Question

Discuss the elements of the expanded marketing mix for a service business

Answer 1

services business are those business which provide service to the customers such as travel, hospitality, lawyers, engineers, etc.

elements of service marketing mix:

1. product: as service is intangible, sot it can be customized according to individual customers. main focus on customer satisfaction while designing the product. in this case, product is heterogenous and cannot be owned like tangible products.

2. pricing: pricing is difficult to decide in case of service as there is no production cost. in this, labor cost overhead cost and material cost are taken into consideration for deciding pricing.

3. place: selection of place is very crucial. it depends upon type of service you are providing. for example opening a cafe near city or market place rather than in rural areas and setting up software company in it park.

4. promotion: promotions are very important to survive in competitive market. it can be done by advertising through television, digital marketing, etc. to attract customers and creating a brand value.

5. people: it plays an important part of service industry . it defines the organisation such as software engineer working in IT company , a chef in restaurant.. people training and improving customer service is most important for customer satisfaction. it also can act as a USP.

6. process: it can be defined inn which a service is delivered to end customer. it differs from company to company but the main focus on providing quality and fast service to their customers.

7 physical evidence: physical evidence is used to differentiate your service from others. such as any special offers, features, etc. a hospital with better facilities, quick service or a restaurant with good seating arrangement and tasty food.