SecA Group5 Service Marketing Rev 3

Abhishek Singh 12PGP004 Arnab Roy 12PGP011 Bir Bahadur Singh 12PGP014 Harsh Vardhan 12PGP017 Mahesh Kumar
12PGP025
What is a Service? Categories of Service Mix Characteristics of Services
Marketing Challenges Marketing Strategies
Seven Ps of Service Marketing. Gaps in the Service Marketing Service Marketing as a Differentiating Strategies
Indian Institute of Management Raipur 12/8/2012 2
A service is any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product.
- Kotler, Armstrong, Saunders & Wong (1999)
Indian Institute of Management Raipur
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All economic activities that create value and provide benefit for customers at specific times and place as a result of bringing about a desired change in or on behalf of the recipient of the service.
- Christopher Lovelock
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Objects of transaction offered by firms and institutions that generally offer services or that consider themselves as a service organ.
- Gronroos
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servicesanything that cannot be dropped on your foot.

- The Economist
12/8/2012
Service dominates most economies and are growing rapidly Services accounts for 64% of world GDP Most new employment is provided by services Strongest growth area of marketing
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World GDP
6%
30%
Services
Manufacturing
64% Agriculture
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Healthcare
Hospital Eye care
Financial Services
Banking
Insurance
Hospitality
Restaurant Resorts
Travel
Others
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Pure tangible good: - Tangible Good
Tangible good with service: - Tangible Good + Services Hybrid: - Tangible Good + Services Major service with minor goods: - Tangible Good + Services Pure service: - Services
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Pure tangible good

Tangible good with services

Hybrid category
Major service with minor goods

Pure service
Salt
Soft Drinks Detergents Automobiles Cosmetics Fast-food Outlets

Fast-food Outlets
Intangible Dominant
Tangible Dominant
Advertising Agencies Airlines Investment Management Consulting Indian Institute of Management
Teaching 18
Raipur
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Search Qualities Attributes that can be determined prior to purchase of a product. Experience Qualities Attributes that can be determined after purchase (or during consumption) of a product Credence Qualities characteristics that may be impossible to evaluate even after purchase and consumption
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Most Goods
Easy to evaluate
Most Services
Difficult to evaluate
High in search High in experienceHigh in credence qualities Institute of Management qualities qualities Indian
Raipur
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GOODS
Tangible Standardized Production is separate from Consumption Non perishable
SERVICES
Intangible Heterogeneous Simultaneous production and consumption Perishable
Intangibility
Inseparability Variability Perishability
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Intangibility: - Services cannot be seen, tasted, heard or smelled before they are bought.
Example: - A person going for a hair cut can not see the results before buying the service but he can see the result after the purchase
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Services cannot be stored. Services cannot be patented.
Cannot readily display or communicate services. Prices are difficult to set.

Stress tangible cues. Simulate or stimulate word of mouth communications. Engage in post-purchase communication.
Create strong Organization image.

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Started with selling books
Now in the business of selling gadgets, TV, e.t.c.

Cash-on-delivery Net banking Multiple version of the site live simultaneously.
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Place People Equipment

Communication material
Symbols
Price
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Inseparability: - Unlike physical tangible goods services are generally produced and consumed simultaneously and in case of entertainment and professional services the specific provider of the service has to be present
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Consumer involved in production. Other Consumer involved in production. Centralized mass production is difficult.
Problem in Market Expansion.
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Use multisite communications. Work in larger group.
Hire more efficient workforce or train the personnel.

