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