Service Marketing - Specific Industries

Service marketing - specific Industries

Tourism

Tourism

• “Tourism denotes the temporary, short-term movement of people to destination outside the place where they normally live and work and their activity during their stay at these destination”

What Tourism Includes ?

• Traveling for pleasure, health and domestic reasons.

• Persons arriving in the course of sea cruise.• Persons traveling for business or professional

purpose.• Persons travelling for convention.

What is not tourism

• Person arriving for work and occupation.• People shifting from rural areas to urban

areas.• Students in boarding.• Person passing through a country without

stopping.

Features Tourism Product

• Highly Perishable• Extremely Service Oriented• Highly Intangible• Mostly for pleasure• Physical presence of costumer is required• Infrastructure• Heterogeneous Costumers

Direct elements of the Tourism Industry -

Those areas of the tourism industry which come into direct contact with tourists

• Transport • Accommodation • Activities • Attractions • Ancillary Services • Sales

Transport

• Air– Schedule– Charter

• Road• Motorcar• Rail• Campervan• Coach

Campervan

Accommodation

Grading System

• In the United Kingdom, accommodation is graded according to stars, diamonds or crowns. In the USA a 5 star hotel would be graded as ‘deluxe’ then to ‘first class’ to ‘superior’ and the minimum grading would be ‘tourist’ or ‘budget’.

Grading System– Visitors can easily choose accommodation which will suit their needs

and budget, while being assured of quality.

– Accommodation providers have a clear understanding as to what standards are expected of them.

– Accommodation providers can use their rating on their promotional material.

– As more accommodation businesses join the grading scheme the over all quality of a destinations accommodation improves.

– This gives visitors an overall impression of the destination as one of quality.

Accommodation is rated by type:

• Hotel • Backpacker • Holiday home • Holiday park • Student accommodation• Self contained & serviced • Exclusive

Holiday park

Student accommodation

Self contained & serviced

Exclusive

Activities & Attractions

Ancillary Services

• Food and Beverage• Shopping• Insurance– medical care and hospitalization – personal accident – cancellation/curtailment of holiday – delayed departure – baggage loss – money loss – personal liability

Sales

• The customer purchases directly from the supplier

• The customer accesses the supplier through an intermediary

• The customer accesses the supplier through two intermediaries

Hotel

ExclusiveBooking Office

TravelAgent

Indirect elements of the Tourism Industry

Often called support sectors. Those parts of the tourism industry which may not come into direct contact with tourists, but without the rest of the industry could not function.

• Infrastructure • Roads • Airports • Communications • Public Toilets • Signs • Manufacturing • Building Industry • Electricity • Water supply • Sewerage and waste disposal

Marketing in the Travel and Tourism Industry

Definition

• Marketing is about anticipating and identifying the wants and needs of a target market of consumers, then satisfying those needs in order to make a profit

• Firstly, travel and tourism organisations must understand their customers’ demands. This is the ‘anticipating’ and ‘identifying’ part of the definition

Marketing Research

• Anticipating and identifying demands depends on effective marketing research

• Research into the existing and potential market

Marketing Research

• Classifying customers according to – Socio-economic status, – lifestyle– Family circumstances– Gender and so on

• May involve primary research – surveys, observation, questionnaires

• And/or secondary research – statistics and records, quantitative and qualitative

Socio-economic status,

lifestyle

Gender and so on

Classifying Customers

• A target market consists of a whole group of potential customers, drawn from the whole population

• It’s better to define the target market as a collection of ‘segments’

• Each segment will have different characteristics

• Each segment’s needs and wants must be satisfied

Marketing of Hotel Industries

Major PlayerGovernment Owned

• ITDC (Indian Tourism Develop Corp.)• HCL (Hotel Corp. of India)• Regional Tourism Department (RTDC, GTDC, UPDC)

• Major Private Player• Indian Hotels (Taj)• East India Hotels (Oberai)• ITC

Government Owned

Major Private Player

Major Private Player

Taj Delhi

Category of Hotels in India

• The Department of Tourism (DOT) assigns the rating– From 1 – Star to 5-Star Deluxe Hotels

– Heritage, Heritage Classic and Heritage grant (Palaces, castles, Forts, Havelies, Hunting, Lodge, Residences)

