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7 p's

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  • 1. 7 P’s of Service Marketing
  • 2. Product Product DecisionsBranding Quality Features Benefits offered • Customer Value = the ‘bundle of benefits’ delivered to the customer • Need to change benefits as customers’ needs change
  • 3. Price• Only ‘Price’ generates income Penetration• Price must support costs of all other Ps Skimming Pricing Strategies Competition Product Line Bundle• Price also must reflect the relationship of supply and demand within the marketplace Psychological• Price = Cost the customer is prepared to pay
  • 4. Promotion• The task of Promotion is to targetcustomers and Communicate withthem Advertising Public Relations Sales Promotional Mix Promotion Personal• An integrated mix of promotional Sellingtechniques should reach Directcustomers by all available Marketingchannels Internet/ E-commerce
  • 5. Place Direct Distribution Indirect Distribution Manufacturer Manufacturer Manufacturer Franchisee Retailer Consumer Consumer Consumer• The task of Place is deliver the Product to thecustomer at the right Price• There are many options of channel design• Channel design should take into account Costand Convenience for the customer
  • 6. An expanded marketing mix for services Product People (service) Process Place, Place & cyber- Customers Customers Customers Price Price Time space & time Promotion Physical evidence
  • 7. 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 other customers in the service environment. customer service employees other customers
  • 8. 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 •equipment •facilities •uniforms
  • 9. Process • The actual procedures, mechanisms, and flow of activities by which the service is delivered—the service delivery and operating systems.service delivery systems •back stage •front stageprocedurespolicies
  • 10. Expanded Marketing Mix for Services PEOPLE PHYSICAL PROCESS EVIDENCEEmployees Facility design Flow of activitiesCustomers Equipment Number of stepsCommunicating Signage Level of customerculture and values involvementEmployee research Employee dress Other tangibles