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Institute of Management Studies, Dehradun SESSION: 2010-2011

This document provides an overview of the 7Ps of marketing mix, with a focus on product and pricing. It discusses the core, facilitating, and supporting elements of a service product. It also explains different pricing strategies including minimum pricing, penetration pricing, psychological pricing, product line pricing, and value pricing. The 7Ps framework helps marketers develop an integrated marketing strategy.

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Sumit Bahuguna
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0% found this document useful (0 votes)
95 views25 pages

Institute of Management Studies, Dehradun SESSION: 2010-2011

This document provides an overview of the 7Ps of marketing mix, with a focus on product and pricing. It discusses the core, facilitating, and supporting elements of a service product. It also explains different pricing strategies including minimum pricing, penetration pricing, psychological pricing, product line pricing, and value pricing. The 7Ps framework helps marketers develop an integrated marketing strategy.

Uploaded by

Sumit Bahuguna
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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INSTITUTE OF MANAGEMENT STUDIES,

DEHRADUN
SESSION: 2010-2011

A
PROJECT REPORT ON

“7 P’s OF MARKETING MIX”

FOR THE PARTIAL FULFILLMENT OF


U.T.U UNIVERSITY
FOR REQUIREMENT OF
MASTER'S DEGREE IN BUSINESS
ADMINISTRATION

SUBMITTED TO: SUBMITTED BY:


HOD SUMIT
(MBA) BAHUGUNA
(MB10B61)

CERTIFICATE
I hereby declare this is to certify that project reports titles 7P’S OF MARKETING MIX
has been prepared and submitted by SUMIT BHAUGUNA ( I-D NO: MB1OB61) for the
partial fulfillment of MBA Course affiliated to Uttrakhand Technical University under
my supervision and guidance.

INTERNAL GUIDE
H.O.D
MBA
IMS, DEHRADUN
ACKNOWLEDGEMENT

I feel pride and privileged in expressing my deep sense of gratitude to all those who
have helped me in presenting this assignment.

I express my sincere gratitude to HOD (MBA) for their inspiration, constructive


suggestions and mastermind analysis in my work completion was impossible for me..

Sincere thanks to all my colleagues and last but not the least to the librarian.

CONTENT
1) .INTRODUCTION
2. ) PRODUCT
a} service package
b} augmented package
c market communication of the service offer
d develop service offering
3) PRICE
A} minimum price
B} penetration price
C} economy price
D} psychological price
E} product line price
4). PLACE
A} channel decision
B} type of channel intermediaries
5} promotion
Promotion objectives
6 .PEOPLE
A} Training
B} Customer service
7 ) PROCESS
8 ) PHYSICAL EVIDENCE

MARKETING MIX
• The tools available to a business to gain the reaction it is seeking from
its target market in relation to its marketing objectives
• 7Ps – Price, Product, Promotion, Place, People, Process, Physical
Environment
• Traditional 4Ps extended to encompass growth of service industry

The First P: Service Product or Service Package:


A service is a bundle of features and benefits. However these benefits have relevance to a
specific target market. Hence while developing a service package it is important that the
package of benefits in the service offer must have a customer perspective. Gronroos
constructed that the services are product offers consists of 3 levels. The first level is that
of basic service package which includes core service, facilitating services and supporting
services. The 2nd level is that of an augmented service offering where accessibility
interaction and customer participation is given equal importance in delivering the service
product . the third level is that of the market communication of the service offering as in
its absence the augmentation service package doesn’t have any relevance to the customer.

