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SERVICE MARKETING
MBA –IIT Delhi
Pawandeep Singh Maniktala- 2012SMN6706
Sahil Kapoor 2012SMN6697
Bhushan Kumar- 2012SMN6688
1
Objective of the Study :
To study the Current and Emerging Marketing Strategies deployed by
Marketers in Service Oriented Business Models.
Sectors Under on Focus of Study :
Internet based Startup Ventures
Travel
Hospitality
2
Service Marketing:
“Service is Action of doing something for someone or something”.
Marketing of Services typically includes both B2B and B2C.
Ex: Air/Bus ticket sale by MakeMyTrip, Interest given on Fixed deposits by
Bank.
Kind of Services in different sector:
Telecommunications services
Financial services
Hospitality services
Car rental services
Air travel
Health care services
Professional services
3
Characteristics of services:
Intangibility: Services are intangible and do not have a physical existence. Cannot be touched,
held, tasted or smelt. This is most defining feature of a service and that which primarily
differentiates it from a product.
Also, it poses a unique challenge to those engaged in marketing a service as they need to attach
tangible attributes to an otherwise intangible offering.
Heterogeneity/Variability: Each service offering is unique and cannot be exactly repeated even
by the same service provider. While products can be mass produced and be homogenous the same is
not true of services.
Eg: All burgers of a particular flavor at McDonalds are almost identical. However, the same is not
true of the service rendered by the same counter staff consecutively to two customers.
Perishability: Services cannot be stored, saved, returned or resold once they have been used. Once
rendered to a customer the service is completely consumed and cannot be delivered to another
customer.
Inseparability of Production and Consumption: This refers to the fact that services are
generated and consumed within the same time frame. 4
Cases Studies:
 HouseCall
 OLA
 HealthKart.com
 ChawlaBand
 The Taj Mahal Palace Hotel Mumbai
 MakeMyTrip
5
6
OlaCabs is an online cab aggregator based out of Bengaluru and
among the fastest growing taxi hiring firms. Taxi booking facility
can be availed through app, website or through calls.
7
8
9
The Taj Mahal Palace Hotel, Mumbai
Sector: Hospitality
Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE
10
About TAJ Group of Hotels
 First hotel of The Indian Hotels Company, parent company of TAJ Hotels Resorts and Palaces
 The TAJ MAHAL PALACE HOTEL was built in 1903
 Company Founder: Jamsetji N. Tata. Company formed in 1902
 Currently the Taj Hotels Resorts and Palaces comprises 57 hotels at 40 locations across India
 Additional 18 hotels are also being operated around the globe
 The Taj hotels are categorized as luxury, leisure and business hotels
Target Group for The TAJ Mahal Palace, Mumbai:
• Foreign Business Executives and Bureaucrats
• Celebrities
• Politicians and Foreign Diplomats
• Urban Indian Population
11
PRODUCT–TemporaryStay-infacility
“For more than a century, the Taj has played an intrinsic part in the life of the city, hosting Maharajas, dignitaries and eminent
personalities from across the globe”.
ROOMS & SUITES
Presidential Suite TAJ club room TAJ Rajput Suite TATA Suite
TAJ Mahal tower room
Supplementary services:
 Restaurant and Bar
Starboard
Wasabi
Golden Dragon
Souk
The Zodiac Grill
Harbor Bar
 Meeting Room and Banquet Facility
 Gym , Spa and Salon
 Courier
 Laundry
 Travel Guide & Pick –up and Drop –in facility
 Child Care Facilities & Wake up Call
 Currency Exchange
Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE
12
OTHERPRODUCT
“For more than a century, the Taj has played an intrinsic part in the life of the city, hosting Maharajas, dignitaries and eminent
personalities from across the globe”.
 JET AIR
• TAJ Khazana
• TAJ Holidays
Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE
13
PRICE
PRICE
Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE
14
PLACE
• Strategically located in Colaba, Mumbai
• Provides lovely view of Arabian Sea
• The iconic and heritage building which has
been synonymous to Mumbai over the last 106
years leaves an impact on the guest’s mind
• Proximity to major tourist spots Causeway,
Gateway of India, Marine Drive etc.
15
• Selective and very targeted
• In house magazine
• Promotion platforms – Websites, airline magazines
• Celebration of Indian and International Festivals to achieve Special Bookings and stays. Like
Christmas, Chinese New Year
• Ex: Tie with British Airways Avois club
• Tie up with banks for TAJ Epicure Membership
PROMOTION
Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE
16
PROMOTIONS via Social Media Marketing
17
PEOPLE
• A value driven recruitment system
Recruit from small cities rather than metropolitan cities like Pune, Chandigarh, Dehradun
• Extreme customer-centric organizational culture
• Employees have encyclopedic knowledge about regular guests
• Staff is highly trained to go the extra mile to delight customers.