Innovative techniques of indirect communication.
Ski Dubai is the first indoor ski resort in the Middle East that offers an amazing setting to enjoy skiing, snowboarding, as well as a host of other winter activities.
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Mission:- Providing a high quality education to anyone, anywhere
Website supplies a free online collection of more than 3,600 micro lectures via video tutorials
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SBI is the largest banking and financial services company in India by revenue, assets and market capitalization. SBI had 14,119 branches, including 173 foreign offices in 37 countries across the globe.
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SBI has 21000+ ATMs to facilitate money transactions. The reach of ATM is from the metro to very rural areas of India.
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Apollo Prism - Apollo Prism automatically downloads your test results and discharge summary from Apollo Hospitals.
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Variability: - Quality of service is variable as it is dependent on provider of the service, time of providing, place of providing the service.
Example: - The quality of hair cut depends on the barbers skills.
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Difficult to achieve Standardization.
Customize service.
Industrialize Service
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Apollo Health Check It offers you following comprehensive packages especially designed to suit your individual needs.
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Indias biggest commerce site.
e-
The website recorded an average of 4.47 lakh etickets per day
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CLUB MAHINDRA
Mahindra Holidays & Resorts India Ltd. India's no.1 vacation provider subscribed by over 1,47,000 member families. Leisure Breaks, Family Getaways, European Delights, Hot Deals, Quick Trippers, Short Breaks, Beach Holidays, Adventure, Fun & Frolic, Offbeat, Summer Getaways, Glitz & Glamour, Hill Stations.
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MYNTRA
Myntra has introduced a totally fresh concept wherein, customers are given the freedom of not only paying cash after delivery but also trying out their apparel and return the same if not satisfied.
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McDonald
McDonald quickly adjusted to Indian sensibilities and introduced a tailored menu for India, adding chicken, lamb and fish. Today, 70% of McDonalds menu is Indianized and McAloo Tikki burger is their highest selling product.
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Perishability: - As services cannot be stored, there is a chance that the service can be perished when demand fluctuates.
Example: - A person going for hair cut has to get the hair cut done in the shop itself.
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Services cannot be inventoried. Difficult to satisfy consumers at the High Demand Time
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Part time employees

Part time efficiency Increased Consumer participation.
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PART TIME EMPLOYEES

CONSUMER PARTICIPATION
Differential Pricing
Complementary Services Reservation System Non Peak Demand
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DIFFERENTIAL PRICING
NON PEAK DEMAND

COMPLEMENTARY SERVICES
RESERVATION SYSTEMS
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Quality improvement Communicating and testing new services
Consistent image
Employee commitment
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Coordinating marketing, operations and human resource efforts Setting prices
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Traditional Marketing Mix

Expanded Mix for Services: 7 Ps Building Customer Relationships Through People, Processes, and Physical Evidence Ways to Use the 7 Ps
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4 Ps of traditional marketing mix are as follows: Product
Price
Place Promotion
Product
Price Place Promotion People Process Physical
Evidence
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PRODUCT
Physical good features Quality level Accessories Packaging Warranties Product lines Branding
PLACE
Channel type Exposure Outlet location
PROMOTION PRICE
Promotion blend Salespeople Flexibility Price level Terms Differentiation Allowances
Intermediaries Advertising Sales promotion Transportation Publicity Storage
People
Process
Physical Evidence
Extended marketing mix for services

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PEOPLE
Employees Customers Communicating culture and values Employee research
PHYSICAL EVIDENCE
Facility design Equipment Signage Employee dress Other tangibles
PROCESS
Flow of activities Number of steps Level of customer involvement
Overall Strategic Assessment
Specific Service Implementation

How effective is a firms services marketing mix? Is the mix well-aligned with overall vision and strategy? What are the strengths and weaknesses in terms of the 7 Ps?
Who is the customer? What is the service? How effectively does the services marketing mix for a service communicate its benefits and quality? What changes/improvements are needed?
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Pind Balluchi
OUR VISION: To be the benchmark by being the 'only' Indian specialty dining destination; thereby, creating a 'WOW' experience for our guests at all times. OUR MISSION: To ensure Profitability, Standardization & 100% guest satisfaction across all units by:1. Creation of Standards & Processes, 2. Rigorous & Intensive Training, 3. Highest Level of Quality 4. Strong Brand Awareness
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Pind Balluchi
OUR CORE VALUES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Self Discipline Self Belief Sense of Ownership Passion For Perfection Dynamism Leadership Respect and Compassion High Emotional Quotient Innovation Integrity
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Commonwealth Bank
Trust and Team Spirit is one of the Commonwealth Banks (the Group) key strategic business priorities. The Group recognises the importance of attracting, retaining and developing good quality people in achieving its goal of becoming Australias finest financial services organisation through excelling in customer service.
COMMERCIAL
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Self Check in
Ginger realized that it is very tiring for the customers to stand in front of the help desk so Ginger started a unique self check-in facility. Gingers gives every guest the freedom to help yourself with Ginger's unique self check-in- facility without any assistance from the front office. The automated check-in kiosk, powered by Astrolife(TM), has been introduced in India for the first time and their guests love it.
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Videocon d2h : Installation

The company since its inception came up with a service of providing installation within an hour from the time they receive any order. Hence, one can easily order it from his office or any location away from office and can enjoy the service after reaching home.
COMMERCIAL
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It ranks third in being biggest company of Radio Taxi. It also is largest taxi operators in every city.
It takes approximately 20,000 trips on daily basis.

