Service marketing mix; product, price, place, promotion;

service distribution strategy,Franchising, participants, service

process.


Service marketing?
Services marketing is a sub field of marketing which covers the marketing of both goods and services.
Goods marketing includes the marketing of fast moving consumer goods (FMCG) and durables. Services
marketing typically refers to the marketing of both business to consumer (B2C) and business to
business (B2B) services. Common examples of service marketing are found in telecommunications, air
travel, health care, financial services, all types of hospitality services, car rental services,
and professional services.

Service marketing mix ?
The 7 Ps of Services Marketing[edit]
The first four elements in the services marketing mix are the same as those in the traditional marketing
mix. However, given the unique nature of services, the implications of these are slightly different in case
of services.
Product[edit]
In case of services, the product is intangible, heterogeneous and perishable. Moreover, its production
and consumption are inseparable. Hence, there is scope for customizing the offering as per customer
requirements and the actual customer encounter therefore assumes particular significance. However,
too much customization would compromise the standard delivery of the service and adversely affect its
quality. Hence particular care has to be taken in designing the service offering.
Pricing[edit]
Pricing of services is tougher than pricing of goods. While the latter can be priced easily by taking into
account the raw material costs, in case of services attendant costs - such as labor and overhead costs -
also need to be factored in. Thus a restaurant not only has to charge for the cost of the food served but
also has to calculate a price for the ambience provided. The final price for the service is then arrived at
by including a mark up for an adequate profit margin.
Place[edit]
Since service delivery is concurrent with its production and cannot be stored or transported, the location
of the service product assumes importance. Service providers have to give special thought to where the
service would be provided. Thus, a fine dine restaurant is better located in a busy, upscale market as
against on the outskirts of a city. Similarly, a holiday resort is better situated in the countryside away
from the rush and noise of a city.
Promotion[edit]
Since a service offering can be easily replicated promotion becomes crucial in differentiating a service
offering in the mind of the consumer. Thus, service providers offering identical services such as airlines
or banks and insurance companies invest heavily in advertising their services. This is crucial in attracting
customers in a segment where the services providers have nearly identical offerings.
The final three elements of the services marketing mix - people, process and physical evidence - are
unique to the marketing of services.
People[edit]
People are a defining factor in a service delivery process, since a service is inseparable from the person
providing it. Thus, a restaurant is known as much for its food as for the service provided by its staff. The
same is true of banks and department stores. Consequently, customer service training for staff has
become a top priority for many organizations today.
Process[edit]
The process of service delivery is crucial since it ensures that the same standard of service is repeatedly
delivered to the customers. Therefore, most companies have a service blueprint which provides the
details of the service delivery process, often going down to even defining the service script and the
greeting phrases to be used by the service staff.
Physical Evidence[edit]
Since services are intangible in nature, most service providers strive to incorporate certain tangible
elements into their offering to enhance customer experience. Many hair salonsinvest in comfortable and
stylish sitting areas with magazines and plush sofas for patrons to read and relax while they wait.
Similarly, many restaurants invest heavily in their interior design and decorations to offer a tangible and
unique experience to their guests.
[2]





McCarthy's four Ps
Category Definition
Product
A product is seen as an item that satisfies what a consumer demands. It is a tangible
good or an intangible service.Tangible products are those that have an independent
physical existence. Typical examples of mass-produced, tangible objects are
the motor car and the disposable razor. A less obvious but ubiquitous mass-
produced service is a computer operating system.
Every product is subject to a life-cycle including a growth phase followed by a
maturity phase and finally an eventual period of decline as sales fall. Marketers must
do careful research on how long the life cycle of the product they are marketing is
likely to be and focus their attention on different challenges that arise as the product
moves.
The marketer must also consider the product mix. Marketers can expand the current
product mix by increasing a certain product line's depth or by increasing the number
of product lines. Marketers should consider how to position the product, how to
exploit the brand, how to exploit the company's resources and how to configure the
product mix so that each product complements the other. The marketer must also
consider product development strategies.
[3]

Price
The amount a customer pays for the product. The price is very important as it
determines the company's profit and hence, survival. Adjusting the price has a
profound impact on the marketing strategy, and depending on the price elasticity of
the product, often it will affect the demand and sales as well. The marketer should
set a price that complements the other elements of the marketing mix.
[3]

When setting a price, the marketer must be aware of the customer perceived
value for the product. Three basic pricing strategies are: market skimming pricing,
market penetration pricing and neutral pricing. The 'reference value' (where the
consumer refers to the prices of competing products) and the 'differential value' (the
consumer's view of this product's attributes versus the attributes of other products)
must be taken into account.
[3]

