SEVEN P OF SERVICE MARKETING MIX

• Ø  SEVEN P OF SERVICE MARKETING MIX

  Ø  MARKETING
  • PRODUCT MIX OF PRODUCT
  1. PRODUCT
  2. PRICE
  3. PROMOTION
  4. PLACE
  • MARKETING MIX OF SERVICE
  1. PRODUCT
  2. PRICE
  3. PLACE
  4. PROMOTION
  5. PEOPLE
  6. PHYSICAL EVIDENCE
  7. PROCESS
  • MEANING OF SERVICE
  • SERVICES ARE DEFINED AS A FORM OF PRODUCTS THAT CONSISTS OF ACTIVITIES,BENEFITS,OR SATISFACTIONS OFFERED FOR SALE THAT ARE ESSENTIALLY INTANGIBLE AND DO NOT RESULT IN THE OWNERSHIP OF ANYTHING. PHILIP KOTLER
  • CATEGORIES OF SERVICE MIX:-
  1. PURE TANGIBLE GOODS:-A TANGIBLE GOODS SUCH AS SOAP,TOOTHPASTE ,SHAMPOO ACCOMPANYING A SERVICE
  2. TANGIBLE GOODS WITH  ACCOMPANYING SERVICE:-MORE TECHNOLOGICAL THE PRODUCT ,MORE SUPPORTING SERVICE
  3. MAJOR SERVICE WITH ACCOMPANYING MINOR GOODS AND SERVICES:-LIKE AIR TRAVEL WITH ADDITIONAL SERVICE OR SUPPORTING SNACKS
  4. PURE SERVICE: BABY SITTING,PSYCHOTHERAPY OR MESSAGE
  • FEATURES OF SERVICES
  • INTANGIBILITY:-UNLIKE PHYSICAL PRODUCTS,SERVICES CAN NOT BE SEEN,TESTED,FELT,HEARD
  • INSEPARABILITY:-WHERE AS PHYSICAL GOODS ARE MANUFACTURED,INVENTORIES AND THEN DISTRIBUTED AND LATER CONSUMED BUT SERVICES ARE TYPICALLY PRODUCED AND CONSUMED SIMULTANEOUSLY.
  • VARIABILITY( HETEROGENEITY):- SERVICES ARE ALWAYS HETEROGENEOUS. THE QUALITY OF SERVICES DEPENDS ON WHO PROVIDE THEM AS WELL AS WHEN AND HOW THEY ARE PROVIDED.
  • PERISH ABILITY:- CAN NOT BE STORED  FOR FUTURE SALE OR USE AND HENCE ARE PERISHABLE
  • OWNERSHIP:-NO TRANSFER OF OWNERSHIP
  • MARKETING MIX IN SERVICE MARKETING
  • HOLISTIC MARKETING IS NEEDED AS SERVICES REQUIRE INTERACTION BETWEEN PEOPLE WHO ARE AFFECTED BY MANY FACTORS.
  • HOLISTIC MARKETING FOR SERVICE CALL FOR :-
  1. EXTERNAL:-NORMAL ACTIVITIES OF MARKETING LIKE PROVIDING,PRICING DISTRIBUTING AND PROMOTING
  2. INTERNAL : TRAINING,DEVELOPMENT AND MOTIVATION OF THE EMPLOYEE
  3. INTERACTIVE MARKETING: EMPLOYEE SKILL IN SERVING THE CUSTOMERS
  • SEVEN P OF SERVICE MARKETING MIX
  • PRODUCT:-
  • UNDERSTANDING WHAT BENEFIT AND SATISFACTION THAT CONSUMER IS SEEKING FROM THE SERVICE.
  • THE MARKETING OF SERVICE CAN BE SUCCESS ONLY IF THERE IS A MATCH BETWEEN THE SERVICE PROVIDER AND THE CONSUMER VIEW POINT
  • TO FIND THIS MATCH THE SERVICES WILL HAVE TO BE ANALYZED FROM THIS ANGLE:-
  1. THE CUSTOMER BENEFIT: BENEFIT SOUGHT BY THE CUSTOMERS
  2. SERVICE CONCEPT;-SPECIFIC CUSTOMER BENEFIT WHICH THE SERVICE OFFERS
  3. SERVICE OFFER:- SPECIFIC SHAPE AND FORM TO THE BASIC SERVICE CONCEPT
  4. SERVICE FORM:-IN FORM WHICH IT IS AVAILABLE TO CUSTOMERS
  5. SERVICE DELIVERY SYSTEM:-PEOPLE AND PHYSICAL EVIDENCE
  • PRICING:-FOR TANGIBLE PRODUCTS THE PRICE IS USED .BUT IN CASE OF SERVICES DIFFERENT TERMS ARE USED FOR DIFFERENT SERVICE. FOR EXAMPLE:
  1. THEATER,CIRCUS,MOVIE ,TRAVEL: TICKET
  2. LEGAL SERVICE,DOCTOR: FEES
  3. EDUCATION TUITION FEES
  4. PROPERTY USAGE RENT
  ·         WHILE FIXING PRICE OF SERVICES,THE PERISH ABILITY HAS TO BE CONSIDERED DUE TO FLUCTUATION IN DEMAND. INTANGIBILITY  AND REGULATION ALSO AFFECT THE PRICING OF SERVICE
  ·         TWO METHODS ARE USED TO DECIDE:-
  1. COST BASED PRICING
  2. MARKET ORIENTED : COMPETITION  AND ABILITY TO PAY
  