Potential Service
The service package:
The package concept of service product suggests that what you offer to the market is a
bundle of different services, tangible and intangible, but there is a main or substantive or
core service and around it are built the auxiliary or peripheral or facilitator services. It is
important to note that facilitating services are mandatory and if these were left out, the
entire service would collapse. In the service package there are yet other type of services
called supporting services. The basic difference between the 2 is that supporting services
don’t facilitate the consumption of core services but are used to increase the value and
thus differentiate it from competition
e.g. in a 500 room hotel the core service is lodging and room service, bellboy services are
facilitating services and health club , car rental are support services. However it may not
always be possible to draw a line of distinction between facilitating and support services.
For e.g. in a typical city hotel business center might be the support service but in a
business and convention hotel the same service would be facilitating service

The augmented service offering:


The basic service package is not equivalent to the service product the customer
perceives, which is infact based on customer experience and evaluation. Therefor there is
a need to involve the customer in the production of service offering and thereby
reinforcing that the basic service package has to be expanded to a more holistic model of
augmented service offering. The issues related to the accessibility of the service
interaction with the service organisation and consumer participation are also integral
elements of the service product.
Market communication of the service offering:
A favorable image enhances the service experience and a bad image may even destroy it.
In such a scenario the issue of management of image through communication becomes a
integral part of developing the service product but the important point to note here is that
apart from the conventional methods of promotion corporate image and word of mouth
are, if not more, equally important. A negative comment from a fellow customer is more
than adequate to neutralize the effect of your efforts of mass media advertising, media
blitz and direct promotion.
Developing a service offering:
The first step in developing a new service offering is to assess the customer benefits,
which is done through market research and available appropriate information.
In the second step, these consumer benefits have to be translated into core, facilitating
and support services, with a view to defining what general benefits these service
organizations would offer to its customers.
The third stage is that of developing the augmented service offer.
A careful planning at the fourth stage is essential because of the right service in the right
form and in the right quality and quantity is not delivered, the entire customer oriented
plan would collapse.
Finally the appropriate market communication strategy should be prepared and its
implementation plan should be defined not only to inform and persuade the customers but
also to enhance the desired imag

The 2nd P: Pricing


Minimum Pricing.
Use a high price where there is a uniqueness about the product or service. This approach
is used where a a substantial competitive advantage exists. Such high prices are charge
for luxuries such as Cunard Cruises, Savoy Hotel rooms, and Concorde flights.
Penetration Pricing.
The price charged for products and services is set artificially low in order to gain market
share. Once this is achieved, the price is increased. This approach was used by France
Telecom and Sky TV.

Economy Pricing.
This is a no frills low price. The cost of marketing and manufacture are kept at a
minimum. Supermarkets often have economy brands for soups, spaghetti, etc.

Price Skimming.
Charge a high price because you have a substantial competitive advantage. However, the
advantage is not sustainable. The high price tends to attract new competitors into the
market, and the price inevitably falls due to increased supply. Manufacturers of digital
watches used a skimming approach in the 1970s. Once other manufacturers were tempted
into the market and the watches were produced at a lower unit cost, other marketing
strategies and pricing approaches are implemented.Premium pricing, penetration pricing,
economy pricing, and price skimming are the four main pricing policies/strategies. They
form the bases for the exercise. However there are other important approaches to
pricing.

Psychological Pricing.
This approach is used when the marketer wants the consumer to respond on an emotional,
rather than rational basis. For example 'price point perspective' 99 cents not one dollar.

Product Line Pricing.


Where there is a range of product or services the pricing reflect the benefits of parts of
the range. For example car washes. Basic wash could be $2, wash and wax $4, and the
whole package $6.

Optional Product Pricing.


Companies will attempt to increase the amount customer spend once they start to buy.
Optional 'extras' increase the overall price of the product or service. For example airlines
will charge for optional extras such as guaranteeing a window seat or reserving a row of
seats next to each other.

Captive Product Pricing


Where products have complements, companies will charge a premium price where the
consumer is captured. For example a razor manufacturer will charge a low price and
recoup its margin (and more) from the sale of the only design of blades which fit the
razor.

Product Bundle Pricing.


Here sellers combine several products in the same package. This also serves to move old
stock. Videos and CDs are often sold using the bundle approach.

Promotional Pricing.
Pricing to promote a product is a very common application. There are many examples of
promotional pricing including approaches such as BOGOF (Buy One Get One Free).

