7 I’s of Service Marketing Mix: a New Way of Defining Service Mix

7 I’s of Service Marketing Mix: a New Way of Defining Service Mix

With the growing importance of service marketing, traditional 4Ps of marketing were inadequate. So, three additional Ps were introduced; People, Process and Physical Evidence. People acts as the interaction part with customers, physical evidence as a support medium by organization while process represents a progression that can satisfy customer’s expectations. Thus,  service marketing mix also known as extended marketing mix consists of 7 P’s of marketing  product, price, place, promotion, people, process and physical evidence.

High growth is seen in service sector with more than 50 % of world GDP coming from service sector. Business environment is changing and so as the marketing practice and customer preferences. This result into updation of model of 7 P’s of service marketing mix.

7 I’s of service marketing mix is a model given to solve the need of service marketers in a more effective way. Corresponding to 7P’s of Service Marketing Mix product, price place, promotion, people, process and physical evidence; 7I’s of Service Marketing Mix are intangible, income, internet, information, insiders, interaction and indicators.

The 7 I’s Model of service marketing mix is the important model describing the relationship between 7 P’s and 7 I’s of services. The diagram below shows the 7 I’s corresponding to 7 P’s of service marketing.

Fig1.1 7P’s and 7 I’s

Product

Price

Place

Promotion

People

Process

Physical Evidence

Intangible

Income

Internet

Information

Insiders

Interaction

Indicators

Relation between P’s and I’s

1^st P & I: Relation between Product and Intangible

 While offering services product is intangible   which cannot be seen or touch.

2^nd P & I: Relation between Price and Income

In most of the cases price as well as demand of the product increase with increase in customer income.   As consumer income is rising, service firms are offering large mix of services for different income groups. Concept of organized retail, boom in real estate sectors, development in hospitality and tourism all are the result of rise in income. The necessity for the service firms is to correctly match the price mix of service marketing with income.

3^rd   P: Place & Internet

Now days, Internet is playing a very important role in distribution of services. Most of the service firms are using online channels while providing services to their customers. Internet is playing an effective role in selling and distribution of services.

4^th P & I: Promotion and Information

Communicating effective information to the customer is the most important for the success of any service firm. Today’s consumer are more knowledgeable and more aware and having global exposure. So information has a great relevance in today’s marketing.

5^th P & I: People and Insiders

People are the important element of service marketing mix as they are the real service provider and success of service greatly depends on their soldiers. Services are mostly hybrid containing tangibles and intangibles. For effectiveness of service, people are responsible. Insiders are the people who are involved in services and played an important role in providing customer satisfaction and enhancing company image.

6^th P & I: Process and Interaction

 Process is actual transfer of services from manufacturer to the customer. The process part of service delivery is very crucial since it must ensure that the similar standard of service is repeatedly delivered to the customers. During process proper interaction between customer and service provider is very important for effective service delivery and customer satisfaction.

7^th P & I: Physical Evidence and Indicators

 Physical evidence helps in incorporating tangible elements to intangible services to enhance customer experience. One can find out well designed waiting areas in malls, hotels lobbies, cinemas, saloons often with magazines and plush sofas for customers to read and relax while they are waiting for their turn. Hotels, restaurants, retailers are investing heavily in interior design and decorations to offer a tangible and unique experience to their customers. These are the indicators which work as a visual cues and constitute physical evidence and add tangible dimensions to the services.