By: Abhishek Mishra Rahul Jogi Ram Upadhyay Ravi Shah Tahjib Patel

1/20/2012

PROBATIVE (ISBE-A) SERVICE MARKETING

Flow of Presentation
Introduction to Service Sector Difference between Physical Goods & Services Characteristics of Services Performance Analysis Encounter & Levels of Services Importance of STP Market Segmentation & Target Market Selection Positioning & Service Delivery System Primary Research Conclusion Recommendation
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The Service Sector

The services sector has been growing at the rate of 8% per annum in recent years. More than half of our GDP is accounted for from the services sector. This sector dominates with the best jobs, best talent and best incomes.
There are no such thing as service industries. There are only industries whose service components are greater or less than those of other industries. Everybody is in service. - Theodore Levitt
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Difference between Physical Goods & 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 Can be kept in stock Transfer of ownership
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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 Cannot be kept in stock No transfer of ownership
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PROBATIVE (ISBE-A) SERVICE MARKETING

Characteristics of services: Intangibility Inseparability Perishability Variability The Three Additional P s of Service Marketing: People Physical evidence Process
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Importance Performance Analysis

I M P O R T A C E

Concentrate Here

Keep up the good work

Low Priority

Possible Overkill

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PROBATIVE (ISBE-A) SERVICE MARKETING

PERFORMANCE

Encounter of Services
High Contact Services Medium Contact Services Low Contact Services

People process

Information processing Possession Processing Mental Stimuli processing

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Encounter Levels of Services

Contact Low High

Low

Car repair

Barber

Audience Size

High

Periodical Magazine

Air lines Air lines

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PROBATIVE (ISBE-A) SERVICE MARKETING

Theory and Importance of STP:

SEGMENTATION: IDENTIFYING MEANINGFULLY DIFFERENT GROUPS OF CUSTOMERS

PRODUCT

PRICE

TARGETING: SELECTING WHICH SEGMENT(S) TO SERVE

DISTRIBUTION PROMOTION

POSITIONING: IMPLEMENTING CHOSEN IMAGE & APPEAL TO CHOSEN SEGMENT

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PROBATIVE (ISBE-A) SERVICE MARKETING

Market Segmentation
Mass Market Niche Micromarketing The Individual

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Standardized Niche Marketing Mix

Micromarketing

Personalization

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Target Market Selection

Identify Total Market
Determine Need for Segmentation Determine Bases for Segmentation Profile Each Selected Segment
Assess Potential Profitability of Segment and Select Target Segment

Select Positioning Strategy

Develop and Implement Appropriate Marketing Mix

Monitor, Evaluate and Control

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Positioning
PRODUCT PREMIUM BASIC DURABLE PROMOTION PRESTIGE FUN POWERFUL POSITIONING: IMPLEMENTING CHOSEN IMAGE & APPEAL TO CHOSEN SEGMENT PREMIUM PREMIUM LOW PRICE VALUE DISTRIBUTION INTENSIVE SELECTIVE EXCLUSIVE

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Service operations system

Service Delivery System

Other Contact points

Home Delivery Advertising Market Research Survey The Customer Billings/Statemen ts

Random exposure to Facilities, personnel

Self Services Equipment Technical Core

Phone, Web site

Word of Mouth

Back Stage 1/20/2012 (Invisible)

Front Stage PROBATIVE (ISBE-A) SERVICE MARKETING (Visible)

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Primary Research
Sample Size : 100 Area for research: Ahmedabad: Iscon Mall Central Mall C G Road

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Age & Background of People who read Periodical Magazines

60 50 40 30 20 10 0

48 12 less than 15 22 15 to 25 25 to 45 18 more than 45

35 30 25 20 15 10 5 0

32 24 16 9 3 16

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70 60 50 40 30 20 10 0

63

Language Preference Statistics

12 16 9

English

Gujarati

Hindi

Others

Time Spent for Reading

45 40 35 30 25 20 15 10 5 0

36

39

16 9

Less than 30 min

30 to 60 min

60 to 120 More than 2 min hr

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Quality of service

45 40 35 30 25 20 15 10 5 0

39 33

12 5
Strongly Agree Agree

11

Not Sure Diasagree Strongly Disagree

40 35 30 25 20 15 10 5 0

37 26 17 6
Strongly Agree Agree Not Sure Disagree Strongly Disagree

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Quality of Content

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Summary of Primary Research

Age Occupation Income level Time spend Language Types of Magazine Service Satisfaction Place for read Delivery time 48 32 42 39 63 43 39 42 37 25 to 45 Businessman 10000 to 40000 30 to 60 min English Economy and Business Strongly Agree Home Excellent

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Personal Interviews

CENTRAL MALL

ISCON MALL

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IIPM COLLEGE

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Focus Group Discussion:

CONDUCTED BETWEEN SIX PEOPLE ABOUT ENTERTAINMENT & SOCIAL MAGAZINE: 1. Here, they want more detailed content. 2. They are happy with the quality of service but would like more articles on specific cultures. 3. They would also appreciate if they get some interactive media and gift vouchers with the magazine.
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CONDUCTED BETWEEN SIX PEOPLE ABOUT BUSINESS MAGAZINE: 1. All agree with quality of content. 2. But disagree with service delivery. 3. Maximum people want supplements and would like get them with every copy of the magazine.

Place: 1/20/2012

H.L. CollegePROBATIVE (ISBE-A) SERVICE MARKETING Place: L.D. Arts College of Commerce

Conclusion:
Most of the customers are dissatisfied with the quality of service and quality of content. So the companies have to focus on this aspect and to improve the quality with respect to the content and service so as to retain present customers and build up a trust-worthy organization.
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Recommendation:
Improve follow up on sales lead. Build customer loyalty. Enter into strategic alliances with companies that have similar customer base. Outsource business. Keep a track of underperforming employees. Consider hiring a public relation firm. Make sure that you are getting the most out off your advertising expenses. Ask for referrals. Create incentives.
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