The document discusses the marketing mix for services. It explains that the traditional 4Ps marketing mix of product, price, place, and promotion has been expanded to 7Ps for services. The additional 3Ps are people, physical evidence, and process. People refers to the roles of contact personnel in service delivery. Physical evidence includes the environment where the service is delivered. Process refers to how the service is delivered and any supporting mechanisms. The 7Ps framework provides a holistic way for marketers to develop service offerings by considering all important aspects of the customer experience.
Capitol Tech U Doctoral Presentation - April 2024.pptx
Marketing mix
1.
2. •What is Services Marketing Mix ?
•4P’s of Services Marketing Mix ?
•7P’s of Services Marketing Mix ?
3. • Service Marketing Mix refers to the combination of
marketing activities an organization engages in to
promote and sell intangible services, as opposed to
tangible products.
• In addition to the four Ps of traditional product
marketing (Product, Price, Place and Promotion) the
services marketing mix includes the three Ps of service
marketing: (People, Process and Physical evidence. The
services marketing mix is also referred to as the
extended marketing mix.
4. • A marketing expert named E.
Jerome McCarthy created the
marketing 4Ps in the 1960.
• According to this concept,
marketing mix is a integration
of product, price, place &
promotion
5. • Due to increase in competition,
standard of living of consumer and
changes in physical environment,
expert’s were realized that business
had to become more customer
centric so they developed in the
1990, the new model of marketing
mix which is 7P’s model of
marketing mix.
6. • In service organization managers must select the features of a service including
supplementary features keeping in mind the customer expectations from such
product and the feature available in the existing competing products.
• A service product can be defined as a mix of intangibles and tangibles offered
by a marketer at a price. Essentials of product mix as follows:-
Design
Technology
Perceived usefulness
Convenience of use
Quality
Packaging
Brand utility
Accessories
Warranties
7. • Pricing is the crucial “P” of marketing because it determines the revenue
that a company’s service will earn. Pricing has several components and
usually there are three major criteria involved in pricing a service.
COST
COMPETITION
OBJECTIVES-STRATEGIC OR TACTICAL
• This component requires service marketers to understand that service
marketing strategy is not limited to the traditional pricing task of
determining the selling price to customers, setting margins for any
intermediaries and establishing credit terms.
8. • Delivering service to the customers involves decisions on the place and time of
delivery as well as on the methods and channels used. Delivery may involve
physical or electronic distribution channels or both depending on the nature of the
service provided. Essential point of channel should be considered which are as
follows:-
Retailer
Wholesaler
Mail order
Internet
Direct sales
9. • 4TH P of service marketing plays three vital roles
Providing needed information & advice
Persuading target customers of the merits of a specific product
Encouraging them to take action at specific times.
• Before a service marketer finalizes his promotional plan. He must narrow down his
promotion objectives. Depending upon such objectives, the promotion plan can
take shape with regard to the choice of media & the timing of promotion etc.
• A promotional mix is the integration of Advertising, Sales Promotions, Public
Relations, Direct Marketing, Personal Selling
11. • A process is the method &
sequence of actions in the
service performance.
Creating & delivering
product to customer
require the design &
implementation of effective
processes.
• A process is based on three
major activities
12. • The appearance of buildings, landscape, vehicles, interior furnishing, equipment,
social & technical skill of staff members, signs, printed materials etc are all tangible
evidence of a firm service quality. So, the physical environment of a service facility
needs to be managed carefully.
• The physical evidence or service scape is not limited to buildings, but to the
appearance of people, stationery, bills sent to customers, visiting cards & any
tangible evidence that may result in an impression being formed about the service
brand.
FACILITIES
INFRASTRUC
TURE
SERVICE
DELIVERY
13. • Many services depend on direct interaction between customers & a firm’s
employees. The nature of these interaction such as getting a haircut, talking to a
call centre staff strongly influences the customer’s perception of service quality.
Therefore, significant effort should be made in recruitment, training & motivation
of these staff people.