Question

1.The four basic Marketing Mix includes “Product”, “Price”, “Place” and “Promotion”. Service marketing scholars argue that these traditional four Ps are not sufficient for service products to be successful in the market. In addition to four Ps, they identified three additional components, creating seven Ps. Explain seven Ps.

2.Choose a specific service product you are familiar with (e.g., Starbuck’s) and identify its core product and supplementary services.

3. After a service failure, companies consider compensation as part of their service recovery strategies. Discuss the general guideline for compensation.

subject is service marketing.

Answer 1

1. Below are the 7 P’s of marketing:

• Product = It is the core thing which is being used by the consumer. Thus, offering a product is important. It involves design, technology, warranty, specifications, packaging etc.
• Price = The product is being offered at what price and usually compared with market price and specifications. The company can use different strategies like skimming, penetration, cost leadership etc.
• Place = The product is available in which all retail environments for maximum reach. Example: Modern trade stores, Mega marts, General stores, E commerce sites etc.
• Promotions = It relates to special offerings with the products and involves things like celebrity endorsements, banners, discounts and offers like buy 1 get 1 etc.
• Process = It is very important for quality of service. Hence, companies focus on standard operating procedures in order to build credibility. It involves after sales service, standardization etc.
• Physical evidence = It is very critical for the service industry on how the environment is or feels. It involves a clean environment like table, cutlery, tidy waiter etc.
• People = It is also important for the service industry as to how people behave with customers. Example: Waiter must be smiling etc. Thus, it requires lot of training to demonstrate right behavior

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