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Service Marketing: the 3 Additional P’s

25 September, 2009, Marketing - One Comment

The 4 P marketing mix is an extremely popular jargon in marketing lingo. The theory exhorts the optimum mix of the 4 P’s: Product, Price, Place (distribution channels) and Promotion to generate maximum returns. This applies perfectly to the offering as long as it is a tangible product. Certain additions need to be made to the mix once the offering is a service.

To begin with, we need to clearly distinguish a service from a product. Although a lay man understanding is self explanatory, a few technical aspects need to be explored. A service has the following properties:

Intangibility: The offering cannot have a physical presence. A musician may play soothing music, but the same cannot be physically seen or held.

Inseparability: The service cannot be separated from the provider. Food consumed in the ambience of a restaurant is different from what is packed and taken home.

Ownership: The service is integral to the provider. One can experience the skills of an actor but cannot claim to possess the service.

Perishability: A service once delivered immediately perishes. A similar service may be given again and again, but the moment of a particular service would never occur again.

Variability: Taking into account human involvement, no two services will ever be the same, even if delivered by the same provider.

The service marketing mix includes 3 more P’s, namely, People, Process and Physical Evidence. We will take the example of the hospitality industry to examine this mix in detail.

People are the most important component of a service marketing mix. By people, we refer to the individuals who participate in providing a service to the consumer.  He interacts with the receptionist at the front desk, a valet parks his car, an attendant deals with his personal requirements, waiters serve him food, and the manager deals with his issues, if any.

Process is the internal mechanism of the service organization around which people work. People may be highly courteous and hardworking; however, if processes are not in place, the consumer does not receive optimum satisfaction. With respect to the hospitality industry, processes involve the time taken in completing registration formalities, complaint solving hierarchy, perquisites on offer, quality of room service etc.

Physical evidence refers to the tangible component of the service offered. In the hospitality industry, this could include quality of food, luxury of the room, overall ambiance etc.

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