Services marketing. The 7 P’s of Services Marketing

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Services marketing
Lecture 4
The 7 P’s of
Services Marketing
Dr S V Halliday MA MBA PhD
MCIM Chartered Marketer
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2. SESSION OBJECTIVES

To understand the need to design
“accessibility” into the service offer
To appreciate the effects of inseparability
on the role of service intermediaries
To understand the bases for models of
service location
To apply all we’ve learned so far to
MacDonalds
Reminder about industry guest speakers
next week
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3. What are the 7 P’s?

Which one is chapter 5 addressing?
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4. KEY ISSUES

When is the service to be made available
to the consumer?
To whom is to be made available?
Where should it be made available?
Who should be involved in making the
service available – which intermediaries?
How are any ancillary tangible goods to be
made available to final consumers?
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5. WHEN SHOULD A SERVICE BE MADE AVAILABLE?

Rising customer
expectations for 24/7
access
Is it cost effective to
satisfy these
expectations?
What are the effects
of 24/7 culture on
employees and
society?
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6. TO WHOM SHOULD YOU PROVIDE ACCESS?

Segmentation may have determined
primary target segments
But should some segments be actively
discouraged?
Different to goods – customer becomes
part of the production process
Increasing use of marketing to access
disadvantaged groups
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7. SHOULD A UNIVERSITY OR COLLEGE ACTIVELY ENCOURAGE ACCESS FOR ACADEMICALLY WEAKER STUDENTS?

May be costly to “process” abnormal
consumers
May harm consumer-consumer
dynamics
An opportunity or a problem?
Important social responsibilities for
many service providers, e.g. health and
education
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8. A TYPOLOGY OF SERVICE LOCATION INFLUENCES

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9. THE INTERNET AND SERVICE ACCESSIBILITY

Intangible services are particularly suited to
electronic distribution
Helps to separate production and consumption
Usually lower costs than conventional methods
Many examples of “Hub and Spoke” systems –
e.g. centralised mortgage processing centres
making mortgages available through local
branches, telephone and mail
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10. WHERE WOULD YOU LOCATE A NEW BRANCH OF THIS COFFEE SHOP CHAIN IN YOUR TOWN?

Near to other coffee
shops?
In a quieter suburb?
Near to a college?
How would you go
about deciding?
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11. WHO SHOULD BE INVOLVED IN MAKING LEISURE SERVICES AVAILABLE TO CONSUMERS?

Intermediaries help to
distribute leisure and
tourism services
Many types of
intermediary
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12. FUNCTIONS OF SERVICES INTERMEDIARIES

Co-produce the service
Provide sales support
Offer customers choice
Develop relationships with final consumers
May take risk
Can free up service principal’s capital
Provide a local point of contact
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13. PUSH v PULL DISTRIBUTION STRATEGIES

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14. FRANCHISING

A widely used method of co-producing leisure
related services
Combines decentralised enthusiasm of
entrepreneur with brand management of
franchisor
Rapid growth of franchising
Also applicable to public sector services
But boundary between franchisor and franchisee
needs to be carefully managed
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15. A NEW GENERATION OF “INFOMEDIARIES”

Expedia.co.uk
offers choice to
internet travel
buyers
But many travel
operators (e.g.
EasyJet, Ryanair)
sell directly to
customers without
intermediaries
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16.

AN EXTENDED SERVICES
MARKETING MIX
Product
Price
Place
Promotion
People
Processes
Physical
evidence
Apply this to McDonalds – did they use it?
- is it useful?
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17. Next week

Guest speakers in from business
The organisation behind many well-known
loyalty schemes:
The Logic-Group (Google them to find out more)
Topic: Loyalty and relationship marketing
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