Services Marketing Mix
Transcript of Services Marketing Mix
Services Marketing MixServices Marketing Mix
Goods versus ServicesGoods versus ServicesGoods versus ServicesGoods versus Services
Classification of ServicesClassification of ServicesClassification of ServicesClassification of Services
Based on Degree Of Cust. Involvement
( Lovelock)1. People Processing2. Possession Processing3. Mental Stimulus Processing4. Information Processing
Based on Degree Of Cust. Involvement
( Lovelock)1. People Processing2. Possession Processing3. Mental Stimulus Processing4. Information Processing
Four Categories of Services Based on the Process UsedFour Categories of Services Based on the Process Used
• People Processing• Tangible Acts Directed
Toward People• e.g. airlines,
hospitals, hair stylists, fitness centers
• Possession Processing• Tangible Acts Directed
Toward Possessions• e.g. repair services,
landscaping, house cleaning services
• People Processing• Tangible Acts Directed
Toward People• e.g. airlines,
hospitals, hair stylists, fitness centers
• Possession Processing• Tangible Acts Directed
Toward Possessions• e.g. repair services,
landscaping, house cleaning services
• Mental Stimulus Processing• Intangible Acts Directed
Toward People• e.g. consulting,
education, psychotherapy, broadcasting
• Information Processing• Intangible Acts Directed
Toward Intangible Assets • e.g. accounting,
banking, financial services
• Mental Stimulus Processing• Intangible Acts Directed
Toward People• e.g. consulting,
education, psychotherapy, broadcasting
• Information Processing• Intangible Acts Directed
Toward Intangible Assets • e.g. accounting,
banking, financial services
Levels of Customer Contact with Levels of Customer Contact with Service OrganizationsService Organizations
Levels of Customer Contact with Levels of Customer Contact with Service OrganizationsService Organizations
Emphasizes encounters with service personnel
Emphasizes encounters with equipment
M a il Ba sed Rep a irs
In tern et- b a sedServices
M ovie Th ea ters
High
Low
Other Classification of Other Classification of ServicesServices
Other Classification of Other Classification of ServicesServices
• Degree of Tangibility• Based on Skills and Expertise Required-
e.g. Professional & non professional
• Business Orientation of service provider
• Type of end user
• Degree of Tangibility• Based on Skills and Expertise Required-
e.g. Professional & non professional
• Business Orientation of service provider
• Type of end user
Services Marketing MixServices Marketing MixServices Marketing MixServices Marketing Mix
Traditional Marketing MixTraditional Marketing MixTraditional Marketing MixTraditional Marketing Mix
• All elements within the control of the firm that communicate the firm’s capabilities and image to customers or that influence customer satisfaction with the firm’s product and services:• Product• Price• Place• Promotion
• All elements within the control of the firm that communicate the firm’s capabilities and image to customers or that influence customer satisfaction with the firm’s product and services:• Product• Price• Place• Promotion
An expanded marketing mix for services
Customers PricePlace & Time
Promotion
Product (service)People Process
Physical evidence
Customers PriceCustomers
Place, cyber-space & time
People• All human actors who play a part in
service delivery and thus influence the buyer’s perceptions: namely, the firm’s personnel, the customer, and other customers in the service environment.
People• All human actors who play a part in
service delivery and thus influence the buyer’s perceptions: namely, the firm’s personnel, the customer, and other customers in the service environment.
customerservice employeesother customers
Physical Evidence• The environment in which the service is
delivered and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service.
Physical Evidence• The environment in which the service is
delivered and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service.
•atmospheredécor, music etc.
•equipment•facilities•uniforms
Process• The actual procedures, mechanisms,
and flow of activities by which the service is delivered—the service delivery and operating systems.
Process• The actual procedures, mechanisms,
and flow of activities by which the service is delivered—the service delivery and operating systems.
service delivery systems•back stage•front stage
procedurespolicies
PEOPLE PHYSICALEVIDENCE
PROCESS
Employees Facility design Flow of activities
Customers Equipment Number of steps
Communicatingculture and values
Signage Level of customerinvolvement
Employee research Employee dress
Other tangibles
PEOPLE PHYSICALEVIDENCE
PROCESS
Employees Facility design Flow of activities
Customers Equipment Number of steps
Communicatingculture and values
Signage Level of customerinvolvement
Employee research Employee dress
Other tangibles
Expanded Marketing Expanded Marketing Mix for ServicesMix for Services
7 P’s for Services7 P’s for Services7 P’s for Services7 P’s for Services
In- class ExerciseIn- class Exercise
• For a service you have used in the last one year identify the 7P’s for that service.
• Pls. remember to focus also on its intangibility, inseparability, Variability and heterogeneity aspects
• For a service you have used in the last one year identify the 7P’s for that service.
• Pls. remember to focus also on its intangibility, inseparability, Variability and heterogeneity aspects
The Services Marketing The Services Marketing TriangleTriangle
Internal Marketing
Interactive Marketing
External Marketing
CompanyCompany(Management)(Management)
CustomersEmployees
“enabling thepromise”
“delivering the promise”
“setting thepromise”
Ways to Use the Ways to Use the Services Marketing TriangleServices Marketing Triangle
Ways to Use the Ways to Use the Services Marketing TriangleServices Marketing Triangle
Overall Strategic Assessment
• How is the service organization doing on all three sides of the triangle?
• Where are the weaknesses?
• What are the strengths?
Overall Strategic Assessment
• How is the service organization doing on all three sides of the triangle?
• Where are the weaknesses?
• What are the strengths?
Specific Service Implementation
• What is being promoted and by whom?
• How will it be delivered and by whom?
• Are the supporting systems in place to deliver the promised service?
Specific Service Implementation
• What is being promoted and by whom?
• How will it be delivered and by whom?
• Are the supporting systems in place to deliver the promised service?
Challenges for ServicesChallenges for Services
• Defining and improving quality• Communicating and testing new services• Communicating and maintaining a consistent
image• Motivating and sustaining employee
commitment• Coordinating marketing, operations and
human resource efforts• Setting prices• Standardization versus personalization