To understand the tools for the marketing of services

1. Copyright Atomic Dog Publishing, 2002

2. The Marketing Mix
• These are the tools of
marketing where
managers need to make
decisions about the
product/service or package
of benefits that they offer to
customers.
• The tools are commonly
known as the 4P’s

3. The Four Ps of the Marketing Mix
Product Place
Price Promotion
C

4. Product
• Quality
• Features
• Options
• Style
• Brand name
• Packaging
• Sizes
• Services
• Warranties
• Returns

5. Price
The value that is put
on the exchange
process
• List price
• Discount
• Allowances
• Payment period
• Credit terms

6. Promotion (Communication)
• Advertising
• Personal selling
• Sales promotion
• Public relations
• Direct Marketing

7. Examples of types of Promotion-
Video-Creative Ads

8. Place (Distribution)
• Channels
• Branches
• Coverage
• Locations
• Inventory
• Transport

9. Combining the Mix
• The marketing manager has to identify the
needs of his or her target market through
marketing research and other investigative
techniques.
• The manager must understand customers’
characteristics and buying habits
• He/she then has to blend the components
of the mix to formulate strategies and
tactics by which those needs can be met.

10. Competitive Advantage
• A competitive advantage is an advantage over
competitors gained by offering consumers greater value,
either by means of lower prices or by providing greater
benefits and service that justifies higher prices.
Nokia-Stylish design mobile phones
Toyota-Reliable,stylish cars,low running
costs, high bulid quality
Google-Most relevant top-listed search
engines

11. • Think about any business idea and write down the
definition of your target market and marketing mix
and your unique selling proposition.

12. Service Marketing

13. Copyright Atomic Dog Publishing, 2002
Examples of Service Industries
 Health Care
 hospital, medical practice, dentistry, eye care
 Professional Services
 accounting, legal, architectural
 Financial Services
 banking, investment advising, insurance
 Hospitality
 restaurant, hotel/motel, bed & breakfast,
 ski resort, rafting
 Travel
 airlines, travel agencies, theme park
 Others:
 hair styling, pest control, plumbing, lawn maintenance,
counseling services, health club

14. Copyright Atomic Dog Publishing, 2002
Defining Services
 Services include all economic activities
that provides added value in forms
(such as convenience, amusement,
timeliness, comfort, or health) that are
essentially intangible.

15. Copyright Atomic Dog Publishing, 2002
The Seven P’s
Extended mix:
 People
 Process
 Physical evidence

16. Copyright Atomic Dog Publishing, 2002
People
 The attitudes of staff
 Training of staff
 Internal relations
 The observable behaviour of
staff
 The level of service-
mindedness in the
organisation
 The consistency of
appearance of staff
 The accessibility of people
 Customer-customer contacts

17. Copyright Atomic Dog Publishing, 2002
Process
The manner in which the
service is delivered
 Degree of customer contact
 Quality control standards
 Quality assurance
 Payment methods
(degree of convenience)
 Queuing systems for customers
 Waiting times

18. Copyright Atomic Dog Publishing, 2002
Physical Evidence - ambience
The “environment” or atmosphere in
which the service is delivered
 Buildings
 Furnishings/décor
 Layout
 Goods associated with the service e.g.
carrier bags, tickets, brochures
 All the above can help shape
customers’ perceptions of the service

19. Copyright Atomic Dog Publishing, 2002
Customer
Delight
 Exceeding customers’ expectation is
delighting customers
 The customer reacts with a “wow” in
return for the product/service
 Every interaction with the customer
has an opportunity to create delight
 The challenge is to consistently
maintain the delight factor

20. Copyright Atomic Dog Publishing, 2002
Remember…. Retaining
customer is important and costs
less than attracting a new one.