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Holistic Marketing - Mc Carthy’s 4 Ps

• Mc Carthy Marketing Mix 4 Ps – Holistic Marketing
Approach.

People – Everyone who plays a role in the service

delivery
Process – Instituting the right systems and
mechanisms relevant to the service
Programmes – Embracing the traditional 4Ps to
accomplish the whole so that the whole is greater
than the sum of each parts
Performance – Possible outcomes based on both
financial and non-financial implications
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Rethinking 4Ps – SAVE Framework for B2B

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Model of Consumer Behaviour

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Consumer Decision-Making Process
Need Recognition

Information Search

Cultural, Social,
Individual and
Evaluation
Psychological
of Alternatives
Factors
affect
all steps
Purchase

Post-Purchase
Behavior
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 Decision
Making Unit
Someone who can
prevent the decision The one who ultimately
being made or make makes the final buying
it more difficult decision or any part of it
 Product Life Cycle - PLC
 A new product progresses through a sequence of stages from
introduction to growth, maturity and decline.
- This sequence is known as PLC and is associated with changes in the
marketing situation, thus impacting the marketing strategy and the
marketing mix
- PLC is the product revenue with regard to Life Cycle.

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 Recurring PLC

• Product A is in the Decline stage and revenue is falling

• Product B is moving into maturity - It was launched and managed to reach
maturity as product A began to fail.
• Product C is in the growth stage and is timed to reach maturity as product B
is expected to fall.
• Product D has been launched and is being managed to reach maturity as
product C moves into decline
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 Extended PLC

• Extension involves maintaining product level by seeking a wider

market as demand begins to fall in the existing market
• No new investment in manufacturing operations is required
• Expansion involves trying to increase demand for an existing
product and thus increase production levels
• It is a strategy requiring additional investment
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 Rogers Innovation Diffusion Curve

Marketing
Consumers

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Porter’s Value Chain
Porter’s Generic Strategies
BCG Matrix Portfolio Matrix
The Ansoff Growth Matrix
The Ansoff Growth Matrix
Product Innovation

Sophistication
Consolidation

Market
Porter’s 5 Forces
 Data exhibiting one or more
What Makes Big Data? of the following properties

Involve terabytes Data comes in The Data is made up Viability of data as

to petabytes of quickly through of multiple data they involve
information multiple sources like types: complexity
online systems, - structured manifested in both
sensors, social - semi-structured geographical and
media, smartphones, - unstructured data multi-source
web clickstreams, distribution,
etc., and should be interaction etc.
analysed quickly
Big Data

The amount of Types of Data: Speed at which Degree to which The Business Ways in which
Data from Structured Big Data is Big Data can be Value of the the Big Data can
various sources Semi Structured Generated trusted Data Collected be used and
Unstructured formatted
Big Data – The 6 Vs

GENERIC BIG DATA

• Volume
• Velocity
• Variety

ACQUIRED PROPERTIES

• Value
• Veracity
• Variability
Pricing
strategies
 The Services Marketing Mix
Extended Marketing Mix
• People – Many services depend on direct interaction between
customers and an organisation’s employees
• The nature of these interactions strongly influences the customer’s
perception of service quality

• Process - A method and sequence of actions in delivering the

service performance from input to delivery.
• Service processes that are not well designed can lead to slow, ineffective
service delivery and dissatisfied customers.

• Physical Evidence – has an effect on customer impressions

before, during and after the experience

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Importance of Service Marketing
• A service is an act one party can offer to another that
is essentially intangible.
• Its production may or may not be tied to a physical product
• Customer Service Excellence means different things to many
people and is something often noticed more by its absence
than its presence
• Differentiating Services – marketers differentiate their service
offerings in many ways, through people and processes and
physical evidence that add value.
• What the customer expects is called primary service package
• The service provider can then add secondary service features to the
package (eg complimentary drink while waiting)

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 Importance of Service Marketing
• As product companies find it harder to differentiate their
physical products, they turn to service differentiation.
 Top service providers find significant service profitability in delivering superior
service like on-time delivery, better and faster answering of inquiries, or
quicker resolution of complaints and also how to create memorable customer
experiences.
• ICS – the org is honest, gives good value for money, has a high reputation,
meets deadlines, has quality products and services, has easy to understand
processes, responds to criticism, encourage complaints and handles them
well, demonstrate that it is passionate about customers.

