7 P’s of Service Marketing

Mix...

With reference:

ICICI Bank
7 P’s...

• Product
• Price
• Promotion
• Place
• People
• Physical Evidence
• Process
ICICI Bank & its Services...

• ICICI Bank is India's second-largest bank with total

assets of Rs. 3,634.00 billion (US$ 81 billion) at March
31, 2010 and profit after tax Rs. 40.25 billion (US$ 896
million) for the year ended March 31, 2010.

• The Bank has a network of 2,528 branches and 6,000

ATMs in India, and has a presence in 19 countries,
including India. 
ICICI Bank & its Services...
(Contd)

• ICICI Bank offers a wide range of banking products and

financial services to corporate and retail customers
through a variety of delivery channels and through its
specialized subsidiaries in the areas of:

– investment banking,
– life and non-life insurance,
– venture capital
– and asset management.
Product…

• A product is anything that can be offered to the market

for:

– Attention
– Acquisition
– Use
– Bundle of tangible & intangible attributes (benefits, features,
functions, uses)
– Consumption that might satisfy a need or want
Products or Services Offered by ICICI
Bank...

Traditional Services Expanded Services

• Checking Accounts • Insurance Sales

• Savings Accounts • Small Business Advising and
• CDs (Certificates of Deposit) Loans
• Savings Bonds • Investments
• Loans • Credit Cards
• Car • Remittances
• Home
• Personal
• Safe Deposit Boxes
• NRI services
Price…

• Pricing is one of the most important elements of the marketing

mix, as it is the only mix, which generates a turnover for the
organization.

• It costs to produce and design a product, it costs to distribute a

product and costs to promote it. Price must support these
elements of the mix.

• Pricing is difficult and must reflect supply and

demand relationship. Pricing a product too high or too low could
mean a loss of sales for the organization.
Price…
(Contd)

• Pricing should take into account the following factors:

– Fixed and variable costs.
– Competition
– Company objectives
– Proposed positioning strategies.
– Target group and willingness to pay.

• Types of pricing:
– Penetration pricing
– Skimming pricing
– Competition pricing
– Bundle Pricing
– Premium pricing
Promotion…

• Promotion represents all of the communications that a

marketer may use in the marketplace

• Strategies to make the consumer aware of the

existence of a product or service
Promotion...
(Contd)
Place…
People…

• In a bank organization, employees are essentially the

contact personnel with customer. Therefore, an
employee plays an important role in the marketing
operations of a service organization.

 ICICI become conscious in its potential in internal marketing - the attraction,

development, motivation and retention of qualified employee-customers
through need meeting job-products.
 Internal marketing paves way for external marketing of services.
 A service company can be only as good as its people.
People…
(Contd)

• People believe in things what they can see & in

service industry people working in it create the belief &
trust in the customer by providing better service with
adding there personality.
 Physical Evidence…

Where is the service being delivered? Physical Evidence is

the element of the service mix which allows the consumer
again to make judgments on the organization. For example -
If you walk into a restaurant your expectations are of a clean,
friendly environment. On an aircraft if you travel first class
you expect enough room to be able to lay down!
Physical evidence is an essential ingredient of the service
mix, consumers will make perceptions based on their sight of
the service provision which will have an impact on the
organizations perceptual plan of the service.
 Physical Evidence at ICICI Bank

1. Signage
2. Financial Reports – The company’s financial reports are
issued to the customers to emphasis or credibility
3. Tangibles – Pens, Writing pads to the internal customers.
Passbook & Cheque books to the customers.
4. Punch Lines – “ Hum Hai Naa”
5. Employee’s Dress Code – ICICI Bank follows a dress code
for their internal customers.
Process…

• Use of technology for both internal & external

processes.
• Processes are system driven & is independent of
people.
• Standardization of services across all branches.
• Extensive investment in software solutions for process
systemization.
• Abides by the rules & regulations of RBI.
Process…
(Contd)

STANDARDIZED

CUSTOMIZE PROCESS SIMPLICITY

D

CUSTOMER
FOCUSED
Conclusion :

To summarize service marketing looks at :

The Characteristics of a service that are:
1) Lack of ownership
2) Intangibility
3) Inseparability
4) Perishability
5) Heterogeneity

The service marketing mix involves analyzing 7p’s of marketing.

 Conclusion (contd…)

To certain extent managing services are more

complicated than managing products, products can be
standardized, to standardize a service is far more
difficult as there are more input factors i.e. people,
physical evidence , process to manage then with a
product.

ICICI bank has reaped benefits from using 7p’s of

marketing and this presentation is a proof of the same,
as to how they have utilized this theory in practical.
Thank You…

Kinckini
Abhishek Mukherjee
Debarati
Sandeepa
Sonali
Neha
Sucheta
Subhankar
Gaurav Dasgupta