marketing mix1

marketing mix1 - Transcript

Marketing Mix Value Drivers
Harsh V Verma Faculty of Management Studies University of Delhi harshfms rediffmail com

Product
Product management New product development Branding Product line Product mix Product quality Product packaging

Inflight service Bookings Contingency

hospitality

Check in procedure Baggage Safe timely transhandling portation form one Point to the other

Communication ambience Response time

Price
Pricing freedom Price quality combination Price method Price strategy Discount structure

Place or Distribution
Channel strategy Channel length Channel selection Channel selection and motivation Channel control Customer service Coverage Accessibility Location

Making goods services available

Producer Agent WS Retailer

Goods are physical entities they can be physically moved form place of production to place of consumption for creating time and place utility Intermediaries are service entities they provide presalerepresentation explaining promotion ensuring services and post sale services return exchange support services to products

Service channels are almost direct
Services can not be stored Services can not be owned Services are perishable Services are intangible

Therefore services cannot be produced stored or warehoused and then retailed

Service intermediary functions
The co producer role function service creation by using processes and procedures developed by the principal Making service locally available time and place utility Glue that bind customer and firm and build trust

Service availability

Producer Customer

Producer

Customer

Service Firm

Franchisor

Customer

Service intermediary functions
The co producer role function service creation by using processes and procedures developed by the principal Making service locally available time and place utility Glue that bind customer and firm and build trust

Direct or company owned channels
Starbucks service provided by company owned outlets Tata Sky and Dish TV

Advantages consistency standardized service Company develops customer trust and franchise Greater control monitor and reward performance Disadvantage requires financial risk high capital requirement that could be used to build brand Company may lack local nuances culture

Partnering is needed
But it requires handling various issues Tensions arising out of differing objectives and performance Tension over cost and compensation Tension over quality and consistency across outlets Tension over empowerment intermediary need and control firm s goal

Franchising
McDonalds TGI Ruby the Tuesday Dr Lal s Lab Snowhite Kodak world PVR Hilton Ginger Weigen and Leigh NIIT Costa Barista Pizza Hut

Franchising
Franchising is way to provide services to customer It is most common type of service distribution A service concept reside at the heart of the franchising Usually applicable to standardized services that can be duplicated Complex services not prone to standardization are not franchised The service process internal mechanism branding promotion policies warranties are duplicated

Service Distribution
Multi site most of the top service brands started as single site operations to evolve into multi site operations Starts with strong acceptance of a formula which later goes in different sites Growth by outlets multiplication Multi service growth by services multiplication Marketers adds new services to its portfolio prompted by favorable customer response Suited for firms competing on functional quality and build position on operational flexibility

Multi segment strategy services remain more or less same but served market varies Firm targets its services to new customer segments form its present location Attracting unrelated inconsistent segments could be risky Hybrid strategy a firm may combine more than one of the above strategies to achieve growth

Promotion
Advertising Sales promotion Public relations Personnel selling Merchandising Sponsorship Image management

Advertising Issues
Advertise to employees first audience Capitalize on WOM target opinion leader use comments of satisfied customers Provide tangible clues to reduce risk and uncertainty Make service understood service advertiser is often left with describing the invisible articulating the imaginary and defining and indistinct Advertising continuity use consistently certain symbols formats themes music to build and reinforce desired image Promise only what is possible

Advertising Challenge
Impact of Intangibility 1 Difficulty in understanding 2 Difficulty in evaluation 3 Few brands in the evoked set

Understanding difficult to grasp mentally Advertising strategy provide vivid information 1 Use tangible objects to evoke mental elaboration of stimulus related information 2 Use specific or concrete language this adds customer understanding 3 Dramatize service performance It helps understand role and effects of service Vandana Luthra

Go in the evoked set must be remembered

Strategy relate the name to the service category so that it is remembered 1 Use imagery visualization of concept of relationships 2 Pictorial imagery Blue Dart Arrow Pest Control 3 Use names or verbal expression Palace on Wheels

Facilitate Evaluation
Pre purchase search search experience and credence give tangible clues cylinders BHP communicate behind the scene rules through advertising Post purchase evaluation expectations vs performance influence expectations through advertising

Process
How customers are handled and managed form the point of very first contact with the system through the point of very last contact Policies procedures mechanization employee discretion customer discretion flow of activities

Process Issues
Technology to be used or developed Conversion process consider cost to customer service quality ease of use technology readiness Specific equipment consider appropriateness operating cost compatibility maintenance parts personnel frienliness

Process flow consider sequencing of operations performance by men and machines flow chart them People assess manpower requirements right people with right skill and attitudes Service location select appropriate site for delivery Facility layout physical arrangement of system to maximize pace utilization reduce movement increase customer convenience and create good environment Organization structure decide on standardization formalization centralization etc

People Issues
Employee selection Employee training Employee motivation Employee retention Employee functional and social skills Performance to satisfy or delight

Human resource challenge breaking the barrier

What dimension
Prepare people to perform

How dimension

Appeal to logic Control based Performance What Competitive threshold

Prepare people

How Voluntary emotion based Appeal to heart

Beyond cr threshold

Human Resource Issues
Know the customer needs Compete for talent Offer a vision Stress on team play Leverage freedom factor Measure performance Internal marketing

Physical evidence
Environment surrounds and engulfs one can only participate in it It impacts sense in more than one ways Impossible to create impact neutral environment There is peripheral and central information dimension of environment It implies purpose and action It contains meanings and motivation message It implies aesthetics social and systemic qualities

Environment Factors
Ambient Factors Air quality temperature humidity circulation Quality of scent Design factors Aesthetics Architecture colors materials shape style of accessories Social factors Appearance behaviors and number of providers Quality and quantity of other customers

Servicescapes design of service environment

Role of evidence Provide sensory stimuli Signal image Service differenentiation

Employee socialization

Facilitate quality Promotion of trust

Servicescapes customer response

Cognitive response beliefs categorization on and symbolic meaning formation of opinion about a doctor on the basis of equipment layout and staff dress Emotional response trigger certain feelings like being upbeat excited happy and stimulated consider McDonald s or Ruby Tuesday

Servicescapes customer response Physiological response influence on your body through noise temperature air quality clutter etc Big Bazzar and Lifestyle Behavioral response approach or avoidance follow rules or break them spend less time or more time spend in a pub or restaurant or hotel