Services Marketing MixServices Marketing Mix

Goods versus ServicesGoods versus ServicesGoods versus ServicesGoods versus Services

Classification of ServicesClassification of ServicesClassification of ServicesClassification of Services

Based on Degree Of Cust. Involvement

( Lovelock)1. People Processing2. Possession Processing3. Mental Stimulus Processing4. Information Processing

Based on Degree Of Cust. Involvement

( Lovelock)1. People Processing2. Possession Processing3. Mental Stimulus Processing4. Information Processing

Four Categories of Services Based on the Process UsedFour Categories of Services Based on the Process Used

• People Processing• Tangible Acts Directed

Toward People• e.g. airlines,

hospitals, hair stylists, fitness centers

• Possession Processing• Tangible Acts Directed

Toward Possessions• e.g. repair services,

landscaping, house cleaning services

• People Processing• Tangible Acts Directed

Toward People• e.g. airlines,

hospitals, hair stylists, fitness centers

• Possession Processing• Tangible Acts Directed

Toward Possessions• e.g. repair services,

landscaping, house cleaning services

• Mental Stimulus Processing• Intangible Acts Directed

Toward People• e.g. consulting,

education, psychotherapy, broadcasting

• Information Processing• Intangible Acts Directed

Toward Intangible Assets • e.g. accounting,

banking, financial services

• Mental Stimulus Processing• Intangible Acts Directed

Toward People• e.g. consulting,

education, psychotherapy, broadcasting

• Information Processing• Intangible Acts Directed

Toward Intangible Assets • e.g. accounting,

banking, financial services

Levels of Customer Contact with Levels of Customer Contact with Service OrganizationsService Organizations

Levels of Customer Contact with Levels of Customer Contact with Service OrganizationsService Organizations

Emphasizes encounters with service personnel

Emphasizes encounters with equipment

M a il Ba sed Rep a irs

In tern et- b a sedServices

M ovie Th ea ters

High

Low

Other Classification of Other Classification of ServicesServices

Other Classification of Other Classification of ServicesServices

• Degree of Tangibility• Based on Skills and Expertise Required-

e.g. Professional & non professional

• Business Orientation of service provider

• Type of end user

• Degree of Tangibility• Based on Skills and Expertise Required-

e.g. Professional & non professional

• Business Orientation of service provider

• Type of end user

Services Marketing MixServices Marketing MixServices Marketing MixServices Marketing Mix

Traditional Marketing MixTraditional Marketing MixTraditional Marketing MixTraditional Marketing Mix

• All elements within the control of the firm that communicate the firm’s capabilities and image to customers or that influence customer satisfaction with the firm’s product and services:• Product• Price• Place• Promotion

• All elements within the control of the firm that communicate the firm’s capabilities and image to customers or that influence customer satisfaction with the firm’s product and services:• Product• Price• Place• Promotion

An expanded marketing mix for services

Customers PricePlace & Time

Promotion

Product (service)People Process

Physical evidence

Customers PriceCustomers

Place, cyber-space & time

People• All human actors who play a part in

service delivery and thus influence the buyer’s perceptions: namely, the firm’s personnel, the customer, and other customers in the service environment.

People• All human actors who play a part in

service delivery and thus influence the buyer’s perceptions: namely, the firm’s personnel, the customer, and other customers in the service environment.

customerservice employeesother customers

Physical Evidence• The environment in which the service is

delivered and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service.

Physical Evidence• The environment in which the service is

delivered and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service.

•atmospheredécor, music etc.

•equipment•facilities•uniforms

Process• The actual procedures, mechanisms,

and flow of activities by which the service is delivered—the service delivery and operating systems.

Process• The actual procedures, mechanisms,

and flow of activities by which the service is delivered—the service delivery and operating systems.

service delivery systems•back stage•front stage

procedurespolicies

PEOPLE PHYSICALEVIDENCE

PROCESS

Employees Facility design Flow of activities

Customers Equipment Number of steps

Communicatingculture and values

Signage Level of customerinvolvement

Employee research Employee dress

Other tangibles

PEOPLE PHYSICALEVIDENCE

PROCESS

Employees Facility design Flow of activities

Customers Equipment Number of steps

Communicatingculture and values

Signage Level of customerinvolvement

Employee research Employee dress

Other tangibles

Expanded Marketing Expanded Marketing Mix for ServicesMix for Services

7 P’s for Services7 P’s for Services7 P’s for Services7 P’s for Services

In- class ExerciseIn- class Exercise

• For a service you have used in the last one year identify the 7P’s for that service.

• Pls. remember to focus also on its intangibility, inseparability, Variability and heterogeneity aspects

• For a service you have used in the last one year identify the 7P’s for that service.

• Pls. remember to focus also on its intangibility, inseparability, Variability and heterogeneity aspects

The Services Marketing The Services Marketing TriangleTriangle

Internal Marketing

Interactive Marketing

External Marketing

CompanyCompany(Management)(Management)

CustomersEmployees

“enabling thepromise”

“delivering the promise”

“setting thepromise”

Ways to Use the Ways to Use the Services Marketing TriangleServices Marketing Triangle

Ways to Use the Ways to Use the Services Marketing TriangleServices Marketing Triangle

Overall Strategic Assessment

• How is the service organization doing on all three sides of the triangle?

• Where are the weaknesses?

• What are the strengths?

Overall Strategic Assessment

• How is the service organization doing on all three sides of the triangle?

• Where are the weaknesses?

• What are the strengths?

Specific Service Implementation

• What is being promoted and by whom?

• How will it be delivered and by whom?

• Are the supporting systems in place to deliver the promised service?

Specific Service Implementation

• What is being promoted and by whom?

• How will it be delivered and by whom?

• Are the supporting systems in place to deliver the promised service?

Challenges for ServicesChallenges for Services

• Defining and improving quality• Communicating and testing new services• Communicating and maintaining a consistent

image• Motivating and sustaining employee

commitment• Coordinating marketing, operations and

human resource efforts• Setting prices• Standardization versus personalization