The service marketing mix is comprised of seven activities that are used to optimize the marketing for a service. These seven activities are as follows:
- 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.
- Pricing. A number of pricing strategies can be used to assign a price to a service, such as cost-based or market-based.
- Promotions. This is the use of advertising and other activities to create a brand for a service.
- Placement. This defines where the service is to be located. An example of optimum placement is near a residential area for a day spa.
- 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.
- 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.
- 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.
The sum total of these activities comprises the full set of marketing activities used for a service product.