seca group5 service marketing rev 3

7/30/2019 SecA Group5 Service Marketing Rev 3

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Abhishek Singh 12PGP004

Arnab Roy 12PGP011

Bir Bahadur Singh 12PGP014

Harsh Vardhan 12PGP017

Mahesh Kumar 12PGP025


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What is a Service? Categories of Service Mix

Characteristics of Services

Marketing Challenges Marketing Strategies

Seven Ps of Service Marketing.

Gaps in the Service Marketing Service Marketing as a Differentiating

Strategies

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A service is any act of performance that one party

can offer 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.- Kotler, Armstrong, Saunders & Wong (1999)

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All economic activities that create value and

provide benefit for customers at specific times and

place as a result of bringing about a desired

change in or on behalf of the recipient of theservice.- Christopher Lovelock


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Objects of transaction offered by firms and

institutions that generally offer services or that

consider themselves as a service organ.

- Gronroos


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servicesanything that cannot be

dropped on your foot.

- The Economist


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Service dominates most economies and are

growing rapidly

Services accounts for 64% of world GDP

Most new employment is provided by services Strongest growth area of marketing


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64%

30%

6%

Services

Manufacturing

Agriculture


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Healthcare Hospital

Eye care

Financial Services

Banking

Insurance

Hospitality Restaurant

Resorts

Travel

Others


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Pure tangible good: - Tangible Good

Tangible good with service: - Tangible Good+ Services

Hybrid: - Tangible Good + Services Major service with minor goods: - Tangible Good +

Services

Pure service: - Services


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Pure tangible good


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Tangible good with services


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Hybrid category


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Major service with minor goods


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Pure service


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TangibleDominant

Intangible

Dominant

SaltSoft Drinks

DetergentsAutomobiles

Cosmetics

AdvertisingAgencies

AirlinesInvestment

Management

ConsultingTeaching

Fast-foodOutlets

Fast-foodOutlets


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Search Qualities Attributes that can be determined prior to

purchase of a product.

Experience Qualities

Attributes that can be determined afterpurchase (or during consumption) of a product

Credence Qualities

characteristics that may be impossible to

evaluate even after purchase and consumption


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Difficult to evaluateEasy to evaluate

High in search

qualities

High in experience

qualities

High in credence

qualities


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GOODS SERVICES

Tangible Intangible

Standardized Heterogeneous

Production is separate from

Consumption

Simultaneous production and

consumption

Non perishable Perishable


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Intangibility

Inseparability

Variability

Perishability


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Intangibility: - Services cannot be seen,

tasted, heard or smelled before they are

bought.

Example: - A person going for a hair cut can

not see the results before buying the service

but he can see the result after the purchase


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Services cannot be stored.

Services cannot be patented.

Cannot readily display or communicate

services.

Prices are difficult to set.


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Stress tangible cues.

Simulate or stimulate word of mouth

communications.

Engage in post-purchase communication.

Create strong Organization image.


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Started with selling

books

Now in the business of

selling gadgets, TV, e.t.c.

Cash-on-delivery

Net banking

Multiple version of the

site live simultaneously.


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http://localhost/var/www/apps/conversion/tmp/scratch_6/MM%20II%20Assignment/FlipKart's%20latest%20ad%20-%20Mr%20Forgetful.mp4


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Place

People

Equipment

Communicationmaterial

Symbols

Price


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Inseparability: - Unlike physical tangiblegoods services are generally produced and

consumed simultaneously and in case of

entertainment and professional services thespecific provider of the service has to be

present


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Consumer involved in production.

Other Consumer involved in production.

Centralized mass production is difficult.

Problem in Market Expansion.


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Use multisite communications.

Work in larger group.

Hire more efficient workforce or train thepersonnel.

Innovative techniques of indirectcommunication.


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Ski Dubai is the first in-door ski resort in the

Middle East that offers

an amazing setting to

enjoy skiing,

snowboarding, as well as

a host of other winter

activities.


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Mission:- Providing a

high quality education toanyone, anywhere

Website supplies a free

online collection of more

than 3,600 micro

lectures via videotutorials


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SBI is the largest banking

and financialservices company inIndia by revenue, assetsand marketcapitalization.

SBI had 14,119 branches,including 173 foreignoffices in 37 countriesacross the globe.


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SBI has 21000+ ATMs to

facilitate money

transactions. The reachof ATM is from the

metro to very rural

areas of India.


