Marketing mix
- 2. •What is Services Marketing Mix ? •4P’s of Services Marketing Mix ? •7P’s of Services Marketing Mix ?
- 3. • Service Marketing Mix refers to the combination of marketing activities an organization engages in to promote and sell intangible services, as opposed to tangible products. • In addition to the four Ps of traditional product marketing (Product, Price, Place and Promotion) the services marketing mix includes the three Ps of service marketing: (People, Process and Physical evidence. The services marketing mix is also referred to as the extended marketing mix.
- 4. • A marketing expert named E. Jerome McCarthy created the marketing 4Ps in the 1960. • According to this concept, marketing mix is a integration of product, price, place & promotion
- 5. • Due to increase in competition, standard of living of consumer and changes in physical environment, expert’s were realized that business had to become more customer centric so they developed in the 1990, the new model of marketing mix which is 7P’s model of marketing mix.
- 6. • In service organization managers must select the features of a service including supplementary features keeping in mind the customer expectations from such product and the feature available in the existing competing products. • A service product can be defined as a mix of intangibles and tangibles offered by a marketer at a price. Essentials of product mix as follows:- Design Technology Perceived usefulness Convenience of use Quality Packaging Brand utility Accessories Warranties
- 7. • Pricing is the crucial “P” of marketing because it determines the revenue that a company’s service will earn. Pricing has several components and usually there are three major criteria involved in pricing a service. COST COMPETITION OBJECTIVES-STRATEGIC OR TACTICAL • This component requires service marketers to understand that service marketing strategy is not limited to the traditional pricing task of determining the selling price to customers, setting margins for any intermediaries and establishing credit terms.
- 8. • Delivering service to the customers involves decisions on the place and time of delivery as well as on the methods and channels used. Delivery may involve physical or electronic distribution channels or both depending on the nature of the service provided. Essential point of channel should be considered which are as follows:- Retailer Wholesaler Mail order Internet Direct sales
- 9. • 4TH P of service marketing plays three vital roles Providing needed information & advice Persuading target customers of the merits of a specific product Encouraging them to take action at specific times. • Before a service marketer finalizes his promotional plan. He must narrow down his promotion objectives. Depending upon such objectives, the promotion plan can take shape with regard to the choice of media & the timing of promotion etc. • A promotional mix is the integration of Advertising, Sales Promotions, Public Relations, Direct Marketing, Personal Selling
- 11. • A process is the method & sequence of actions in the service performance. Creating & delivering product to customer require the design & implementation of effective processes. • A process is based on three major activities
- 12. • The appearance of buildings, landscape, vehicles, interior furnishing, equipment, social & technical skill of staff members, signs, printed materials etc are all tangible evidence of a firm service quality. So, the physical environment of a service facility needs to be managed carefully. • The physical evidence or service scape is not limited to buildings, but to the appearance of people, stationery, bills sent to customers, visiting cards & any tangible evidence that may result in an impression being formed about the service brand. FACILITIES INFRASTRUC TURE SERVICE DELIVERY
- 13. • Many services depend on direct interaction between customers & a firm’s employees. The nature of these interaction such as getting a haircut, talking to a call centre staff strongly influences the customer’s perception of service quality. Therefore, significant effort should be made in recruitment, training & motivation of these staff people.
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