Services Marketing Mix

Goods versus Services

 Classification of Services
Based on Degree Of Cust. Involvement
( Lovelock)
1. People Processing
2. Possession Processing
3. Mental Stimulus Processing
4. Information Processing
 Four 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
• 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
Service Organizations

Emphasizes encounters
High with service personnel

N u r s in g H o m e
H a ir C u t
4 - S ta r H o te l
M a n a g e m e n t C o n s u ltin g
G o o d R e s ta u r a n t
Te le p h o n e B a n k in g
A ir lin e T r a v e l (E c o n .)

R e ta il B a n k in g C a r R e p a ir

M o te l In su r a n ce
D r y C le a n in g
Fa st F o o d
M o v ie T h e a te r s

C a b le T V
P u b lic Tr a n s it
H o m e
B a n k in g

M a il B a se d R e p a ir s

I n te r n e t- b a s e d
S e r v ice s

Emphasizes encounters Low

with equipment
 Other Classification of Services

• 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 Mix
 Traditional 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
An expanded marketing mix for services

Product
People (service)
Process
Place,
Place &
cyber- Customers Price
Time
space Customers
Customers Price
& time

Promotion

Physical evidence
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.

customer
service employees
other 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.
•atmosphere
décor, 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.

service delivery systems

•back stage
•front stage
procedures
policies
 Expanded Marketing Mix
for Services
PEOPLE PHYSICAL PROCESS
EVIDENCE
Employees Facility design Flow of activities

Customers Equipment Number of steps

Communicating Signage Level of customer

culture and values involvement

Employee research Employee dress

Other tangibles
7 P’s for Services
 In- 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
 The Services Marketing Triangle
Company
(Management)

Internal External
Marketing Marketing
“enabling the “setting the
promise” promise”

Employees Interactive Marketing Customers

“delivering the promise”
 Ways to Use the
Services Marketing Triangle

Specific Service Implementation

Overall Strategic Assessment
• What is being promoted and
• How is the service by whom?
organization doing on • How will it be delivered and
all three sides of the by whom?
triangle?
• Are the supporting systems in
• Where are the place to deliver the promised
service?
weaknesses?
• What are the strengths?
 Challenges 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