Marketing The 4 P’s The 7 P’s Promotion strategy People strategy Physical evidence strategy Process strategy

1. Marketing MIX- Outline
Dr.D.Shoba MBA, M.Phil, NET, Ph.D
Assistant Professor, Guru Nanak college, Chennai
 Marketing
 The 4 P’s
 The 7 P’s
 Promotion strategy
 People strategy
 Physical evidence strategy
 Process strategy
Dr.D.Shoba MBA, M.Phil, Ph.D

2. Marketing
 Organizations use marketing to develop and sell their
products and services.
 Most firms have a marketing department that carries out the
functions of marketing.
 How to market products and services.
 The main emphasis is on the marketing mix which is the
specific combination of interrelated and interdependent
marketing activities that an organization does to achieve its
objectives.
 When we think of the marketing mix we often think of the
four P’s.
 These are sometimes called the controllable variables
because they can be manipulated by marketers.
Dr.D.Shoba MBA, M.Phil, Ph.D

3. The 4P’s
Product Developing objectives and policies for product
additions, modifications and deletions. Deciding on
what core product and supplementary services to
offer. Resolving issues such as what design,
branding and positioning to use.,
Price Developing objectives and pricing policies to be
used for product groups in market segments.
Place Developing objectives and policies for channels of
distribution, Resolving location issues.
Promotion Developing objectives and policies for
communication with customers. Resolving issues
concerning advertising, publicity, personal selling,
sales promotion, public relations and direct
marketing
Dr.D.Shoba MBA, M.Phil, Ph.D
Source: Adapted from McDonald (1999)

4. The 7P’s
 However the 4Ps have been much debated and extended to
include other elements. We shall follow Cowell's (1984)
approach which is to consider services to have seven elements
in the marketing mix (i.e. 7Ps).
 Product
 Price
 Place
 Promotion
 People
 Physical evidence
 Process
Dr.D.Shoba MBA, M.Phil, Ph.D

5. The Additional P’s
People Developing objectives and policies in
relation to behavior, attitudes, and
interpersonal selling skills in service
delivery.
Physical
evidence
Developing objectives and policies for
the physical environment, facilitating
goods and other tangible clues.
Process Developing objectives and policies for
the processes, mechanisms and routines
used to create and deliver service.
Dr.D.Shoba MBA, M.Phil, Ph.D
Source: Adapted from McDonald (1999) & Cowell (1993)

6. Marketing Mix
 Remember that by adapting the
marketing mix elements, you can
develop a marketing program that
achieves your objectives.
 The marketing mix elements will often
alter as a product-market changes, and
a business continues to look for ways to
be successful.
 Here we will look at promotion, people, physical evidence and
process.
Dr.D.Shoba MBA, M.Phil, Ph.D

7. Topic 1 : Promotion Strategy
 Examine the communications process and describe the two
parties that are involved, the sender (usually the business)
and the audience (the customers).
 6 promotional tools that restaurants can use in a promotion
strategy: advertising, publicity, direct marketing
communications, sales promotion, personal selling and public
relations,
Topic 2: People Strategy
 Employees of service businesses
 The service encounter and the role of internal marketing.
 Customers and their 3 roles: as producers of services, as
users of services, and as an influence on other customers.
Topic 3: Physical Evidence Strategy
 We look at how a servicescape includes the physical
environment and the atmosphere of an organization.
 3 ways that buyer behavior is affected by the look and feel of
the environment and image a business creates.
Topic 4: Process Strategy
 We examine what a service process is and at why managers
need to think about complexity and divergence in service
processes.
Dr.D.Shoba MBA, M.Phil, Ph.D

8. The services marketing mix:
People (1 of the other 3Ps)
 People: Front-line staff manage the service encounter by the
critical incidents, which determine customer satisfaction with the
overall service encounter.
 Boundary spanning: Can create problems for front-line staff —
usually the link between the service and its customers.
Dr.D.Shoba MBA, M.Phil, Ph.D

9. Creating customer service-focused
management
Dr.D.Shoba MBA, M.Phil, Ph.D
Customer-
service focused
organisational
structure
Top management
Middle management
Customer-service staff
Customers
Customers
Customer-service staff
Middle management
Top management
Fig 9.3 p 280
Traditional
organisational
structure

10. People
 The right contact staff: Recruit those with the right attitude and
‘service personality’.
 Empower contact staff: Front-line staff need the authority to
make decisions.
 Reward staff for service delivery: Have reward schemes that
‘work’ as acknowledgement.
Dr.D.Shoba MBA, M.Phil, Ph.D

11. The services marketing mix:
Physical evidence (1 of the other 3Ps)
 Physical evidence: Aims to offset the intangibility
of the service.
 This incorporates tangibles such as:
 Location and building exterior.
 Interior design and décor.
 Stationery, uniforms and promotional material.
Dr.D.Shoba MBA, M.Phil, Ph.D

12. Servicescapes
 The physical evidence used to influence
the responses and behaviour of customers
and staff.
 Servicescapes have 3 elements:
 Stimuli — the tangible elements.
 Customers and staff who receive the stimuli.
 Responses — stimuli response or outcome.
Dr.D.Shoba MBA, M.Phil, Ph.D

13. The services marketing mix:
Process (1 of the other 3Ps)
 Process is the operational system or method
used to ‘actually’ deliver the service.
 Service providers need to:
 Commit to one approach or the other.
 Separate standardised and customised services.
 Create flexibility capacity.
 Increase the amount of customer participation.
 Smooth the peaks and troughs in demand.
Dr.D.Shoba MBA, M.Phil, Ph.D