MARKETING MIX IN SERVICES
PRODUCT
Marketing of Services
Ing. Veronika Braciníková, Ph.D.
The Concept of Marketing Mix
The elements an organization controls that can be used to satisfy or communicate with customers.
Firstly, the phrase „marketing mix" was used by Neil H. Borden based on work of James Culliton.
Borden's concept of MM consists of 12 variables.
The Concept of Marketing Mix
McCarthy summed up these variables into 4Ps:
Product Price Place Promotion
The customer — the target of all marketing efforts.
The Concept of Marketing Mix
PRODUCT
Product variety Quality Design Features Brand name Packaging
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Warranties
Returns
PRICE
List price Discounts Allgwances Payment period Credit terms
PLACE
Channels
Coverage
A    irhrmi:-.
Locations
Inventory
Transport
PROMOTION
Sales promotion Advertising Sales forte Public relations Direct marketing
Modern Marketing Management Four Ps
People Processes Programs Performance
Source: Kotier & Keller (2016)
Source: Kotier & Keller (2016)
4
The Concept of Marketing Mix of Services
The reasons of developing the MM for services:
• The traditional MM is more oriented to deal with goods marketing situations.
• The traditional MM did not address the service manager's needs.
• Differences in characteristics of physical products and services.
• Inadequacy of conventional MM to address the service situations.
The MM of Services:
•   Product, Price, Place, Promotion, People, Physical Evidence and Process.
The Product
Overall concept of objects or processes which provide some value to customer.
The customers are not buying goods or services - they are really buying specific benefits and value.
The success of marketing of services depends on existing of match between customer's view point and the supplier's view point.
Core component (a)
Packaging component (B)
Support services component (C)
The Whole Product Model
Generic product — Bank Account: the basic function
Expected product — BA: credit card, internet banking
Augmented product — BA: international banking free, ATM free, loan, discount card
Potential product — BA: everything that is on the market and everything that is possible to offer
Product Life Cycle
Maturnity Saturation
Special Forms of Product Life Cycle
Description of Life Cycle Stages
Introduction
Growth
Maturnity
Decline
Sales
LOW
FAST GROWTH
THE HIGHEST
FALL
Profits
LOSS
GROWTH
THE HIGHEST
FALL
Customers
INNOVATORS
EARLY ADOPTIVE CUSTOMERS
MAJORITY
LATECOMERS
Competitors
LOW
GROWTH
MANY
FALL
MARKET EXPANSION
MARKET PENETRATION
SHARE DEFENCE
PRODUCTIVITY
The Customer Benefit Concept
Origin of products in their benefits.
Over a period of time, the benefits sought may also change.
Specific benefits which the service offers is defined by service concept.
The Service Offer
In the case of centre for the performing arts, the service concept is to provide entertainment.
Concerned with the specific elements that will be used to provide entertainment; drama, music, mime, dance.
The Service Forms
With decision-making process about the form of the services many questions need to be answered.
Refer to the various options relating to each service element — the manner in which they are combined gives shape to the service form.
The Service Delivery System
In case of airlines - the aeroplane, pilot, crew members, airport, etc. — are the elements of delivery system.
Tangible and intangible elements of the services are very important and influence their quality.
The Service Delivery System
The visit to a bank on two occasions brings different experiences — no two customer experiences are identical.
Service levels should be set in accordance with the desired customer satisfaction.
The Substitutes and The Complements
Perfect substitutes.
General substitutes
The Product Branding
Process of adding value to the product. No-Name product National Brand Private (Store) Brand
The Brand Attributes
• Brand name — part of brand which can be pronounced
• Logo, symbol - visual part of brand
• Colour
• Style of sign
The Brand Name
• It should catch customer's attention.
• It should be memorable.
• It should create good association.
• It should communicate something about the product.
• It should have good graphics processing.
• It should be pronounced easily in many foreign languages
• It should be dateless.
The Consumers Symbols
• Graphical symbols which are put on package or directly on the product.
• They mention the selected parameters of goods or the way how to use them.
• Consumer's symbols are obligatory in some types of goods.
The Product Standardization X Adaptation
Standardization — „world product".
Adaptation - completely new products for particular countries.
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