SERVICE MARKETING

Unit-II TYBMS
PROF. JIGNA DHARIA
SERVICE MARKETING MIX/ SEVEN Ps
Service concept:
1. Customer benefit concept-customer looks for/seeks
2. Service concept-benefit that service provider will offer
• Core service benefit
• Expected service level
• Augmented level
• Potential level
3.Service offer- both tangible and intangible elements
4.Service delivery system- process and people
Christopher lovelock has given the concept of a service flower
PRICING ELEMENT
• ONLY ELEMENT WHICH PRODUCES REVENUE , ALL OTHER ELEMENTS
PRODUCE COSTS.
• PRICE- INDICATOR OF SERVICE QUALITY OR VALUE
• PRICING HAS DIFFERENT NAMES IN SERVICE- fees, rent, interest ,
commission,
• OBJECTIVES OF PRICING-
Survival…growth….profit…..maximize market share….leadership…
customer loyalty and patronage.
METHODS OF PRICING-
cost based, demand based, competition based.
 PRICING STRATEGIES USED IN SERVICE MARKETING

1. SKIMMING PRICING- HIGH PRICES- INNOVATIVE, NEW, PRESTIGE/ VALUE

2. PENETRATION PRICING- LOW PRICES-STIMULATE TRIAL, KEEP OFF COMPETITORS

3. DIFFERENTIAL PRICING- AS PER MARKET, REGION/ AREA, TIME/ POINT OF CONSUMPTION, GROUP BUYERS

4. SERVICE MIX PRICING- ADDITIONAL SERVICES MAY BE OFFERED EG. BUYING AC ALONG WITH MAINTENANCE
CONTRACT , ROOM BOOKING WITH SIGHT SEEING

5. PRICE BUNDLING- HEALTH CLUB, BEAUTY PARLOURS

6. RELATIONSHIP PRICING-DIFFERENT PRICES FOR LOYAL CUSTOMERS

7. VALUE BASED PRICING- DEPENDING ON PROFTABILITY OF CUSTOMERS

8. COST BASED PRICING

9. COMPETITORS PRICING
SERVICE PROMOTION
• ADVERTISING
• SALES PROMOTION- CUSTOMERS,INTERMEDIARIES,
SALES FORCE
• DIRECT MARKETING- DIRECT MAIL, CATALOGUES, TELE-
MARKETING,ONLINE MARKETING,
• SOCIAL MEDIA- TWITTER, FACEBOOK, INSTAGRAM
• PUBLIC RELATION & PUBLICITY
• PERSONAL SELLING- CROSS SELLING AND UPSELLING
• WORD OF MOUTH
 PLACE – 3rd element of marketing mix

DISTRIBUTION OF SERVICES DEPENDS ON LOCATION- its ACCESSIBILITY N

AVAILABILITY

FACTORS INFLUENCING SERVICE LOCATION

• NATURE OF SERVICE
• NATURE OF INTERACTION
• CUSTOMER NEEDS N WANTS
• GEOGRAPHICAL REGIONS
• COMPETITIVE POSITION
• TECHNOLOGICAL ADVANCEMENT
• INFRASTRUCTURE
• DEPENDENT ON OTHER SERVICES
 P- PLACE –DISTRIBUTION OF SERVICES
THREE WAYS OF SERVICE DELIVERY-

I) CUSTOMER GOES TO SERVICE PROVIDER- eating out in a

restaurant

II) SERVICE PROVIDER COMES TO THE CUSTOMER- eg.- employees of

Swiggy or Zomato or hotel staff going to customers place for food
delivery.

III) SELF SERVICE- Service provider not physically required. Eg-use of

ATMs, or vending machines.
CHANNELS OF SERVICE DELIVERY

FRANCHISING
• DIRECT MARKETING
• AGENTS & BROKERS
• ELECTRONIC CHANNELS
 PHYSICAL EVIDENCE

• Physical evidence refers to the physical and social environment along with the
tangible elements.
• It is the place where service is delivered and where the firm and the customer interacts.
• It includes –
1) Physical facilities like building, furniture, equipment stationery etc. which forms an
impression about the service organization.
2) Servicescape is the physical environment where the place where service is performed,
delivered or consumed. It includes-
i) Ambience- temperature, lighting, music, scent, color
ii) Space- interior and exterior of the outlet, space which provides comfort and ease.
iii) Decor & artifacts- signs, symbols, certificates, rewards, paintings, photographs etc.
3) Social settings- appearance of the people/service personnel which influences
customers attitude.eg. Uniform or dress code of the staff or employees.
The SERVICESCAPE includes the interiors, equipments, signages
ambience and the layout of a service outlet.
What does servicescape. mean?
Booms and Bitner defined a servicescape as "the environment in which the service is assembled and in which the
seller and customer interact, combined with tangible commodities that facilitate performance or communication of
the service".
In other words, the servicescape refers to the non-human elements of the environment in which service encounters
occur.
 7TH P- PROCESS – SERVICE BLUEPRINTING
A service blueprint is an operational planning tool that provides guidance on
how a service will be provided, specifying the physical evidence, staff actions,
and support systems / infrastructure needed to deliver the service across its
different channels.

The actual procedures, mechanisms and flow of activities by which the service is
delivered- ie service delivery and its operating systems is called –PROCESS

SERVICE MAPPING- SERVICE FLOWCHART-SERVICE BLUEPRINT

 Types of service personnel
I-Customer contact employees
• High contact-more physical presence and interaction
eg. Restaurant, legal services, education
• Low contact-less interaction. Eg-retail service, cashier, courier
• Skilled and professional-doctors, lawyer, CA, etc
• Non professional-laborers, clerk, liftman, waiters etc.

II-Non- contact employees /Support personnel

• Management support personnel-frontline
personnel-front
• Technical support personnel-back office, chefs, cockpit crew
 Case study
• Crossword is one of the well known retail book store in India. It has
more than 40,000 titles at any given point of time. In order to enhance
customer experience it focuses on physical evidence and innovative
promotional activities. The store conducts activities like PICTIONARY
contests and annual fair with Santa Claus to make the place reader
friendly.
• Also they offer coffee in the store through MOSCHE,
• soothing MUSIC Is played in the background
• Various promotional activities are offered to the loyal consumers.
• Books and shelves are placed and arranged in a manner to suit
customers needs and comfort and preferences.
• Crossword constantly strives to introduce new and innovative ways to
encourage customers to frequently visit their store.
questions:
1.What is physical evidence?
2.What can Crosswords do in order to
improvise on their physical evidence?
3.What are your suggestions for
promotion?
RIYA was an enterprising housewife, who was very famous among her
friends and family for her cooking skills. Encouraged by her supporters
she started a food catering business called COSMOS catering. She purely
depended on her cooking skills and operated from home. She didn’t hire
any professionals initially but once her business grew & picked up she
couldn’t manage everything on her own. The house looked very messy,
her maid servants and delivery boys were also untidy in appearance.
The customers started noticing this and suggested her that she needs to
improve on her service quality.

Questions:
Explain the importance of physical evidence in this case
Explain the importance of people in this case
Give your suggestions to Riya to improve her service quality.