• Some of the employees working since decades
Source: The Ordinary heroes of the Taj, Rohit Deshpande, Anjali Raina. Harvard Business Review, December 2011
 Karambir Singh Kang- GM, TAJ MUMBAI
Awarded Jeevan Raksha Padak , 2009
“If hotel goes down, I would be the last person to leave”.
• Mallika Jagad – Bravery Award
22 year old employee did not left hotel until people were
rescued
18
ONSTAGE
EMPLOYEE
S
BACKSTAG
E
EMPLOYEE
S
SUPPORT
SYSTEMS
PROCESS
CUSTOMER
ACTIONS
19
PHYSICAL EVIDANCE
Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE
20
21
Case Study: Make my trip
• MakeMyTrip.com is India’s leading online travel company
• Founded in the year 2000 by Mr. Deep Kalra.
• MakeMyTrip created a revolution in the field of travel industry of India
22
Jet
Airways
Air India Spice jet
MakeMyTrip.com
Travel
Agents
Tech-Savvy
Customers
Non-Tech-Savvy
Customers
MakeMyTrip Business Model
Indigo
23
PRODUCT International and Domestic air tickets
Destination packages within India and International
Hotel booking in different destination both within India and International destination
Domestic Railway tickets
Private and taxi rentals
PRICE Attracting customers by showing lowest price for airline tickets/railway tickets & hotel options
No extra commission to agents
PLACE Internet marketing /e-business.
Dedicated 24X7 customer care support and they have offices in 20 cities across India and 2 international offices in
New York and San Francisco
PROMOTION Social Marketing of promotions on Facebook, Twitter, You Tube, Magazine, Mobile app.
 Sales promotion:
 Festival Discounts
 Round trip ticket discounts
 Deal of the month
 Special offers to different holiday destination
PEOPLE No direct relationship between customer and employee, it is mostly a self service marketing.
For the customers who don’t know internet handling ,travel agents are available (who are like distributors/dealers)
24x7 customer care service.
PHYISCAL
EVIDENCE
Make my trip is Offers best customer care service in support of Booking/Cancelling reservations/Printing E-
tickets/Checking Refund status/Make a payment.
PROCESS They follow easy process/simple process of booking tickets like filling up customer name, phone number, address
Mode of payment is possible by any bank cards bank debit/credit cards.
24
7P’s of Service Marketing
4 P’S 4 O’S 4 A’S 4 C’S
PRODUCT OBJECT ACCEPTIBILITY CUSTOMER NEED
PRICE OBJECTIVE AFFORDABILITY COST TO USER
PLACE ORGANIZATION ACCESSIBILITY CONVENIENCE
PROMOTION OPERATIONS AWARENESS COMMUNICATION
25
Marketing Mix Analysis
Marketing mix analysis used by Makemytrip.com for attracting customers.
PRODUCT
OBJECT:
 Travelling tickets
 Hotel Vouchers
 Car Rental Vouchers
ACCEPTIBILITY:
High chance of acceptability
since it makes,
Travel easy
Save money
Save energy
Save time
CUSTOMER NEED:
To make travel easier and
convenient
PRICE
OBJECTIVE:
Make tickets easily and quickly
available for the customer
AFFORDABILITY:
Affordable to all class of
travelling customers
Customer can choose as per
their budget or income
(Comparison)
COST TO USER:
Customer can search for the
best deal for his travelling as per
his/her requirement
PLACE
ORGANIZATION:
 E-Commerce – B2C
 B-Commerce –B2B
ACCESSIBILITY:
Internet
Travel agents
Customer service executive
CONVENIENCE:
 mode of payment
(Cash/Credit)
 Anywhere, anytime, anyplace
get the tickets
No more long queues
PROMOTION
OPERATIONS:
Online websites
Travel agents
 Coupons to flight discounts
AWARENESS:
Word of mouth
Online adds
TV
Mobile App
COMMUNICATION:
Best customer support in
booking /cancelling bookings/
printing E tickets etc. 26
Sources
 Official pages of
HouseCall
Olacabs
Chawlaband
Healthkart
The Taj Mahal Palace Hotel & Towers
Make My Trip
 Official social media pages of above mentioned companies/Hotel
 Article: The Ordinary heroes of the Taj, Rohit Deshpande, Anjali Raina. Harvard Business Review,
December 2011
 Article: Heros of the Taj Hotel: Why they risk their lives? Alix Spiegel, NPR December 2011
27
THANKS
28
Pawandeep@gmail.com

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Service Marketing

  • 1. SERVICE MARKETING MBA –IIT Delhi Pawandeep Singh Maniktala- 2012SMN6706 Sahil Kapoor 2012SMN6697 Bhushan Kumar- 2012SMN6688 1
  • 2. Objective of the Study : To study the Current and Emerging Marketing Strategies deployed by Marketers in Service Oriented Business Models. Sectors Under on Focus of Study : Internet based Startup Ventures Travel Hospitality 2
