E4-E5 MANAGEMENT

MARKETING OF SERVICES

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 AGENDA
What is Marketing?
Needs, Wants and Demands
Product and Service
Characteristics of Services
Marketing Mix
Marketing vs. Sales
SWOT and STP Analysis
Marketing Strategies
Marketing in BSNL

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 What is Marketing?

Marketing is the performance of business activities

that directs the flow of products or services from
producer to customers or consumers.

The process of planning and executing the

conception, pricing, promotion, and distribution of
ideas, goods, and services to create exchanges that
satisfy individual and organizational goals.

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 Needs, Wants and Demands
Needs :
The most basic concept underlying marketing is that of
human needs.
They include basic physical needs for food, clothing,
warmth and safety, social needs for belonging and
affections and individual needs for knowledge and self
expression.
These needs are not invented by marketers; they are a
basic part of the human make up.

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Needs, Wants and Demands (Contd..)
Wants :
Wants are products satisfying human needs and they
are shaped by culture and individual personality.
A hungry person in Bihar might want Roti, in West
Bengal might want Rice and for South Indian people it
may be Idli or Dosha.
Wants are described in terms of products/services that
will satisfy needs.

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 Needs, Wants and Demands
Demands :
People have almost unlimited wants but limited
resources. Thus they want to choose products that
provide the most value and satisfaction for their
money. When backed by buying power, wants
become demands.
BSNL Broadband and Leased Line Circuit has
more
demand compared to other operators’ product.
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 Product and Service
A product is something tangible that can be offered to a
market to satisfy a need or want.
The concept of product is not limited to physical objects
– anything capable of satisfying a need can be called a
Product.
Product’s physical distinctions include :
Form, Features, Performance Quality, Conformance
Quality, Durability, Reliability, Repairability, Style, design
etc.

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 Product and Service (Contd..)
A service is any activity or benefit that one party can
offer to another that is essentially intangible and
does not result in the ownership of anything.
Product’s service distinction include :
Ordering ease, Delivery, Installation, Customer
training, Customer Consulting, Maintenance
and Repair.

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 Characteristics of Services

Services are characterized by following distinctions:

Intangible: Customer can’t see, touch, smell or
handle services before deciding whether to buy.
Inseparable: Services are usually delivered and
consumed simultaneously, so both provider and
the buyer influence the outcome of the service
delivery.

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Characteristics of Services(Contd..)

Heterogenous: Services vary depending on who

provides them and when and where they are
provided; thus controlling their quality is difficult.
Perishable: Services are used up upon delivery,
not stored for future sale.

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 Marketing Mix

There are standard four ‘P’s applicable for

Products. Service Marketing require extra three,
totaling seven and known together as the
extended Marketing Mix.

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 Marketing Mix(Contd..)

The Seven ‘P’s are :-

Product
Pricing
Promotion
Place
People
Process
Physical
Evidence

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 Marketing Mix(Contd..)

Product : Product variety, quality, design, packaging,

features, Brandname, Sizes, Services etc. – a budle of
benefits which gives a solution.
Pricing : List price, Discounts, Allowances, Payment Period
etc.
Promotion : Advertising, Personal selling, Sales Promotion,
Public relations, Direct selling etc.
Place : Channels, location, inventory, logistics etc.

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 Marketing Mix(Contd..)

People : Customer, supplier, vendor,

employees etc.
Process : How of product/service delivery.
Standardization, checklists etc.
Physical Evidence : Looks of Customer
Service Centre, Testimonials, Demonstrations
etc.

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 Marketing Vs. Sales

Marketing and Sales are often said to be the

sides of the same coin.Both are
interrelated. Marketing brings the people
forward for purchase, sales actually
converts these interested people into
customers.

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Marketing Vs. Sales(Contd..)

Sales by closing deals, marketing by

supporting sales and increasing brand
awareness.
 SWOT Analysis

SWOT :-
S : Strength (HR, Network, Customer Relations
etc.)
W :Weakness (Planning, Mind setup, CRM etc.)
O :Opportunities (New Business, Customer Base,
Expansive Economy etc.)

T : Threats (Recession, Competition etc.)

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 STP Analysis

STP :-
S: Segmentation (Geographic, Demographic,
Psychographic, Behavioral)
T: Targeting (Mass Market, CIC, Enterprise
Customers etc.)
P: Positioning (Competitive price, more value
etc.)

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 Marketing Strategies

Marketing strategy is a method of focusing an

organization’s energies and resources on a course
of action which can lead to increased sales and
domination of a target market niche.
A marketing strategy combines product development,
promotion, distribution, pricing, CRM and other
elements.

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 Marketing Strategies(Contd..)

Proper utilization of 7 ‘P’s.

Study of Product Life Cycle(PLC) of a product.
Product Life Cycle

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 Marketing Strategies(Contd..)
Stage → Introduction Growth Maturity Decline

Gain awareness
Marketing Stress Maintain brand Harvesting/
Objective differentiation loyalty withdrawal
→
Competition Few More Many Few

Product One More versions Full range Best sellers

Price Competitive/ Stay profitable

Skimming/ Loyalty schemes/
Gain market share
penetration Defend market
share/profit

Promotion Inform/ Stress competitive Reminder oriented Minimal promotion

educate differences

Place (Distribution) Limited More outlets Maximum outlets Fewer outlets

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 Marketing in BSNL

Marketing section started functioning in

November, 2000 at BSNL Corporate office.
BSNL has Marketing Cells in each verticals i.e.
CFA, CM and Enterprise.
Mr. Abhinav Bindra , Ms. Dipika Padukon etc.
were earlier brand ambassador of BSNL.

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 Marketing in BSNL(Contd..)

BSNL regularly participates in local and national

exhibition and melas.
Road shows are also organised.

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 Marketing in BSNL(Contd..)
An indicative Interaction Map of Marketing with other Units :
TRA (Billing details, tariff
analysis, plan based tariff
profiling, collection details
etc.)
Maintenance (Breakdowns,
suggestions, Indoor, Outdoor,
MSC, BTS etc.
Senior Management
Planning (New areas being
covered, expansion plans etc.)
Sales (New outlets, promotion needs,
feedback reports, schemes etc.)
Commercial (New plans, terms &
condition etc.)
Market Intelligence (News gathering,
informers, competitor details etc.)
Market Research (Brand,
Market Potential, Needs
etc.)
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Call center relation
Function
(Content, Information, CSR Scripts, IVR
scripts, telemarketing, training etc.)
Loyalty schemes
Brochures, Posters,
mailers, Dress code for
staff
Advertisements (Brand ambassador,
Print, electronic, Outdoor,
internet etc.)
New services, New/modification in
tariff plans
Marketing
Point of purchase material (Cutouts,
Glow signs, Danglers, showroom
design etc.)
Content for Website/portal
Inputs to TRA, Planning,
Sales, Commercial, Top
management
Events (conferences, seminars,
exhibitions, interviews etc.)
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 Conclusion

Lot of effort has been made by BSNL in retaining

& strengthening its market position.
In spite of heavy growth in BSNL subscriber base
since its formation, its market share is on the
decline.

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 Conclusion(Contd..)

Mergers & acquisitions are helping competitors to

improve their market share.
While certainly a comprehensive internal &
external marketing strategy for BSNL is needed
to check this trend, procedural changes and more
functional autonomy may also be required.

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