The Extended Marketing Mix for Service Industry: Additional 3 P’s
The additional 3Ps are People, Process and Physical Evidence.
These additional 3P are required because of the special characteristics of the Service Industry. The product of a service industry is not tangible. The Service cannot be manufactured and inventoried but are often produced & delivered simultaneously. The service cannot be touched or felt but has to be experienced. The quality of the service is perceived quality and depends upon who is providing, when is providing and how is providing. The services are perishable and depend upon the people who are providing, the ambience where it is being provided and the way it is being provided. Because of certain characteristics like intangibility, inseparability, heterogeneity, perishability etc. Service industry needs additional marketing mix elements.
The Process industrializes and standardizes the services, Physical evidence tangibilizes the services and people (personnel) are the essential parts of the service.
Process: The sub elements of process are flow of activities, service steps, and involvement of the customers.
Physical evidence: The sub elements of physical evidence are Ambience, facility design, Equipment, signage, Employee attire, Displays etc.
People: The sub elements of people are Employees and customers.