SERVICE MARKETING

PAIR
PRESENTATION
QUESTiON 6
P R E S E N T E R S :

O S H I N H A M I L T O N S H A N E L L M O R G A N
 QUESTION #6

Discuss how The “ Marketing Mix ” for Services differs from

that of the marketing mix for goods. Why are the additional

elements important factors to be considered in the

marketing of services? Refer to the Scale of Market Entities

(Product-Service Continuum)

Neon Dye Inc.

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ICE
Breaker

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 TODAY'S
OBJECTIVE
To reinforce the Marketing Mix

To distinguish between the marketing of good versus

service

To understand the importance of the extended

marketing mix

To understand the Scale of Market Entities

To illustrate goods and services marketing (with

examples)

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 MARKETING
MIX
THE 4 P'S
According to Stanton “Marketing mix is the term used to describe the
combination of the four inputs which constitute the core of a company’s
marketing system- the product, the price structure, the promotional activities,
and the distribution system.” Thus marketing mix consists of four elements
mixed in such a way to suit the enterprise objectives.

The set of controllable tactical marketing tools – product, price, place, and
promotion – that the firm blends to produce the response it wants in the target
market. By Philip Kotler and Gray Armstrong, 8th Edition

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MARKETING MIX
FOR GOODS
THE 4 P'S

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What is a physical good?

According to (Kotler) A good is any tangible (object, device) thing

that satisfies the consumer needs and wants.

Characteristics of a physical good

Physical objects for which a demand exist

These attributes are preserved over time
Establish ownership rights
Exist independently

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What is a
Service

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 WHAt IS A SERVICE ?

Services are deeds, performances and processes

provided or coproduced by one entity or person for
and with another entity or person (Zeithaml et al,
2009)

Characteristics of a Service

Intangibility
Variability/Heterogeneity
Perishability
Inseperability/Simultaneity

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 Intangibility
Problem Solution

1. Lack of service inventories 1. Use of tangible cues

2. Lack of patent protection 2. Use personal sources of

information to market services
3. Services cannot be
experienced or consumed until 3. Create a strong organizational
the purchase is made image

4. Pricing of services is difficult 4. Utilize an activity-based costing

approach

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 Variability
Problem
1. Service delivery and customer
satisfaction depends on
employee actions
2. Service standardizations and
quality control are difficult to
achieve
Solution
1. Requires careful selection of
personnel and extensive
training
2. Utilize automation of
services where possible
3. Utilize quality monitoring
tools - flowcharts and service
blueprints

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 Inseperability
Problem Solution

1. Service provider is physically 1. Strategic selection and training

connected to the service employees

2. The customer is involved in the 2. Effectively manage consumers

production process
3. Use of multisite locations to offset

3. Mass production of services is 4. Healthy work environment

challenging
5. Effective service recovery
strategies

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 Perishability
Problem
1. Demand exceeds
optimal levels of supply
2. Lower demand than
optimal supply levels
3. Long waiting periods
when demand is high
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Solution
1. Utilise creative pricing strategies
to shift demand
2. Implement a reservation system
3. Shift demand to complimentary
services
4. Utilise non-peak demand periods
to prepare for peak demand periods
5. Expansion
6. Increase customer participation
 The Importance of the Extended 3 Ps in
the marketing Mix

The Concept of Physical Evidence

Akroush (2011) stated that physical evidence constitute all tangible elements that
provides friendly atmosphere in the service environment

There is greater uncertainty in the purchase of a service because of the

intangibilty but the uncertainty can be reduced when there are tangible elements
to tangilize the intangibility. ( Kotler, 2003)

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Mahmood and Khan, 2014) agrued that physical evidence helps to
distinguish a service provider from competitors hence influence customer
choice, it involves all tangible cues that support the delivery of the service.

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 The concept of People

People are the most significant "P" that distinguish good and
service marketing

Service depends on the people who deliver them, as they directly

involve the customer experience of the service. (Brassington,

2006)

Customer satisfaction largely rest on the quality of service

provider encounter. (Armando, 2005)

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 The concept of Process

Akroush (2011) examined service processes as a series of interrelated

patterns for successful service delivery at maximum convenience.

Mahmood et al (2014) argued that service plans and training are needed
to guarantee consistency and quality of service.

One-to-one communication and relationship building are also

fundamental elements of the services marketing not adequately
addressed by the 4Ps, English (2000).

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Scale of Marketing Entities

Also known as the Product-Service Continuum

Displays a range of products along a continuum based on their

tangibility

Presents products along a dimension from tangible dominant to

intangible dominant.

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Neon Dye Inc.

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 Activity
Match each image with the correct word (how it will appear on the scale of market entities

Right

Left

Neon Dye Inc. Middle

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 CONCLUSION
The extended marketing mix (7ps) must be aimed to cater to the
target customer's needs and wants. There cannot be a quality service
offering without the additional 3p's is important in the development of
great customer service. There is no 100% good or service; as such,
selling a good, marketers/companies must use great service. Whilst,
selling a service, utilizing goods tangible and intangible.

Marketers can use the Scale of market entities to differentiate the

intangible and tangible dominant of a product. Henceforh, with the right
set of guidelines, marketers are able to strategise and develop
campaigns that work towards gaining and retaining highly valuable
customers. The 7Ps of the marketing mix can act as a well-structured
checklist for marketers who aim to create an effective strategy that
achieves their goals and evolves the business to the fullest extent.
Neon Dye Inc.

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 REFERENCES

Definition of Service. (2015, January 1). UK Essays. Retrieved January 14, 2022,
from https://www.ukessays.com/essays/marketing/the-definition-of-service-
marketing-essay.php

Impact of the Extended Marketing Mix elements on Customer Service in the

Insurance industry in Botswana. (n.d.). Iiste.org. Retrieved January 25, 2022,
from
https://www.iiste.org/Journals/index.php/JMCR/article/download/41045/42202

The Influence of Service Marketing Mix on Customer Choice of Repeat

Purchase of Restaurant in Kumasi, Ghana | Amofah | European Journal of
Business and Management. (n.d.). Iiste.org. Retrieved January 25, 2022, from
https://www.iiste.org/Journals/index.php/EJBM/article/view/29783

Service marketing mix as input and output of higher and technical education.
(n.d.). ERIC. Retrieved January 25, 2022, from
https://files.eric.ed.gov/fulltext/ED605657.pdf
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Neon Dye Inc.