Geographical Pricing.
Geographical pricing is evident where there are variations in price in different parts of the
world. For example rarity value, or where shipping costs increase price.

Value Pricing.
This approach is used where external factors such as recession or increased competition
force companies to provide 'value' products and services to retain sales e.g. value meals at
McDonalds.

A particular product or service is acceptable to the customer at a particular price and if


the price ids increased it is likely that the same product or service might become less
acceptable to the customer. Another issue related to pricing is that of perceptions about
quality. Generally to most customers high price means high quality.
Service pricing follows the principles and practices of pricing of goods and therefore they
are either cost based or market based.
Following aspects should be taken into consideration while pricing services:
1. Demand fluctuations should be successfully handled
2. Service prices should be based on costs so as to take into account the tangible
clues
3. Service pricing should be such as to provide value addition and quality indication
4. The pricing strategy should cope up with the degree of competition.
Pricing objectives:
The pricing of services is greatly influenced by the basic service characteristics. However
in setting price objectives several factors in relation to the overall marketing strategy of
the corporation should be considered

Planned market position for the service product:


Gitlow suggested that price not only influences the market position but also affect the
customers perceptual positioning. It is therefore important to keep market or customer
position while deciding on pricing strategy
Product life cycle:
the stage of life cycle of the service product is of utmost importance. For instance, At the
introductory stage if there is no competition and the demand is high you may opt for high
price, to make maximum gains in the short term (skimming policy). In a similar situation
but with a low demand you may opt for low prices to penetrate into the market. Also you
have to consider the elasticity of demand i.e. whether the demand is sensitive to the
change in price or not.
Competition:
competition should be studied both from the point of interbrand and also from the
viewpoint of the brand that provides the same need satisfaction. For e.g. a private airline
is facing competition from the national and other private airlines but also from the
railways faster trains on the same routes during convenient timings
Strategic role of pricing:
Lastly it is important to understand the strategic role of pricing in your overall marketing
strategy. For e.g. a hotel chain might offer a package of low price or discount with a view
to making people try out their services. It is likely that in the short run it might be a
loosing proposition but in the long run, it may give more customer satisfaction and
thereby better utilization of services

The 3rd P: Place:


Because of intangibility of services they cannot be stored, transported and inventoried.
Also because of inseparability, they must be created and sold at the same time. These 2
characteristics make the channel very short and direct. Most service is distributed through
direct sales at best one direct agent and middleman can be added to it. For e.g.: an
insurance agent, courier service. Keeping in view the characteristics and potential
management problems, there are distinct channel configurations that can be noticed:
The dominant channel configuration in the service sector is where agents and brokers
play an imp role. The major function of these agents and brokers is to bring together the
producer and consumer of service. These agents can be classified as broker or sales
agents. E.g.: travel agents
The agents may be trained in the creation and production of service and then franchised
to sell it. E.g.: Shehnaz Hussain beauty parlours.
In some cases actual product is not transferable & therefore tangible representations are
created and transferred. This kind of tangible is used for marketing insurance services
where a contact document exists as a physical & tangible representation of the service.
Delivery of service involves creating time and place utilities, thus, factor of
location keeping in mind the potential markets is significant in channel selection
decision. The problem of standardisation and uniformity restrains the use of middlemen
& the geographical area that can be catered. Thus, it is impt to select a good location to
attain maximum coverage of the market place.
Another element of Marketing Mix is Place. Place is also known as channel,
distribution, or intermediary. It is the mechanism through which goods and/or
services are moved from the manufacturer/ service provider to the user or
consumer.

There are six basic 'channel' decisions:


 Do we use direct or indirect channels? (e.g. 'direct' to a consumer, 'indirect' via a
wholesaler).

 Single or multiple channels.

 Cumulative length of the multiple channels.

 Types of intermediary (see later).

 Number of intermediaries at each level (e.g. how many retailers in Southern Spain).

