marketing mix of services

The Marketing MixThe Marketing Mix

Service IndustriesService Industries

Three more Ps to deal with

• Intangibility (People , Physical Evidence)

• Inseparability (Production, distribution and Consumption occur simultaneously )

• Inventory • Inconsistency (Process)

Product (1)Product (1)

Product

Core Benefit of a product

Packaging

Brand Name

Quality Level

Design

Features

Installation

After Sales Services

Warranty

Delivery and Credit

Core Product

Actual Product

Augmented Product

Product

Product as Service (1)

Core Benefit of Service

Facilitating Service

Supporting Service

The Service Concept

Accessibility

Consumer Participation

Interaction

Word of mouth

Image of the company

Marketing

Communication

Image

Marketing

Communication

Augmented Service

Actual Service

Actual Service

• Core Service• Facilitating Service• Supportive Service

Augmented Service

• Accessibility• Interaction with the employees/ resources

consumer / Costumer• Consumer Participation

Accessibility

Ease in service delivery, Time, Location, Facility

Interaction with the employees/ Physical and technical resources / consumer / costumer

Consumer Participation

Image

Image (Marketing Communication)

Ensuring the Quality of Service

Ensuring the Quality of Service(RATER)

Price (2)Price (2)

Parameters need to be kept in mind before fixing the price of a product

• Demand fluctuation• Cost of service (Tangible + Intangible)• Quality Indication• Competition

Demand fluctuation

• Flight Tickets• Movies Ticket

Cost of service (Tangible + Intangible)

Quality Indication

• Taj• Business Class Seat

Competition

Pricing Objective

• Perceptual Positioning• Product Life cycle• Competition• Marketing Tactics

Perceptual Positioning

Product Life cycle

Competition

Marketing Tactics

Place (3)

Distribution of Service (Issues)

1. Location of service provider2. Accessibility of service3. Distribution Channels4. Distribution facilitation5. Managing Distribution

1. Location of service provider

• Market Need• Use of Technological • Expediency (Convenience)

1. Location of service provider (Market Need)

1. Location of service provider (Use of Technology)

1. Location of service provider(Expediency “Convenience”)

ConsumerService

Provider

Service ProviderConsumer

ConsumerService

ProviderPlace of Service Delivery

2. Accessibility of service

• Visibility• Presence of Competitors• Commuting ease• Real Estate Cost

3. Distribution Channels

Distribution Channel (Product)

Distribution Channel (Service)

Distribution Channel (Service)

• BSNL -> Stockiest (Recharge) -> Seller -> Costumer / Consumer

• IDBI Bank -> IDBI Intech -> DSA -> Costumer

• Hotel Booking -> Travel Agent -> Traveler

Intermediaries in Services

Franchises

• Mc. Donald• Dominos• NIIT• DHL• Fedex• Taj Heritage

Electronics

Agent / Broker

• Service provider agent (IRCTC) • Selling Agent• Brokers ( Share Broker)

Promotion (4)

What is Marketing Communication ?

Creating a bridge between company and the costumerThings need to be Remembered

• What to say• How to say• Whom to say and• How often (Frequency of Communication)

Promotional objectives

– Introduction– Reinforcement– Awareness Enhancement– Expanding Market Share– Neutralizing Negative

Perception

Promotional Mix

• Advertisement• Personal Selling• Sales Promotion• Public Relation • Publicity• Direct Marketing

Advertisement

Features • Paid from• Non Personal Communication• Promotion of Ideas / goods / services• Identify Sponsor

Advertisement

• Print and broadcast Ads.• Packaging (Outer and Inner)• Motion pictures• Brochures and booklets• Directories• Hoardings• Display Sign• POP Display• Audiovisual Material• Symbol and Logos

Advantage of Adv. in service Promotion

• Achieving Sales• Showcasing the tangibles• Creating a tangible image• Focusing on benefits• Image creation

Personal Selling

Features• Personal Presentation• By Company’s / Organization's

representative• In order to make sales and

developing relationship with the target costumers.

Personal Selling

• Sales Presentation• Sales Meeting• Fairs and trade shows

Sales Promotion

Features• Short term incentive• To motivate costumer to

purchase or sales or trial of a product and services.

Sales promotion tech.

• Contest / Games / Lotteries• Gifts• Premium• Samplings• Low-interest financing• Continuity program• Loyalty Program • Exchange offers, Discount• Coupons

Public Relation

Features• Building relationship with the relevant

public and other stake holders • who can directly or indirectly influence the

image and the business of the organization / company

Ways to create PR

• Press Kits• Annual Report• Charity• Informative Seminars• Events• Lobbing• Sponsorships• Community Relations• Company Magazine• Publications

Direct Marketing

Features • Direct Communication• Very specific Individual /

Costumers• To obtain immediate result

Ways of Direct Marketing

• Telemarketing• Fax• E-mailing• Selective catalog distribution• Voice Mail• Missionary Sales

Marketing Communication System

Sender Encoding Message

Media

Decoding Receiver

ResponseFeedback

Noise

Company Market

Terminology of Marketing Communication System

• Sender:-The party sending the messages to another party.

• Encoding:-Mixing the message with symbols / Graphics / Words / Audio / Video to grab the attention.

• Media:- Medium through witch message is being sent to target audience

• Decoding:- Interpretation of the message by the audience.

• Receiver:- The party receiving the message.

• Response:- Effect of the communication (Positive / Negative / No response)

• Feedback:- Part of receiver’s response back to the sender

• Noise:- unavoidable distortion during the communication process.

Extended Marketing Mix for service

PeoplePhysical Evidence

Process

People (Internal Marketing) (5)

*Employee*Management*Culture*Costumer Service

Physical Evidence (6)

Physical Environment

• Ambiance• Staff Dress• Furniture• Color Them Scheme• Material• Iconic Features

Ambiance

Staff Dress

Furniture

Color Them Scheme

Material

Iconic Features

Process (7)

Steps in process formation

• Creating a flow chart of process• Breaking Down the process into a logical

steps• Understanding the variability in the

process• Recognizing Back stage process elements

Operational flow of activitiesCreating a flow chart of process & Breaking Down the process into a logical steps

Understanding the variability in the process

Recognizing Back stage process elements