Services Marketing Mix

Goods versus Services .

People Processing 2. Involvement ( Lovelock) 1. Information Processing . Possession Processing 3. Mental Stimulus Processing 4.Classification of Services Based on Degree Of Cust.

repair services. house cleaning services • Mental Stimulus Processing • Intangible Acts Directed Toward People • e. education.g. consulting. landscaping. airlines. accounting. hospitals.g. banking.g. fitness centers • Possession Processing • Tangible Acts Directed Toward Possessions • e.g. psychotherapy.Four Categories of Services Based on the Process Used • People Processing • Tangible Acts Directed Toward People • e. hair stylists. broadcasting Information Processing • Intangible Acts Directed Toward Intangible Assets • e. financial services • .

S ta r Hotel M a na gement C onsulting Good R esta ura nt Airline T ra vel (E c on.Levels of Customer Contact with Service Organizations High N urs ing Home Emphasizes encounters with service personnel Ha irC ut 4.) T elephone Ba nk ing R eta il Ba nk ing M otel C ar R epa ir I nsur a nc e Dr y C lea ning Fa st Food Movie Thea ters C a ble TV Public T ra nsit H ome Ba nk ing Ma il Ba sed R epa irs I nternet.ba sed S ervic es Emphasizes encounters with equipment Low .

g.Other Classification of Services • Degree of Tangibility • Based on Skills and Expertise Required-e. Professional & non professional • Business Orientation of service provider • Type of end user .

Services Marketing Mix .

Traditional Marketing Mix • All elements within the control of the firm that communicate the firm’s capabilities and image to customers or that influence customer satisfaction with the firm’s product and services: • Product • Price • Place • Promotion .

Place & cyberTime space & time Product (service) Process Price Price Customers Customers Customers Promotion Physical evidence .An expanded marketing mix for services People Place.

customer service employees other customers . the customer. the firm’s personnel. and other customers in the service environment.People • All human actors who play a part in service delivery and thus influence the buyer’s perceptions: namely.

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and any tangible components that facilitate performance or communication of the service. music etc. •atmosphere décor.Physical Evidence • The environment in which the service is delivered and where the firm and customer interact. •equipment •facilities •uniforms .

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Process • The actual procedures. mechanisms. and flow of activities by which the service is delivered—the service delivery and operating systems. service delivery systems •back stage •front stage procedures policies .

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Expanded Marketing Mix for Services PEOPLE Employees Customers Communicating culture and values Employee research PHYSICAL EVIDENCE Facility design Equipment Signage Employee dress Other tangibles PROCESS Flow of activities Number of steps Level of customer involvement .

7 P’s for Services .

Variability and heterogeneity aspects . • Pls. inseparability. remember to focus also on its intangibility.In.class Exercise • For a service you have used in the last one year identify the 7P’s for that service.

The Services Marketing Triangle Company (Management) Internal Marketing “enabling the promise” External Marketing “setting the promise” Employees Interactive Marketing “delivering the promise” Customers .

Ways to Use the Services Marketing Triangle Overall Strategic Assessment • How is the service organization doing on all three sides of the triangle? • Where are the weaknesses? Specific Service Implementation • What is being promoted and by whom? • How will it be delivered and by whom? • Are the supporting systems in place to deliver the promised service? • What are the strengths? .

operations and human resource efforts • Setting prices • Standardization versus personalization • • • • .Challenges for Services • Defining and improving quality Communicating and testing new services Communicating and maintaining a consistent image Motivating and sustaining employee commitment Coordinating marketing.

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