In a single month, it has a record of satisfying passengers more than 1 million in numbers.
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Travel website Cleartrip has introduced cab bookings for travellers who can avail the services along with flight bookings.
It has tied up with Meru Cabs to enable users book cabs to and from the airport.
These cabs will be available for booking directly through Cleartrip at no extra charges only in Mumbai, New Delhi, Bangalore and Hyderabad.
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Travellers can pay the cab directly at the drop off at the airport. The online travel portal recently introduced a one-click booking facility called Expressway for both online and mobile booking. This will allow customers to store their credit, debit and payment card details in their Cleartrip accounts, so that bookings will happen fast.
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India`s First Listed and Highest Credit Rated Gold Loan Company, registered under Reserve Bank of India, founded in 1949. Why go for Personal or Business loans when you have the power of gold with you! Get a loan against your gold, in minutes! Loan against Gold Ornaments. Loans up to One Crore rupees.
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Draw instant Cash by pledging your Gold Ornaments and Jewellery.

Higher loan amounts, depending on purity, net weight of the gold. Choose from a range of schemes; theres one just right for your needs
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Loans given in as little as five minutes. Minimum Requirements: Only one recent IDVoter ID/ Ration Card/ Driving License/ Passport. No time-consuming formalities involved.
Pay interest only for the exact period of loan, and to the exact number of days.
Different schemes for different needs, to suit all income groups.
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Berger Paints India Limited (BPIL) is one of India's foremost paint companies, currently ranked as second largest on the basis of consolidated sales turnover in Indian paint industry.
Today Berger Paints India Limited, having solely used and developed the name and trademark BERGER and all its variants in India, is a household name in paint.
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Free home visit Cost estimation, color consultancy Professional supervision Post paint clean up At least one year warranty Offers preview of home painted in different color schemes and texture
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Customer Gap Model

Expected
CUSTOMER
Service
Customer Gap
Perceived Service
External Communications to Customers
COMPANY
Service Delivery
GAP 3
Customer-Driven Service Designs and Standards
GAP 1
GAP 4
GAP 2
Company Perceptions of Consumer Expectations
Customer Gap Model
Customer Gap: difference between expectations and perceptions

Provider Gap 1(The Knowledge Gap) not knowing what customers expect Provider Gap 2(The Service Design & Standard Gap) not having the right service designs and standards Provider Gap 3(The Service Performance Gap) not delivering to service standards Provider Gap 4(The Communication Gap) not matching performance to promises
Customer Expectation
GAP 1
Inadequate marketing research Lack of upward communication Insufficient relationship focus In adequate service recovery
Company Perception Of Customer Expectation
Customer Driven Service Design & Standards
GAP 2
Poor service design. Absence of customer driven standards. Inappropriate physical evidence and service gap.
Management Perception Of Customer Expectation
Customer Driven Service Design & Standards
GAP 3
Deficiencies in human resources policies. Customer who do not fill roles. Problem with service intermediaries. Failure to match supply and demand.
Service Delivery
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Service Delivery
GAP 4
Lack of integrated services marketing communications. Ineffective management of customer expectations. Overpromising
External Communications to customers
General Electric sends out 700,000 response cards a year asking a households to rate its service peoples performance.
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Citibank aims to answer phone calls within 10 seconds and customer letters within 2 days.
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HP tries to respond to every e-mails within an hour and usually within 10 minutes to ensure it meets it servicequality standards.
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Every month RackSpace gives the straight jacket award to the employee who best lives up to the company fanatical customer support motto.
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The company was named Best Customer-Service Organization by the American Business Award in its 2005 ceremony.
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Top Management Commitment

