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7 Ps OF SERVICE

MARKETING
MARKETING MIX FOR SERVICES

•Process

•People

•Physical
Evidence
PRODUCT MIX
PRODUCT

POTENTIAL
OFFER • McDonalds-Meal Offer

AUGMENTED
OFFER • Jet Airways with Kingfisher

EXPECTED
OFFER • Airline ticket with comfort
waiting Area, Seat & Good
Meals
CORE
PRODUCT • BED IN A HOTEL FOR THE
NIGHT
PRODUCT QUALITY : RATER
• Dependability
RELIABILITY • Delivering on Promises
• Competence • Accuracy
• Courtesy • Consistency
• Credibility
• Security

ASSURANCE RESPONSIVENESS

•Promptness
•Helpfulness
• Easy access
• Good Communication
• Customer Understanding
• Physical Evidence • Personalised Attention
TANGIBLES EMPATHY

QUALITY LIES IN THE EYES OF THE EYES OF BEHOLDER


• 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. Customer want promised services not payouts
• Branding of Services –
FedEx – The World on time
ICICI imobile – Khayal Aapka
OBC – Where every individual is committed
TYPES OF SOURCES OF NEW IDEAS :
NEW Internal & External
SERVICE Service
Improvement

Major Start up
Innovations Business

New
Service
New Service
for currently Service Line
served Extensions
Market
Style Change
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

Demand Oriented Pricing:


Cost Oriented Pricing: Discriminating Pricing
Cost Plus Pricing Backward Pricing
Rate of return Pricing Market Penetration Pricing
Skimming Pricing
Special Adjustments to List or
Quoted Price

Discounts Allowances
Geographical
- Quantity - Trade – in
Adjustments
- Seasonal - Promotional
- Trade e.g. Real Estate Agent e.g. Single Zone Pricing
- Commission Commission Multizone Pricing
Travel Agent
Commission
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 Affiliated with Direct Via Home


Companies leased System

Consolidation

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
PEOPLE

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.
THE SERVICE-PROFIT CHAIN
Operating Strategy and
Service Delivery System

Employee
Retention Revenue
Growth
Internal External Customer
Service Employee Service Customer
Satisfaction Satisfaction Loyalty
Quality Value
Employee
Productivity
Profitability

•retention
• workplace design •Service concept: •repeat business
• job design results for customers •referral
• employee selection
and development •service designed
• employee rewards and delivered to
and recognition meet targeted
• tools for serving customers' needs
customers
PROCESS
Procedure, mechanisms and flow of activities by which services
are consumed (customer management processes) are an essential
element of the marketing strategy.
PHYSICAL EVIDENCE
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

Others:
Interior Design
Exterior Design Business Cards
Equipment
Signage Stationery
Signage
Parking Billing Statements
Layout
Landscape Reports
Temperature
Surrounding Envt. 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
It includes all different product lines a company offers to its customers.

SAVINGS ACCOUNT CREDIT CARDS

ATM Network Rewards


7-Day Banking Cash Withdrawl
Telebanking Credit Limit Increase
iConnect-Internet Banking
24-Hour ATMs
Mobile Banking Transactions
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 NIL NIL


Cheque book in 3
months
Issue of duplicate Rs. 25 per page Rs. 25 per page
statement
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.
PEOPLE

• 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.
8th P of Service Marketing

• Product • Process
• Place & Time • Physical environment
• Price • People
• Promotion
• Productivity &
Quality
PRODUCTIVITY
THANK YOU………

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