Service marketing mix definition
/What is the Service Marketing Mix?
The service marketing mix is comprised of seven activities that are used to optimize the marketing for a service. All seven activities are needed to achieve the optimum level of service delivery. The activities are noted below.
Product
This is a service product, and so is not tangible. Instead, the seller must develop a blueprint for how the service is to be structured. It is quite possible that a service can be customized to match the needs of the individual customer, which makes this a good service option.
Pricing
A number of pricing strategies can be used to assign a price to a service, such as cost-based or market-based pricing. Unless a high level of unique value is being provided, prices are usually capped at the going rate in the local area where the services are being provided.
Promotions
This is the use of advertising and other activities to create a brand for a service. Advertising tends to be heaviest in industry niches where service offerings are easily duplicated; in essence, the level of advertising differentiates the service being offered.
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Placement
This defines where the service is to be located. An example of optimum placement is near a residential area for a day spa. Or, a high-end restaurant needs to be positioned near areas frequented by those people who can afford expensive meals.
People
This is the quality and types of personnel used to provide the service. The quality level will drive price points, since higher-quality personnel are more expensive. This issue should lead service businesses to offer more training to their customer-facing employees.
Process
This is the manner in which a service is provided to a customer, such as very quickly or more slowly but with great accuracy or attention to detail. A business can define processes quite thoroughly in their operating procedures.
Physical Evidence
This is the environment in which the service is rendered. For example, a private banking service may involve the use of plush offices for meeting with clients, while a day spa will create a calm and restful atmosphere.
The sum total of these activities comprises the full set of marketing activities used for a service product.