  
  • PRICING METHODS IN SERVICE MARKETING
  1. DIFFERENTIAL OR FLEXIBLE PRICING:-CHARGING DIFFERENT PRICING FOR DIFFERENT CUSTOMER BASED ON THEIR ABILITY TO PAY/TIME SLOT( PEAK SEASON,OFF SEASON) AND PLACE DIFFERENCE ( BALCONY/FRONT ROW) ECONOMY AND BUSINESS CLASS IN AIR TRAVEL
  2. DISCOUNT PRICING:-
  3. DIVERSIONARY PRICING:-LOW PRICE IS CHARGED FOR A BASIC SERVICES TO ATTRACT CUSTOMERS
  4. GUARANTEED PRICING:- FEES OR COMMISSION IS TO BE PAID ONLY AFTER THE RESULT
  5. HIGH PRICE MAINTENANCE:-HIGH PRICES DUE TO QUALITY OF SERVICES
  6. LOSS LEADER PRICING:-INITIAL LOW PRICES AND SUBSEQUENTLY HIGHER PRICE
  7. OFFSET PRICING:-BASIC LOW PRICE BUT EXTRA SERVICES ARE PRICED RATHER HIGH.
  • PROMOTION:-: MORE ON SUBJECTIVE IMPRESSION RATHER THAN CONCRETE EVIDENCE
  1. ADVERTISING
  2. PERSONAL SELLING
  3. PUBLICITY
  4. SALE PROMOTION
  • PLACE( DISTRIBUTION): ISSUE OF LOCATION
  1. DUE OT INSEPARABILITY SERVING TO LOCALISED OR LIMITED MARKET
  2. FIXED LOCATION
  3. OPERATE THROUGH AGENTS
  • PEOPLE:-HUMAN ELEMENTS CONSTITUTE AN IMPORTANT DIMENSION IN SERVICE MARKETING IN THEIR ROLE AS BOTH PERFORMANCE OF SERVICE AND CUSTOMERS
  1. EMPLOYEE FIRST LINE OF CONTACT WITH CUSTOMER. EMPLOYEE MUST BE POLITE,COURTEOUS,WELL INFORMED
  2. BEHAVIOUR AND ATTITUDE OF THE SERVICE EMPLOYEE WILL HAVE AN IMPORTANT INFLUENCE
  3. CUSTOMERS ARE IMPORTANT BECAUSE THEY ARE A SOURCE OF INFLUENCING OTHER CUSTOMERS
  • PHYSICAL EVIDENCE:-REFERS TO THE ENVIRONMENT IN WHICH SERVICE IS PROVIDED. IT IS ALSO CALLED SERVICESCAPE.
  1. CLEANLINESS IN A DOCTOR’S CLINIC
  2. EXTERIOR APPEARANCE AND INTERIOR DECOR
  3. PERIPHERAL EVIDENCE IS TANGIBLE ITEMS OF THE SERVICE WHICH ARE POSSESSED BY CUSTOMERS AS PART OF THEIR PURCHASE SERVICE BUT BY THEMSELVES ARE NO OF VALUE.
  4. THE ESSENTIAL EVIDENCE:
  1. BUILDING,SIZE,DESIGN
  2. INTERIOR LAYOUT
  3. DECOR,LOGO
  • PROCESS:-
  1. THE SYSTEM BY WHICH THE CUSTOMER RECEIVE THE DELIVERY OF THE SERVICE CONSTITUTE
  2. LIKE IN MACDONALD’S THE PROCESS:BUYING OF ONE COUPON AT ONE PLACE AND PICKING UP THE FOOD AGAINST THE COUPON AT SELF SERVICE COUNTER
  • THREE KIND OF DELIVERY PROCESS:-
  1. SELF SERVICE RESTAURANT AND SELF MARKET( STANDARDIZED AND CUSTOMER REQUIREMENTS)
  2. JOB SHOP WHEN THE CONSUMER REQUIRES A COMBINATION OF SERVICES USING DIFFERENT SEQUENCE
  3. INTERMITTENT OPERATION CUSTOMIZED