Cd53b03 Services Marketing Mix

Amity Business School


MBA Class of 2010, Semester III

Services Marketing MixProf. P K Bansal


Mix Elements in Goods

• Product – Ingredients, parts, components, size, shape, packaging, quality

• Price – Monetary sacrifice, discounts, psychic and time cost

• Promotion – Advertising, sales promotion, sales force, public relations

• Place – Logistics, distribution channels, service levels, inventory management


Additional Tools in Services

• Process• People• Physical evidence


Service Product

Service package – supporting facility

and facilitating goods• Balancing tangible and intangible

components• Core and supplementary services• Service core and augmentations• Service levels


Price

Price goes by different names

• Intangibility and price• Price and quality• Service customisation and price• Non-monetary aspects and price


Pricing Approaches

• Cost based• Competition oriented• Market based• Price and customer value


Service Promotion

Promotion was once frowned upon

• Communication at pre-purchase stage• Communication at consumption stage• Post-purchase and communication


Promotion Guidelines

• Provision of tangible clues• Word-of-mouth communication• Refrain from over-promising• Promote within the system• Use imagery• Continuity


Service Distribution

• Availability is critical for consumption• Goods are storable and transportable• Services cannot be pre-produced and

stored• Inseparable from provider• Obstruction in adoption of goods-oriented

approach


Channels in Services

• Multi-site strategy• Multi-service strategy• Multi-segment strategy


Franchising a common form of Reaching to Customers

• Nirula’s• Domino’s• NIIT• Lakme Parlors• Dr Lal’s Pathological Labs• Subhiksha


Merits and Challenges of Franchising

• Risk sharing• Growth• Knowledge gains

– Image inconsistencies– Ownership of customer franchise– Motivation and control– Disputes


Service Location

• Importance of location – convenience considerations

• Preempting competition by location• Location and demand management• Location considerations – access,

visibility, parking, expansion possibilities, regulatory considerations