marketing Tool the Firm uses to pursue its Marketing Objectives in the target Market. 7 Ps (seller view point) 7 Cs (buyers view point) 1. Product 2. Price 3.Place 4.Promotion 5. People 6.PhysicalEvidence 7. Process 1. Customer Solution 2. Customer Cost 3. Convenience 4.Communication 5. Customer Care 6. Customer Attractions 7.CustomerConfidence Winning Companies will be those that can meet Customer Needs most Conveniently with Effective Communication.
PRODUCT I. SERVICE ATTRIBUTES A. Characteristic of Services : Intangibility Inseparability Perishability Variability B. Classification of Services : 1. Pure Tangible Goods 2. Tangible Goods with accompanying services 3. Hybrid 4. Major Services with accompanying minor goods and service 5. Pure Service The Service Concept Core benefit/ Service Generic Service Expected Service Augmented Service Potential Service
II. THE LIFE CYCLE CONCEPT Stages :
1. Introduction 2. Growth 3. Maturity 4. Decline
III. NEW SERVICE DEVELOPMENT New Service Development Process : 1. Generation of Ideas 2. Screening 3. Testing the Concepts 4. Business Analysis / Evaluation 5. Practical Development 6. Market Testing 7. Launch IV. POSITIONING THE SERVICE What attributes of the service do our consumers rate most highly ? How do they rank our competitors performance against ours with regard to these attributes? Who makes the decision, and how do they establish criteria for such a decision?
PRICE I. KEY PRICING CONCEPTS Price Skimming Penetration Pricing Mixed Pricing Cost-plus Pricing Variable Pricing Marginal Pricing Promotional Pricing Differential Pricing II. PRICING ISSUES FOR SERVICES Costs of producing the service and breakeven analysis Competitor Pricing Demand Levels and Elasticity Regulatory factors Marketing Mix Positioning
III. ORAGNISATIONAL OBJECTIVES & PRICING POLICY Maximize Current Profit Maximize Current Revenue Maximize Price Leadership Survival Maximize Growth IV. A FRAMEWORK FOR PRICING DECISIONS Analyse organisational objectives in terms of pricing. Determine demand levels and customer characteristics. Examine competitors pricing and positioning. Set prices utilising pricing concepts, e.g. cost-plus Monitor market response to prices set and identify problems.
Externally To inform the target market To educate customers To persuade To remind To publicize policy decisions To make public announcements
PROMOTION I. INTERNAL / EXTERNAL COMMUNICATIONS II The communication process The Source: encoding The message The media selected to transmit the message The recipient: decoding The Promotional Message To inform To entertain To educate To persuade To remind
Appeals Rational appeals Emotional appeals Fear appeals Humour appeals IV. The Promotional Mix Advertising Personal selling Publicity Sales promotion
Advertising Control Mass communication Cost-effective Support other element of the marketing mix Creates strong brand image and appeal Advantages of Advertising Publicity Publicity through the media Involvement in social and community initiatives Sponsorship of events Public announcements and special publications Corporate brochures and other publicity material Sales promotion Free samples Money-off coupons and special offers Competitors Point-of-sale displays Free gifts and other incentives Sales promotion tools V. Media Choice and Selection The available budget Target audience factors Level of coverage required Exposure and frequency Cost effectiveness Desired impact Determining Factors: Media Television Newspapers Magazines Cinema Radio Outdoor VI. Managing The Promotional Effort Developing the promotional mix Assigning the promotional budget Monitoring and evaluation Stages in promotional management Factors influencing the promotional mix The nature of the organization The service offering Service life cycle stage Type of markets the organization is operating in Customer characteristics Buyer behavior and decision processes Channels of distribution VII. Monitoring And Evaluation Are communications objectives being met? Has the target audience received the message? Have they received the right message? Are budget being adhered to? Evaluation methods 1) Marketing research 2) Direct response 3) Point-of-sale monitoring Place: Accessibility: it refers to the ease and convenience with which a service can be purchased, used or received. Availability: It refers to the extent to which a service is obtainable or capable of being purchased, used or received. I. Accessibility and Availability II. Location Service inseparability Perishability The role of customer as co-producer of the service Customer needs and wants Importance of geographical location as part of the service Target market III. Direct Distribution Company resources / company objectives Type of service Geographical spread of the market Legal and political restrictions on foreign operations Levels of technical expertise or skill required to deliver the service satisfactorily Customer preferences Factors influencing to direct distribution
People High contact Low contact Professional Non-professional
I. The Role of the Employee in Services Marketing II. Staff Selection and Recruitment
1. Preliminary stage
2. Selection stage
3. Follow-up stage III. Training and Development Identification of training needs Implementation of training programmes Evaluation of training effectiveness Functional Training Personal development Organizational development Appraisal system IV. Human Resources Management Issues Organizational objective Recruitment Induction Appraisal and review Training and development Pay structure and benefits Communication Quality
Process Customer participate in the process Location of service delivery The service itself High-contact or low-contact service Degree of standardization Complexity of the service