SERVICE

MARKETING MIX

UNIT - 2
 Service Marketing System
Company

Providers Interactive Marketing Customers

Keeping Promises
Customer Perception &
Expectation of Service
Customer
Expectations

Desired Adequate
Service Service
 Service Marketing Mix
 PRODUCT

◦ Offer value to target customers and satisfy

their needs.
◦ It must comprise of:
1. A Core product that responds to the customers’
primary need.
2. Value-added enhancements that help customers
to use the core product more effectively.
 PRICE

◦ Income is generated to offset costs incurred &

create surplus.
◦ Set prices that target customers are willing &
able to pay and also assess time and effort
outlays:
1. Travel expenses
2. Time expenditure
 PLACE & TIME

◦ Service Distribution may involve physical or

electronic channels.
◦ Example: Banks offer customers a choice of DC
1. Visiting a Branch
2. Using a network of ATMs
3. Doing business by telephones
4. Conducting transactions via Internet.
 PROMOTION

◦ Here, communication is educational in nature,

especially for new customers.
◦ Promotion is done with an objective:
1. To stimulate immediate trial purchases.
2. To encourage consumption when demand is low.
 PROCESS

◦ In services, how the service is done is more

important than what is done.
◦ Badly designed service processes lead to:
1. Slow & Ineffective service delivery.
2. Wasted time.
3. Low productivity.
4. Likelihood of service failure.
 PEOPLE

◦ Play an important role in analyzing and

satisfying customer needs.
◦ Dissatisfied employee cannot deliver a
satisfactory service. Therefore, it is
important to:
 Train & motivate people to give exemplary
performance.
 PHYSICAL EVIDENCE

◦ Environment in which the service is

delivered.
◦ Customers evaluate the services on the
tangible cues before its purchase. Hence,
marketers tangibilise the intangibles of
services to create a service evidence.