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 Categories of Service Mix
The service component can be a minor or a major part of
the total offering. Zeithaml distinguishes five categories of
service offerings:
• Pure Tangible Goods – Soap, toothpaste, salt etc with no
accompanying services.
• Tangible Goods with accompanying services – car,
computer, cell phones requiring accompanies services.
• Hybrid – an offering having equal parts of goods and
services. Eg a restaurant meal - People patronize
restaurants for both the food and its preparation.
• Major Service requiring minor goods – Air travel with
additional services like a meal and snack. This service
requires a ‘capital-intensive good’ – an airplane- for its
realization but the primary item for customer is a service
not really the plane itself.
• Pure Service – primarily an intangible service like
babysitting, a legal advise, medical service etc.
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Service Encounters
• Shostack describes a service encounter as the time
during which the customer interacts with the service
itself.
– Such times will vary according to the service in question, and there
may be different levels of encounter such as high, medium and low
contact.
• High Contact – customers visit the service provider for
personal involvement throughout the delivery [eg Bank]
• Medium Contact – Customers visit the service provider but do
not remain for the service delivery processes [eg dry cleaning]
• Low Contact – There is little or no contact between the
customer and service provider due to remoteness of delivery
[eg Pizza home delivery]

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Distinctive Characteristics of Services
Five distinctive service characteristics of Service are:
• Intangibility – unlike physical products, services cannot be seen,
tested, felt, heard or smelled before they are bought.
• Eg a person getting cosmetic surgery cannot see the results before the
purchase, and the patient in the psychiatrist's office cannot know the
exact outcome of treatment.
• To reduce uncertainty, buyers will look for evidence of drawing
inferences from the people interacting, place, process etc.
• Therefore, the service provider’s task is to manage the evidence – try to
tangibilize the intangible
• Service marketers must be able to transform intangible services
into concrete benefits and a well defined experience
• Disney is a master at “tangibilizing the intangible” and creating magical
fantasies in its theme parks

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Distinctive Characteristics of Services
• Inseparability – Whereas physical goods are
manufactured, then inventoried, then distributed,
and later consumed, services are typically produced
and consumed simultaneously
– Eg a haircut cannot be stored – or even produced
without the barber- the provider is part of the service
–Because the client is also often present, provider-
client interaction is a special feature of services
marketing.
– Food restaurants, banking transactions etc

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 Distinctive Characteristics of Services
• Variability – because the quality of services depends on who provides
them, when and where and to whom, services are highly variable.
• Some doctors have an excellent bedside manner whereas others are less emphatic.

• Service buyers are aware of this variability and often talk to

others before selecting a service provider.
• To assure customers some companies should give service guarantees that may reduce
consumer perceptions of risk.

• 3 steps companies can take to increase quality control are:

• Invest in good hiring and training procedures
Better trained personnel exhibit six characteristics:
• Competence, courtesy, credibility, reliability, responsiveness and communication
• Standardise the service performance process throughout the Org
• Service Blueprints are helpful in supporting zero defects culture, and devising service
recovery stages
• Monitor Customer Satisfaction
• Employ suggestion and complaint systems, customer surveys and comparison
shopping
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 Distinctive Characteristics of Services
• Perishability – services cannot be stored, so their perishability
can be a problem when demand fluctuates
• Transport companies must provide more vehicles during peak hours
• Demand or yield management is critical
• The right services must be available to the right customers at the right places at
the right times and to maximise profitability
• Strategies to match demand and supply for max profitability are:
• Demand Side:
• Differentiate pricing strategy between peak and non-peak hrs
• Provide complimentary services
• Use of reservation/ appointment system
• Supply Side:
• Enlist Part-Time employees
• Encourage consumers participation (self checking)
• Peak-Time efficiency
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Distinctive Characteristics of Services
• Lack of Ownership – services cannot be owned.
– There is no tangible element involved in a service and so the
service terminates once the experience comes to an end
• At the end of a plane journey the passenger alights from the aircraft
and the experience, positive or negative becomes a memory.
– Service providers should encourage future use of the service
through frequent flyer programmes to increase customer
involvement in the service encounter
– It is for the marketer to ensure that this experience is positive
in order to achieve good customer relationships and retention
and manage these relationships effectively

