7 Ps OF SERVICE MARKETING

MARKETING MIX FOR SERVICES

•Process

•People
•Physical Evidence

PRODUCT MIX .

PRODUCT POTENTIAL OFFER • McDonalds-Meal Offer AUGMENTED OFFER • Jet Airways with Kingfisher • Airline ticket with comfort waiting Area. Seat & Good Meals • BED IN A HOTEL FOR THE NIGHT EXPECTED OFFER CORE PRODUCT .

PRODUCT QUALITY : RATER • Competence • Courtesy • Credibility • Security ASSURANCE RELIABILITY • Dependability • Delivering on Promises • Accuracy • Consistency RESPONSIVENESS •Promptness •Helpfulness • Easy access • Good Communication • Customer Understanding • Personalised Attention EMPATHY • Physical Evidence TANGIBLES QUALITY LIES IN THE EYES OF THE EYES OF BEHOLDER .

develops products based on its definition Decreased likelihood of satisfying customers L-T misleading of market place .• Product Oriented Approach • Customer Oriented Approach Start with Company Co. describes what a product represents Co.

of different product lines a co. is offering .PRODUCT RANGE • Product Item • Product Line • Product Mix – Width – is no.Depth – no. of product item with in each product line PRODUCT FEATURES • Intrinsic Attributes – e. Dentist  Diagnostic tests performed  Hours of availability  College from which degree received • Extrinsic Attributes  Price  Brand Name  Level of Advertising .g.

Service customers do not switch brands frequently as compared to product. Value Added Services – e.unconditional. Hotel Faster Check-in Complementary Services Free use of Health Club Online Foreign Exchange Swimming Pool. etc. .g. • Guarantees of Services – . Quick & easy to collect. . Easy to ivoke. Easy to understand. Customer want promised services not payouts • Branding of Services – FedEx – The World on time ICICI imobile – Khayal Aapka OBC – Where every individual is committed .Service firm’s aim to achieve Zero Defection by providing proactive service. Meaningful.

TYPES OF NEW SERVICE Major Innovations SOURCES OF NEW IDEAS : Internal & External Service Improvement Start up Business New Service New Service for currently served Market Style Change Service Line Extensions .

SERVICE DEVELOPMENT PROCESS Explain & Idea Generation Screening Concept Lasting Business Analysis Service Development Test Marketing Commercialisation Evaluation & Profit .

5. Rent Fare Fee Retainer ship Use of living House/Office/Equipment Taxi Ride. What You Pay (Price) Tuition Interest What You get (Service) Education Use of Money 3. 2. Toll Salary Wages Commission Dues Admission Tariff Premium Travel on some highway Services of an executive/white collar worker Services of Blue Collar worker Agent’s Services Membership of a Club/Union Theater Entry Utilities Insurance . 6.PRICING No. 13. Airline flight or Bus Journey Services of Doctor/Lawyer Consultants’ service over a period of time 7. 11. 14. 12. 4. 8. 9. 1. 10.

PRICING SELECTING A APPROXIMATE PRICE LEVEL Cost Oriented Pricing: Cost Plus Pricing Rate of return Pricing Demand Oriented Pricing: Discriminating Pricing Backward Pricing Market Penetration Pricing Skimming Pricing .

Commission e.Special Adjustments to List or Quoted Price Discounts .Promotional e.g.Trade .Quantity Allowances .Seasonal . Real Estate Agent Commission Travel Agent Commission Geographical Adjustments . Single Zone Pricing Multizone Pricing .Trade – in .g.

SERVICE INDUSTRY PRICING – APPLICATIONS .TRANSPORTATION • • • • • • • • • • • • Type of products/materials to be transported Loading and handling facilities Accessibility at pick-up and destination Weight of Consignment Possibility of return load Need for high security Nature of Product Availability of transport route Distance Cross-state or Cross border customs Time involved Distance involved .

and many other information-based services. banking.PLACE • Place or distribution is a major factor in developing a service marketing strategy because of the inseparability of services from the producer. the value of convenient location becomes more important. entertainment. • As competition grows. . • The availability of electronic distribution through the World Wide Web now provides global coverage for travel services.

PLACE • LOCATION  Need of the Market  Technological Innovation  Convenience SITUATION Customer-----Service Provider Service Provider-----Customer Arm’s Length Transaction IMPACT Have to select Less important Insignificant .

insurance & cards  to booking points  to alternative brands  to alternative agents • CHANNELS OF DISTRIBUTION  The service provider  Intermediaries  Customers .PLACE • ACCESSIBILTY  to range & choice of service literature & brochures  to components such as visas. traveler cheques.

AIRLINES Consolidation Tour Operator Affiliated with Companies Direct Via Home leased System Consolidation PASSENGER CHANNELS OF DISTRIBUTION FOR AIRLINE SERVICES .

• CHANNEL OPTIONS  Producer Consumer  Agents or Brokers  Producer Agent Consumer  Seller & Buyer Agent or Broker  Agent Consumer  Franchises and Contracted service deliveries MAJOR INTERMEDIARIES FOR SERVICE DELIVERY Franchises Agents Electronics .

