SERVICE MARKETING

BY:Dr.B Srinivasan

What is service ?
SERVICE
IS ANY ACT OR
PERFORMANCE THAT ONE PARTY
CAN OFFER TO ANOTHER THAT IS
ESSENTIALLY INTANGIBLE AND
DOES NOT RESULT IN ANY
OWNERSHIP
-PHILIP KOTLER
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Characteristic of Service
Intangibility
Inseparability
Heterogeneity
Perishability
Ownership

What is Marketing ?

Definition It is the organizations task is to

determine the needs, wants, and interests of
target markets and to deliver the desired
product/service
more
effectively
and
efficiently than competitors in a way that
preserves or enhances the consumers and
the societys well-being.

Objective of Marketing

Sale

Retain

Refer - which is carried out by your

own
customers

Marketing when -

Supply is more than Demand

To sell excess supply

Supply less Demand

Supply equal Demand

To retain Sale

The main Steps of Marketing

R

STP

MM

R = Research
STP = Segmentation, targeting and positioning
MM = Marketing mix
I = Implementation
C = Control
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7 Ps OF SERVICE MARKETING
1. PRICE
2. PLACE
3. PRODUCT
4. PROMOTION
5. PHYSICAL EVIDENCE
6. PROCESS
7. PEOPLE
8. PACE
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PRICE
Price is the most important factor in
marketing mix.
Price depends upon;
1.
2.
3.
4.
5.
6.

Target market
Cost of the production
Demand and supply ratio
Competition
Taxation
Profit margin
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VARIOUS PRICING
PRACTICES

Fixed Pricing
Differential pricing
Discount pricing
Diversionary pricing
Guaranteed pricing
High price maintenance pricing
Loss leader pricing
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PLACE (DISTRIBUTION)

Places are the Service delivery point

The wide network
Proper locations
Customer
friendly
approach
facilities
Proper maintenance of places
In railways the places are;
1. Railway stations
2. Booking/reservation offices

and

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PRODUCT

Product is the core item which is served

to the customers.
Product design should be as per the
requirement of the customers
There can be variety of products
depending upon the requirement of
various target markets
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PRODUTS OF INDIAN
RAILWAYS
PASSENGER SERVICE PRODUCTS

RAJDHANI / SHATABDI TRAINS

JANSHATABDI TRAINS

LONG DISTANCE MAIL & EXPRESS TRAINS

UNRESERVED PASSENGERS TRAINS

COMMUTER SUBURBAN TRAINS

MEMU, DMU,RAIL BUS

HARRITAGE SPECIAL TRAINS LIKE P.O.W., R.O.E. ETC.

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FREIGHT SERVICE
PRODUCTS

BLOCK RAKES (Varieties of wagons)

MINI RAKES (Small Traders)
CONRAJ (High speed)
RO RO Scheme
FREIGHT FORWARDER (Collection of piece meal
traffic)
TWO POINT BLOCK RAKES
STATION TO STATION RATES (Concessions)
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PROMOTION

EACH
PRODUCT
FEATURES
TO
BE COMMUNICATED TO CUSTOMER IN
THAT SEGMENT
USING
SUITABLE
MEDIA (LOT OF WEAKNESS)
ADVERTISING
PERSONAL SELLING
PUBLICITY
SALES PROMOTION
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PHYSICAL EVIDENCE

Physical evidence the the experience of the

customer of service with regards to its
expectation.

PERIFERAL EVIDENCE1. A reserved ticket

2. Cheque book
ESSENTIAL EVIDENCE
Actual experience of service

after consuming the

same
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PROCESS
PROCESS OF PRODUCTIN AND DELIVERY OF SERVICE.
CUSTOMER INTERFACE PROCESSES SHOULD BE
COMPUTERISED, MECHANIZED, RATIONALISED AND
SIMPLIFIED.
PROCESSES EXIST ARE COMPLEX ON
RAILWAYS
LIKE SOME PROCESSES ARE :
1.

2.
3.

RESERVATION PROCESS/REFUND PROCESS/

PROCESS.
COMMUNICATION PROCESS.
ENTRAINING/DETRAINING PROCESS.

CLAIM

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PEOPLE

1.
2.