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Apollo Prism - Apollo

Prism automatically

downloads your testresults and discharge

summary from ApolloHospitals.


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Variability: - Quality of service is variableas it is dependent on provider of the service,

time of providing, place of providing the

service.

Example: - The quality of hair cut depends on

the barbers skills.


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Difficult to achieve Standardization.

Customize service.

Industrialize Service


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Apollo Health Check -

It offers you following

comprehensive

packages especially

designed to suit your

individual needs.


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Indias biggest e-

commerce site.

The website recorded an

average of 4.47 lakh e-

tickets per day


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Mahindra Holidays & Resorts India Ltd. India's no.1

vacation provider subscribed by over 1,47,000 member

families.

Leisure Breaks, Family Getaways, European Delights, Hot

Deals, Quick Trippers, Short Breaks, Beach Holidays,

Adventure, Fun & Frolic, Offbeat, Summer Getaways,

Glitz & Glamour, Hill Stations.

CLUB MAHINDRA


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MYNTRA

Myntra has introduced a

totally fresh concept

wherein, customers are

given the freedom of notonly paying cash after

delivery but also trying out

their apparel and return

the same if not satisfied.
http://localhost/var/www/apps/conversion/tmp/scratch_6/MM%20II%20Assignment/Myntra%20-%20Real%20life%20mein%20aisa%20hota%20hai%20kya%20-.mp4


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McDonald

McDonald quickly adjusted to

Indian sensibilities and

introduced a tailored menu for

India, adding chicken, lamb andfish. Today, 70% of McDonalds

menu is Indianized and McAloo

Tikki burger is their highest

selling product.


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Perishability: - As services cannot bestored, there is a chance that the service can

be perished when demand fluctuates.

Example: - A person going for hair cut has to

get the hair cut done in the shop itself.


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Services cannot be inventoried.

Difficult to satisfy consumers at the High Demand

Time


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Part time employees

Part time efficiency

Increased Consumer participation.


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PART TIME EMPLOYEES


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CONSUMER PARTICIPATION


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Differential Pricing

Complementary Services

Reservation System

Non Peak Demand


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DIFFERENTIAL PRICING


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NON PEAK DEMAND


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COMPLEMENTARY SERVICES


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RESERVATION SYSTEMS


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Quality improvement

Communicating and testing new services

Consistent image

Employee commitment

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Coordinating marketing, operations and human

resource efforts

Setting prices



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Traditional Marketing Mix

Expanded Mix for Services: 7 Ps

Building Customer Relationships ThroughPeople, Processes, and Physical Evidence

Ways to Use the 7 Ps



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4 Ps of traditional marketing mix are as follows:

Product

Price

Place

Promotion



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Product

Price

Place

Promotion

People

Process

Physical Evidence



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PRODUCT PLACE PROMOTION PRICE

Physical good

features

Channel type Promotion

blend

Flexibility

Quality level Exposure Salespeople Price level

Accessories Intermediaries Advertising Terms

Packaging Outlet location Sales

promotion

Differentiation

Warranties Transportation Publicity Allowances

Product lines Storage

Branding


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Extended marketing mix for services

People

PhysicalEvidence

Process


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PEOPLE PHYSICAL

EVIDENCE

PROCESS

Employees Facility design Flow of activities

Customers Equipment Number of steps

Communicating

culture and values

Signage Level of customer

involvement

Employee research Employee dress

Other tangibles


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Overall Strategic

Assessment

How effective is a firms

services marketing mix? Is the mix well-aligned

with overall vision and

strategy?

What are the strengthsand weaknesses in

terms of the 7 Ps?

Specific ServiceImplementation

Who is the customer?

What is the service?

How effectively does theservices marketing mix fora service communicate itsbenefits and quality?

Whatchanges/improvementsare needed?


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Pind Balluchi

OUR VISION: To be the benchmark by being the 'only' Indian

specialty dining destination; thereby, creating a 'WOW' experience

for our guests at all times.

OUR MISSION: To ensure Profitability, Standardization & 100%

guest satisfaction across all units by:-

1. Creation of Standards & Processes,

2. Rigorous & Intensive Training,

3. Highest Level of Quality

4. Strong Brand Awareness


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Pind Balluchi

OUR CORE VALUES

1. Self Discipline

2. Self Belief

3. Sense of Ownership4. Passion For Perfection

5. Dynamism

6. Leadership

7. Respect and Compassion

8. High Emotional Quotient

9. Innovation

10. Integrity


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Commonwealth Bank

Trust and Team Spirit is one of the Commonwealth Banks (the Group)key strategic business priorities.