Which companies as intermediaries to avoid 'intrachannel conflict' (i.e. infighting


between local distributors).

Selection Consideration - how do we decide upon a distributor?


 Market segment - the distributor must be familiar with your target consumer and
segment.

 Changes during the product life cycle - different channels can be exploited at
different points in the PLC e.g. Foldaway scooters are now available everywhere. Once
they were sold via a few specific stores.
 Producer - distributor fit - Is there a match between their polices, strategies,
image, and yours? Look for 'synergy'.

 Qualification assessment - establish the experience and track record of your


intermediary.

 How much training and support will your distributor require?

Types of Channel Intermediaries.


There are many types of intermediaries such as wholesalers, agents, retailers, the Internet,
overseas distributors, direct marketing (from manufacturer to user without an
intermediary), and many others. The main modes of distribution will be looked at in more
detail.

1. Channel Intermediaries - Wholesalers

 They break down 'bulk' into smaller packages for resale by a retailer.

 They buy from producers and resell to retailers. They take ownership or 'title' to
goods whereas agents do not (see below).

 They provide storage facilities. For example, cheese manufacturers seldom wait
for their product to mature. They sell on to a wholesaler that will store it and eventually
resell to a retailer.

 Wholesalers offer reduce the physical contact cost between the producer and
consumer e.g. customer service costs, or sales force costs.

 A wholesaler will often take on the some of the marketing responsibilities. Many
produce their own brochures and use their own telesales operations.

2. Channel Intermediaries - Agents


 Agents are mainly used in international markets.

 An agent will typically secure an order for a producer and will take a commission.
They do not tend to take title to the goods. This means that capital is not tied up in goods.
However, a 'stockist agent' will hold consignment stock (i.e. will store the stock, but the
title will remain with the producer. This approach is used where goods need to get into a
market soon after the order is placed e.g. foodstuffs).

 Agents can be very expensive to train. They are difficult to keep control of due to
the physical distances involved. They are difficult to motivate.

3. Channel Intermediaries - Retailers


 Retailers will have a much stronger personal relationship with the consumer.

 The retailer will hold several other brands and products. A consumer will expect
to be exposed to many products.

 Retailers will often offer credit to the customer e.g. electrical wholesalers, or
travel agents.

 Products and services are promoted and merchandised by the retailer.

 The retailer will give the final selling price to the product.

 Retailers often have a strong 'brand' themselves e.g. Ross and Wall-Mart in the
USA, and Alisuper, Modelo, and Jumbo in Portugal.

4. Channel Intermediaries - Internet


 The Internet has a geographically disperse market.

 The main benefit of the Internet is that niche products reach a wider audience e.g.
Scottish Salmon direct from an Inverness fishery.

 There are low barriers low barriers to entry as set up costs are low.

 Use e-commerce technology (for payment, shopping software, etc)

 There is a paradigm shift in commerce and consumption which benefits


distribution via the Internet
The 4th P: Promotion.
The elements of the promotions mix are integrated to form a coherent campaign. As with
all forms of communication. The message from the marketer follows the
'communications process' as illustrated above. For example, a radio advert is made for a
car manufacturer. The car manufacturer (sender) pays for a specific advert with contains
a message specific to a target audience (encoding). It is transmitted during a set of
commercials from a radio station (Message / media).

The message is decoded by a car radio (decoding) and the target consumer interprets the
message (receiver). He or she might visit a dealership or seek further information from a
web site (Response). The consumer might buy a car or express an interest or dislike
(feedback). This information will inform future elements of an integrated promotional
campaign. Perhaps a direct mail campaign would push the consumer to the point of
purchase. Noise represent the thousand of marketing communications that a consumer is
exposed to everyday, all competing for attention.

The Promotions Mix.


Let us look at the individual components of the promotions mix in more detail.
Remember all of the elements are 'integrated' to form a specific communications
campaign.

