2. What is a Marketing –Mix?What is a Marketing –Mix?
According to Stanton, “Marketing-mix is
the term used to describe the
combination of four inputs which
constitute the core of company’s
marketing system-the product, the
price structure, the promotional
activities, and the distribution system.
3. Inadequacy of Four PsInadequacy of Four Ps
• The four traditional Ps of the marketing-mix
are adequate for marketing a product. But
they fail to cover the following aspects,
which differentiate products from the
services:
Services are intangible in nature
Promotion of services usually takes place at the
time of consumption itself
In Indian scenario, the public sector produced
most of the services
The dual role played by service customers as
co-producers and end consumers
4. Inadequacy of Four Ps Conti..Inadequacy of Four Ps Conti..
The four traditional Ps fail to capture the
importance of distribution for services
Consumers are unable to perceive the quality
standards of services before consumption.
6. ProductProduct
• Three levels of service
product:
The ‘core’ level---to
satisfy important needs
The ‘tangible’ level---
manages the
appearance
The ‘augmented’
Level---involves the
addition of
supplementary services
These three levels can
be considered into two
levels
Example: Restaurant
7. Product Cont..Product Cont..
• It is easy to
differentiate products
from one another when
compared to services
• Example: In case of
services of two banks
which offer similar
schemes and interest
rates
8. PricingPricing
• The pricing of services is very different
from the pricing of goods for various
reasons:
Higher price is generally associated with
better quality
The fixed cost is high and the variable
costs are low for a service, Example:
Hotel
Price of the same service can be changed
depending on the demand for the service,
Example: Hotel and Movie Theater
9. PromotionPromotion
• Service consumers experience a high level
of perceived risk
Service providers should aim to promote
their services in order to eliminate the
elements of this perceived risk
Promotion of service provider is equally
important in services, Example: Banker
• Service personnel and other customers also
participate in the promotion process,
Example: Restaurant and Entertainment
Park
10. PlacePlace
• Services are produced and consumed at the same place
• Services makes it impossible for service providers to
produce the service at a place where the costs are low and
sell it at a place where there is high demand for it
• Place decisions involve the following:
The physical location of the service provider’s outlet,
Example: ATM
The physical appearance and ambience of the place of
service offering, Example: Hotels of Taj Group
The decision to use particular types of intermediaries to
offer easy accessibility to the customers and improve
operational efficiency of the organization, Example:
Holiday Packages either directly or through tour
operators
11. PeoplePeople
• People in a service organization can have
an impact on the service offered:
Service personnel have an important role
in not only designing the service, but also
in delivering it
The service personnel play an important
role in helping the end consumer present
his requirements precisely
The perception of a service by a
customer also depends on the other
customers receiving the same service
12. ProcessProcess
• Marketers of services are often confused, as there
is little difference between marketing and
operations management in services, Example:
Airline Service
• Customer service encounters have an impact on
the quality of service delivered by the organization
• Some service organizations have mechanized
their service processes to reduce the element of
human judgment and error in service delivery,
Example: ATM
• Service organizations have identified customer
segments of those people who are ready to pay
higher prices
13. Physical EvidencePhysical Evidence
• Service providers should try to attach
an element of tangibility to their
service offerings
• Example: Broachers or TV
commercials showing the details of
holiday destination, pleasant and
courteous behavior of service
personnel , the location and ambience
of food outlet