Hotel In India

Approved Non-Approved

Category of Hotel (Location)

• Hotel• Motel• Truck stops

Category of Room

• Normal• Deluxe• Executive• Suite• Deluxe Suite• Precedential Suite

Precedential Suite

Characteristics of Hotel Industries

• Service Oriented industry• Requires High skill labour• High capital investment (High BEP)• High Demand Variation• Foreign Collaboration (Franchises Agreement)

Service Oriented industry

Requires High skill labour

High capital investment (High BEP)

High Demand Variation

Foreign Collaboration (Franchises Agreement)

Plan of Hotel

• European Plan (Only Room)• Continental Plan (Room + Break Fast)• Half Board , MAP(Room + Break Fast + One

Meal)• Full Board , AP (Room + Three Meals)

Tariff of a Hotels

• FIT ( Free Independent Traveler)• GIT ( Group Inclusive Traveler)

Elements of the Marketing Mix

Product or service• Quality• Value• Perishable • Differentiation

Quality

Value

Differentiation

Perishable

Elements of the Marketing Mix

Price• Seasonality• Strategies• Competitor analysis• Skimming

Strategies

Competitor analysis

Elements of the Marketing Mix

Promotion• Advertising• Endorsements• Sponsorship• Methods – use of different media, brochures/leaflets,

public relations, sales promotion, press releases

Elements of the Marketing Mix

Place• Channels of distribution• Retail services such as travel agents• Direct marketing• Electronic methods, such as using the Internet

Elements of the Marketing Mix

People• Employees• Management• Culture of organisation• Attitude to customer service

Educational Service

Factors affected the Education Industry

• Changing Standards of Lifestyle • Style • Joy• Freedom to woman

• Change in society• Complexity• Increase life expectancy• Environment Concern

Factors affected the Education Industry

• Economical Changes• Globalization / Liberalization• Privatization

• Technological Advancement• IT• Neno Tech• Biochemistry

Product offer (Education)

• Core• Expected • Augmented• Potential

Price ( Factors)

• Tangibility• Consistency• Government regulation• Ability to pay• Demand and Supply

Tangibility

Mayo College Ajmer

Consistency

Doon School

Government regulation

How to put price tag on Educational Product

• Cost Base• Market Oriented• Regulated price• Differential

Place (Educational Product)

• Mono Location• Multi Location

People

Physical Evidence

• Prospectus• Building• Furniture• Playground• Swim pool• Gym• Study Material• Uniform• Accessories• Commuting Facilities

Process

Courier Service

Feature of Courier Service

• Speed, • Security, • Tracking, • Signature, • Specialization and individualization of services• Committed delivery times

• A courier is a person or company employed to deliver messages, packages and mail. Couriers are distinguished from ordinary mail services by features such as speed, security, tracking, signature, specialization and individualization of services, and committed delivery times, which are optional for most everyday mail services. As a premium service, couriers are usually more expensive than usual mail services, and their use is typically restricted to packages where one or more of these features are considered important enough to warrant the cost.

Types of courier

• Bicycle Courier• Motorbike Courier• Truck Courier• Railway Courier• Aircraft Courier• JIT (Just in time Courier)

Bicycle Courier

Motorbike Courier

Truck Courier

Railway Courier

Aircraft Courier

JIT (Just in time Courier)

Major Player• First Flight courier - India's leading courier company

Professional Courier - south India's leading courier FCML Worldwide Couriers - North India's Leading Courier Company. LDH Worldwide Express Capital Mail - Familiar in Bulk delivery both Domestic and International Flyking Courier Services Pvt. Ltd. - Oldest Courier group in India. Carrypak Services Ltd. Vayu Seva UPEX Express India Pvt. Ltd.- Courier & freight forwarding services Shree Shyam Air Service Aramex India - Courier & parcel delivery services Blue Dart - Integrated express transportation company DHL India - Drop-off locations and information on sending shipments to India OCS (Overseas Courier Service) Desk To Desk Courier & Cargo - Courier and cargo services Elbee Express - Domestic & International Express Courier Services FedEx India - Courier & freight forwarding services First Flight Couriers - Domestic & international courier services TNT India - Domestic courier, cargo shipping and document delivery Team United Express - Domestic and international courier services UPS India - Letters and package delivery services Vichare - Courier services provider Gurdev Courier Services Local Domestic & International Overnite Express - Domestic & International Courier services ACX Couriers (I) Pvt Ltd - International Express