1. Personal Selling.
Personal Selling is an effective way to manage personal customer relationships. The sales
person acts on behalf of the organization. They tend to be well trained in the approaches
and techniques of personal selling. However sales people are very expensive and should
only be used where there is a genuine return on investment. For example salesmen are
often used to sell cars or home improvements where the margin is high.

2. Sales Promotion.
Sales promotion tend to be thought of as being all promotions apart from advertising,
personal selling, and public relations. For example the BOGOF promotion, or Buy One
Get One Free. Others include couponing, money-off promotions, competitions, free
accessories (such as free blades with a new razor), introductory offers (such as buy digital
TV and get free installation), and so on. Each sales promotion should be carefully costed
and compared with the next best alternative.

3. Public Relations (PR).


Public Relations is defined as 'the deliberate, planned and sustained effort to establish
and maintain mutual understanding between an organization and its publics' (Institute of
Public Relations). It is relatively cheap, but certainly not cheap. Successful strategies tend
to be long-term and plan for all eventualities. All airlines exploit PR; just watch what
happens when there is a disaster. The pre-planned PR machine clicks in very quickly with
a very effective rehearsed plan.
4. Direct Mail.
Direct mail is very highly focussed upon targeting consumers based upon a database. As
with all marketing, the potential consumer is 'defined' based upon a series of attributes
and similarities. Creative agencies work with marketers to design a highly focussed
communication in the form of a mailing. The mail is sent out to the potential consumers
and responses are carefully monitored. For example, if you are marketing medical text
books, you would use a database of doctors' surgeries as the basis of your mail shot.

5. Trade Fairs and Exhibitions.


Such approaches are very good for making new contacts and renewing old ones.
Companies will seldom sell much at such events. The purpose is to increase awareness
and to encourage trial. They offer the opportunity for companies to meet with both the
trade and the consumer. Expo has recently finish in Germany with the next one planned
for Japan in 2005, despite a recent decline in interest in such events.
6. Advertising.
Advertising is a 'paid for' communication. It is used to develop attitudes, create
awareness, and transmit information in order to gain a response from the target market.
There are many advertising 'media' such as newspapers (local, national, free, trade),
magazines and journals, television (local, national, terrestrial, satellite) cinema, outdoor
advertising (such as posters, bus sides).

7. Sponsorship.
Sponsorship is where an organization pays to be associated with a particular event, cause
or image. Companies will sponsor sports events such as the Olympics or Formula One.
The attributes of the event are then associated with the sponsoring organization.

The elements of the promotional mix are then integrated to form a unique, but coherent
campaign.

There are clear differences in information usage between goods and services. First, the
difference is that the consumers of services are less likely to purchase without
information, than those of goods. Second, the consumer of services will prefer personal
sources to impersonal sources of information. And third, the basic characteristics of
services have implications for communication strategies. The above three differences
influence the decisions regarding the
Communications objectives
Target audiences
Planning of each of the sub elements in the promotion mix
Promotion objectives:
the basic objective of promotion would be to develop public relations and create a brand
image. The promotion mix should use indirect selling techniques, packaging and
customization.
Target audiences:
In service sector there should be a direct contact between the customers and there service
providers. Therefore some promotion should be directed towards the employees so as to
motivate them to serve the customers better. The target audience also includes buyers,
influencer and the decider or user of the buying cycle.
Planning the Promotion mix:
a customer is buying the performance of the service personnel and therefore the
advertising in service industry shouldn’t only restrict itself to encouraging consumption,
but also it should encourage employees to perform well. Effective advertising programs
should be such that they have a positive effect on contact personnel, capitalize on word of
mouth, provide tangible clues, make offer easily understandable and contribute
continuity.
Planning for promotion mix: planning the promotiom mix calls for the right advertising
strategies, consumer promotions, efficient selling methodologies and good public
relations for the right kind of publicity.
Public relations and publicity:
Promotional activities like community relations, event management, media blitz,
corporate identity programmes have relevance and should be used effectively by
marketers.
Eg: a medical doctor specialising in eye care running his own clinic cum nursing home
and organizing free eye camps in competence. all over the region. This community
service will not only spread his name but also prove his
Communication strategy:
The service marketer should attempt to reflect a consistent & attractive personality in all
manifestations of the organizations that reach the public.
Also one must aim for a recognizable human personality to endorse the service.
Stress on specialization, rather than all things for all people. This will help in creating a
unique positioning.
The 5th P: People

It is the employees of an organisation which represent the organisation to its customers.


