The 7 P's of service marketing include product, price, promotion, place, people, physical evidence, and process. The document discusses each element and how they relate to delivering services to customers. Specifically, it notes that people include employees and customers who influence perceptions, physical evidence is the tangible environment where services are delivered, and process refers to the procedures and systems used to deliver the service. The expanded marketing mix framework emphasizes that all elements must work together to create value for customers.

1. 7 P’s of Service Marketing

3. Product
Product Decisions
Branding Quality Features
Benefits offered
• Customer Value = the ‘bundle of benefits’ delivered to the customer
• Need to change benefits as customers’ needs change

4. Price
• Only ‘Price’ generates income
Penetration
• Price must support costs of all other Ps
Skimming
Pricing Strategies Competition
Product Line
Bundle
• Price also must reflect the relationship
of supply and demand within the marketplace
Psychological
• Price = Cost the customer is prepared to pay

5. Promotion
• The task of Promotion is to target
customers and Communicate with
them
Advertising
Public
Relations
Sales
Promotional Mix Promotion
Personal
• An integrated mix of promotional Selling
techniques should reach Direct
customers by all available Marketing
channels Internet/
E-commerce

6. Place
Direct Distribution Indirect Distribution
Manufacturer Manufacturer Manufacturer
Franchisee Retailer
Consumer Consumer Consumer
• The task of Place is deliver the Product to the
customer at the right Price
• There are many options of channel design
• Channel design should take into account Cost
and Convenience for the customer

7. An expanded marketing mix for services
Product
People (service)
Process
Place,
Place &
cyber- Customers
Customers
Customers Price
Price
Time
space &
time
Promotion
Physical evidence

8. People
• All human actors who play a part in
service delivery and thus influence the
buyer’s perceptions: namely, the firm’s
personnel, the customer, and other
customers in the service environment.
customer
service employees
other customers

9. Physical Evidence
• The environment in which the service is
delivered and where the firm and customer
interact, and any tangible components that
facilitate performance or communication
of the service.
•Atmosphere
•equipment
•facilities
•uniforms

10. Process
• The actual procedures, mechanisms, and
flow of activities by which the service is
delivered—the service delivery and
operating systems.
service delivery systems
•back stage
•front stage
procedures
policies

11. Expanded Marketing Mix for
Services
PEOPLE PHYSICAL PROCESS
EVIDENCE
Employees Facility design Flow of activities
Customers Equipment Number of steps
Communicating Signage Level of customer
culture and values involvement
Employee research Employee dress
Other tangibles