• Express Mail Service (EMS) is an international express postal service offered by postal-administration members of the Universal Postal Union (UPU) which created the EMS Cooperative in 1998 within the framework of the UPU, a specialized agency of the United Nations, to promote the harmonization and development of postal services worldwide. Currently EMS is offered by 153 of the 191 UPU member countries' postal authorities and an integral part of their normal postal services. Seven additional countries have arrangements to deliver EMS items. An independent auditor measures the express delivery performance of all international EMS operators and each member is awarded a Gold, Silver, or Bronze certificate depending on their yearly performance. These countries are recorded in the EMS Cooperative's Hall of Fame

Product Mix

• Dispatching Letters ( National and International)

• Dispatching Packets ( National and International)

• Dispatching Valuable ( National and International)

Promotion Mix

• Advertisement• Publicity• Personal Selling• Word of mouth• Sales promotion• Telemarketing

Advertisement

Sales promotion

Personal Selling

Price Mix

• Cost Base• Competitive pricing• Differential• Institutional pricing or Corporate pricing• Collaborative Pricing

Marketing of Financial Service

InsuranceBankingFinance

Insurance Industry (Some Facts)

• 300 million people can afford• 20 % are having insurance (only 25 % are having ideal policy)

Insurance ServiceIndian Partner International Partner

Tata AIG (US)

ICICI Prudential (UK)

HDFC Standard Life (UK)

Kotak Chubb (US)

Vesya Bank ING

IDBI Federal Bank

Product

• “ Life insurance is a contract for payment of a sum of money to the person assured (Or failing him / her , to the person entitled to receive the same) on the happening of the event insured against”

Type

• Fire Insurance • Motor Insurance• Life Insurance • Child Insurance • Cargo Insurance • Health Insurance • Accident Insurance • Cattle / agriculture / crop / Insurance etc.

Cargo Insurance

Crop Insurance

Features

• Super to other saving plan• Compulsory saving• Customized installment• Ready Marketability for quick borrowing• Disability Benefit• Accidental Death Benefits

Pricing (Factors affecting)

• Mortality• Expenses• Interest

Distribution (Promotion)

• Personal Selling• Direct Mail• Agent• Financial Consultant• Financial Institutions• Advertisements

Process & People

• Process :- Should be fair and consumer friendly

• People :- understanding consumer allows to design better products

Banking

Why Marketing

• Costumer Understanding (Market research)

• Satisfying the consumer (Understanding Consumer Need)

• Facing Competition• Designing the marketing mix

Who are the consumers

• General User• Industrial User• Prospects

Product

• Deposit• Time• Demand

• International Banking• Letters of Credit• Foreign Currency

• Consultancy • Tax• Merchant Banking ( LC )• Project Consultancy• Investment Banking

Product

• Advances• Fund – oriented• Term Loan etc.

• Miscellaneous• Safe Custody• Credit Card• Standing Instruction

Promotion

• Advertisement• Personal Selling• Public Relation• Sales Promotion• Tele marketing

Advertisement

Sales Promotion

Sales Promotion

Sales Promotion

Sales Promotion

Sales Promotion

Public Relation

Public Relation

Public Relation

Price

• Regulated by RBI

Place

• Making service Accessible• Security• Availability of infrastructure• Environment Friendly

People

Physical Evidence

• Infrastructure• Peripherals

Process

• Systematic• Smooth• User friendly• Uniform• Accuracy• Use of Technology

Telecom Service Marketing

Some FactsIndian telecommunication industry

• About 525 million mobile phone connections (Dec 2009)• Third largest telecommunication network in the world • the second largest in terms of number of wireless

connections• The Indian telecom industry is one of the fastest growing

in the world• India will have 'billion plus' mobile users by 2015

(Projected)• Will overtake China’s in the next 10 years

Milestone (Indian Telecom)• 1851 First operational land lines were laid by the government near Calcutta (seat• of British power)• 1881 Telephone service introduced in India• 1883 Merger with the postal system• 1923 Formation of Indian Radio Telegraph Company (IRT)• 1932 Merger of ETC and IRT into the Indian Radio and Cable Communication• Company (IRCC)• 1947 Nationalization of all foreign telecommunication companies to form the Posts, Telephone

and Telegraph (PTT), a monopoly run by the government's Ministry of Communications• 1985 Department of Telecommunications (DOT) established, an exclusive provider of domestic

and long-distance service that would be its own regulator (separate from the postal system)• 1986 Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam

Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.

