session ii_services marketing mix

8/8/2019 Session II_Services Marketing Mix

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Services Marketing MixServices Marketing Mix


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Goods versus ServicesGoods versus ServicesGoods versus ServicesGoods versus Services


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Levels of Customer Contact withLevels of Customer Contact with

Service OrganizationsService Organizations

Levels of Customer Contact withLevels of Customer Contact with

Service OrganizationsService Organizations

Emphasizes encounterwith service personne

Emphasizes encounters

with equipment

M a n a g e m e n t C o n s u l t i n g

C a r R e p a i r

I n s u r a n c eM o t e l

F a s t F o o d

N u rs i n g H o m e

A i r l in e T r a v e l ( E co n . )

H o m e

B a n k i n g

C a b l e T V

Te l e p h o n e B a n k i n g

H a i r C u t

G o o d R e s t a u r a n t

4 - S t a r H o t e l

P u b l i c Tr a n s i t

D r y C le a n i n g

R e t a i l B a n k i n g

M a i l B a s e d R e p a i r s

I n t e r n e t - b a s e d

S e r v i ce s

M o v i e T h e a t e r s

High

Low


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Other Classification of ServicesOther Classification of ServicesOther Classification of ServicesOther Classification of Services

Degree of Tangibility

Based on Skills and Expertise Required-e.g.

Professional & non professional

Business Orientation of service

provider

Type of end user

Degree of Tangibility

Based on Skills and Expertise Required-e.g.

Professional & non professional

Business Orientation of service

provider

Type of end user


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Contribution of Service SectorContribution of Service Sector

to the economyto the economy



Service Sector of Indian Economy

contributes to around 55 percent of

India's GDP

This sector plays a leading role in the

economy of India, and contributes to

around 68.6 percent of the overall

average growth in GDP

Service Sector of Indian Economy

contributes to around 55 percent of

India's GDP

This sector plays a leading role in the

economy of India, and contributes to

around 68.6 percent of the overall

average growth in GDP


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The service sectors of Indian economythat have grown faster than theeconomy are as follows:

Information Technology (the most leadingservice sectors in Indian economy)

IT-enabled services (ITeS)

Telecommunications

Financial Services

Community Services

Hotels and Restaurants

The service sectors of Indian economythat have grown faster than theeconomy are as follows:

Information Technology (the most leadingservice sectors in Indian economy)

IT-enabled services (ITeS)

Telecommunications

Financial Services

Community Services

Hotels and Restaurants


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The service sector of India has also witnessed aremarkable rise in the global market apart fromthe Indian market.

A statistics concerning the growth of India's

service sectors are listed below: The software services in Indian economy increased by

33 percent which registered a revenue of USD 31.4billion

Business services grew by 82.4 percent

Engineering services and products exports grew by 23percent and earned a revenue of USD 4.9 billion

Services concerning personal, cultural, andrecreational had a growth of 96 percent

Financial services had a rise of 88.5 percent

Travel, transport, and insurance grew by 23 percent

The service sector of India has also witnessed aremarkable rise in the global market apart fromthe Indian market.

A statistics concerning the growth of India's

service sectors are listed below: The software services in Indian economy increased by

33 percent which registered a revenue of USD 31.4billion

Business services grew by 82.4 percent

Engineering services and products exports grew by 23percent and earned a revenue of USD 4.9 billion

Services concerning personal, cultural, andrecreational had a growth of 96 percent

Financial services had a rise of 88.5 percent

Travel, transport, and insurance grew by 23 percent


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Services Marketing MixServices Marketing MixServices Marketing MixServices Marketing Mix


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Traditional Marketing MixTraditional Marketing MixTraditional Marketing MixTraditional Marketing Mix

All elements within the control of the firm that

communicate the firms capabilities and image to

customers or that influence customer satisfactionwith the firms product and services:

Product

Price

Place Promotion

All elements within the control of the firm that

communicate the firms capabilities and image to

customers or that influence customer satisfactionwith the firms product and services:

Product

Price

Place Promotion


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An x nded r eting ix f r er i es

Customers PricePlace &

Time

Pr ti n

Pr duct(ser ice)People Process

Physical evidence

Customers PriceCustomers

Place,

cyber-

space

& time


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Anexpandedmar etingmix forservices

PRODUCT PLACE PROMOTION PRICE

Physical goodfeatures

Channel type Promotionblend

lexibility

Quality level Exposure alespeople Price level

Accessories Intermediaries Advertising TermsPackaging Outlet location ales

promotionDifferentiation

Warranties Transportation Publicity Allowances

Product lines torageranding


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Anexpandedmarketingmix forservices

PEOPLE PHYSICAL

EVIDENCE

PROCESS

Employees Facility design Flo ofactivities

Customers Equipment Numberofsteps

Communicatingcultureandvalues

Signage Level ofcustomerinvolvement

Employee research Employeedress

Other tangibles


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People All human actors who play a part in

service delivery and thus influence the

buyers perceptions: namely, the firms

personnel, the customer, and other

customers in the service environment.

