Question

Discuss how the marketing mix will vary in relationship to the offering of a service and of a product. (400 words minimum)

Answer 1

Due to the nature of services, the implications of product, place, promotion and price are different than in the traditional marketing mix.

Intangibility – the service can not be touched or viewed, so it's hard for customers to say what they're going to get in advance. Inseparability (simultaneity)–service is produced at the same moment as it is received by the customer (e.g. during an internet search or legal advice).

The marketing mix of services is an expansion of the 4Ps framework. Three extra components stay the vital components of product, promotion, price and location –individuals, physical proof and process are included in the 7Ps combination. The need for the expansion is due to the elevated level of direct contact between service suppliers and their clients, the extremely visible nature of the service method, and manufacturing and consumption simultaneity.  Although it is possible to discuss people, physical evidence and process within the 4P framework (for example, people can be considered part of the product offering), this extension allows for a more thorough analysis of the marketing elements necessary for successful services marketing.

Product- The "item" is intangible, heterogeneous and perishable when it comes to services. Moreover, it is inseparable from its manufacturing and consumption. There is therefore scope for customizing the offer according to client demands, and therefore the real client meeting takes on specific importance. Excessive customization, however, would jeopardize the normal service delivery and adversely impact its quality. In developing the service offering, therefore, specific care must be taken.

Pricing- Service pricing is tougher than commodities pricing. While the latter can be readily priced by taking into consideration the cost of raw materials, the associated costs – such as labor and overhead expenses – also need to be factored into in the case of utilities.

Place- Since service delivery is at the same time as its production and can not be stored or transferred, the service product's location assumes significance. Service providers must offer unique consideration to the location of the service. In contrast to a city's periphery, a fine dining restaurant is better situated in a busy, upscale market. A holiday resort in the countryside is better located away from a city's rush and noise.

Promotion- Since a service offering can be replicated readily, promotion becomes essential in distinguishing the consumer's mind from a service offering. Service providers providing the same services as airlines or banks and insurance companies are investing strongly in advertising their services. This is essential when it comes to attracting clients in a section where service suppliers have almost the same offers.

People- In a service delivery system, people are a defining factor, as a service is inseparable from the individual who provides it. A restaurant is renowned for its food as well as its staff's service. Banks and department shops are the same. Consequently, customer service training for staff has become a top priority for many organizations today.

Process- The service delivery method is essential as it guarantees repeated delivery of the same service level to clients. Most businesses have a blue print service that offers the information of the service delivery method, often even defining the service script and the greeting sentences that the service employees will use.