SERVICES MARKETING MIX
At the end of this module the learning
outcomes are:
– Why there is a need to expand services
marketing mix?
– What are the components of services
marketing mix?
– Importance of additional components of
services marketing mix?
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SERVICES MARKETING MIX
Suggested Readings
Services Marketing
By
Zeithmal & Bitner
Chapter 1
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SERVICES MARKETING MIX
Services Marketing Mix
• Traditional marketing mix
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Product
Price
Place
Promotion
• For services
• Modifications in marketing mix required
• Why?
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SERVICES MARKETING MIX
Services
• Simultaneous production and consumption
• People involved in service delivery process
Hair dressers
Bank cashier
Doctor
Instructor
• Being intangible, customer look for ‘tangible
cues’
• Services marketers need to look for additional
variables to communicate and satisfy their
customers.
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SERVICES MARKETING MIX
Service Marketing Mix
• How would you rate a hotel
– Design and decor
– Courtesy of employees
– How prompt they attend your request.
We need to expand traditional marketing
mix to take care of this?
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SERVICES MARKETING MIX
Components of Services Marketing Mix
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Products
Price
Place
Promotion
People
Physical evidence
Process
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SERVICES MARKETING MIX
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
the other customers in the service environment.
• How people are dressed.
• Personal appearance.
• Their attitude and behaviour
• Importance varies from service to service.
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SERVICES MARKETING MIX
People
FM Broadcast
– Person not visible
– Dress not that critical
– How he speaks is critical
Doctor performing surgery
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How famous is he/she
Courtesy
Communication
How he encourages patient
Performance starts after patient is seated
Role of people vary from service to service.
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SERVICES MARKETING MIX
PHYSICAL EVIDENCE
• The environment in which the service is
delivered and where the firm and customer
interact. Any tangible components that
facilitate performance or communication of
the service.
• ‘Tangible’ representation of the service
such as brochures, letterheads, business
cards, signage, equipment.
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SERVICES MARKETING MIX
PHYSICAL EVIDENCE
PVR Anupam
• Reservation counter
• Well dressed employees
• Computerised tickets
• Security at entrance
• Clean and tidy
• Comfortable seats
We judge quality on above parameters
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SERVICES MARKETING MIX
PHYSICAL EVIDENCE
ABN Amro Bank-ATM
• Location of ATM
• Restricted entry
• Air Conditioned
• Attractive ATM layout
• ‘New’ currency notes
• Attractive, well laid out brochures
Image of excellent service
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SERVICES MARKETING MIX
PROCESS
• The actual procedure, mechanism, and flow of
activities by which the service is delivered –the
service delivery and operating systems.
• Various types of service
• Simple
• Complicated
• How the service is delivered?
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SERVICES MARKETING MIX
PROCESS-ABN AMRO Bank
• Cash withdrawl
• Earlier visit to the bank
• Present cheque
• Debit your account
• Go to cashier
• Get cash
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SERVICES MARKETING MIX
Problems
• Customers have to visit bank
• Traffic / parking problems
• Rush in branch
• Waiting
• Customers not satisfied.
How to improve the process?
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SERVICES MARKETING MIX
AT PRESENT
• Banking at home
• Withdrawl request on phone
• Bank employee delivers cash at home
• No hassles of parking etc.
• Process made easier
• Customers more satisfied
We need to continuously improve processes to
improve customer satisfaction.
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