People All human actors who play a part in

service delivery and thus influence the

buyers perceptions: namely, the firms

personnel, the customer, and other

customers in the service environment.

customer

service employees

other customers


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Physical Evidence Customers judge the service quality through the physical

evidence The environment in which the service is delivered and

where the firm and customer interact, and any tangible

components that facilitate performance or

communication of the service.

Physical evidence enhances customers perception of

quality.

The general elements of physical evidence include

(Organisational Physical facilities) (service scape)

Physical Evidence Customers judge the service quality through the physical

evidence The environment in which the service is delivered and

where the firm and customer interact, and any tangible

components that facilitate performance or

communication of the service.

Physical evidence enhances customers perception of

quality.

The general elements of physical evidence include


atmospheredcor, music etc.

equipment

facilities

uniforms


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Physical Evidence The general elements of physical evidence include


) Exterior facilitiesExterior designSignageParkingLandscapeSurrounding environment

2) Interior FacilitiesInterior designEquipmentSignageLayoutAir quality/temperature

3) Other tangiblesBusiness cardsStationeryBilling statementsReports

Employee dress/uniformBrochures

Physical Evidence The general elements of physical evidence include


1) Exterior facilitiesExterior designSignageParkingLandscapeSurrounding environment

2) Interior FacilitiesInterior designEquipmentSignageLayoutAir quality/temperature

3) Other tangiblesBusiness cardsStationeryBilling statementsReports

Employee dress/uniformBrochures


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Physical Evidence - customer point of viewPhysical Evidence - customer point of viewSERVICE Other Tangibles

Airlines Airline lounges Tickets

Duty free shops Embarkation cards

Terminal Exteriors Uniformed employees

Air plane exterior Food

Air plane interior beverages

Theme Park Brochures

Tickets

costumed characters

uniform

Insurance Policy document

Brochures

Periodic statements

Physical Evidence

dcor

seats

ambience

music

Gate area

Parking area

Signage

LayoutRides

ambience

Interiors

Lighting

Music

dcor

seats


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Process The actual procedures, mechanisms, and

flow of activities by which the service is

deliveredthe service delivery and

operating systems.

Process The actual procedures, mechanisms, and

flow of activities by which the service is

deliveredthe service delivery and

operating systems.

service delivery systems

back stage

front stageprocedures

policies


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In- class ExerciseIn- class Exercise For a service you have used in the last

one year identify the 7Ps for that

service.

Pls. remember to focus also on its

intangibility, inseparability, Variability

and heterogeneity aspects

For a service you have used in the last

one year identify the 7Ps for that

service.

Pls. remember to focus also on its

intangibility, inseparability, Variability

and heterogeneity aspects


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The Services Marketing TriangleThe Services Marketing Triangle

InternalMarketing

Interactive Marketing

ExternalMarketing

CompanyCompany(Management)(Management)

CustomersEmployees

enabling thepromise

delivering the promise

setting thepromise


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InternalMarketing

Interactive Marketing

ExternalMarketing

Company

(Management)

CustomersEmployees

enabling thepromise

delivering thepromise

setting thepromise

Cleaning/maintenance

services

Financial/bankingservices

Restaurantindustry

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Theimagecannotbe displayed.Your computer may nothaveenoughmemory toopen theimage,or theimagemay havebeen corrupted.Restartyour computer, and then open thefileagain. Ifther ed x stillappears,you may haveto deletetheimageand then insertitagain.

InteractiveInteractivemarketingmarketing


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External Marketing: includes anything or anyone

that communicates to the customer before service

delivery

Interactive Marketing: its the real time marketing

where the promises are kept

Internal Marketing: management aids the providers

in their ability to deliver the service promise by

recruiting, training, motivating, rewarding, and

providing equipment & technology


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Ways to Use theWays to Use theServices Marketing TriangleServices Marketing Triangle

Ways to Use theWays to Use theServices Marketing TriangleServices Marketing Triangle

Overall Strategic Assessment

How is the service

organization doing onall three sides of the

triangle?

Where are the

weaknesses? What are the strengths?

Overall Strategic Assessment

How is the service

organization doing onall three sides of the

triangle?

Where are the

weaknesses? What are the strengths?

Specific ServiceImplementation

What is being promoted

and by whom?

How will it be deliveredand by whom?

Are the supporting

systems in place todeliver the promisedservice?

Specific ServiceImplementation

What is being promoted

and by whom?

How will it be deliveredand by whom?

Are the supporting

systems in place todeliver the promisedservice?


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Challenges for ServicesChallenges for Services

Defining and improving quality

Communicating and testing new services

Communicating and maintaining a consistent image

Motivating and sustaining employee commitment

Coordinating marketing, operations and human

resource efforts

Setting prices

Standardization versus personalization


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session ii_services marketing mix

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