Promotion
All of the methods of communication that a marketer may use to provide
information to different parties about the product. Promotion comprises elements
such as:advertising, public relations, sales organisation and sales promotion.
[3]

Advertising covers any communication that is paid for, from cinema commercials,
radio and Internet advertisements through print media and billboards. Public
relations is where the communication is not directly paid for and includes press
releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and
events. Word-of-mouth is any apparently informal communication about the
product by ordinary individuals, satisfied customers or people specifically engaged to
create word of mouth momentum. Sales staff often plays an important role in word
of mouth and public relations (see 'product' above).
[3]

Distribution(Place)
Refers to providing the product at a place which is convenient for consumers to
access. Various strategies such as intensive distribution, selective distribution,
exclusive distribution and franchising can be used by the marketer to complement
the other aspects of the marketing mix.
[3][8]

The "seven Ps" is a marketing model that adds to the aforementioned four Ps, including "physical
evidence", "people", and "process":
[9]
It is used when the relevant product is a service, not merely a
physical good.
Category Definition
Physical
evidence
The evidence which shows that a service was performed, such as the delivery packaging for
the item delivered by a delivery service, or a scar left by a surgeon. This reminds or
reassures the consumer that the service took place, positively or negatively.
People
The employees that execute the service, chiefly concerning the manner and skill in which
they do so.
Process
The processes and systems within the organization that affect the execution of its service,
such as job queuing or query handling.


service distribution strategy?

Introduction
This refers to how an organisation will distribute the product or service they are offering to the
end user. The organisation must distribute the product to the user at the right place at the right
time. Efficient and effective distribution is important if the organisation is to meet its overall
marketing objectives. If an organisation underestimatea demand and customers cannot purchase
products because of it, profitability will be affected.
Which Distribution Channel Will They Use?
Two types of channel of distribution methods are available. Indirect distribution involves
distributing your product by the use of an intermediary for example a manufacturer selling to a
wholesaler and then on to the retailer.. Direct distribution involves distributing direct from a
manufacturer to the consumer For example Dell Computers providing directly to its target
custmers. The advantage of direct distribution is that it gives a manufacturer complete control
over their product.




Above indirect distribution (left) and direct distribution (right).



Distribution Strategies
Depending on the type of product being distributed there are three common distribution
strategies available:
1. Intensive distribution Used commonly to distribute low priced or impulse purchase products
eg chocolates, soft drinks.
2. Exclusive distribution Involves limiting distribution to a single outlet. The product is usually
highly priced, and requires the intermediary to place much detail in its sell. An example of would
be the sale of vehicles through exclusive dealers.
3. Selective Distribution A small number of retail outlets are chosen to distribute the product.
Selective distribution is common with products such as computers, televisions household
appliances, where consumers are willing to shop around and where manufacturers want a large
geographical spread.
If a manufacturer decides to adopt an exclusive or selective strategy they should select a
intermediary which has experience of handling similar products, credible and is known by the
target audience.

Alternative concept

(A) Direct Channel or Zero Level Channels:
When the manufacturer instead of selling the goods to the intermediary sells it directly to the
consumer then this is known as Zero Level Channel. Retail outlets, mail order selling, internet
selling and selling
(B) Indirect Channels:
When a manufacturer gets the help of one or more middlemen to move goods from the
production place to the place of consumption, the distribution channel is called indirect channel.
Following are the main types of it:
1. One Level Channel:
In this method an intermediary is used. Here a manufacturer sells the goods directly to the
retailer instead of selling it to agents or wholesalers. This method is used for expensive watches
and other like products. This method is also useful for selling FMCG (Fast Moving Consumer
Goods). This channel is clarified in the following diagram:
2. Two Level Channel:
In this method a manufacturer sells the material to a wholesaler, the wholesaler to the retailer and
then the retailer to the consumer. Here, the wholesaler after purchasing the material in large
quantity from the manufacturer sells it in small quantity to the retailer.
Then the retailers make the products available to the consumers. This medium is mainly used to
sell soap, tea, salt, cigarette, sugar, ghee etc. This channel is more clarified in the following
diagram:
3. Three Level Channel:
Under this one more level is added to Two Level Channel in the form of agent. An agent
facilitates to reduce the distance between the manufacturer and the wholesaler. Some big
companies who cannot directly contact the wholesaler, they take the help of agents. Such
companies appoint their agents in every region and sell the material to them.
Then the agents sell the material to the wholesalers, the wholesaler to the retailer and in the end
the retailer sells the material to the consumers.