3.
4.

SERVICE PERSONNEL
CUSTOMERS
CAREFUL SELECTION AND TRAINING
LAYING
DOWN
NORMS,
RULES,
PROCEDURES
FOR
PERSISTENCE
PERFORMANCE
CONSTITANCE APPEARANCE
REDUCE INTERFACE AUTOMATION17
COMPUTERIZATION

PACE

The market environment is changing everyday

The products and services requirement also
changes very fast
It is very essential that the pace is kept with
the changing market environments and
products and services are modified and
delivered as per the current needs of
customers.

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WHAT SHOULD BE THE MARKETING

STRATEGY FOR INDIAN RAILWAYS ?

MARKETING KEY ISSUE

(PRODUCTION LED ORGANISATION
CUSTOMER LED ORGANISATION)
CUSTOMER SATISFACTION SHOULD BE
MAIN ORGANISATIONAL MISSION.
FOCUS ON SERVICE PRODUCTS
(BUSINESS
PLAN
FOR
EACH
PRODUCT).
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WHAT SHOULD BE THE MARKETING

STRATEGY FOR INDIAN RAILWAYS ?
TQM IN ALL PROCESSES.
COMPUTERISATION OF CUSTOMER
INTERFACE
AREAS(TICKETING,
INFORMATION SYSTEM,
REFUND
ETC.)
DYNAMIC
RATING
&
MARKET
RELATED PRICING.
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WHAT SHOULD BE THE MARKETING

STRATEGY FOR INDIAN RAILWAYS ?

DEMAND MANAGEMENT / STAGGERING

STRATEGY.(IN CAPACITY CONSTRAINT
SITUATIONS)

TRAINING OF FRONTLINE STAFF IN

CUSTOMER CARE / COURTESY.

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WHAT SHOULD BE THE MARKETING

STRATEGY FOR INDIAN RAILWAYS ?
1.

2.

INTERNAL MARKETING - TRAIN AND MOTIVATE THE

EMPLOYEES TO SERVE CUSTOMERS WELL
INTERACTIVE MARKETING - EMPLOYEES SKILL IN
SERVING THE CLIENT

We Treat Our Employees The Way We Want Them to Treat

Our Guests
A Knowledgeable, Satisfied Employee Is Our Best Marketing
Agent
SATISFYING BOTH EMPLOYEES AND CUSTOMERS

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WHAT SHOULD BE THE MARKETING

STRATEGY FOR INDIAN RAILWAYS ?

FORWARD / BACKWARD / HORIZONTAL

INTEGRATION.(STRATEGIC

ALLIANCE WITH OTHER MODES)

DEVELOP
DEMAND
FORECASTING
MODELS, LONG RANGE DECISION
SUPPORT
SYSTEMS,
COSTING
MODELS, SYSTEMS FOR GATHERING
COMMERCIAL
INTELLIGENCE
(OUTSMART COMPETITORS).
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WHAT SHOULD BE THE MARKETING

STRATEGY FOR INDIAN RAILWAYS ?

LOBBY WITH GOVERNMENT / OPINION

MAKERS/ PLANNING COMMISSION FOR
EVEN PLAYING FIELD FOR INVESTMENT
IN RAILWAY PROJECTS (SOCIAL COST
BENEFIT ANALYSIS DATA SHOULD
PROMOTE
RAILWAY
AS
BETTER
CHOICE
FOR
TRANSPORT
INFRASTRUCTURE).
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SUCCESS FORMULA

L Listen
A Apologize
S - Solve
T - Thank
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MARKETING STRATEGY
FOR INDIAN RAILWAYS
TO CONCLUDE :DESIGN,
DEVELOP,
DELIVER
APPROPRIATE SERVICE PRODUCT
QUICKLY AND MODIFY / EXTEND THE
PRODUCTS AS PER NEEDS AND WANTS
OF CUSTOMERS.

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References
1. Services Marketing by Lovelock
2. The Essence of Services Marketing by
Adrian Payne
3. The Marketing Management - An Asian
Perspective by Philip Kotler
4. The Principles of Marketing by Philip
Kotler
5. The marketing of services by Donal &
Cowell

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