It defines the relations, promises and marketing efforts between the three key stakeholders in services marketing - companies, providers (employees), and customers. Internal marketing is done between company and providers, external marketing is performed between companies and customers, and interactive marketing takes place between customers and providers.Marketing service triangle plays a very important role in service industries.
Services Marketing
Chapter – 9
Pricing Of Services
Introduction
Pricing or Price is the key element in the traditional marketing mix (the 4Ps) and also the enhanced marketing mix (the 7 Ps). This is the element which earns revenue. This is highly critical because this is the strategy which can make or mar the business.
The firms must make it both ways –the price must
(1) get profits for the firm, and
(2) give value to its customers.
Names of Service Pricing
Pricing for goods is easy and straight forward, while for services it is complicated, may be controlled by several authorities, varies with time, place, people, etc.
For goods the price has a single name “PRICE”, but for services it has several names like :
Names of Service Prices
What Makes Service Pricing Different?
No Ownership of Services
Higher Ratio of Fixed Costs to Variable Costs
Variability of Both Inputs and Outputs.
Many Services Are Hard to Evaluate
A form of product that consists of activities, benefits or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. The government sector, with its court, employment services, hospitals, loan agencies, military services, police and fire department, postal service and schools, in the service business. An essential ingredient to any service provision is the use of appropriate staff and people. Refers to the systems used to assist the organization in delivering the service. Where is the service being delivered? Physical Evidence is the element of the service mix.
It defines the relations, promises and marketing efforts between the three key stakeholders in services marketing - companies, providers (employees), and customers. Internal marketing is done between company and providers, external marketing is performed between companies and customers, and interactive marketing takes place between customers and providers.Marketing service triangle plays a very important role in service industries.
Services Marketing
Chapter – 9
Pricing Of Services
Introduction
Pricing or Price is the key element in the traditional marketing mix (the 4Ps) and also the enhanced marketing mix (the 7 Ps). This is the element which earns revenue. This is highly critical because this is the strategy which can make or mar the business.
The firms must make it both ways –the price must
(1) get profits for the firm, and
(2) give value to its customers.
Names of Service Pricing
Pricing for goods is easy and straight forward, while for services it is complicated, may be controlled by several authorities, varies with time, place, people, etc.
For goods the price has a single name “PRICE”, but for services it has several names like :
Names of Service Prices
What Makes Service Pricing Different?
No Ownership of Services
Higher Ratio of Fixed Costs to Variable Costs
Variability of Both Inputs and Outputs.
Many Services Are Hard to Evaluate
A form of product that consists of activities, benefits or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. The government sector, with its court, employment services, hospitals, loan agencies, military services, police and fire department, postal service and schools, in the service business. An essential ingredient to any service provision is the use of appropriate staff and people. Refers to the systems used to assist the organization in delivering the service. Where is the service being delivered? Physical Evidence is the element of the service mix.
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2. What is physical evidence
Services are intangible
Customers rely on tangible cues or physical
evidence for evaluation of services Before
purchase.
3. Elements of Physical Evidence
Facility exterior
Exterior design
Parking
Landscape
Surrounding environment
3
4. OtherTangibles
Business cards
Stationary
Billing Statements
Reports
Employee dress
Uniforms
Brochure
Internet / web pages
4
5. Services Communication through physical
evidence
Heavy
Hospitals
Resorts
Childcare
Limited
Insurance
Courier service
5
6. Types of physical evidence
Self–service (customer only)
Interpersonal services (Both customer and
employee )
Remote service (employee only)
6
7. Self-Service
Customer performs most of the activities
Very few employees involved
ATMs
Various locations
Mostly self service
How should the facilities be
Physical evidence
Pleasing
Easy to use for customers
7
8. REMOTE SERVICES
Other extreme
Virtually no customer involvement
Customer rarely visits facilities
It may be another country
How physical evidence is designed
Employee interests and preferences
Motivate employees
8
10. Physical evidence strategies
Recognise the strategic impact of physical
evidence
Map the physical evidence of service
Clarify roles of the servicescape
Assess and identify physical evidence
opportunities
Be prepared to update and moderate the
evidence
Work cross–functionally
11. Recognize the strategic Impact of
physical evidence
Role of physical evidence must be defined
Before designing and executing service
strategy
Clarify the overall role of physical evidence
Decisions on physical evidence are
▪ Costly
▪ Permanent
11
12. Map the physical evidence of service
Before deciding physical evidence
Take every employee into confidence
Show even customers
Get feedback
Finalise after consultation
12
13. . Work cross-functionality.
What dress should employees wear when employees service
customers.
Different views.
Operations dept.
Comfort of employees.
Marketing department.
Appealing to customers.
Conflict.
Something which is comfortable may not be appealing and
vice versa.
13
14. conclusion:
All have to work together Have a team which
has members from all departments LIKE
▪ Marketing
▪ Operations
▪ Finance
▪ would lead a very good key for success in physical
evidence of services.
14