7 P’s OF

SERVICE
MARKETING
 INTRODUCTION
WHAT IS SERVICE?

“A service is an activity or benefit that one party

can offer to another that is essentially intangible
and does not result in the ownership of anything.”
PRODUCT
 Potential Service

Augmented Service

Expected Service

Basic Service

Core
Benefit
 BRANDING

--- Brand helps to create a unique position in the

minds of the customer (e.g. Talwalkar’s Gym. ,Kaya
Skin Clinic)

The role of --- Brands help customers distinguish between

brand in products from different companies
services
marketing --- Brand superiority leads to high sales, ability to
charge premium price.
---Branding reduces time and effort in DMP
 SERVICE
DIFFERENTIATION
--- A Company’s offer should be distinct from its
customers and should fulfill the requirements
of the customers of its target markets.

--- Service differentiation results from added

features which gives customers benefits, and
the company a competitive advantage.

---Building an image and maintaining quality

are the ways of creating such differentiation.
PRICE
Price
 PRICING STRATEGY

“Discount price”

“Competition based
price”
“Penetration price”

“Skimming price”
PLACE
 PLACE
3 ways to render service:

Customer Service provider e.g.Hospitals

Service provider Customer e.g. Pizza Hut

Customer Service provider e.g. ATM machine

What is franchise???
Granting of certain rights by one party (the
franchisor) to another (the franchisee) in return
for a sum of money.

 Business method that involves licensing of

trademarks and methods of doing business
Examples of franchise in India
Factors affecting location
Proximty

Population

Infrastructure

Law & Tax

Environmental & Government regulations

Climatic conditions

Convenience
 Latest trends

Call centres

Service delivery
timings

Mini stores
PROMOTION
Promotion is the communication of the service to the
target customers – to make promises as well as to
position themselves in their minds “Promotion
consists of the following major areas of marketing”
Personal selling Advertising

PROMOTION Public relations

Word of mouth

Direct mailing Sales promotion

Personal Selling - PERSUASION
Sales Promotion
Public Relations
Advertising - AIDA
PEOPLE
PEOPLE
“HAPPY EMPLOYEE = HAPPY CUSTOMER”

Internal customers

It’s the human element that creates and sustains

the right kind of climate within the organization
that extend satisfaction to the customers.
SERVICE TRIANGLE
STRATEGIES TO HANDLE INTERNAL CUSTOMER

• Training

• Include them in company’s vision

• Empowerment

• Position your company as the best employer

• Employee retention
PROCESS
 What is Process?

•Processes are a sequence of activities arranged into

logical step .

•A process invariably is a sequence of value-adding

activities.
 EXAMPLES OF SOME SERVICE PROCESSES

Restaurant Education Health Care

Arrive Admission Admission

Seat Registration Ambulation

Rec. Order Teach Examine

Prep. Food Train Diagnose

Consume Examine Emergency

Serve Bill Evaluate Medication

Settle Bill Award Monitor

The service process includes all the
traditional ‘M’s’

Money
Method
s

Men

Material

Machin
e
 Objectives behind managing
a service process

1. To ensure that service is carried fast.

2. To create and place benchmarks.

3. To facilitate employee learning.

4. To reduce variance through work force planning.

 MANAGING DEMAND
Using reservations & bookings

Using appointments

Promoting off-peaks using price incentives

Using fixed schedules

Extending product lines

MANAGING SUPPLY
Seeking customer
participation

Using work shift

scheduling
Gap model
Ways to address gaps
PHYSICAL
EVIDENCE
PHYSICAL EVIDENCE
ELEMENTS OF PHYSICAL
EVIDENCE

SERVICE ELEMEN TANGIBLES

TS
SCAPE
Elements of servicescape

Ambient
Conditions

Space & Signs & Symbols

Function Condition & Artifacts
 SERVICESCAPE
AMBIENT SPACE & FUNCTION SIGNS , SYMBOLS &
CONDITIONS CONDITIONS ARTIFACTS

TEMPERATURE LAYOUT DESIGN RULES & REGULATIONS

QUALITY OF AIR EQUIPMENT & FIRM PROCESS EXPLAINED

NOISE

MUSIC
OTHER TANGIBLES
Business cards
Stationery
Billing statements
Reports
Employee dress
Uniforms
Brochures
Web pages
SERVICESCAPE & BEHAVIOUR

STIMULUS ORGANISM RESPONSE

AMBIENT CONDITIONS CONSUMERS COGNITIVE RESPONSE

SPATIAL LAYOUT/ FUNCTION EMOTIONAL

EMPLOYEES
RESPONSE
SIGNS, SYMBOLS & ARTIFACTS PHYSIOLOGICAL
RESPONSE