The Group recognises the importance of attracting, retaining and

developing good quality people in achieving its goal of becoming

Australias finest financial services organisation through excelling incustomer service.

COMMERCIAL
http://localhost/var/www/apps/conversion/tmp/scratch_6/MM%20II%20Assignment/Commonwealth%20Bank%20TV%20Ad%20-%20Our%20staff%20are%20Determined%20to%20Call%20you%20Back.mp4http://localhost/var/www/apps/conversion/tmp/scratch_6/MM%20II%20Assignment/Commonwealth%20Bank%20TV%20Ad%20-%20Our%20staff%20are%20Determined%20to%20Call%20you%20Back.mp4


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Self Check in

Ginger realized that it is very tiring for the customers to stand in

front of the help desk so Ginger started a unique self check-in

facility.

Gingers gives every guest the freedom to help yourself withGinger's unique self check-in- facility without any assistance from

the front office.

The automated check-in kiosk, powered by Astrolife(TM), has

been introduced in India for the first time and their guests love it.


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Vid d2h I t ll ti


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The company since its inception came up with a

service of providing installation within an hour

from the time they receive any order. Hence,

one can easily order it from his office or anylocation away from office and can enjoy the

service after reaching home.

Videocon d2h : Installation


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COMMERCIAL
http://localhost/var/www/apps/conversion/tmp/scratch_6/MM%20II%20Assignment/videocon%20d2h%20new%20ad%20-%20parkour%20ad%20with%20Abhishek%20Bachchan.mp4http://localhost/var/www/apps/conversion/tmp/scratch_6/MM%20II%20Assignment/videocon%20d2h%20new%20ad%20-%20parkour%20ad%20with%20Abhishek%20Bachchan.mp4


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It ranks third in being biggest company of Radio Taxi.

It also is largest taxi operators in every city.

It takes approximately 20,000 trips on daily basis.

In a single month, it has a record of satisfying passengers more than1 million in numbers.


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Travel website Cleartrip has introduced cab bookings for travellers

who can avail the services along with flight bookings.

It has tied up with Meru Cabs to enable users book cabs to and from

the airport.

These cabs will be available for booking directly through Cleartrip at

no extra charges only in Mumbai, New Delhi, Bangalore and

Hyderabad.


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Travellers can pay the cab directly at the drop off at the airport.

The online travel portal recently introduced a one-click bookingfacility called Expressway for both online and mobile booking.

This will allow customers to store their credit, debit and payment

card details in their Cleartrip accounts, so that bookings will happen

fast.


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India`s First Listed and Highest Credit Rated Gold Loan Company,

registered under Reserve Bank of India, founded in 1949.

Why go for Personal or Business loans when you have the power ofgold with you!

Get a loan against your gold, in minutes!

Loan against Gold Ornaments. Loans up to One Crore rupees.


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Draw instant Cash by pledging your Gold Ornaments and Jewellery.

Higher loan amounts, depending on purity, net weight of the gold.

Choose from a range of schemes; theres one just right for your needs


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Loans given in as little as five minutes.

Minimum Requirements: Only one recent IDVoter ID/ Ration

Card/ Driving License/ Passport. No time-consuming formalities

involved.

Pay interest only for the exact period of loan, and to the exactnumber of days.

Different schemes for different needs, to suit all income groups.


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Berger Paints India Limited (BPIL) is one of India'sforemost paint companies, currently ranked as second

largest on the basis of consolidated sales turnover in

Indian paint industry.

Today Berger Paints India Limited, having solely used and

developed the name and trademark BERGER and all its

variants in India, is a household name in paint.

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Free home visit

Cost estimation, color consultancy

Professional supervision

Post paint clean up At least one year warranty

Offers preview of home painted in different color schemes

and texture

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C stomer Gap Model


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Customer Gap Model

Customer Gap Model


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Customer Gap:

difference between expectations and perceptions

Provider Gap 1(The Knowledge Gap)

not knowing what customers expect

Provider Gap 2(The Service Design & Standard Gap)

not having the right service designs and standards

Provider Gap 3(The Service Performance Gap)

not delivering to service standards

Provider Gap 4(The Communication Gap)

not matching performance to promises

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Customer Gap Model


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Inadequate marketing research Lack of upward communication

Insufficient relationship focus

In adequate service recovery

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Customer Expectation

Company Perception Of


GAP

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Poor service design. Absence of customer driven

standards.

