7 Ps OF SERVICE

MARKETING

MARKETING MIX FOR SERVICES

•Process

•People

•Physical Evidence

PRODUCT MIX

PRODUCT

POTENTIAL OFFER

AUGMENTED OFFER

EXPECTED OFFER

CORE PRODUCT

• McDonalds-Meal Offer

• Jet Airways with Kingfisher

• Airline ticket with comfort

waiting Area, Seat & Good

Meals

• BED IN A HOTEL FOR THE

NIGHT

QUALITY LIES IN THE EYES OF THE EYES OF BEHOLDER

PRODUCT QUALITY : RATER

RELIABILITY

RESPONSIVENESS

EMPATHY TANGIBLES

ASSURANCE

• Dependability • Delivering on Promises • Accuracy • Consistency

•Promptness •Helpfulness

• Easy access • Good Communication • Customer Understanding • Personalised Attention • Physical Evidence

• Competence • Courtesy • Credibility • Security

• Product Oriented Approach Start with Company

• Customer Oriented Approach

Co. describes what a

product represents

Co. develops products

based on its definition

Decreased likelihood of

satisfying customers

L-T misleading of

market place

PRODUCT RANGE

• Product Item

• Product Line

• Product Mix – Width – is no. of different product lines a co. is

offering

- Depth – no. of product item with in each

product line

PRODUCT FEATURES

• Intrinsic Attributes – e.g. Dentist

Diagnostic tests performed

Hours of availability

College from which degree received

• Extrinsic Attributes

Price

Brand Name

Level of Advertising

Value Added Services – e.g. Hotel

Faster Check-in

Complementary Services

Free use of Health Club

Online Foreign Exchange

Swimming Pool, etc.

• Guarantees of Services –

- Service customers do not switch brands frequently as compared to product.

- Service firm’s aim to achieve Zero Defection by providing proactive service.

- unconditional, Easy to understand, Meaningful, Easy to ivoke, Quick & easy to collect.

• Branding of Services –

FedEx – The World on time

ICICI imobile – Khayal Aapka

OBC – Where every individual is committed

Customer want promised services not payouts

TYPES OF

NEW

SERVICE

New Service

Service Improvement

Start up Business

Service Line Extensions

Style Change

New Service for currently

served Market

Major Innovations

SOURCES OF NEW IDEAS :

Internal & External

SERVICE DEVELOPMENT PROCESS

Explain & Idea Generation

Screening

Concept Lasting

Business Analysis

Service Development

Test Marketing

Commercialisation

Evaluation & Profit

PRICING

No. What You Pay (Price) What You get (Service)

1. Tuition Education

2. Interest Use of Money

3. Rent Use of living House/Office/Equipment

4. Fare Taxi Ride, Airline flight or Bus Journey

5. Fee Services of Doctor/Lawyer

6. Retainer ship Consultants’ service over a period of time

7. Toll Travel on some highway

8. Salary Services of an executive/white collar worker

9. Wages Services of Blue Collar worker

10. Commission Agent’s Services

11. Dues Membership of a Club/Union

12. Admission Theater Entry

13. Tariff Utilities

14. Premium Insurance

PRICING

SELECTING A APPROXIMATE PRICE LEVEL

Cost Oriented Pricing:

Cost Plus Pricing

Rate of return Pricing

Demand Oriented Pricing:

Discriminating Pricing

Backward Pricing

Market Penetration Pricing

Skimming Pricing

Special Adjustments to List or Quoted Price

Discounts

- Quantity

- Seasonal

- Trade

- Commission

Allowances

- Trade – in

- Promotional

Geographical Adjustments

e.g. Real Estate Agent Commission Travel Agent Commission

e.g. Single Zone Pricing Multizone Pricing

SERVICE INDUSTRY PRICING –

APPLICATIONS - TRANSPORTATION

• Type of products/materials to be transported

• Loading and handling facilities

• Accessibility at pick-up and destination

• Weight of Consignment

• Possibility of return load

• Need for high security

• Nature of Product

• Availability of transport route

• Distance

• Cross-state or Cross border customs

• Time involved

• Distance involved

PLACE

• Place or distribution is a major factor in developing a

service marketing strategy because of the inseparability

of services from the producer.

• As competition grows, the value of convenient location

becomes more important.

• The availability of electronic distribution through the

World Wide Web now provides global coverage for

travel services, banking, entertainment, and many other

information-based services.

PLACE

• LOCATION

Need of the Market

Technological Innovation

Convenience

SITUATION IMPACT

Customer-----Service Provider Have to select

Service Provider-----Customer Less important

Arm’s Length Transaction Insignificant

PLACE

• ACCESSIBILTY

to range & choice of service literature & brochures

to components such as visas, traveler cheques, insurance &

cards

to booking points

to alternative brands

to alternative agents

• CHANNELS OF DISTRIBUTION

The service provider

Intermediaries

Customers

AIRLINES

Consolidation Tour Operator

Consolidation

Affiliated with

Companies

Direct Via Home

leased System

PASSENGER

CHANNELS OF DISTRIBUTION FOR AIRLINE

SERVICES

• CHANNEL OPTIONS

Producer Consumer

Agents or Brokers

Producer Agent Consumer

Seller & Buyer Agent or Broker

Agent Consumer

Franchises and Contracted service deliveries

MAJOR INTERMEDIARIES FOR SERVICE DELIVERY

Franchises Agents Electronics

PROMOTION

PROMOTION MIX & ITS IMPORTANCE

PROMOTION MIX & ITS RELATION

All people directly or indirectly involved in the consumption of a

service are an important part of the extended marketing mix.