PROMOTION .

PROMOTION MIX & ITS IMPORTANCE .

PROMOTION MIX & ITS RELATION .

PEOPLE All people directly or indirectly involved in the consumption of a service are an important part of the extended marketing mix. Management and other Consumers often add significant value to the total product or service offering. Knowledge Workers. . Employees.

THE SERVICE-PROFIT CHAIN Operating Strategy and Service Delivery System Employee Retention Internal Service Quality Employee Satisfaction Employee Productivity External Service Value Customer Satisfaction Customer Loyalty Revenue Growth Profitability •retention •repeat business •referral • workplace design • job design • employee selection and development • employee rewards and recognition • tools for serving customers •Service concept: results for customers •service designed and delivered to meet targeted customers' needs .

.PROCESS Procedure. mechanisms and flow of activities by which services are consumed (customer management processes) are an essential element of the marketing strategy.

both tangible goods that help to communicate and perform the service and intangible experience of existing customers and the ability of the business to relay that customer satisfaction to potential customers.PHYSICAL EVIDENCE The ability and environment in which the service is delivered. PHYSICAL EVIDENCE Interior Design Equipment Signage Layout Temperature Others: Business Cards Stationery Billing Statements Reports Employee Dress Brouchers Exterior Design Signage Parking Landscape Surrounding Envt. .

It is about an environment that soothes all the five senses.Welcomgroup The campaign is successful enough to maintain its brand as one of the best Hotels in India. Sheraton Towers and Executive Club brands. ITC-Welcomgroup was the one of the first hotel chain to recognise the specific needs of the discerning business traveler.Deep sleep is more than just the right bed. The ad really gives the feel of the comfort and what a Service sector should cater to. An awesome Ad. leading to the development and nurturing of ITC One. The move is infact necessary to keep attracting the tourist as India is becoming one of the most favoured coutry to visit. Client: ITC . Experience our rooms and know how it feels to sleep like a baby again. . feel like spending one night at Maurya.

7 Ps OF THE BANKING SECTOR .

PRODUCT MIX It includes all different product lines a company offers to its customers. . SAVINGS ACCOUNT ATM Network 7-Day Banking Telebanking iConnect-Internet Banking Mobile Banking Transactions CREDIT CARDS Rewards Cash Withdrawl Credit Limit Increase 24-Hour ATMs Concession on Personal Remittances Overdraft Facility. etc.

100 – Beyond 2 cards Rs. 100 Add – on Card Duplicate Card .PRICE MIX It is nothing but the interest rates charged by the different banks. ATM Card Issue Free – 2 ATM cards issued free if it joint account RS.

25 per page Rs. 25 per page Account closure Rs.100 Rs.100 .OTHER GENERAL CHARGES Current Account Savings Account Transaction Charges NIL NIL Charges for issue 1 Cheque book in 3 months Issue of duplicate statement NIL NIL Rs.

PLACE MIX It is the location analysis for banks branches. Some of the factors affecting the location analysis are :- The Trade Area Population Characteristics Commercial Structure Proximity to other convenient Outlets Real Estate Rates Proximity to Public Transportation Location of Competition Visibility Access .

Different ways of promotion are :Public Relations Personal Selling Sales Promotion Word-of-mouth Promotion Telemarketing Internet .PROMOTION MIX It is making the customer more and more aware of the services and benefits provided by the banks.

Paying for the initial down payment. Producing of proper documents 2. Filling up of application form 3. Now this mainly involves 3 things. • Let’s take for example the process for application for a car loan. 1. A process should be such that the customer is easily able to understand and easy to follow. .PROCESS • The process mix constitutes the overall procedure involved in using the services offered by the bank.

PROCESS cont….. The smaller and simpler the procedure. and the customer will be more satisfied. the better the process. For example:. . An efficient service that replaces old credit cards will foster consumer loyalty and confidence in the company.Banks that send out Credit Cards automatically when their customers old one has expired again require an efficient process to identify expiry dates and renewal.

e. or the location of the place for depositing cheques. the physical evidence would be the placement of the customer service executive’s desk. . how the entire bank has been designed. in case of a bank.PHYSICAL EVIDENCE • Overall layout of the place i. • For example. • Physical evidence refers to all those factors that help make the process much easier and smoother. The more the bank does to make the service easier and better the more satisfied will be the customer.

Staff should have the appropriate interpersonal skills. • Consumers make judgments and deliver perceptions of the service based on the employees they interact with.PEOPLE • An essential ingredient to any service provision is the use of appropriate staff and people. which tells consumers that staff are taken care off by the company and they are trained to certain standards. aptitude. Many British organizations aim to apply for the Investors In People accreditation. . and service knowledge to provide the service that consumers are paying for.

8th P of Service Marketing • • • • Product Place & Time Price Promotion • Process • Physical environment • People • Productivity & Quality .

PRODUCTIVITY .

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