  • 3. Service Marketing: “Service is Action of doing something for someone or something”. Marketing of Services typically includes both B2B and B2C. Ex: Air/Bus ticket sale by MakeMyTrip, Interest given on Fixed deposits by Bank. Kind of Services in different sector: Telecommunications services Financial services Hospitality services Car rental services Air travel Health care services Professional services 3
  • 4. Characteristics of services: Intangibility: Services are intangible and do not have a physical existence. Cannot be touched, held, tasted or smelt. This is most defining feature of a service and that which primarily differentiates it from a product. Also, it poses a unique challenge to those engaged in marketing a service as they need to attach tangible attributes to an otherwise intangible offering. Heterogeneity/Variability: Each service offering is unique and cannot be exactly repeated even by the same service provider. While products can be mass produced and be homogenous the same is not true of services. Eg: All burgers of a particular flavor at McDonalds are almost identical. However, the same is not true of the service rendered by the same counter staff consecutively to two customers. Perishability: Services cannot be stored, saved, returned or resold once they have been used. Once rendered to a customer the service is completely consumed and cannot be delivered to another customer. Inseparability of Production and Consumption: This refers to the fact that services are generated and consumed within the same time frame. 4
  • 5. Cases Studies:  HouseCall  OLA  HealthKart.com  ChawlaBand  The Taj Mahal Palace Hotel Mumbai  MakeMyTrip 5
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  • 7. OlaCabs is an online cab aggregator based out of Bengaluru and among the fastest growing taxi hiring firms. Taxi booking facility can be availed through app, website or through calls. 7
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  • 10. The Taj Mahal Palace Hotel, Mumbai Sector: Hospitality Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE 10
  • 11. About TAJ Group of Hotels  First hotel of The Indian Hotels Company, parent company of TAJ Hotels Resorts and Palaces  The TAJ MAHAL PALACE HOTEL was built in 1903  Company Founder: Jamsetji N. Tata. Company formed in 1902  Currently the Taj Hotels Resorts and Palaces comprises 57 hotels at 40 locations across India  Additional 18 hotels are also being operated around the globe  The Taj hotels are categorized as luxury, leisure and business hotels Target Group for The TAJ Mahal Palace, Mumbai: • Foreign Business Executives and Bureaucrats • Celebrities • Politicians and Foreign Diplomats • Urban Indian Population 11
  • 12. PRODUCT–TemporaryStay-infacility “For more than a century, the Taj has played an intrinsic part in the life of the city, hosting Maharajas, dignitaries and eminent personalities from across the globe”. ROOMS & SUITES Presidential Suite TAJ club room TAJ Rajput Suite TATA Suite TAJ Mahal tower room Supplementary services:  Restaurant and Bar Starboard Wasabi Golden Dragon Souk The Zodiac Grill Harbor Bar  Meeting Room and Banquet Facility  Gym , Spa and Salon  Courier  Laundry  Travel Guide & Pick –up and Drop –in facility  Child Care Facilities & Wake up Call  Currency Exchange Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE 12
  • 13. OTHERPRODUCT “For more than a century, the Taj has played an intrinsic part in the life of the city, hosting Maharajas, dignitaries and eminent personalities from across the globe”.  JET AIR • TAJ Khazana • TAJ Holidays Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE 13
  • 14. PRICE PRICE Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE 14
  • 15. PLACE • Strategically located in Colaba, Mumbai • Provides lovely view of Arabian Sea • The iconic and heritage building which has been synonymous to Mumbai over the last 106 years leaves an impact on the guest’s mind • Proximity to major tourist spots Causeway, Gateway of India, Marine Drive etc. 15
  • 16. • Selective and very targeted • In house magazine • Promotion platforms – Websites, airline magazines • Celebration of Indian and International Festivals to achieve Special Bookings and stays. Like Christmas, Chinese New Year • Ex: Tie with British Airways Avois club • Tie up with banks for TAJ Epicure Membership PROMOTION Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE 16
