Group members

Karuna Gaikwad -Harmeet Kaur -Rahul Motwani -Priyanka Punjabi -Sushil Shukla -02 04 25 34 48

SERVICE MARKETING
Activity or benefit that one party can offer to another that is essentially intangible and does not result in any ownership of any thing its production may or may not be tied to a physical product. E.g.: Airline, cinema.

Reasons for growth in services

Economic affluence Cultural changes I.T revolution Changing role of women Development of markets Market orientation Export potential Economic liberalization.

Characteristics of services
Intangibility Perishability Simultaneously Inseparability Ownership Heterogeneity Nature of demand Quality measurement

Significance of service marketing

Least possible dependence on technology. Paving revenues for capital formation. Generation and expansion of job opportunities. Raising the standard of living. Optimum utilization of untapped resources.

Challenges in service marketing

o Giving a feel for the product o Services are often produce and consumed simultaneously. o Trust is necessary. o Competition is often not who you think. o Brand extends beyond marketing.

Difference between goods and services

Goods Tangible Homogenous Production and distribution are separated from consumption A thing Core value processed in factory Customers do not participate in the production process Services Intangible Heterogeneous Production, distribution and consumption are simultaneous process An activity or process Core value produced in the buyer seller interaction Customers participate in the production

Can be kept in stock

Transfer of ownership

Cannot be kept in stock

No transfer of ownership

Seven ps of service marketing

PRICE PEOPLE PHYSICAL EVIDENCE

PROMOTION

PROCESS

PRODUCT

SERVICE MARKETING

PLACE

Product
A product is anything that can be offered for attention , acquisition , use or consumption. It includes physical objects ( Television ) , service (banking) , person (politician) , place (holiday resort) , organization (red cross) and idea ( aids awareness )

Levels of product
CORE PRODUCT
WHAT CORE BENEFITS THE SERVICE OFFERS ??

BASIC PRODUCT
EXPECTED PRODUCT AUGMENTED PRODUCT

INCLUDES BASIC FUNCTIONAL ATTRIBUTES

SET OF ATTRIBUTES THAT THE BUYER EXPECTS WHAT ADDITIONAL NON TANGIBLE BENEFITS IT CAN OFFER ?? POSSIBLE INNOVATIONS TO MAKE THE SERVICE DISTINGUISHED OFFER.

POTENTIAL PRODUCT

LEVEL OF PRODUCT

RESTAURANT

CORE PRODUCT

SERVICE SPACE, FOOD, KITCHEN , STAFF

DIFFERENT TYPES OF FOOD AND RECIEPES.

BASIC PRODUCT

EXPECTED PRODUCT

CLEANLINESS, TIMELY SERVICE , QUALITY

AUGMENTED PRODUCT

AMBIENCE, MUSIC OF CHOICE, SMILING EMPLOYEES

WELCOME FLOWERS, MANAGERS WORD OF THANKS

POTENTIAL PRODUCT

Promotion
Promotion is the communication mix to target the customers to make promise as well as to position themselves in their minds. It is used for encouraging sales and creating awareness among consumers.

Guidelines for service promotion

REFRAIN FROM OVER PROMISING ADVERTISE FOR EMPLOYEES

WORD OF MOUTH PUBLICITY

MAKE SERVICE UNDERSTOOD MAINTAIN CONTINUITY.

People
In service business, it is through interaction with staff, that the customer forms an opinion of the organization. A service firm may have the latest equipment's and all the facilities but yet it may not be able provide satisfactory customer service due to lack of interpersonal relationship. Thus , high level of interpersonal skills and customer oriented employees are very important.

Price
Price plays as much a tool of marketing mix. The concept of 'fair price' is paramount. Buyers judge whether a product is fairly priced by seeing whether it represents value for money. Pricing approaches:1. Cost based approach 2. Competition oriented pricing 3. Market based pricing

Objectives of pricing
Increase sales volume Increase revenue Achieve or increase profits Increase or maintain market scheme

Place
Place mix deals with location, channels of distribution, managing these channels. The main problem in the creation of channels for services is that they cannot be manufactured in one place and distributed all over. E.g.: ., in IT the issue of location doesnt come into the picture as the entire IT industry is based on distribution networks. Hence here the important aspect is a distribution network.

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, dcor, music etc. equipment facilities uniforms

Process
The actual procedures, mechanisms, and flow of activities by which the service is deliveredthe service delivery and operating systems.
service delivery systems back stage front stage procedures policies

Example ICICI Bank

Products
Deposits
Savings account, senior citizen accounts, salary accounts, recurring deposits, current account, NRI accounts

Investment
Tax saving bonds, mutual funds, insurance, IPOs , investment in gold, foreign exchange , demat services

Loans
Home loans , personal loans , car loans , business loans etc.

Promotion
Advertising Television , radio, movies, hoardings, newspapers etc. Publicity

Road shows, campus visits, sponsorship, personal selling

Sales promotion Gifts, discounts, incentives, telemarketing

People
In banking sector, employees are in interaction with customers. Thus choosing the right kind of people is of utmost importance. ICICI bank takes care to recruit right employees and also carries on constant assessment and feedback in order to maintain the quality of employees.

Place, Physical evidence, Process, Price

Place:
The two important decision making areas are: making available the promised services to the ultimate users and selecting a suitable place for bank branches. The number of branches OF ICICI: 1900 in India and 33 in Mumbai.

Price:
Related income taxes, Equity-to-asset ratio, Pricing for the activities and risks associated with the product, regulated by RBI.

Physical evidence:
Signage, punch line, financial reports, tangibles, employees dress code.

Process:
Standardization, customization, number of steps, simplicity, customer involvement.

Dos and Donts in service marketing

Dont Ignore customer Blame customer Leave customer to fend for himself Downgrade Act as if nothing is wrong pass the buck Do Acknowledge problem Explain causes Apologies Compensate/upgrade Lay out options Take responsibility

COMPANY PROFILE
Name: Oxy Laundry Service Address: Hinjewadi Circle, Near Lemon Tree Hostel, Hinjewadi , Pune. Contact No.: 020-26716465 Website: www.oxylaundry.com
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WHY YOU NEED US?

Lack of availability of local housemaids. No time for washing clothes. Water problems Timings mismatch Both husband & wife are working professionals.

SERVICES PROVIDED
Washing Drying
Ironing
Turn around time - 1 hr

COMPLETE COMMERCIAL LAUNDRY SERVICE

We will take care of all your laundry needs.

Competitive rates and special corporate discounts.

Daily or weekly laundry services available. Free detergent & water

 Students get a 10% discount on drop-off laundry and dry cleaning orders with a valid student ID. Refer a friend - Bring a friend with you to try out the Washhouse and receive 5% discount.

PRICING
Rs. 200 per load Each load = 10 kg.

SEGMENTATION
Demographic Segmentation: Gender: Male & Female. Age Group: 18 and above. Occupation: Students and Office Goers

TARGET AUDIENCE
Professionals
Bachelors Residential area College students

POSITIONING
High price

Low Quality

High Quality

Low price

HUMAN RESOURCE
Attendant Cashier Support staff

COMPETITORS
Housemaids
Dhobi Ghats Dry Cleaners

PROMOTION
Local cable network. Glossy pamphlet in newspaper. SMS Internet Introductory offers through print media