• 1997 Telecom Regulatory Authority of India created (TRAI)• 1999 Cellular Services are launched in India. New National Telecom Policy is adopted.• 2000 DoT becomes a corporation, BSNL

Major Player

Product Mix

• Basic Phone• Mobile ( GSM + CDMA)• GPRS• SMS• 3G• Broadband• GPS• Fax• Video Conference• Pager

Place• Regulated by TRAI

• Aircel Digilink India Limited Haryana, Rajasthan, U.P. ( East) • Aircel Limited Chennai, Tamil Nadu• Airtel , Bharti Cellular Limited Delhi (Metro), Mumbai (Metro), Kolkata (Metro), Chennai

(Metro), Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Orissa, Punjab, Rajasthan, Tamil Nadu, UP (West), UP (East), West Bengal

• BPL Cellular Limited Mumbai (Metro), Kerala, Maharashtra & Goa, Tamil Nadu• Hutch Group Mumbai, Delhi, Kolkata, Chennai, Gujarat, Andhra Pradesh,

Karnataka,Punjab• Idea Cellular Limited Andhra Pradesh, Maharashtra, Gujarat, Madhya Pradesh,Kerala,

Haryana, U.P.(W), Madhya Pradesh• Reliance Telecom Limited Assam, Bihar, Himachal Pradesh, Kolkata, Madhya Pradesh,

North East, Orissa, West Bengal• Spice Communications Limited Karnataka, Punjab

Price

• Regulated• Cost base• Plans Base (Packages)• Competitive pricing• CUG (Close User Group)• Target Market

Plans Base (Packages)

Competitive pricing

Competitive pricing

CUG

CUG

Target Market

Promotion

• Advertisement• Sales Promotion• Personal Selling• Public Relation• Publicity

Advertisement

Sales Promotion

Sales Promotion

Public Relation

Public Relation

Publicity

Professional Services

Professional services are infrequent, technical, or unique functions performed by independent contractors or consultants whose occupation is the rendering of such services. Examples of professional services contracts given below

• Accountants, • Actuaries, • Appraisers, • Architects, • Attorneys, • Brokerage firms, • Business consultants, • Business development

managers, • Copywriters,

• Engineers, • Law firms, • Physicians, • Public relations

professionals, • Recruiters, researchers, • Real estate brokers, • Translators, • Software engineers • Web designers

Why, Marketing Professional services

• Creating Need• Awareness Generation• To increase clientage• Building Goodwill

Users of Professional Services

• Individual• Domestic • International

• Organization• Domestic • International

Market Segmentation (Place)

• National• Regional• Local

Market Segmentation (Place)

• Identification of target market• Selection of clients• Understand the market condition (Environment)

• Setting objectives

Product

• Creating Product portfolio as per the expertise• Technological Advancement• Innovation in product offering

Creating Product portfolio as per the expertise

Creating Product portfolio as per the expertise

Creating Product portfolio as per the expertise

Creating Product portfolio as per the expertise

Innovation in product offering

Innovation in product offering

Innovation in product offering

Technological Advancement

Price

• Fee Segmentation ( Price Discrimination)• Package Pricing• Leader Pricing • Prestige Pricing • Competitive Pricing• Skimming Pricing• Penetration Pricing• Discounting Pricing (loyalty Pricing)• Market-Based Pricing

Fee Segmentation ( Price Discrimination)

Package Pricing

Leader Pricing

Leader Pricing

Prestige Pricing

Competitive Pricing

Skimming Pricing / Penetration Pricing

Discounting Pricing (loyalty Pricing)

Market-Based Pricing

Promotion

• Advertisement• Public Relation• Publicity• Sales Promotion• Personal Selling• Word of mouth• Telemarketing

