Description
Study on 8 Ps of Services Marketing
THE 8 PS OF SERVICES MARKETING
Services are radically different from products and need to be marketed very differently. So the
classical 4 P structure of the Marketing Mix needs to be modified suitably to incorporate the 8 Ps
for services marketing, which was previously known as the 7 Ps only.
Services can range from financial services provided by the banks to technology services
provided by the IT company or hospitality services provided by hotels and restaurants or even a
blog where an author provides a service (information presentation, interesting reading etc) to his
audience. Services marketing are dominated by the 7 Ps of marketing namely Product, Price,
Place, Promotion, People, Process and Physical evidence.
To know more in details about the classical 7 Ps of services marketing do visit our article on The
7 Ps of services marketing
While everyone knows about the 7 Ps of services marketing, the 8th P of Services
Marketing has emerged in research very recently. The 8th P is Productivity and Quality.
In integral services management, improving productivity is a requisite in cost management; but
quality, as defined by the customer, is essential for a service to differentiate itself from other
providers.
It has been recognized that overall profitability of a firm may be greatly impacted by focusing on
not only at the top-line by improving sales but also focusing on the bottom-line by lowering
over-all cost of delivering services. In services management, often the variable costs are a lot
more than fixed costs, and so incremental costs, if managed properly can have a huge impact on
productivity. So for services, a firm may greatly benefit through proper re-engineering of
processes and remodeling the same if required to improve productivity at each stage.
It has also been established in research that process improvements deliver better standardization
and hence better quality in services. Quality perception is a crucial differentiating factor on
services management and for long term sustainability of the same. Business Process Remodeling
can lead to major process efficiency improvements which again can impact overall quality as is
actually delivered by the firm and is also perceived by the customers / clientele .
doc_498261195.docx
Study on 8 Ps of Services Marketing
THE 8 PS OF SERVICES MARKETING
Services are radically different from products and need to be marketed very differently. So the
classical 4 P structure of the Marketing Mix needs to be modified suitably to incorporate the 8 Ps
for services marketing, which was previously known as the 7 Ps only.
Services can range from financial services provided by the banks to technology services
provided by the IT company or hospitality services provided by hotels and restaurants or even a
blog where an author provides a service (information presentation, interesting reading etc) to his
audience. Services marketing are dominated by the 7 Ps of marketing namely Product, Price,
Place, Promotion, People, Process and Physical evidence.
To know more in details about the classical 7 Ps of services marketing do visit our article on The
7 Ps of services marketing
While everyone knows about the 7 Ps of services marketing, the 8th P of Services
Marketing has emerged in research very recently. The 8th P is Productivity and Quality.
In integral services management, improving productivity is a requisite in cost management; but
quality, as defined by the customer, is essential for a service to differentiate itself from other
providers.
It has been recognized that overall profitability of a firm may be greatly impacted by focusing on
not only at the top-line by improving sales but also focusing on the bottom-line by lowering
over-all cost of delivering services. In services management, often the variable costs are a lot
more than fixed costs, and so incremental costs, if managed properly can have a huge impact on
productivity. So for services, a firm may greatly benefit through proper re-engineering of
processes and remodeling the same if required to improve productivity at each stage.
It has also been established in research that process improvements deliver better standardization
and hence better quality in services. Quality perception is a crucial differentiating factor on
services management and for long term sustainability of the same. Business Process Remodeling
can lead to major process efficiency improvements which again can impact overall quality as is
actually delivered by the firm and is also perceived by the customers / clientele .
doc_498261195.docx