Services Marketing Mix

Goods versus Services

Classification of Services
Based on Degree Of Cust. Involvement ( Lovelock) 1. People Processing 2. Possession Processing 3. Mental Stimulus Processing 4. Information Processing

Four 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
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 Service Organizations

High
N urs ing Home

Emphasizes encounters with service personnel

Ha irC ut
4- S ta r Hotel

M a na gement C onsulting
Good R esta ura nt Airline T ra vel (E c on.)

T elephone Ba nk ing

R eta il Ba nk ing
M otel

C ar R epa ir I nsur a nc e

Dr y C lea ning
Fa st Food
Movie Thea ters
C a ble TV

Public T ra nsit

H ome Ba nk ing
Ma il Ba sed R epa irs I nternet- ba sed S ervic es

Emphasizes encounters with equipment

Low

Other Classification of Services

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 Mix

Traditional Marketing Mix

All elements within the control of the firm that communicate the firms capabilities and image to customers or that influence customer satisfaction with the firms product and services: Product Price Place Promotion

An expanded marketing mix for services

People Place, Place & cyberTime space & time

Product (service)

Process
Price Price

Customers Customers Customers

Promotion

Physical evidence

People
All human actors who play a part in service delivery and thus influence the buyers perceptions: namely, the firms personnel, the customer, and other customers in the service environment.

customer service employees other 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. atmosphere dcor, music etc. equipment facilities uniforms

Process
The actual procedures, mechanisms, and flow of activities by which the service is deliveredthe service delivery and operating systems.
service delivery systems back stage front stage procedures policies

Expanded Marketing Mix for Services

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

7 Ps for Services

In- class Exercise

For a service you have used in the last one year identify the 7Ps for that service. Pls. remember to focus also on its intangibility, inseparability, Variability and heterogeneity aspects

The Services Marketing Triangle

Company (Management)

Internal Marketing
enabling the promise

External Marketing
setting the promise

Employees

Interactive Marketing
delivering the promise

Customers

Ways to Use the

Services Marketing Triangle
Overall Strategic Assessment
How is the service organization doing on all three sides of the triangle? Where are the weaknesses?

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?

What are the strengths?

Challenges 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