Service Mix

-Poonam Purohit

What is a Service
Service is a Economic Activity that is : Intangible. Cannot be stored. No Transfer Ownership.
Examples:-Financial services, Maid Services, Restaurants, Hospitality, Tourism, Advertising Services etc..

Difference between physical goods and services

Physical goods
Tangible Homogeneous Production and distribution are separated from consumption A thing Core value processed in factory Customers do not participate in the production process

Services
Intangible Heterogeneous Production, distribution and consumption are simultaneous processes An activity or process Core value produced in the buyer-seller interaction Customers participate in production

Can be kept in stock

Transfer of ownership

Cannot be kept in stock

No transfer of ownership

Contribution of Service Sector towards Indian GDP:18.5

Service Sector Industrial Sector 55.2 26.3 Agriculture

Example of Service Sector.

Government Sector. Healthcare/Hospitals. Education. Banking. Insurance. Legal Service. Media. Hospitality. Tourism.

Service Mix

The tools available to a Service Provider to gain the reaction it is seeking from its target market in relation to its marketing objectives. 7Ps Price, Product, Promotion, Place, People, Process, Physical Environment Traditional 4Ps extended to encompass growth of service industry

The Service Mix.

Price

Price
Pricing Strategy Importance of Pricing Strategy:

Pricing Should be taking into consideration:

Knowing the market. Elasticity. Keeping an eye on rivals.

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

Product

Product
Its suggested that a Product should be viewed in three levels: Level 1: Core Product. Level 2 Actual Product. Level 3: Augmented Product. Various Methods are used to improve/ differentiate the Service and increase sales or target sales more effectively to gain a competitive edge.

Promotion

Promotion

Various Promotion Strategies are used to make the consumer aware of the existence of a product or service. Successful Service means nothing unless the benefit of such a service can be communicated clearly to the target market.

Place

Place

The means by which products and services get from producer to consumer and where they can be accessed by the consumer. The more places to buy the product and the easier it is made to buy it, the better for the business.

Extended Service Mix.

People

People

People represent the business The image they present can be important First contact often human what is the lasting image they provide to the customer? Extent of training and knowledge of the product/service concerned Mission statement how relevant? Do staff represent the desired culture of the business?

Process

Process

How do people consume services? What processes do they have to go through to acquire the services? Where do they find the availability of the service? Contact Reminders Registration Subscription Form filling Degree of technology

Physical Environment

Physical Environment

The ambience, mood or physical presentation of the environment

Trendy/retro/modern/old fashioned? Light/dark/bright/subdued? Romantic/chic/loud? Clean/dirty/unkempt/neat? Smart/Shabby?

Case Study on HDFC Bank

HDFC Bank
Product :

Place :

Demat account Lockers Cash management Insurance product Mutual fund product Loans ECS(Electronic clearance system) Tax Payments

Wide spread of Network Across Rural and Urban Area. Branches: More than 6000 ATM: More than 6369

HDFC Bank
Price:

Promotion:

Difference between the interest Charged and interest Paid on Fixed Deposits. Pricing on the Value Added Service. Cost included.

Special Offers. Advertisings. Leaflets. Direct Mailing. Free gifts. Contest. Sponsoring

HDFC Bank
People:

Process:

Trained Staff. Trainings Provided on a Regular Interval.

High use of technology Eg Timely Transfers Customer Data management

Physical Evidence:

Proper Ambience Use of Self Explanatory Tools

The Service Mix

Blend of the mix depends upon: Marketing objectives Type of product Target market Market structure Rivals behaviour Global issues culture/religion, etc. Marketing position Product portfolio

Product lifecycle Boston Matrix

Issues for Service Provider:

People.

Differentiation.
Intangibility.

Conclusion
In services, the last experience remains uppermost in your mind. Therefore, it is not enough to be good, you have to be consistently good

Thank You!!!