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S. N. G. INSTITUTE OF MANAGEMENT AND RESEARCH
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2
INTRODUCTION OF THE TOPIC
WHAT IS SERVICE MARKETING?
7 P’S OF SERVICE MARKETING
PRODUCT
PRICE
PLACE
PROMOTION
PEOPLE
PHYSICAL EVIDENCE
PROCESS
EXAMPLE
CONCLUSION
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3
“Services are something which can be bought or sold,
but which you cannot drop on your foot”
Product
Price
Place
Promotion
People
Process
Physical Evidence
Traditional 4 P’s Extended 3 P’s
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4
“A service is any act or performance that one party can offer to
another that is essentially intangible and does not result in the
ownership of anything. Its production may or may not be tied to
a physical product” -PHILIIP KOTLER
Examples of Services
Telephone (Voice) & Data Services (e.g. Telkom, MTN, etc.)
Hotel Accommodation (e.g. Le Meridian, Taj Hotel)
Airlines (e.g. Air India, Jet Airways, Kingfisher Airline)
Financial Services Companies (e.g. ABSA, Allan Gray, etc.)
Internet Service Providers (e.g. TCISL, Reliance, BSNL)
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5
Characteristics of Services
Intangibility
Inseparability
Perishability
Variability
Ownership not transfer
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6
The Services Sector contributed only 15% to the Indian
GDP in 1950.
Today the service sector is contributing more than half of
the Indian GDP.
The services sector has been growing at a rate of 8% per
annum in recent years.
INDIAN SERVICE SECTOR
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7
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Product can be anything that can be offer to the market to
satisfy want or need.
Services
Quality
Brand Name
Range
Features
Goods
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Core Benefit
Basic Service
Expected Service
Augmented Service
Potential Service
Services Product Concept
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“The exchange value of a product or service expressed in
terms of money”
Terms used for Pricing Service
Discount
Payment Period
Credit Terms
Margin
WHAT YOU PAY (PRICE) WHAT YOU GET (SERVICE)
Interest Use of Money
Fare Taxi ride, Airline flight
Tariff Utilities
Premium Insurance
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Pricing Strategy
PRICING STRATEGY
Skimming Price
Penetration Price
Competitive Price
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“A marketing channel is a system of relationship existing
among business that participate in the process of buying and
selling product and services”
Location
Channel
Internet
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Channels Of Services
SERVICE PROVIDER
AGENT/BROKERFranchises and
Contracted Services Delivers
ELECTRONICS
CUSTOMER
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Promotion is a persuasive communication about the
product by the offered to the prospects.
Sales Promotion
Advertising
Direct Marketing
Public Relation
Personal Selling
Word of Mouth
Tele-Marketing
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Company
Employees ConsumerInteractive
Marketing
People refer to the human capital of the firm.
These individuals should possess the required technical
skills, good interpersonal skills and positive attitudes that
can become a key competitive advantage for the firm.
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It includes the appearance of
Infrastructure
Interior Furnishing,
Equipment,
Uniforms,
Signs,
Printed Materials
The environment in which the service is delivered and where the firm and
the customers interact; and any tangible commodities that facilitate
performance or communicate the service.
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Process is referred to the procedures, mechanisms and
flow of activities by which the service is delivered i.e. the
service delivery and operating systems.
EX: Process of taking a postpaid Connection
Go to he hutch stop
Choose a product
Pay the appropriate Fee
Avail The Facilities
Give The Feedback
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Tata Indicom Broadband
Tata Indicom ExtraPRODUCT
PRICE
Tata Communications Internet Service Ltd
MRP USAGE VALUE VALIDITY (in Days) BONUS VALUE
200 181 7 n/a
300 274 30 n/a
500 453 30 n/a
700 634 90 n/a
1000 906 90 n/a
1750 1586 90 50
3500 3173 180 175
6500 5893 360 450
12000 10879 360 1100
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Internet Website
Company’s Outlets
http://www.tataindicombroadband.com
PLACE
PROMOTION
By subscribing One Year Plan of
Broadband,
3 month’s subscription is Free
PEOPLESales/Marketing Manager
Tele callers
Customer Care Executive
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Leaflets
Broachers
Demo Room
PHYSICALEVIDENCE
PROCESS
Lead
Customer Info
CAF
Enquiry No.
Engineering Dept.CancelNo
Yes
Login
Form /Payment Received
Verification on Phone
Customer Service Install
Caballing Done
Install
Verification Call
Deposit a Cheque
CLOSE
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In services, the last experience remains uppermost in your mind.
Therefore, it is not enough to be good, you have to be consistently
good.
Service Marketing is harder than Product Marketing(Goods).
7 P’s of Service Marketing is very important to the growth of service
sector in India.
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QUESTIONS ARE WELCOME