  • 17. PROMOTIONS via Social Media Marketing 17
  • 18. PEOPLE • A value driven recruitment system Recruit from small cities rather than metropolitan cities like Pune, Chandigarh, Dehradun • Extreme customer-centric organizational culture • Employees have encyclopedic knowledge about regular guests • Staff is highly trained to go the extra mile to delight customers. • Some of the employees working since decades Source: The Ordinary heroes of the Taj, Rohit Deshpande, Anjali Raina. Harvard Business Review, December 2011  Karambir Singh Kang- GM, TAJ MUMBAI Awarded Jeevan Raksha Padak , 2009 “If hotel goes down, I would be the last person to leave”. • Mallika Jagad – Bravery Award 22 year old employee did not left hotel until people were rescued 18
  • 20. PHYSICAL EVIDANCE Source: THE TAJ MAHAL PALACE HOTEL & TOWERS OFFICIAL PAGE 20
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  • 22. Case Study: Make my trip • MakeMyTrip.com is India’s leading online travel company • Founded in the year 2000 by Mr. Deep Kalra. • MakeMyTrip created a revolution in the field of travel industry of India 22
  • 23. Jet Airways Air India Spice jet MakeMyTrip.com Travel Agents Tech-Savvy Customers Non-Tech-Savvy Customers MakeMyTrip Business Model Indigo 23
  • 24. PRODUCT International and Domestic air tickets Destination packages within India and International Hotel booking in different destination both within India and International destination Domestic Railway tickets Private and taxi rentals PRICE Attracting customers by showing lowest price for airline tickets/railway tickets & hotel options No extra commission to agents PLACE Internet marketing /e-business. Dedicated 24X7 customer care support and they have offices in 20 cities across India and 2 international offices in New York and San Francisco PROMOTION Social Marketing of promotions on Facebook, Twitter, You Tube, Magazine, Mobile app.  Sales promotion:  Festival Discounts  Round trip ticket discounts  Deal of the month  Special offers to different holiday destination PEOPLE No direct relationship between customer and employee, it is mostly a self service marketing. For the customers who don’t know internet handling ,travel agents are available (who are like distributors/dealers) 24x7 customer care service. PHYISCAL EVIDENCE Make my trip is Offers best customer care service in support of Booking/Cancelling reservations/Printing E- tickets/Checking Refund status/Make a payment. PROCESS They follow easy process/simple process of booking tickets like filling up customer name, phone number, address Mode of payment is possible by any bank cards bank debit/credit cards. 24 7P’s of Service Marketing
  • 25. 4 P’S 4 O’S 4 A’S 4 C’S PRODUCT OBJECT ACCEPTIBILITY CUSTOMER NEED PRICE OBJECTIVE AFFORDABILITY COST TO USER PLACE ORGANIZATION ACCESSIBILITY CONVENIENCE PROMOTION OPERATIONS AWARENESS COMMUNICATION 25 Marketing Mix Analysis Marketing mix analysis used by Makemytrip.com for attracting customers.
  • 26. PRODUCT OBJECT:  Travelling tickets  Hotel Vouchers  Car Rental Vouchers ACCEPTIBILITY: High chance of acceptability since it makes, Travel easy Save money Save energy Save time CUSTOMER NEED: To make travel easier and convenient PRICE OBJECTIVE: Make tickets easily and quickly available for the customer AFFORDABILITY: Affordable to all class of travelling customers Customer can choose as per their budget or income (Comparison) COST TO USER: Customer can search for the best deal for his travelling as per his/her requirement PLACE ORGANIZATION:  E-Commerce – B2C  B-Commerce –B2B ACCESSIBILITY: Internet Travel agents Customer service executive CONVENIENCE:  mode of payment (Cash/Credit)  Anywhere, anytime, anyplace get the tickets No more long queues PROMOTION OPERATIONS: Online websites Travel agents  Coupons to flight discounts AWARENESS: Word of mouth Online adds TV Mobile App COMMUNICATION: Best customer support in booking /cancelling bookings/ printing E tickets etc. 26
  • 27. Sources  Official pages of HouseCall Olacabs Chawlaband Healthkart The Taj Mahal Palace Hotel & Towers Make My Trip  Official social media pages of above mentioned companies/Hotel  Article: The Ordinary heroes of the Taj, Rohit Deshpande, Anjali Raina. Harvard Business Review, December 2011  Article: Heros of the Taj Hotel: Why they risk their lives? Alix Spiegel, NPR December 2011 27

Editor's Notes

  1. B
  2. B