Prezentace předmětu:
Marketing of services
Vyučující:
Ing. Michal Stoklasa, Ph.D.
Ing. Martin Klepek, Ph.D.
Název
prezentace
Název projektu
Rozvoj vzdělávání na Slezské univerzitě v Opavě
Registrační číslo projektu
CZ.02.2.69/0.0./0.0/16_015/0002400
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MARKETING MIX 1
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The aim of this presentation is to describe the nature of marketing mix in services with special
focus on product
Martin Klepek
Garant předmětu
Michal Stoklasa
Přednášející

MARKETING MIX 1
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What is marketing mix
Product
Product layers
Product lifecycle
Lecture structure

•Marketing mix is the set of important internal elements that make up an organisation’s marketing
programme.
•The  marketing  mix  concept  is  a  well  established  tool  used  as  a structure by marketers.
•It can be defined as the elements an organisation controls that can be used to satisfy or
communicate with customers.
Introduction
4

•The phrase ‘marketing mix’ was first used by Neil  H.  Borden.
•The  concept  had  its  genesis  in  the  classic  work  of  James  Culliton  on  the management
of  marketing  costs.
•Borden  suggested  twelve  marketing  mix  variables  in  the context of manufacturers.
Introduction
5

•Borden’s concept of marketing mix was given due recognition in marketing theory and the concept of
marketing mix was accepted as the set of marketing tools that a firm uses to pursue its marketing
objectives in the target market, influenced by specific environmental variables.
Introduction
6

•It was McCarthy who summed up the twelve elements of Borden’s marketing mix into 4Ps  -  product,
price,  place  (i.e.  distribution),  and  promotion.
•He  even  clarified  that  the customer is not a part of the marketing mix, rather, he should be
the target of all marketing efforts.
Introduction
7

•The  activities  in  service  marketing  are  different  ,  and  often  do  not  fall  in  the
conventional marketing mix (4Ps) classification, though many marketing concepts and tools used by
goods marketers hold good in services with some change in focus and importance.
Introduction
8

Introduction
9
Source: Kotler & Keller (2016)
Source: Kotler & Keller (2016)

•The traditional marketing mix became inadequate for service industries because of the following
reasons:
•The concept of marketing mix as such was developed for manufacturing industries and was more
oriented to deal with goods marketing situations.
•Marketing practitioners in service sector found that it did not address their needs.
•Due  to  differences  in  characteristics  of  physical  products  and  services,  marketing
models and concepts had to be developed in direction of the service sector.
Introduction
10

•Keeping in view the inadequacy of conventional marketing mix to address the service situations, it
needs to be modified and broadened.
•A seven Ps framework for services has been proposed.
•These elements of marketing mix for services are product, price, place, promotion, people,
physical evidence and process.
Introduction
11

• It is important to elaborate these Ps in order to have an understanding of a specific combination
of these elements to arrive at the marketing strategy for service firms.
•A detailed account of each of these elements of marketing mix is as follows.
Introduction
12

•A product is an overall concept of objects or processes which provide some value to customer;
goods and services are subcategories which describe two types of product.
•Thus, the term product is frequently used in a broad sense to denote either a manufactured good or
a service.
•In fact, customers are not buying goods or services - they are really buying specific benefits and
value from the total offering.
Product
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•So, the most important issue in service product is what benefits and satisfaction the consumer is
seeking from the service.
•From the point of view  of  a  restaurant’s  manager,  the  restaurant  simply  provides  food.
•But,  the  customers coming to the restaurant may be seeking an ‘outing’ - an atmosphere different
from home, relaxation, entertainment or even status.
Product
14

•The marketing of services can be a success only if there  is  a  match  between  the  service
product  from  the  customer’s  view  point  and  the supplier’s view point.
•To find this match it is desirable to analyse the service at the following levels
Product
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Product
16
Principal function
Design
Quality
Package
Styling
Brand name
Installation
Spare
parts
Instructions
Warranty
Deliveries
Repair and maintenance
Financial services
A
B
C

•Generic product: fulfils the basic function of the product (Bank Account: the basic function)
•Expected product: minimal requirements expected by customer (BA: credit card, internet banking)
•Augmented product: offers more than usually expected by customer (BA: international banking free,
ATM free, loan, discount card)
•Potential product: everything that can make the product perfect and ultimately increase the
utility (BA: everything that is on the market and everything that is possible to offer)
Product
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Product lifecycle
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Introduction
Growth
Maturnity
Saturation
Decline
Sales
Profit
SALES
PROFIT
TIME