Inappropriate physical

evidence and service gap.

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GAP

2

Customer Driven Service

Design & Standards

Management Perception Of



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Deficiencies in human resources

policies.

Customer who do not fill roles.

Problem with service intermediaries. Failure to match supply and demand.

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Customer Driven Service

Design & Standards

Service Delivery

GAP

3


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Lack of integrated services

marketing communications. Ineffective management of customer

expectations.

Overpromising

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Service Delivery

External Communications to

customers

GAP

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General Electric sends out

700,000 response cards a year

asking a households to rate itsservice peoples performance.


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Citibank aims to answer phone callswithin 10 seconds and customer letters

within 2 days.


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HP tries to respond to every e-mails

within an hour and usually within 10minutes to ensure it meets it service-

quality standards.


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Every month RackSpace gives the straight jacket award to

the employee who best lives up to the company fanatical

customer support motto.


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The company was named Best Customer-Service Organization by the

American Business Award in its 2005 ceremony.

Top Management Commitment


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Top Management Commitment Organizations such as Marriot, Disney, Xerox, Apollo Hospitals,

Infosys and Wipro have a thorough commitment to service quality.

McDonalds measures each outlet on its conformance to QSCV:

Quality, Service, Cleanliness and Value. Wal-Mart requires the

following employee pledge I solemnly swear and declare that every

customer that comes within 10 feet of me, I will smile, look them in

the eye, and greetthem.

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People perceive services as homogeneous People focus more on the price rather than the

service provider

It is very important create brand recall value

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Customer expects primary service package Service provider needs to add innovative features

called secondary service features

Primary

service

package

Secondary

service

feature

Final

service

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Choosing brand elements

Establishing image dimensions

Devising branding strategy

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Federal Express (FedEx) was founded in 1971

Headquartered in Memphis, USA Faced tough competition from existing players like

UPS

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Speed of delivery Pickup packages from customers home

Money back guarantee

Charge a price premium for its services

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ICICI Bank Home Loans


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ICICI home finance company was

incorporated on May 28,1999

Available to customers in 150 cities across

India

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Free door to door service Transferring of normal loans to ICICI home

loan

Higher income savings for people holdinghigh cost loans

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Yatra.com

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Started its journey in 2006 with 3 members

Caters to domestic and international travelers

Turnover of Rs. 1000 crore by 2008

Faced tough competition from existing players likecleartrip and makemytrip

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Started new model called click and mortar modeli.e. they started operating both online as well as

offline

Creativity in website design where low airfares areshown on the left

Low fair alert through customer mobile phone

message and e-mails

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On time

Low price

No frills

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Hotel Front Desks


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Hotel Front Desks

In order to reduce lines and get guests to their rooms more quickly, HiltonHotels are trying to streamline the process through self-service kiosks in the

hotel lobby.

On the other hand Kimpton Hotels, a San Francisco based chain of boutique

hotels is putting all its efforts into beefing the front desk services, going for

high touch than high tech.

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Netgrocer.com

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Privately held online grocery store foundedin 1995

Based in North Brunswick, New Jersey

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Delivers solely via FedEx and hence operates acrossthe nation unlike other stores

Offers a wide range of products starting from

grocery items, non-prescription drugs to other items

Does not charge a membership fee for its loyaltyprogram

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Hallmark channel

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Launched in 1984 as ACTS Renamed in 2001 as Hallmark

Owned by Crown media holdings

Headquartered in California, U.S.A

Bill Abbott, CEO

About50 million subscribers worldwide

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First TV channel to Create a daytime lifestyle blockin 2010

Celebrate lifes special moments everyday

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Big Bazaar

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A hypermarket chain founded in 2001 owned by Future group which also owns other

retail chains like Pantaloons, Central etc.

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Different rates during peak and non peak hours ofthe day

Bundling strategy i.e. discount on combo pack

Loyalty programs like future card, shakti card

Various promotional offers like Saal ke sabse saste3 din, Hafte ke sabse sasta din Wednesday Bazaar

etc.

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Westin hotels and resorts

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An up market luxury hotel chain owned byStarwood hotels and resorts worldwide

Started its operation in 1930 in USA

One of the well known and established luxury hotel

brands all over the world

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Decided to go smoke-free-a first time in hotelindustry

Heavenly bed and heavenly spa

Sensory welcome to the guests with white tea scent,

signature music and lighting

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THANK

YOU

seca group5 service marketing rev 3

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