Marketing Mix for Services - 7Ps

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The common marketing mix consists of 4Ps which include “product”, “place”, “price” and promotion. This theory of marketing mix is based on the marketing concept to emphasize the consumer’s needs and wants to be the guide for the implementation of marketing practices. 4Ps is commonly used for marketing the company’s product to customers. It is commonly known that 4Ps must be read together whereby all the 4Ps’ elements integrated together to ensure the products reach customers. The element of 4P cannot be isolated from each other.

Product

4P consists of the Product as the first P. This element is referring to the characteristics of being intangible, heterogeneous, and perishable. These are related to the services rendered. The company ought to consider the quality of services rendered as well as the scope of customization of the services to the customers. Reliable services are a significant factor to determine the customers’ satisfaction. For example, services such as foot reflexology as considered very competitive in the market whereby this market can be easily accessible. However, the determining factor which will allow the said service to be outstanding lies in the quality of the services rendered. The customers will compare whether the outcome of the foot massage or reflexology does bring an effect on the customer’s body condition after receiving the services. Thus, it is important for a firm to ensure that reliable services are being delivered in order to achieve competitive marketing strategies.

Pricing

The next P refers to “Pricing. Setting the right price can be promising to the marketing strategies of the services. However, the strategy of price setting for services is different from products. It is crucial to consider the level of services provided while setting the appropriate price for the services. For instance, customers are reluctant to overpay for a service that is not reaching the standard to their satisfaction. When a customer is sending a car for servicing, the labor charges for the servicing may be connected to the quality of the services provided. Car owners may not be reluctant to send the vehicle for services of the mechanics is overpriced as car owners are well aware of the standard pricing of maintaining the vehicle, save and except the particular car workshop have offered added value that is proportionate to the price fixed. The price setting is directly related to the degree of the services provided to the customers.

Place

P also refers to the “Place”. The spatial element of the product also carries a significant influence on the marketing strategy. While delivering services, the location plays a very important role to achieve customer satisfaction. The spatial factor contains accessibility and convenience brought to the customers, availability of the information, promptness of the services, as well as efficiency of the services delivered. For instance, when the patient is looking for out-patient treatment, the location of the clinic may be one of the factors to be considered as the patient is keen to be treated and look forward to the convenience of the location of the clinic. They may not have the patience in comparing other factors due to the complication. As a result, the spatial factor of the services will cause a significant effect on the customer’s decision.

Promotion

The next P is referring to the element of “Promotion”. Promotion happens when the company is communicating the services offered to the public or their targeted market. The aim of promotion is to increase the awareness of the services offered that will influence their purchase decision, whether to buy or not to buy. Other than communicating the existence or readiness of the services, the promotion also communicates the unique selling or buying proposition to the customers. For instance, universities are offering the option of online classes instead of only providing conventional physical classes. Promotional activities do not only communicate the existence of services but also deliver the strength of the services rendered.

Extension of 4P to 7P (People, Process & Physical Evidence)

Scholars may have suggested that 4Ps can be extended to 7Ps as 4Ps are usually applied to product marketing. 7Ps can be known as more adequate to be used on services. Booms and Bitner (1981) had mentioned that 4P can be broadened to 7Ps which includes “people”, “physical evidence” and “process”. It is contended that 7Ps is a more suitable approach for service marketing. Gronroos (1997) have also highlighted that to manage service is rather difficult that products as to standardize the service consist of other factors such as people, physical evidence, and process. As a result, the justification of extensions of 4Ps was introduced, which is 7Ps is because based on the findings made by the scholars, 4P is inadequate to be applied to marketing for delivery of services.

People

The fifth P is referring to “People”. For services, unlike products, requires the right, suitable and competent people to deliver the services to the customers. People play a crucial role in determining the quality of the services rendered. This is because people involved in the delivery process. Customers who subscribed to the services are communicating with the people who deliver the services. Thus, customer service training has to be given to the employees especially those who are handling customers closely. For instance, hairstylists of a hair-dressing saloon are the main person who delivers the services such as coloring, haircutting, hair perming and rebonding to the customers. The owner of the hair-dressing saloon has to ensure that that the hairstylists are capable of handling the customers well and delivering services that are closely relevant to the current trend of the hairstyles. Therefore, the element of People plays a vital role in determining the degree and quality of the services to the customer which will influence the customer satisfaction and level of referrals that affect the profitability of the business.

Process

“Process” refers to the process and procedures of delivering the services to the customers have to be reviewed in order to meet the customers’ expectations. It is important to note that the company must replace the obsolete or archaic procedure to increase the efficacy of the service delivery process. The delivery process can be improved by reducing the complication and the time consumed. This is to enhance the simplicity of the services’ delivery process which will trigger the customers’ preference. For instance, e-commerce platform such as Shopee has constantly improved their online buying experience whereby customers will be able to save the preferential buying experience as well as able to compare the similar products available based on the purchase history. This function has brought convenience to the customers during the selection and comparison process before making purchase decisions. Such a process causes the services-rendered company to be outstanding from the competitors.

Physical Evidence

The seventh P representing Physical Evidence. Physical evidence is closely related to the element of places. Physical evidence supplements the element of place which is to provide relevant facilities, space, and environment that will affect the customers’ satisfaction while services were rendered. When a person enters into a hair-dressing saloon, the chairs, the tools and the environment of the saloon will affect the mood of the customers. As servicing the hair takes a lot of time, the physical evidence available in the saloon will affect the choices of the customers in selecting the suitable saloon. Customers will be attracted to attend the saloon that consists of good chairs, perfume, lightings, and hair servicing facilities.

7P is crucial while pursuing competitive advantages of the company especially when the company is providing services as the main source of generating revenue. The quality of the services rendered by the company must be sustained through consistent improvement efforts taken by the company.

By applying the 7Ps approach, company may be able to identify service standards and how to achieve the degree of excellence in the services rendered. Not only that, by emphasizing the 7Ps approach, the firm is able to analyze the gap between the actual service performance and the organization’s service standards.

After determining the gap between the service performance and the standards, the firm will be able to introduce service improvement plans in order to enhance the quality of the services of the firm which will directly contribute to the firm’s sustainable competitive advantages against the competitors in the market.

The 4Ps approach is still useful but may not be sufficient to cover the marketing strategies for services rendered by a firm. By extending the 4Ps to 7Ps will sufficiently and adequately cover the marketing strategies of services extensively.