The Traditional Marketing Mix
Product : The Service product requires consideration of the range of services provided, the quality of services provided and the level of services provided. Service product lie at the heart of a firm’s marketing strategy. If a product is poorly designed it won’t create meaningful value for customers, even if the rest of the 7 Ps are well executed. Attention will also need to be given to matters like the use of branding, warranties and after-sale service. Service product consists of (1) a core product that responds to the customer’s primary need and (2) an array of supplementary service elements that are mutually reinforcing value added enhancements that help customers to use the core product more effectively.
Price : Customers, by contrast, see price as a key part of the costs they must incur to obtain desired benefits. Price may also play a part in differentiating one service from another and therefore the customers’ perceptions of value obtained from a service and the interaction of price and quality are important consideration in many service price sub mixes. To calculate whether a particular service is “worth it,” they may go beyond just money and assess the outlays of their time and effort. Service marketers, therefore, must not only set prices that target customers are willing and able to pay, but also understand – seek to minimize, where possible – other burdensome outlays that customers incur in using the service. These outlays may include additional monetary costs, time expenditures, unwanted mental and physical effort and exposure to negative sensory experiences.
Promotion : Promotion includes the various methods of communicating with markets whether through advertising, personal selling activities, sales promotion activities and other direct forms of publicity or direct forms like public relations. The communication component plays three vital roles: providing needed information and advice, persuading target customers of the merits of a specific brand or service product and encouraging them to take action at specific times. Communication, in service marketing is educational in nature, especially for new customers. Communication may be delivered by individuals such as salespeople and frontline staff, at websites, on display screens in self-service equipment and through a wide array of advertising media. An important role of a service firm’s communication is to create confidence in its capabilities by emphasizing the firm’s experience, credentials and expertise of its capabilities.
Place : The location of the service providers and their accessibility are important factors in service marketing. It may involve physical distribution or electronic channels, depending on the nature of the service. Many information-based services can be delivered almost instantaneously to any location in the world that has internet access. Firm’s may deliver service directly to end-users or through intermediary organizations – such as retail outlets that receive a fee or commission – to perform certain tasks associated with sales, service and customer contact. Speed and convenience of place and time have become important determinants of effective distribution and delivery of services. Nowadays, a growing number of services are available 24/7, and via more and more distribution channels, including retail branches, self-service machines like ATMs, call centers and internets.
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