Page 48 - DMGT510_SERVICES_MARKETING

Unit 3: The Service Marketing Mix and Purchase Process

result they are paying for will be delivered. There’s also an emotional comfort factor in Notes
buying a package. Purchasing something with a name attached makes it feel much more
tangible than simply buying hours.
For you, offering a package helps you get your foot in the door. Once you show a client
what you are capable of, more business will often result. Even if you price your package
at slightly less than what you would earn for working the same amount of time at an
hourly rate, you will probably profit more because more of your time will ultimately be
sold.

Many consultants find that fixed-price contracts are much more profitable than working
by the hour. In a survey quoted by the late Howard Shenson in “The Contract & Fee-
Setting Guide for Consultants & Professionals,” consultants working exclusively on a
fixed-price basis had 87% higher profits than those working on a daily or hourly basis.
To determine which of your services would be best to turn into a product, consider what
your target market most often wants from you. Is there a specific set of steps you usually
follow when first working with a new client? Activities that you perform repetitively
with many people give you an opportunity to create templates, worksheets, and other
tools that you develop only once and use over and over. This effectively allows you to
charge for the same work more than once.
Be sure to spend some time on coining a unique name for your product. You want a
memorable results-oriented name that will help you to stand out from the competition,
and perhaps even allow you to trademark it.
To launch your first product, you may not need to do much more than develop a standard
format for what you are already doing, set a price, and name your new invention. Taking
this critical step toward making your services more tangible can result in easier sales,
more repeat business, and more profitable engagements.
Source: www.marketing.about.com

Self Assessment

State whether the following statements are true or false:

1. In an airline, the behaviour of the airhostess can well serve as a promotional technique for
the airline.
2. The good behaviour of the personnel at the bank is a part of their core product.

3. Price of the services is hard to alter. Once fixed, consumers will only be ready to pay that
amount for a long time.
4. The Air-India ‘Maharaja’ itself promotes Air-India.
5. The free pick up facility provided by some airlines form a part of their augmented product.

3.2 Buying Situations Faced by the Consumer

Customers find themselves in different buying situations, from purchase to purchase and service
transaction to service transaction. In other words, two trips to the retail bank for two different
purposes (e.g., the first to deposit a cheque in his savings account and the second for a home
loan) may not have the same purchase decisions. The second buying situation would differ
greatly from the first if one or more of the following factors are absent:
The customer is aware of the service product category and service brands.
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