service marketing
TRANSCRIPT
SERVICE MARKETING
MBA –IIT Delhi
Pawandeep Singh Maniktala- 2012SMN6706
Sahil Kapoor 2012SMN6697
Bhushan Kumar- 2012SMN6688
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Objective of the Study :
To study the Current and Emerging Marketing Strategies deployed byMarketers in Service Oriented Business Models.
Sectors Under on Focus of Study :
Internet based Startup Ventures
Travel
Hospitality
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Service Marketing:
“Service is Action of doing something for someone or something”.
Marketing of Services typically includes both B2B and B2C.
Ex: Air/Bus ticket sale by MakeMyTrip, Interest given on Fixed deposits byBank.
Kind of Services in different sector:
Telecommunications services
Financial services
Hospitality services
Car rental services
Air travel
Health care services
Professional services
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Characteristics of services:
Intangibility: Services are intangible and do not have a physical existence. Cannot be touched,held, tasted or smelt. This is most defining feature of a service and that which primarilydifferentiates it from a product.
Also, it poses a unique challenge to those engaged in marketing a service as they need to attachtangible attributes to an otherwise intangible offering.
Heterogeneity/Variability: Each service offering is unique and cannot be exactly repeated evenby the same service provider. While products can be mass produced and be homogenous the same isnot true of services.Eg: All burgers of a particular flavor at McDonalds are almost identical. However, the same is nottrue of the service rendered by the same counter staff consecutively to two customers.
Perishability: Services cannot be stored, saved, returned or resold once they have been used. Oncerendered to a customer the service is completely consumed and cannot be delivered to anothercustomer.
Inseparability of Production and Consumption: This refers to the fact that services aregenerated and consumed within the same time frame. 4
Cases Studies:
HouseCall
OLA
HealthKart.com
ChawlaBand
The Taj Mahal Palace Hotel Mumbai
MakeMyTrip
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OlaCabs is an online cab aggregator based out of Bengaluru andamong the fastest growing taxi hiring firms. Taxi booking facilitycan be availed through app, website or through calls.
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The Taj Mahal Palace Hotel, MumbaiSector: Hospitality
Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE
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About TAJ Group of Hotels
First hotel of The Indian Hotels Company, parent company of TAJ Hotels Resorts and Palaces The TAJ MAHAL PALACE HOTEL was built in 1903 Company Founder: Jamsetji N. Tata. Company formed in 1902 Currently the Taj Hotels Resorts and Palaces comprises 57 hotels at 40 locations across India Additional 18 hotels are also being operated around the globe The Taj hotels are categorized as luxury, leisure and business hotels
Target Group for The TAJ Mahal Palace, Mumbai:
• Foreign Business Executives and Bureaucrats
• Celebrities
• Politicians and Foreign Diplomats
• Urban Indian Population
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PRODUCT – Temporary Stay-in facility“For more than a century, the Taj has played an intrinsic part in the life of the city, hosting Maharajas, dignitaries and eminentpersonalities from across the globe”.
ROOMS & SUITES
Presidential Suite TAJ club room TAJ Rajput Suite TATA Suite
TAJ Mahal tower room
Supplementary services: Restaurant and Bar
StarboardWasabiGolden DragonSoukThe Zodiac GrillHarbor Bar
Meeting Room and Banquet Facility
Gym , Spa and Salon Courier Laundry Travel Guide & Pick –up and Drop –in facility Child Care Facilities & Wake up Call Currency Exchange
Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE
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OTHER PRODUCT “For more than a century, the Taj has played an intrinsic part in the life of the city, hosting Maharajas, dignitaries and eminentpersonalities from across the globe”.
JET AIR
• TAJ Khazana
• TAJ Holidays
Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE
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PRICE
PRICE
Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE
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PLACE
• Strategically located in Colaba, Mumbai
• Provides lovely view of Arabian Sea
• The iconic and heritage building which hasbeen synonymous to Mumbai over the last 106years leaves an impact on the guest’s mind
• Proximity to major tourist spots Causeway,Gateway of India, Marine Drive etc.
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• Selective and very targeted
• In house magazine
• Promotion platforms – Websites, airline magazines
• Celebration of Indian and International Festivals to achieve Special Bookings and stays. Like
Christmas, Chinese New Year
• Ex: Tie with British Airways Avois club
• Tie up with banks for TAJ Epicure Membership
PROMOTION
Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE
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PROMOTIONS via Social Media Marketing
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PEOPLE
• A value driven recruitment system
Recruit from small cities rather than metropolitan cities like Pune, Chandigarh, Dehradun
• Extreme customer-centric organizational culture
• Employees have encyclopedic knowledge about regular guests
• Staff is highly trained to go the extra mile to delight customers.
