7 P’s OF SERVICE

MARKETING

INTRODUCTIONWHAT IS SERVICE?

“A service is an activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.”

PRODUCT

Core Benefit

Basic Service

Expected Service

Augmented Service

Potential Service

BRANDING

The role of brand in services marketing

--- Brand helps to create a unique position in the minds of the customer (e.g. Talwalkar’s Gym. ,Kaya Skin Clinic)

--- Brands help customers distinguish between products from different companies

--- Brand superiority leads to high sales, ability to charge premium price.

---Branding reduces time and effort in DMP

SERVICE DIFFERENTIATION

--- A Company’s offer should be distinct from its customers and should fulfill the requirements of the customers of its target markets.

--- Service differentiation results from added features which gives customers benefits, and the company a competitive advantage.

---Building an image and maintaining quality are the ways of creating such differentiation.

PRICE

Price

PRICING STRATEGY

“Discount price”

“Competition based price”

“Penetration price”

“Skimming

price”

PLACE

PLACE 3 ways to render service:

Customer Service provider e.g.Hospitals

Service provider Customer e.g. Pizza Hut

Customer Service provider e.g. ATM machine

What is franchise???Granting of certain rights by one party

(the franchisor) to another (the franchisee) in return for a sum of money.

Business method that involves licensing of trademarks and methods of doing business

Examples of franchise in India

Factors affecting location

Proximty

Population

Infrastructure

Law & Tax

Environmental & Government regulations

Climatic conditions

Convenience

Latest trends

Call centres

Service delivery timings

Mini stores

PROMOTION

Promotion is the communication of the service to the target customers – to make promises as well as to position themselves in their minds “Promotion consists of the following major areas of marketing”

PROMOTION

Advertising

Public relations

Sales promotionDirect mailing

Word of mouth

Personal selling

Personal Selling - PERSUASION

Sales Promotion

Public Relations

Advertising - AIDA

PEOPLE

PEOPLE

“HAPPY EMPLOYEE = HAPPY CUSTOMER”

Internal customers

It’s the human element that creates and sustains the right kind of climate within the organization that extend satisfaction to the customers.

SERVICE TRIANGLE

STRATEGIES TO HANDLE INTERNAL CUSTOMER

• Training

• Include them in company’s vision

• Empowerment

• Position your company as the best employer

• Employee retention

PROCESS

What is Process?

•Processes are a sequence of activities arranged into logical step .

•A process invariably is a sequence of value-adding activities.

EXAMPLES OF SOME SERVICE PROCESSES

Restaurant

Education Health Care

Arrive

Seat

Rec. OrderPrep. Food

Consume

Serve Bill

Settle Bill

Admission

Registration

Teach

Train

Examine

Evaluate

Award Monitor

Medication

Emergency

Diagnose

Examine

Ambulation

Admission

Money

Men

Machine

Material

Methods

The service process includes all the traditional ‘M’s’

Objectives behind managing a service

process1. To ensure that service is carried fast.

2. To create and place benchmarks.

3. To facilitate employee learning.

4. To reduce variance through work force planning.

MANAGING DEMAND Using reservations & bookings

Using appointments

Promoting off-peaks using price incentives

Using fixed schedules

Extending product lines

Seeking customer participation

Using work shift scheduling

MANAGING SUPPLY

Gap model

Ways to address gaps

PHYSICAL EVIDENCE

PHYSICAL EVIDENCE

ELEMENTS OF PHYSICAL EVIDENCE

ELEMENTS

SERVICE SCAPE

TANGIBLES

Elements of servicescape

Ambient Conditions

Space & Function Condition

Signs & Symbols & Artifacts

AMBIENT

CONDITIONSSIGNS , SYMBOLS

& ARTIFACTSSPACE &

FUNCTION CONDITIONS

TEMPERATURE

QUALITY OF AIR

NOISE

MUSIC

LAYOUT DESIGN

EQUIPMENT & FIRM

RULES & REGULATIONS

PROCESS EXPLAINED

SERVICESCAPE

OTHER TANGIBLESBusiness cardsStationeryBilling statementsReportsEmployee dressUniformsBrochuresWeb pages

SERVICESCAPE & BEHAVIOUR

STIMULUS

ORGANISM

RESPONSE

AMBIENT CONDITIONS

SPATIAL LAYOUT/ FUNCTION

SIGNS, SYMBOLS & ARTIFACTS

CONSUMERS

EMPLOYEES

COGNITIVE RESPONSE

EMOTIONAL RESPONSE

PHYSIOLOGICAL RESPONSE