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 A shifting Customer Relationship
• Service companies are recognizing the new service
realities, such as the importance of newly
empowered customer, customer co-production, and
the need to engage employees as well as customers.
• Customer Empowerment – customers are becoming
more sophisticated about buying product-support
services and are pressing for unbundled services.
• The internet has increased the power of
customers and allow them to compare or to even
share the bad service encounters.

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A Shifting Customer Relationship
• Customer Co-Production – Customers do not merely purchase a
service - they play an active role in its delivery.

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Service Quality and Performance
• Service Quality is important to both customers and
service providers.
• Employees represent the interface between an
organisation internal and external environments
• TQM is widely implemented for businesses as
consumers are more informed about service
quality encounters and consumerism is facilitating
this initiative.
• TQM – based on the idea that every employee
must be committed to maintaining high standards
of work in all aspects of the organisation’s
operations

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 Gap 1: Gap between Consumer Expectation & Mgt Perception
Managing  Management does not correctly perceive what customers
want. Eg Hospital administrators may think patients want better

Service Quality food, but patients may be more concerned with nurse
responsiveness.

Gap 2: Gap between Mgt Perception and Service –Quality

specification
 Mgt might correctly set perceive customers’ wants but not set
a performance standard. Eg hospital administrators may tell the
nurse to give a fast service but without specifying it in minutes.

Gap 3 : Gap between Service – Quality specifications and

service delivery
 Employees might be poorly trained, or incapable of or
unwilling to meet the standard they may be held to conflicting
standards, such as taking time to listen to customers and serving
them fast
Gap 4: Gap between Service Delivery and External
Communications
 Consumer expectations are affected by statements made by
company representatives and ads. Eg if a hospital brochure
shows a beautiful room but the patient finds it to be cheap
looking, external communications have distorted the customer’s
expectation
Gap 5: Gap between Perceived Service and Expected Service.
 This Gap occurs when the consumer misperceives the service
quality. Eg the physician may keep visiting the patient o show
care, but the patient may interpret this as an indication that
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Service Quality and Performance
• Although Service Quality is not easy to measure, the nature
and characteristics of different services have an impact on
quality issues
• Servqual Model developed by Parasuraman, Zeithaml and
Berry is a popular model for measuring the quality of the
service encounter and is based on the differences between
the expected services and the actual and perceived service.
• Servqual takes into account the perceptions of customer of
the relative importance of service attributes.
• Gap 1 and Gap 5 are external gaps
• Gaps 2, 3 and 4 are internal gaps occurring between different
functions within the organisation

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 ServQual Attributes
• Based on the service quality model,
researchers identified five determinants of
service quality, in order of importance:
• Reliability – The ability to promised service dependably and
accurately
• Responsiveness – Willingness to help customers and provide
prompt service
• Assurance – The knowledge and courtesy of employees and
their ability to convey trust and confidence
• Empathy – The provision of caring, individualized attention to
customers
• Tangibles – The appearance of physical facilities, equipment,
personnel, and communication materials.

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ServQual Attributes
• Tests of the dynamic process model reveal that two different types of
expectations have opposite effects on perceptions of service quality:
• Increasing customer expectations of what the organisation will deliver
can lead to improved perceptions of overall service quality
• Decreasing customer expectations of what the organisation should
deliver can also lead to improved perceptions of overall service
quality.

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Service Blueprint
• A well designed process blueprint will be a powerful tool for
identifying failure points
• The Gaps Model goes further in assisting to meet customer
requirements and it can be used as a measurement tool.
• It is necessary for organisation to understand how failures
occur
• Eg avoid creating ripple effect due to a wrong service
encounter.
• It is therefore necessary for managers to identify why
problems occur and develop contingency plans and service
recovery guidelines for staff
• Knowing what can go wrong in advance is a first step in
ensuring the service encounter is consistently of good
standard.

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