Knowledge Workers, Employees, Management and other

Consumers often add significant value to the total product or

service offering.

PEOPLE

Internal

Service

Quality

Employee

Satisfaction

Employee

Retention

Employee

Productivity

External

Service

Value

Customer

Satisfaction Customer

Loyalty

Revenue

Growth

Profitability

• workplace design • job design • employee selection and development • employee rewards and recognition • tools for serving customers

•Service concept: results for customers

•service designed and delivered to meet targeted customers' needs

•retention •repeat business •referral

Operating Strategy and

Service Delivery System

THE SERVICE-PROFIT CHAIN

Procedure, mechanisms and flow of activities by which services

are consumed (customer management processes) are an essential

element of the marketing strategy.

PROCESS

The ability and environment in which the service is delivered, both tangible

goods that help to communicate and perform the service and intangible

experience of existing customers and the ability of the business to relay that

customer satisfaction to potential customers.

PHYSICAL EVIDENCE

PHYSICAL EVIDENCE

Exterior Design

Signage

Parking

Landscape

Surrounding Envt.

Interior Design

Equipment

Signage

Layout

Temperature

Others:

Business Cards

Stationery

Billing Statements

Reports

Employee Dress

Brouchers

Deep sleep is more than just the right

bed. It is about an environment that

soothes all the five senses.

Experience our rooms and know how

it feels to sleep like a baby again.

Client: ITC - Welcomgroup

The campaign is successful enough to maintain its

brand as one of the best Hotels in India. The move is

infact necessary to keep attracting the tourist as

India is becoming one of the most favoured coutry

to visit.

The ad really gives the feel of the comfort and what

a Service sector should cater to. An awesome Ad,

feel like spending one night at Maurya.

ITC-Welcomgroup was the one of the first hotel

chain to recognise the specific needs of the

discerning business traveler, leading to the

development and nurturing of ITC One, Sheraton

Towers and Executive Club brands.

7 Ps

OF THE

BANKING SECTOR

PRODUCT MIX

ATM Network

7-Day Banking

Telebanking

iConnect-Internet Banking

Mobile Banking Transactions

It includes all different product lines a company offers to its customers.

SAVINGS ACCOUNT CREDIT CARDS

Rewards

Cash Withdrawl

Credit Limit Increase

24-Hour ATMs

Concession on Personal

Remittances

Overdraft Facility, etc.

PRICE MIX

It is nothing but the interest rates charged by the

different banks.

ATM Card Issue

Free – 2 ATM cards issued

free if it joint account

Add – on Card

RS. 100 – Beyond 2 cards

Duplicate Card

Rs. 100

OTHER GENERAL CHARGES

Current Account

Savings Account

Transaction Charges

NIL

NIL

Charges for issue 1

Cheque book in 3

months

NIL

NIL

Issue of duplicate

statement

Rs. 25 per page

Rs. 25 per page

Account closure

Rs.100

Rs.100

PLACE MIX

It is the location analysis for banks branches. Some of the factors

affecting the location analysis are :-

The Trade Area

Population Characteristics

Commercial Structure

Proximity to other convenient Outlets

Real Estate Rates

Proximity to Public Transportation

Location of Competition

Visibility

Access

PROMOTION MIX

It is making the customer more and more aware of the services and

benefits provided by the banks.

Different ways of promotion are :-

Public Relations

Personal Selling

Sales Promotion

Word-of-mouth Promotion

Telemarketing

Internet

PROCESS

• The process mix constitutes the overall procedure involved in using the services offered by the bank. A process should be such that the customer is easily able to understand and easy to follow.

• Let’s take for example the process for application for a car loan.

Now this mainly involves 3 things.

1. Producing of proper documents

2. Filling up of application form

3. Paying for the initial down payment.

PROCESS cont…..

The smaller and simpler the procedure, the better the process, and the customer will be more satisfied.

For example:- Banks that send out Credit Cards automatically

when their customers old one has expired again require an

efficient process to identify expiry dates and renewal. An efficient

service that replaces old credit cards will foster consumer loyalty

and confidence in the company.

PHYSICAL EVIDENCE

• Overall layout of the place i.e. how the entire bank has been designed.

• Physical evidence refers to all those factors that help make the process much easier and smoother.

• For example, in case of a bank, the physical evidence would be the placement of the customer service executive’s desk, or the location of the place for depositing cheques.

The more the bank does to make the service easier and better the more satisfied will be the customer.

• An essential ingredient to any service provision is the use of

appropriate staff and people.

• Consumers make judgments and deliver perceptions of the

service based on the employees they interact with. Staff should

have the appropriate interpersonal skills, aptitude, and service

knowledge to provide the service that consumers are paying for.

Many British organizations aim to apply for the Investors In

People accreditation, which tells consumers that staff are taken

care off by the company and they are trained to certain standards.

PEOPLE

8th P of Service Marketing

• Process

• Physical environment

• People

• Productivity &

Quality

• Product

• Place & Time

• Price

• Promotion

PRODUCTIVITY

THANK YOU………