In a service organization, employees are essentially the contact personnel with customer.
Therefore, an employee plays an important role in the marketing operations of a service
organisation.

To realize its potential in services marketing, a firm must realize its potential in internal
marketing - the attraction, development, motivation and retention of qualified employee-
customers through need meeting job-products. Internal marketing paves way for external
marketing of services. In internal marketing a variety of activities are used internally in
an active, marketing like manner and in a coordinated way.
The starting point in internal marketing is that the employees are the first internal market
for the organization.
The basic objective of internal marketing is to develop motivated and customer conscious
employees.
A service company can be only as good as its people. A service is a performance and it is
usually difficult to separate the performance from the people. If the people don’t meet
customers' expectations, then neither does the service. Therefore, investing in people
quality in service business means investing in product quality.

'People' as part of the marketing mix


People are the most important element of any service or experience. Services tend to be
produced and consumed at the same moment, and aspects of the customer experience are
altered to meet the 'individual needs' of the person consuming it. Most of us can think of
a situation where the personal service offered by individuals has made or tainted a tour,
vacation or restaurant meal. Remember, people buy from people that they like, so the
attitude, skills and appearance of all staff need to be first class. Here are some ways in
which people add value to an experience, as part of the marketing mix - training, personal
selling and customer

Training.
All customer facing personnel need to be trained and developed to maintain a high
quality of personal service. Training should begin as soon as the individual starts working
for an organization during an induction. The induction will involve the person in the
organization's culture for the first time, as well as briefing him or her on day-to-day
policies and procedures. At this very early stage the training needs of the individual are
identified. A training and development plan is constructed for the individual which sets
out personal goals that can be linked into future appraisals. In practice most training is
either 'on-the-job' or 'off-the-job.' On-the-job training involves training whilst the job is
being performed e.g. training of bar staff. Off-the-job training sees learning taking place
at a college, training centre or conference facility. Attention needs to be paid to
Continuing Professional Development (CPD) where employees see their professional
learning as a lifelong process of training and development.

Personal Selling
There are different kinds of salesperson. There is the product delivery salesperson. His or
her main task is to deliver the product, and selling is of less importance e.g. fast food, or
mail. The second type is the order taker, and these may be either 'internal' or 'external.'
The internal sales person would take an order by telephone, e-mail or over a counter. The
external sales person would be working in the field. In both cases little selling is done.
The next sort of sales person is the missionary.
Here, as with those missionaries that promote faith, the salesperson builds goodwill with
customers with the longer-term aim of generating orders. Again, actually closing the sale
is not of great importance at this early stage. The forth type is the technical salesperson,
e.g. a technical sales engineer. Their in-depth knowledge supports them as they advise
customers on the best purchase for their needs. Finally, there are creative sellers. Creative
sellers work to persuade buyers to give them an order. This is tough selling, and tends to
o ffer the biggest incentives. The skill is identifying the needs of a customer and
persuading them that they need to satisfy their previously unidentified need by giving an
order.
Customer Service
Many products, services and experiences are supported by customer services teams.
Customer services provided expertise (e.g. on the selection of financial services),
technical support(e.g. offering advice on IT and software) and coordinate the customer
interface (e.g. controlling service engineers, or communicating with a salesman). The
disposition and attitude of such people is vitally important to a company. The way in
which a complaint is handled can mean the difference between retaining or losing a
customer, or improving or ruining a company's reputation. Today, customer service can
be face-to-face, over the telephone or using the Internet. People tend to buy from people
that they like, and so effective customer service is vital. Customer services can add value
by offering customers technical support and expertise and advice

