For service sector, it is observed that the traditional marketing mix is inadequate because of three main reasons. The first reason is that the original marketing mix was developed for manufacturing industries, which implies that the services offered by service companies ought to be changed in a more product like manner so that the existing marketing tools can be applied. The second reason is that the marketing practitioners in the service sector found that the marketing mix does not address to their needs. They observed that the services have certain basic characteristics, which in turn have marketing implications.
For example there is a problem as regard to maintaining the quality due to lack of standardization or services can't be inventoried, patented or transferred. The third reason is that since services are basically different in comparison to physical products the marketing models and concepts have, therefore, to be developed in direction of the service sector.
In order to solve these problems, three more additional Ps were developed. They are,
1. People
2. Physical evidence
3. Process
