Post on 07-Apr-2018
8/6/2019 7ps -Session 2
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MARKETING MIX
CLASSIFICATION
OF SERVICES
EXPECTATIONS
OF CUSTOMERS
8/6/2019 7ps -Session 2
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Expanded Mix for Services --
The 7 Ps
Product
Price
Place Promotion
People
Process
Physical Evidence
8/6/2019 7ps -Session 2
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PRODUCT ELEMENTS
All Aspects of ServicePerformance that Create Value
Core product featuresboth tangible
and intangible elements
Bundle of supplementary service
elements
Benefits delivered to customers
Guarantees
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PRICE
Traditional PricingTasks
Selling price, discounts, premiums
Margins for intermediaries (if any)
Credit terms
Identify and Minimize Other Costs
Incurred by Users
Additional monetary costs associated
with service usage (e.g., travel to
service location, parking)
Time expenditures, especially waiting
Unwanted mental and physical effort
8/6/2019 7ps -Session 2
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PROMOTION AND EDUCATION
Informing, Educating, Persuading,and Reminding Customers
Marketing communication tools
media elements (print,
broadcast, outdoor, retail,Internet, etc.)
personal selling, customerservice
sales promotion
publicity/PR
Viral Marketing
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PLACE AND TIME
Delivery Decisions: Where, When, andHow
Geographic locations served
Physical channels
Electronic channels
Channel partners/intermediaries
Service schedules
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PHYSICAL ENVIRONMENT
The environment in which the service isdelivered and where the firm and customerinteract and any tangible components thatfacilitates performance or communicationof the service
Create and maintaining physical appearances
buildings/landscaping
interior design/furnishings
vehicles/equipment staff grooming/clothing
sounds and smells
other tangibles
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PROCESS
The actual procedures, mechanisms
and flow of activities by which the
service is delivered the service
delivery and operating systems
Design of activity flows
Number and sequence of actions for
customers
Role of contact personnel
Role of technology, degree of
automation
8/6/2019 7ps -Session 2
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PEOPLE
All human actors who play
a part in service delivery
and thus influence thebuyers perceptions:
namely,
the firm's Personnelthe customer
and other customers
8/6/2019 7ps -Session 2
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CLASSIFICATION OF SERVICES
People Processing(Services directed at peoples bodies)Possession Processing
(Services directed at Physical
possessions)
Mental StimulusProcessing(Services directed at peoples mind)
Information Processing(directed at intangible assets)
e.g., airlines, hospitals,
haircutting, restaurants
hotels, fitness centers
e.g., freight, repair,
cleaning, landscaping,
retailing, recycling
e.g., broadcasting, consulting,
education, psychotherapy
e.g., accounting, banking,
insurance, legal, research
TANGIBLEACTS
INTANGIBLE
ACTS
DIRECTED AT PEOPLE DIRECTED AT POSSESSIONS
What is the
Nature of the
Service Act?
Who orWhat is the Direct Recipient of the Service?
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CUSTOMER
COMPANY
Customer
Gap
GAP 1
GAP 2
GAP 3
ExternalCommunications
to CustomersGAP 4Service
Delivery
Customer-DrivenService Designs and
Standards
Company Perceptionsof Consumer
Expectations
Gaps Model of Service Quality
Perceived Service
Expected Service
8/6/2019 7ps -Session 2
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PerceivedService
Expected
ServiceCUSTOMER
COMPANY
Customer
Gap
GAP 1
GAP 2
GAP 3
ExternalCommunications
to CustomersGAP 4Service
Delivery
Customer-DrivenService Designs and
Standards
Company Perceptionsof Consumer
Expectations
Gaps Model of Service Quality
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Customer expectations
Belief about service
delivery that function as
standards or referencepoints against which
performance is judged.
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Adequate Service
Desired Service
LEVELS OF EXPECTATIONS
Desired service: The level of service theCustomer hopes to receive-the wished forLevel of performance.
Adequate service: The level of service the
Customer will accept.
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Adequate Service
Desired Service
Zone ofTolerance
The Zone of Tolerance
The extent to which customers recognize and arewilling to accept this variation is called Zone ofTolerance.
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Most Important Factors Least Important Factors
Levelof
Expectation
Adequate Service
Desired Service
Zone ofTolerance
Zone
of
Tolerance
Desired Service
Adequate Service
Zones of Tolerance for
Different Service Dimensions
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Personal Service
Philosophy
Personal NeedsZone
of
Tolerance
Desired Service
Adequate Service
Factors structuring the Desired Service
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Self-Perceived
Service Role
Situational
Factors
Perceived Service
Alternatives
Transitory Service
Intensifiers
Zone
of
Tolerance
Desired Service
Adequate Service
Factors That Influence
Adequate Service
8/6/2019 7ps -Session 2
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Predicted
Service
Explicit Service
Promises
Implicit Service
Promises
Word-of-Mouth
Past ExperienceZoneof
Tolerance
Desired Service
Adequate Service
Factors that Influence
Desired and Predicted Service
Predicted service: The level of servicecustomers believe they are likely toget
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A MODEL OF CUSTOMER SERVICE EXPECTATIONS
Predicted
Service
Explicit Service
Promises
Implicit Service
Promises
Word-of-Mouth
Past ExperienceZone
of
Tolerance
Desired Service
Adequate
Service
Self-Perceived
Service Role
Situational
Factors
Perceived Service
Alternatives
Transitory Service
Intensifiers
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WHAT DO YOU DO IF CUSTOMER
EXPECTATIONS ARE UNREALISTIC?
HOW DO YOU EXCEED CUSTOMERSERVICE EXPECTATIONS?
HOW DO YOU STAY AHEAD OF
COMPETITION IN MEETING
CUSTOMER EXPECTATIONS?