7 p of service
TRANSCRIPT
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7 Ps of Service Marketing
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Product
Product Decisions
Branding Quality Features
Customer Value = the bundle of benefits delivered to the customer
Need to change benefits as customers needs change
Benefits offered
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Price
Pricing Strategies
Penetration
Skimming
Competition
Product Line
Bundle
Psychological
Only Price generates income
Price must support costs of all other Ps
Price also must reflect the relationship
of supply and demand within the marketplace
Price = Cost the customer is prepared to pay
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The task of Promotion is to targetcustomers and Communicate with
them
An integrated mix of promotionaltechniques should reach
customers by all available
channels
Promotion
Promotional Mix
Advertising
PublicRelations
Sales
Promotion
Personal
Selling
Direct
Marketing
Internet/
E-commerce
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Place
Manufacturer
Consumer
Manufacturer
Retailer
Consumer
Direct Distribution Indirect Distribution
The task of Place is deliver the Product to thecustomer at the right Price
There are many options of channel design
Channel design should take into account Cost
and Convenience for the customer
Manufacturer
Franchisee
Consumer
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An expanded marketing mix for services
Customers PricePlace &
Time
Promotion
Product
(service)PeopleProcess
Physicalevidence
Customers PriceCustomers
Place,
cyber-
space &
time
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People
All human actors who play a part inservice delivery and thus influence the
buyers perceptions: namely, the firms
personnel, the customer, and othercustomers in the service environment.
customer
service employeesother customers
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Physical Evidence
The environment in which the service isdelivered and where the firm and customer
interact, and any tangible components that
facilitate performance or communication
of the service.
Atmosphere
equipment
facilities
uniforms
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Process
The actual procedures, mechanisms, andflow of activities by which the service is
deliveredthe service delivery and
operating systems.service delivery systems
back stage
front stage
procedurespolicies
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Expanded Marketing Mix for
ServicesPEOPLE PHYSICAL
EVIDENCEPROCESS
Employees Facility design Flow of activities
Customers Equipment Number of steps
Communicatingculture and values
Signage Level of customerinvolvement
Employee research Employee dress
Other tangibles
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