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MARKETING MIX

CLASSIFICATION

OF SERVICES

EXPECTATIONS

OF CUSTOMERS

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Expanded Mix for Services --

The 7 Ps

Product

Price

Place Promotion

People

Process

Physical Evidence

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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

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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

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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

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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

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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

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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?