Service Mkt Ppt1

8/8/2019 Service Mkt Ppt1

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The 7Ps

ofService Organization

By:Nishant

Kumar(MBA/4526/09)Rajesh (MBA/4532/09)Ankita

Singh(MBA/4557/09)Abhinav

Kumar(MBA/4559/09Baban(MBA/4564/09)


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Service Definition

A Service is an act ofperformance offered by oneparty to another. Although theprocess may be tied to a physicalproduct, the performance istransitory, often intangible in

nature and does not normallyresult in ownership of any of thefactors of production.


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Product

Price

Physical

Evidence

PromotionPlace

Process

People

The 7 Ps of ServicesMarketing


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PRODUCT A bundle of benefits.

Aimed at customers need fulfillment

Aimed at value creation ,product offeringmust incorporate three key components-

1.Core product-solving benefits thatcustomers seek.

2.Supplementary services-these augment thecore product, both facilitating its use &enhancing its value &appeal.

3.Delivery processes-how ,nature ofcustomers role in delivery process , howlong delivery lasts , style, etc.


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COR

E

CONSULT

AT

ION

INFO

RMATI

ON

HOSP

ITAL

ITY

SAFEK

EEP

ING

PAYM

ENT

EXCEP

TIO

NS

ORDER

TAKING

BILLING

The Flower Of Service : Core productsurrounded by cluster of supplementaryservices.


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Price

Pricing issues

How much should be charged for this service?

How sensitive are customers to various prices?

What prices are charged by competitors? What discount(S)should be offered form basic

prices?

Are psychological pricing point customarily used ?


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What should be the basis ofpricing?

Execution of specific task

Admission to a service facility Units of time Percentage commission on the value of

the transaction Physical resources consumed Geographical distance covered Weight or size of object serviced

Should each service element be billedindependently? Should a single price be charged for a

bundled package?


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communicated to the target

market?

Through what communication medium?

Advertising

SignageElectronic display

Salespeople

Customer service personnel

What message content i.e. how much emphasisshould be placed on price?


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PlaceBasic Channel Decisions

Do we use direct or indirect channels.

Single or multiple channels.

Cumulative length of the multiple channels.

Types of intermediary.

Number of intermediaries at each level.

Which companies as intermediaries to avoid intrachannelconflict.


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Channel Intermediaries

Wholesalers

Agent

Retailer

Internet


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PROMOTION5Ws Model of Promotion

Who is the our target audience?

What do we need to communicate and achieve?

How do we communicate this?

Where should we communicate this?

When do the communications need to take place?


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Personalcommunications

Advertising Salespromotions

Publicityand publicrelations

Instructionalmaterials

Corporatedesign

Selling Broadcast Sampling Pressreleases

Websites Signage

Customerservice

Print Coupons Pressconferences

Manual Interiordecor

Training Internet Gifts Specialevents

Broachers vehicles

Telemarketing

Outdoor Sign uprebates

Sponsorship

Video/audiocassettes,cd rom,software

Equipment,Stationary

Word ofmouth

Direct mall Pricepromotions

Tradeshowsexhibitions

Vice mail Uniform


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PROCESS

Ultimately, only one thing really matters inservice encounters- the customers perception ofwhat occurred.

-RICHARD B.CHASE

Processes-architecture of services, describingthe method &sequence in which service operatingsystem works & how they link together to createthe service experiences & outcomes that

customer will value.


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SERVICE PROCESS REDESIGN


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Eliminates storelocationlimitations

Expandscustomer baseDifferentiatescompany

DifferentiatescompanyAids customerretentionIncreases per

capita service useImprovesemployeesatisfaction

Increasesroductivit

Direct service[servicedelivered to

the customerslocation]

Bundledservice[combinesmultipleservice into apackage]

Physical

service[manipu

IncreasesconvenienceImproves

access

IncreasesconvenienceCustomizesservice

Increasesconvenience

Cultivates

Ph i l


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PhysicalEvidence

Packaging.

Internet/web pages.Paperwork (such as invoices, tickets and despatchnotes).

Brochures.

Furnishings.Signage (such as those on aircraft and vehicles).

Uniforms.

Business cards.

The building itself (such as prestigious offices orscenic headquarters).


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PEOPLE Many services depend on direct interaction between

customers and a firms employees. The nature ofthese interactions ,such as getting a haircut or talkingto call centre staff strongly influences the customersperception of service quality is often assessed basedon customer s interaction with front-line staff ,andsuccessful service firm devote significant effort torecruiting, training and motivating these employees.

The most important of all Ps.

Can meet the challenge by following-

Hire the right people Identify the best candidate

Train service employees actively

Build high performance service delivery teams

Motivate and energize people


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It was in the golden soil of Chikmagalur that a traditional familyowned a few acres of coffee estates, which yielded rich coffeebeans. Soon Amalgamated Bean Coffee Trading CompanyLimited, popularly known as Coffee Day was formed. With a richcoffee growing tradition since 1875 behind it . Coffee Day beganexporting coffee to the connoisseurs across USA, Europe &Japan. In the calendar year 2000, Coffee Day exported more than27000 tones of coffee valued at US$ 60 m .

