8 p’s Of Services Marketing

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Services Require expanded Marketing Mix.
• (1) Product Element:
• Product/Service design at the heart of marketing
strategy:
• Planning Marketing mix starts with:
• Service Concept.
• That satisfies customers better then others.
• Transforming this into reality involve:
• Cluster of mutually reinforcing elements.
• Service product consist of core product.
Services Require expanded Marketing Mix.
• (2) Place & Time:
• Delivering products elements to customer involve:
• When & where to deliver.
• Methods & Channels employed.
• Delivery may involve:
• Physical & Electronic channels.
• Firms may deliver service directly or:
• Through intermediary (By Paying)
• Determinants of Effective service delivery:
• Speed & Convenience.
• (3) Price & Other User Outlays:
• Value Inherent in payment is central to:
• Value Exchange.
• For Suppliers pricing is a financial mechanism.
• Offset cost of providing services.
• Pricing strategy use to be highly dynamic.
• Customers, to calculate worth of service consider many factors beyond financial cost,
like:
• Time & Effort.
Services Require expanded Marketing Mix.
• So, customer must consider factors other than cost associated with service.
• (4) Promotion & Education:
• No marketing without effective communication.
• Three vital roles:
• Providing needed information/advise.
• Persuading customers abt brands benefits.
• Encouraging them to take action.
• In Service marketing:
• Communication use to be educational in nature.
• (5) Process:
• Badly designed process results in:
• Slow, Bureaucratic, ineffective service delivery.
• Waste time & Disappointing experience.
• This makes hard for front line staff to do job, resulting in:
• Low productivity
• Service failure.
Services Require expanded Marketing Mix.
• (6) Physical Environment:
• Following physical cues provide tangible evidence for
firms quality of service:
• Building.
• Vehicles.
• Interior.
• Equipments.
• Uniforms.
• Printed material etc.
• Service firms should manage carefully:
• Physical evidence.
• It has profound impact on:
• Customer impression.
Services Require expanded Marketing Mix.
• (7) People:
• Despite technology advancement many services require:
• Direct customer interaction.
• Such interaction effect customers perception.
• Good firms pay attention in:
• Recruiting & Training employees.
• Giving customers decision power.
• (8) Productivity & Quality:
• Both are treated separately.
• Still are two sides of same coin.
• No service organization can afford to address:
• Any one of these in isolation.
• Improving productivity is essential for reducing cost.
Services Require expanded Marketing Mix
• Improving quality from customer perspective is to:
• Win satisfaction & Loyalty.
• Its unwise to invest in service quality improvement:
• Without keeping trade off b/w:
• Incremental cost involved in increasing quality for revenues.
• If customers are unwilling to pay more for quality:
• Company will bear loss.
Services Require expanded Marketing Mix.
• Biggest potential payoff is to improve:
• Productivity & Quality simultaneously.
• Advances in technology offers:
• Promising opportunities, but
• Innovation should be user friendly.
• Marketing be integrated with other:
• Management functions.
• We discussed 8 P’s as strategic levelers for:
• Service Marketing.
• It shows service marketing cant be run in:
• Isolation.
• Three Management functions work in interrelation to meet
needs of customers:
• Operations.
• Human Resource.
• Marketing.