Public Relation

Publicity

Sales Promotion

Transportation Service

Mode of Transport

• Transport or transportation is the movement of people and goods from one location to another

• Mode of transport– Air– Rail– Road– Water– Cable– Pipeline– Space

User of Transport

User of Transport

General User Industrial User

Market

• Class Wise ( Fist Class, II Class, Executive, Business etc) • Sex (Female compartment, Female Bus Transport)• Route• Rural• Urban• Agricultural• Industrial• Institutional

Class Wise (Fist Class, II Class, Executive, Business etc)

Sex (Female compartment, Female Bus Transport)

Route

Rural

Age

Urban

Agricultural

Industrial

Institutional

Product• Airline

• Business Class• Economy Class• Cargo• Chartered

• Bus• Luxury• Ordinary• Cargo

• Train• I Class• II Class• Sleeper• Ordinary• Seating• Cargo• Mail

Bases of Place selection

• Market Segment• Profitability• Infrastructure

Market Segment

Profitability

Infrastructure

Price

• Government Regulated• Competitive• Facility• Package• Cost Base• Negotiated• Seasonal• Psychological• Positioning • Collaborative Pricing• Telescopic Pricing

Government Regulated

Facility

Competitive

PackagesIRCTC takes care of the tourism operations of the Indian Railways. The Indian Railways operates several luxury trains such as Palace on Wheels, Golden Chariot, Royal Orient Express and Deccan Odyssey; that cater mostly to foreign tourists. For domestic tourists

too, there are several packages available that cover various important tourist and pilgrimage destinations across India.

Positioning

Telescopic Pricing

Collaborative Pricing

Promotion

• Advertisement• Public Relation• Sales promotion• Personal Selling• Word of mouth

Advertisement

Public Relation

Sales promotion

Physical evidence

• Website• Boarding Place (Airport, Bust Station, Railway Station, Dockyard)

• Food• Facilities, Infrastructure• Ticket• Welcome Kit• Bedding • luggage Trolley• Signage, Marks, Hording etc.

People

• Service Facilitators• Inside (Airhostess, Driver, Pilot, Attendant, Conductor, TC, Captain, Waiter, Cleaner etc.)

• Outside (Reception, Security, Porter, other facilitators)

Media Services

Mass media denotes a section of the media specifically designed to reach a large audience

Type of Mass Media • Broadcast & Telecast

• Television• Radio

• Film• Internet• Outdoor• Blogs• Publications

• Newspapers• Magazine• Books• Journals• Comics• Annual Report etc.

Media Marketing (Attributes)

• Type of Costumers• Audience• Readers• Visitors• Advertiser

• Limited Shelf Life• Latest technology needed• Reach should be maximum

Market Segment

• Class Wise• Uses• Sex• Age • Rural• Urban• Industrial• Institutional

Class Wise

Uses

Sex

Age

Rural & Urban

Industrial

Institutional

Place

• International• National• Regional• Area Specific• Community Specific• Organizational• Industry Specific

Products

• Medial Itself• Advertisement• Publicity• Public Relation

Media Business Revenue Model

Subscription / Circulation/ TRP/

Readers / Audience / Visitors / location

High Cost of Medial Itself,

Advertisement,Publicity,

Public Relation

High Revenue

Profit Profit

Price

Subscriber / Circulation/ TRP/ Readers / Audience / Visitors

• Revenue• Prestige • Government Regulated• Subsidized• Cost• Competitive

• Based on number of Subscriber / Circulation/ TRP/ Readers / Audience / Visitors

Advertiser, PR ,Publicity

Media Promotion to Increase Subscriber / Circulation/ TRP/ Readers / Audience / Visitors

• Attractions• Value Added Services• Advertisement• Sales Promotion• Public Relation• Publicity• Personal selling

Attractions

Attractions

Value Added Services

Value Added Services

Advertisement

Sales Promotion

Public Relation

Media Promotion to Increase Advertiser

• Advertisement• Sales Promotion (Commissions , Scheme, Discounts etc.)

• Personal selling

Advertisement

Advertisement

Sales Promotion (Commissions , Scheme, Discounts etc.)