MAREKTING OF SERVICES Features.. Intangibility, inseparability and heterogeneity are features of services marketing. Marketing strategy provides the organisation with a sustainable competitive advantage in the markets it operates.

SERVICE MARKETING Provides services Aimed to satisfy customer’s needs and wants Needs and wants may be non financial in nature Competitive element, efficiency and effectiveness Organizational objectives are still the driving force Commercial objective to make profit Social Objectives

Essentials for Success Cannot exist without customer Create, win and keep customers Organizational design should be oriented to the customer Deliver total satisfaction to the customer Customer satisfaction is affected by the performance of all the personnel of the organisation.

MARKETING MIX Key concept in the modern marketing Considered to be core of marketing It is the set of tools that the firm uses to pursue its marketing objectives in the target market Decisions must be made for both the distribution channels and the final consumers

MARKETING MIX

7 P’s OF MARKETING

The price should be right. To create the right marketing mix, businesses have to meet the following conditions: The product has to have the right features – e.g. it should look good and work well. The price should be right. The goods must be in the right place at the right time. The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output. Stamp on Sachin Tendulkar not available at right time/right place

PRODUCT To find out what customers want & need & then develop a product to meet the need of the potential customers. If The competitors products offer the same benefits, same quality, same price then differentiate your product with the following: Design Technology Usefulness Convenience Quality Packaging Warranty Flat Rate Box similar product available without the features as available with FRB like prepaid postage, weight category,

Price A product is only worth what a customer is prepared to pay for it. Premium Pricing. Use of high pricing where there is a uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Penetration Pricing. It is the strategy of entering the market with a low initial price to capture greater market share.

Price Skimming. charging a relatively high price for a short time where a new, innovative, or much-improved product is launched into a market. The prices are set high in order to attract least price sensitive customers to generate high profits.

Competitive pricing: product is sold at the lowest price regarding all your competitors. For instance, when the products are basically the same, this strategy will usually succeed.

Promotion This is the way in which you communicate to your potential customers about your product. It includes the various ways of communicating to the customers of what the company has to offer. It is about communicating the features/ benefits of using a particular product or service.

Promotion Advertisement: It takes many forms like TV, radio, internet, newspapers, yellow pages, Leaflets, Posters etc. Sales Promotion: Buy One Get One Free. Others include couponing, money-off promotions, free accessories (such as free blades with a new razor), introductory offers (such as buy digital TV and get free installation) and so on. Personal Selling: It is an effective way to manage personal customer relationships. The sales person acts on behalf of the organization.

Promotion mix Blended Mix of Promotion Tools Personal selling Advertising Public Relations Sales Promotion Direct Marketing

Promotion mix strategies Push strategy -Retailer Pull strategy - Customer Factors influencing promotion mix Types of product/market Buyer’s readiness stage PLC stage? Promotion mix integration

Place It refers to the place where the customers can buy the product and how the product reaches out to that place. This is done through different channels like: Retails Wholesale Internet Mail orders Direct Sales

People Use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. Staff should have the appropriate interpersonal skills, attitude, and service knowledge to provide the service that consumers are paying for.

Process Methods and processes in providing a service Customer should be well informed Done through help desk, citizen charters and by the counter personnel

PHYSICAL EVIDENCE It is the only physical items that a customer will see and so it must reflect the image that the service is trying to project. Done through Internet/web pages. Brochures. Furnishings/ infrastructure Signage Uniforms. Business cards. The building itself (look and feel) Example: If you walk into a restaurant your expectations are of a clean, friendly, hygienic environment which will want you to visit again.

Ask the following questions to devise effective marketing strategies: Who are my customers and potential customers? What kind of people are they? Where do they live? Can and will they buy?

Am I offering the kinds of goods or services they want at the best place, at the best time and in the right amounts? Are my prices consistent with what buyers view as the product's value? Are my promotional programs working? What do customers think of my business? How does my business compare with my competitors?

Discussion Questions Using BCG matrix: Where would you likely categorise Market leader in Insurance in India today? Who was the market leader in telephone services 15 years back and where he is today? Where would you categorise parcel market for India post and Indian railways today?

Where do you keep India post as regards to its corporate identity in Financial services?

What story does the dash board tell

Exercise 1. what market strategies you adopt given the segmentation you have done for Insurance sector? 2. what market strategies you adopt given the segmentation you have done for PPF? 3. What kind of goals shall we set which is more remunerative for organisation like India Post?

Thank You