The 6th P: PROCESS


Process is another element of the extended marketing mix, or 7P's.There are a number of
perceptions of the concept of process within the business and marketing literature. Some
see processes as a means to achieve an outcome, for example - to achieve a
30% market share a company implements a marketing planning process.
another view is that marketing has a number of processes that integrate together to create
an overall marketing process, for example - telemarketing and Internet marketing can be
integrated. A further view is that marketing processes are used to control the marketing
mix, i.e. processes that measure the achievement marketing objectives. All views are
understandable, but not particularly customer focused.
For the purposes of the marketing mix, process is an element of service that sees the
customer experiencing an organisation's offering. It's best viewed as something that your
customer participates in at different points in time. Here are some examples to help your
build a picture of marketing process, from the customer's point of view.

Going on a cruise - from the moment that you arrive at the dockside, you are greeted;
your baggage is taken to your room. You have two weeks of services from restaurants
and evening entertainment, to casinos and shopping. Finally, you arrive at your
destination, and your baggage is delivered to you. This is a highly focused marketing
process.

At each stage of the process, markets:


 Deliver value through all elements of the marketing mix. Process, physical
evidence and people enhance services.

 Feedback can be taken and the mix can be altered.

 Customers are retained, and other serves or products are extended and marked to
them.

 The process itself can be tailored to the needs of different individuals,


experiencing a similar service at the same time.
THE 7 TH: P PHYSICAL EVIDENCE

Customers in the service sector attempt to take cues about the service
provider's capabilities and the quality of service offered from physical
evidence. The major elements of physical evidence include the physical
environment, the modes and content of communication, service
personnel, the tangible elements accompanying the service and the
brand.

The layout of the service center, atmosphere and aesthetics constitute


physical environment. A well-designed layout, maintenance of
appropriate lighting, music and visuals, pleasant and attractive
ambiance of the outlet ensure that customers enjoy their service
encounter. Placing signboards where needed and displaying the chart
of service charges helps customers serve themselves and improves
their experience.

Service providers should price their services right (neither too high nor
too low) to attract customers. Some service providers offer tangibles
like books or gifts to improve their relationship with customers.
Service providers also need to invest on building the corporate brand,
which conveys their image. Brand is another tangible considered by
customers before purchasing a service. 

Physical evidence can be categorized into two types – peripheral and


essential. Essential physical evidence is provided by those tangibles,
without which the service cannot be delivered. Peripheral evidence is
provided by those tangibles given out by service providers as gifts.
The important benefits offered by physical evidence are increased
employee productivity, creation of good impression among customers,
increased credibility of the service provider, and differentiation from
competitors, effective management of service quality and repositioning
of services.

Physical evidence is the material part of a service. Strictly speaking there are no physical
attributes to a service, so a consumer
tends to rely on material cues.
 are many examples of physical evidence, including some of the following:

 Packaging.

 Internet/web pages.

 Paperwork (such as invoices, tickets and despatch notes).

 Brochures.

 Furnishings.

 Signage (such as those on aircraft and vehicles).

 Uniforms.

 Business cards.

 The building itself (such as prestigious offices or scenic headquarters).

 Mailboxes and many others . . . . . .

A sporting event is packed full of physical evidence. Your tickets have your team's logos
printed on them, and players are wearing uniforms. The stadium itself could be
impressive and have an electrifying atmosphere. You travelled there and parked quickly
nearby, and your seats are comfortable and close to restrooms and store. All you need
now is for your team to win!

Some organisations depend heavily upon physical evidence as a means of marketing


communications, for example tourism attractions and resorts (e.g. Disney World), parcel
and mail services (e.g. UPS trucks), and large banks and insurance companies (e.g.
Lloyds of London).

BIBLOGRAPHY

 www.Google.com
 PHILIP KOTLER

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