• Some of the employees working since decades
Source: The Ordinary heroes of the Taj, Rohit Deshpande, Anjali Raina. Harvard Business Review, December 2011
Karambir Singh Kang- GM, TAJ MUMBAI Awarded Jeevan Raksha Padak , 2009
“If hotel goes down, I would be the last person to leave”.
• Mallika Jagad – Bravery Award 22 year old employee did not left hotel until people were rescued
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ONSTAGE
EMPLOYEE
S
BACKSTAG
E
EMPLOYEE
S
SUPPORT
SYSTEMS
PROCESS
CUSTOMER
ACTIONS
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PHYSICAL EVIDANCE
Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE
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Case Study: Make my trip
• MakeMyTrip.com is India’s leading online travel company
• Founded in the year 2000 by Mr. Deep Kalra.
• MakeMyTrip created a revolution in the field of travel industry of India
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Jet Airways
Air India Spice jet
MakeMyTrip.com
Travel Agents
Tech-Savvy Customers
Non-Tech-Savvy Customers
MakeMyTrip Business Model
Indigo
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PRODUCT International and Domestic air tickets
Destination packages within India and International
Hotel booking in different destination both within India and International destination
Domestic Railway tickets
Private and taxi rentals
PRICE Attracting customers by showing lowest price for airline tickets/railway tickets & hotel options
No extra commission to agents
PLACE Internet marketing /e-business.
Dedicated 24X7 customer care support and they have offices in 20 cities across India and 2 international offices in
New York and San Francisco
PROMOTION Social Marketing of promotions on Facebook, Twitter, You Tube, Magazine, Mobile app.
Sales promotion:
Festival Discounts
Round trip ticket discounts
Deal of the month
Special offers to different holiday destination
PEOPLE No direct relationship between customer and employee, it is mostly a self service marketing.
For the customers who don’t know internet handling ,travel agents are available (who are like distributors/dealers)
24x7 customer care service.
PHYISCAL
EVIDENCE
Make my trip is Offers best customer care service in support of Booking/Cancelling reservations/Printing E-
tickets/Checking Refund status/Make a payment.
PROCESS They follow easy process/simple process of booking tickets like filling up customer name, phone number, address
Mode of payment is possible by any bank cards bank debit/credit cards.
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7P’s of Service Marketing
4 P’S 4 O’S 4 A’S 4 C’S
PRODUCT OBJECT ACCEPTIBILITY CUSTOMER NEED
PRICE OBJECTIVE AFFORDABILITY COST TO USER
PLACE ORGANIZATION ACCESSIBILITY CONVENIENCE
PROMOTION OPERATIONS AWARENESS COMMUNICATION
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Marketing Mix Analysis
Marketing mix analysis used by Makemytrip.com for attracting customers.
PR
OD
UC
T
OBJECT: Travelling tickets Hotel Vouchers Car Rental Vouchers
ACCEPTIBILITY:High chance of acceptability since it makes,Travel easySave moneySave energySave time
CUSTOMER NEED:To make travel easier and convenient
PR
ICE
OBJECTIVE:Make tickets easily and quickly available for the customer
AFFORDABILITY:Affordable to all class of travelling customersCustomer can choose as per their budget or income (Comparison)
COST TO USER:Customer can search for the best deal for his travelling as per his/her requirement
PL
AC
E
ORGANIZATION: E-Commerce – B2C B-Commerce –B2B
ACCESSIBILITY:InternetTravel agentsCustomer service executive
CONVENIENCE: mode of payment (Cash/Credit) Anywhere, anytime, anyplace get the ticketsNo more long queues
PR
OM
OT
ION OPERATIONS:
Online websitesTravel agents Coupons to flight discounts
AWARENESS:Word of mouthOnline addsTVMobile App
COMMUNICATION:Best customer support in booking /cancelling bookings/ printing E tickets etc. 26
Sources
Official pages of HouseCallOlacabsChawlabandHealthkartThe Taj Mahal Palace Hotel & TowersMake My Trip
Official social media pages of above mentioned companies/Hotel Article: The Ordinary heroes of the Taj, Rohit Deshpande, Anjali Raina. Harvard Business Review,
December 2011 Article: Heros of the Taj Hotel: Why they risk their lives? Alix Spiegel, NPR December 2011
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