Service Marketing is a marketing sub-sector that includes the marketing of both goods and services. The sale of products involves consumer goods and durables. Service marketing applies to both corporate and customer services (B2C) and business services (B2B).
The Service Marketing Mix is also known as an expanded marketing mix and is an integral part of the service design blueprint. The service marketing mix consists of 7 P's compared to 4 P's of the product marketing mix. Simply put, the service marketing mix assumes the service as a commodity itself. However, it adds 3 more P which are needed for optimum service delivery. The Extended Service Marketing Mix sets 3 additional P's, including People, Process and Physical Evidence. Both of these considerations are important to ensure optimal service delivery.
Product
Miscellaneous commodity in service marketing is of an intangible type. As with physical items such as t-shirts and shorts, service products can not be measured. At the same time, the goods of the service are heterogeneous, perishable and can not be owned. As a consequence, the service product must be carefully crafted.
Place
Place to decide where the service product is to be placed in the case of utilities. Thinking about where you can match the company you're going to create or have. For example, if you have a school supplies company, it should be in the vicinity of school establishments or households.
Promotion
Promotions have become a key element in the marketing mix of services. Services are easy to duplicate and are therefore generally a brand that sets a service apart from its counterpart.
Pricing
Pricing services is more difficult than pricing a goods because in Services, businesses are taking considerations in labor costs, material costs, and overhead costs.
People
People are one of the components of a service marketing mix. People are describing a service. People may make or break a company in the case of service marketing. As a result, many businesses are now engaged in specially educating their staff in interpersonal skills and customer service with a emphasis on customer satisfaction.
Process
The service process is the way the service is provided to the end user. Take the example of two popular online companies in the Philippines, Lazada and Shoppee. Both businesses rely on their swift service, and the reason they can do that is their confidence in their processes. Moreover, the demand for these services is such that they must perform optimally without loss of quality. The method of a service provider in supplying its product is therefore of the utmost importance.
Physical Evidence
The last element of the service marketing mix is a very essential component. As has already been said, facilities are of a concrete sort. However, concrete aspects are often included with the service in order to create a better customer experience. For example, a restaurant with a nice and relaxing atmosphere, chairs , tables and good food. This is physical evidence. Physical proof is used many times as a differentiator in the selling of services.
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