Product lifecycle
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RECYCLE/STYLE
FASHION
WAVY CYCLE
FASHION HIT

Product lifecycle
20
Bez názvu.bmp

•Customer benefit concept:
•The service product which is offered in the market must have its origin in the benefits which the
customers are seeking.
•But, the problem is that customers themselves may not have a clear idea of what they are seeking,
or they may find it difficult to express or it may be a combination  of  several  benefits  and
not  a  single  one.
Product
21

•Customer benefit concept:
• Over  a  period  of  time,  the  benefits sought  may  also  change.
•This  change  in  customer  may  come  about  by  a  satisfactory  or unhappy  experience  in
utilising  the  service,  through  increased  sophistication  in  service  use and consumption, and
changing expectations.
•All these make the issue of marketing a service product more complex.
Product
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•Service concept:
•Using the customer benefits as starting point, the service concept defines the specific benefits
which the service offers.
•At the generic level, the service concept refers to the basic service  which  is  being  offered.
•A  centre  for  performing  arts  may  offer  entertainment  and recreation.
Product
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•Service offer:
•After  defining  the  business  in  which  we  are  operating,  the  next  step  is  to  give  a
specific shape and form to the basic service concept. In the case of centre for the performing
arts, the service concept is to provide entertainment.
•The service offer is concerned with the specific elements that will be used to provide
entertainment; drama, music, mime, dance.
Product
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•Service offer:
• In the category of musical concerts the choice may be vocal or instrumental, with vocal whether
light or classical, Hindustani, Carnatic or Western. While these represent the intangible items of
the service offer, the physical infrastructure of the centre, in terms of its seating capacity,
seating comfort, quality and acoustics, provision for air-conditioning, snack bar and toilets are
the tangible items.
Product
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•Service forms:
•In what form should the services be made avail able to the customers is another area of decision
making. Should all the shows of the centre be available in a package deal against an annual
membership fee or seasonal ticket?
Product
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•Service forms:
• Should there be daily tickets with the consumer having the freedom to watch any one or more
performances being staged on that particular day?
•Should each performance have a separate entrance ticket, with a higher priced ticket for a
well-known performer?
•Service form refers to the various options relating to each service element. The manner in which
they are combined gives shape to the service form.
Product
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•Service delivery system:
•When we go to bank to withdraw money, we either use a cheque or a withdrawal slip in which we fill
all the particulars and hand it over to the dealing assistant, who after verifying the  details,
gives  us  money.
•The  cheque  or  with-drawal  slip  and  the  dealing  assistant constitute the delivery system.
Product
28

•Service delivery system:
•In case of airlines, the aeroplane, pilot, crew members, airport, etc. are the elements of
delivery system.
•The two main elements in a delivery system are the people  and  the  physical  evidence.
Product
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•Service delivery system:
•The  competence  and  public  relations  ability  of  a  lawyer represents the ‘people’ component,
while his office building, office door, letter head, etc., are all elements of the ‘physical
evidence’ component.
Product
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•Service delivery system:
• The physical evidence components have also been called facilitating goods or support goods.
•These are the tangible elements of the service and they exert an important influence on the
quality of the service as perceived by the consumers.
•Delivering an intangible at a level consistently is a complex issue. The experience in two flights
of the same airline is not the same.
Product
31

•Service delivery system:
•The visit to a bank on two occasions brings different  experiences.  The  consumer’s  service
experience  is,  as  such,  a  result  of  provider-customer interaction, atmosphere, emotional
stress, anxieties, surprises, etc.
•It is because of these delivery factors (varying at different points of time) that no two customer
experiences are identical. This variability of experience is attributable to the inability of the
service firms to deliver the intangible uniformly
Product
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•Service delivery system:
•Service firms must learn to manage intangibles. They need to go beyond the technical skills of
employees or the tangible output.
•Service levels should be set in accordance with the desired customer satisfaction.
•The answer to ‘what customer expects’ should be sought. And it  is  not  an  easy  answer
because  the  subjective  nature  of  the  customer  expectations  often vitiates the whole
exercise.
Product
33

Summary
•We have learned in this presentatipn, that  Marketing mix is a et of tools with the help of which
marketing exercise is undertaken and is comprised of 4 Ps namely Product, Price, Place and
Promotion. In case of services, three more Ps can be added – People, Process and Physical evidence.
•We focused on the first P of marketing mix which is Product. We introduced its variations and
differend angles of how this element could be understood and utilised in marketing of services.
•