Services marketing. The 7 P’s of Services Marketing
The 7 P’s of
Dr S V Halliday MA MBA PhD
MCIM Chartered Marketer
2. SESSION OBJECTIVESTo 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
To apply all we’ve learned so far to
Reminder about industry guest speakers
3. What are the 7 P’s?Which one is chapter 5 addressing?
4. KEY ISSUESWhen 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?
5. WHEN SHOULD A SERVICE BE MADE AVAILABLE?Rising customer
expectations for 24/7
Is it cost effective to
What are the effects
of 24/7 culture on
6. TO WHOM SHOULD YOU PROVIDE ACCESS?Segmentation may have determined
primary target segments
But should some segments be actively
Different to goods – customer becomes
part of the production process
Increasing use of marketing to access
7. SHOULD A UNIVERSITY OR COLLEGE ACTIVELY ENCOURAGE ACCESS FOR ACADEMICALLY WEAKER STUDENTS?May be costly to “process” abnormal
May harm consumer-consumer
An opportunity or a problem?
Important social responsibilities for
many service providers, e.g. health and
8. A TYPOLOGY OF SERVICE LOCATION INFLUENCES8
9. THE INTERNET AND SERVICE ACCESSIBILITYIntangible services are particularly suited to
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
10. WHERE WOULD YOU LOCATE A NEW BRANCH OF THIS COFFEE SHOP CHAIN IN YOUR TOWN?Near to other coffee
In a quieter suburb?
Near to a college?
How would you go
11. WHO SHOULD BE INVOLVED IN MAKING LEISURE SERVICES AVAILABLE TO CONSUMERS?Intermediaries help to
distribute leisure and
Many types of
12. FUNCTIONS OF SERVICES INTERMEDIARIESCo-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
13. PUSH v PULL DISTRIBUTION STRATEGIES13
14. FRANCHISINGA widely used method of co-producing leisure
Combines decentralised enthusiasm of
entrepreneur with brand management of
Rapid growth of franchising
Also applicable to public sector services
But boundary between franchisor and franchisee
needs to be carefully managed
15. A NEW GENERATION OF “INFOMEDIARIES”Expedia.co.uk
offers choice to
But many travel
sell directly to
Apply this to McDonalds – did they use it?
- is it useful?
17. Next weekGuest speakers in from business
The organisation behind many well-known
The Logic-Group (Google them to find out more)
Topic: Loyalty and relationship marketing