Coffee Day has 48 agents and 50 collecting depots.

Its two curing works at Chikmagalur and Hassan cureover 70,000 tones of coffee per annum, the largest in thecountry.

Coffee Day has a well-equipped roasting unit catering to


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Sub brands under Caf CoffeeDay

Coffee Day - Fresh & Ground

Caf Coffee Day

Coffee Day Vending

Coffee Day Xpress

Coffee Day Exports

Coffee Day - Perfect


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Product

Its product mix comprises of products thatappeal to indian coffee and snack lovers.

They grow the coffee they serve.

Eatables like samosa, biryani, masala sandwich,tikka sandwich, trufle etc.

Merchendising includes Funky t-shirts, caps etc.

The best selling item in summer is frappe, which

is coffee and ice cream blended together. Theyoung people favor it. In winter it is cappuccino.


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Price Cater to the segment within the age group of 15-

29

Price for a cup of coffee ranges from Rs.45 to Rs80

there has been only minor changes in the pricingpolicy of Caf Coffee Day. The changes havebeen more due to the government taxes than any

thing else


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Place

213 cafes in all major cities in India.

located in High Street/ FamilyEntertainment Centers.

Near colleges

Near gas stations

P ti


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Promotion Caf Coffee Day held a contest around a

very popular programme on Zee EnglishcalledFriends. All the six lead characters areshown often visiting a coffee shop and a lotof youth like watching the programme.

They have tied up with Channel [V]'s GetGorgeous contest.

They have also done promotion for HistoryChannel, where they have run promotion forHollywood Heroes. They had asked a fewquestion and a lucky winner won a trip to

Hollywood.


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Continued.

Involved in ticket sales of Enrique ,WWE,Elton John, and Bryan Adams ticket sales.

They have been a part of movies like : Bas Yun Hi

Khakee Main Hoon Na Kyun Ho Gaya Na Mujhse Shaadi Karoge Lucky Socha Na Tha And a lot of Telegu & Tamil movies


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Sales PromotionCaf coffee day has been a very promisinginitiator than campared to its competitors forsales promotion like

Giving away Gifts during occasions egvalentine day

Offering Coupons Caf Citizen card which

allows regular members to avail discounts upto 20% and become a member

after a purchase amount of upto 2000 rs Sugar free campaign which was mainly done to

spread

awareness of staying healthy and fit by usingthe sugar free sachets

Discounts during festive times to member


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Process The order process at Caf Coffee Day is

based on self-service

They have a flexible delivery process, wherethey wait for some time for the customer to

pick up the order but if the customer takestoo long then the order is delivered on histable.


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Physical Evidence

Logo, Colors, Images

The Caf Coffee Day Logo

Dcor & Architecture

Literature


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People

People at Caf Coffee Day believe thatPeople are hired for what they know butfiredfor how they behave.

Motivation and personal skill are laidemphasize upon.


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Spa Industry


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NATURALS UNISEX SALON & SPA

46 Salons in South Asia and 4 getting

operational every month Most happening chain in India

Unisex salon is a concept popularized

by Naturals and has today become thefastest growingsalon chain in the country

equipment and products they use are ofpremium quality and thebeauty care specialists are the experts

in the industry


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Marketing Mix of Naturals Unisex salon

Product

Hair cut for men, women and children

Shaving, trimming

Facials, bleaching

Massage

Spa

Manicure

Pedicure

Waxing and threading


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Price

Naturals follow premium pricing strategy

Hair cut for men Rs 130 +tax Hair cut for women Rs 350 -700+tax

Facials ranges from Rs 200- 2500

Bride makeup costs Rs 7000+tax Shaving Rs 50+tax

Spa Rs 1500+tax

Hair coloring ranges Rs 700-1500+tax Hair Straightening Rs 1500-3500+tax


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Place

46 outlets in south asia

Mainly focuses on south indianmarket

Leading salon in Tamil Nadu

Situated in all metros of south IndiaChennai, Hyderabad, Bangalore.

30 outlets in Chennai alone and 4 in

Coimbatore , started in Pune as well


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PromotionNatural does two types of Promotion

1. Above the line Newspaper

TV

Magazines

Radio

2. Below the line Sponser college functions

Doctors day to attract students and working people attention

Naturals often give Gift vouchers and discount coupons to itscustomers.

Proces


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Process They provide service at customers

location too in case of marriage andother such events.

The blades are used only once and are

sterilized. The cosmetics used are of premium

quality.

Customized service. Packages can bealtered according to customers choice.


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People

Naturals have trained and skilled

employees They create a rapport with their

customers, by interacting with them

often, giving tips,being polite with them

A feel good experience is for sure

from naturals salon.

Physical


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PhysicalEvidence Naturals salons are well designed and air-

conditioned. They have a pleasing environment, nice

interior decoration which looks rich.

There is a waiters hall for those whoaccompany the customers which is fullyfurnished.

Many magazines are there for thecustomers to read.

The place is very clean and tidy.


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Conclusion

The array of strategic toolsavailable to service marketerstends to be broader than

commonly found in marketing ofmanufacturing goods. With thehuman element attached to

services it certainly requiresmore tools.


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Thank You

Documents

Service Mkt Ppt1