Services marketing is an area of growing importance in the economy, and the specific characteristics of services are in the focus of numerous studies and researches. One of the specifics of the services is the importance of the impact of physical environment on customers and employees of service companies. The physical environment of service companies includes background music. By reviewing and analyzing previous researches it is found that music, as part of the physical environment, has a significant impact on the users and the employees of service companies. Because of these findings, it is important that the marketing managers of service companies understand the importance of proper design of the physical environment, and therefore the selection of background music. The subject of this paper is the research of marketing managers’ perception of the role of the music as part of the physical environment in the services marketing. With an analysis of previous researches of the impact of music on customers and employees of service companies, this paper aims to explore to what extent marketing managers of Croatian service companies consider important the proper selection of background music. Also, the aim was to find out whether they consider important the impact of music on the customer behavior, employee effectiveness and business performance.