, place, and promotion) need to be augmented with 3 more elements: people, process, and physical evidence. These seven elements together form the extended marketing mix for services. In this study material, we will focus on the seven elements of the marketing mix in services marketing with examples from India.

 Product - Services are intangible, which means they cannot be touched, tasted, or seen. Hence, the focus of product in services marketing is on creating and delivering the right set of benefits and experiences that customers are looking for. For example, a hotel offers not only a place to stay but also a range of amenities and services like room service, laundry, spa, and transportation.

 Price - In services marketing, pricing strategies are complex as compared to tangible products, as services are often customized for individual customers. Companies need to consider the value that customers place on the services and adjust the price accordingly. For example, a premium salon may charge higher prices for haircuts and styling than a local salon due to its high-end services and luxurious experience.

 Place - In services marketing, place refers to the distribution channels and the location of the service provider. Service providers need to be accessible and convenient to customers. For example, an e-commerce company like Flipkart offers doorstep delivery and pickup of products across India, making it accessible to customers in remote areas as well.

 Promotion - Promotion in services marketing includes all the activities that help to communicate the value of the service to customers. Companies need to choose the right mix of communication channels like advertising, public relations, direct marketing, and personal selling to reach their target customers. For example, a travel agency may advertise its services through print ads, online ads, and social media to attract customers.

 People - Services are delivered by people, and hence, the quality of people delivering the service has a significant impact on the customer's experience. Companies need to recruit and train their employees to provide excellent service to customers. For example, a bank may train its employees to provide personalized service to customers and help them with their banking needs.

 Process - In services marketing, the process refers to the system and procedures that a company follows to deliver the service. The process should be efficient, transparent, and customer-friendly. For example, a hospital may follow a process of online appointment booking, which saves time and avoids long queues for patients.

 Physical Evidence - Services are intangible, and customers may find it challenging to evaluate the quality of the service before they purchase it. Hence, physical evidence in services marketing refers to tangible elements like the service environment, equipment, and facilities that customers can see and touch. For example, a luxury hotel may use high-end furniture, decor, and lighting to create an ambiance of luxury and sophistication.