Organizations such as Marriot, Disney, Xerox, Apollo Hospitals, Infosys and Wipro have a thorough commitment to service quality. McDonalds measures each outlet on its conformance to QSCV: Quality, Service, Cleanliness and Value. Wal-Mart requires the following employee pledge I solemnly swear and declare that every customer that comes within 10 feet of me, I will smile, look them in the eye, and greet them.
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People perceive services as homogeneous People focus more on the price rather than the service provider It is very important create brand recall value
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Customer expects primary service package Service provider needs to add innovative features called secondary service features
Primary service package
Secondary service feature
Final service
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Choosing brand elements
Establishing image dimensions
Devising branding strategy
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Federal Express (FedEx) was founded in 1971 Headquartered in Memphis, USA Faced tough competition from existing players like UPS
Indian Institute of Management Raipur 12/8/2012 10 6
Speed of delivery Pickup packages from customers home Money back guarantee Charge a price premium for its services
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ICICI Bank Home Loans
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ICICI home finance company was incorporated on May 28,1999 Available to customers in 150 cities across India
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Free door to door service Transferring of normal loans to ICICI home loan Higher income savings for people holding high cost loans
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Yatra.com
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Started its journey in 2006 with 3 members Caters to domestic and international travelers Turnover of Rs. 1000 crore by 2008 Faced tough competition from existing players like cleartrip and makemytrip
Indian Institute of Management Raipur 11 2
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Started new model called click and mortar model i.e. they started operating both online as well as offline Creativity in website design where low airfares are shown on the left Low fair alert through customer mobile phone message and e-mails
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On time Low price No frills
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Hotel Front Desks

In order to reduce lines and get guests to their rooms more quickly, Hilton Hotels are trying to streamline the process through self-service kiosks in the hotel lobby. On the other hand Kimpton Hotels, a San Francisco based chain of boutique hotels is putting all its efforts into beefing the front desk services, going for high touch than high tech.
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Netgrocer.com
Privately held online grocery store founded in 1995 Based in North Brunswick, New Jersey
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Delivers solely via FedEx and hence operates across the nation unlike other stores Offers a wide range of products starting from grocery items, non-prescription drugs to other items Does not charge a membership fee for its loyalty program
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Hallmark channel
Indian Institute of Management Raipur 12 1
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Launched in 1984 as ACTS Renamed in 2001 as Hallmark Owned by Crown media holdings Headquartered in California, U.S.A Bill Abbott, CEO About 50 million subscribers worldwide
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First TV channel to Create a daytime lifestyle block in 2010 Celebrate lifes special moments everyday
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Big Bazaar
A hypermarket chain founded in 2001 owned by Future group which also owns other retail chains like Pantaloons, Central etc.
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Different rates during peak and non peak hours of the day Bundling strategy i.e. discount on combo pack Loyalty programs like future card, shakti card Various promotional offers like Saal ke sabse saste 3 din, Hafte ke sabse sasta din Wednesday Bazaar etc.
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Westin hotels and resorts

An up market luxury hotel chain owned by Starwood hotels and resorts worldwide Started its operation in 1930 in USA One of the well known and established luxury hotel brands all over the world
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Decided to go smoke-free-a first time in hotel industry Heavenly bed and heavenly spa Sensory welcome to the guests with white tea scent, signature music and lighting
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THANK YOU

SecA Group5 Service Marketing Rev 3

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Abhishek Singh 12PGP004 Arnab Roy 12PGP011 Bir Bahadur Singh 12PGP014 Harsh Vardhan 12PGP017 Mahesh Kumar

What is a Service? Categories of Service Mix Characteristics of Services

Marketing Challenges Marketing Strategies

Indian Institute of Management Raipur 12/8/2012 2

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Indian Institute of Management Raipur

servicesanything that cannot be dropped on your foot.

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Pure tangible good: - Tangible Good

Indian Institute of Management Raipur

Pure tangible good

Tangible good with services

Major service with minor goods

Soft Drinks Detergents Automobiles Cosmetics Fast-food Outlets

Advertising Agencies Airlines Investment Management Consulting Indian Institute of Management

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Services cannot be stored. Services cannot be patented.

Cannot readily display or communicate services. Prices are difficult to set.

Create strong Organization image.

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Started with selling books

Now in the business of selling gadgets, TV, e.t.c.

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Place People Equipment

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Problem in Market Expansion.

Indian Institute of Management Raipur

Use multisite communications. Work in larger group.

Hire more efficient workforce or train the personnel.

Indian Institute of Management Raipur

Mission:- Providing a high quality education to anyone, anywhere

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Example: - The quality of hair cut depends on the barbers skills.

Indian Institute of Management Raipur

Difficult to achieve Standardization.

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Indias biggest commerce site.

The website recorded an average of 4.47 lakh etickets per day

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Indian Institute of Management Raipur

Part time employees

Indian Institute of Management Raipur

PART TIME EMPLOYEES