Page 58 - DMGT510_SERVICES_MARKETING

Unit 3: The Service Marketing Mix and Purchase Process

The service marketer should try and make all the purchase situations routine, and Notes
low-involvement, with branding exercises, guarantees all enhancing product reputation. They
should aim to reduce perceived risk in the offer. The service marketer should increase customer
loyalty by giving close and personalized attention to the consumer, as frequency and familiarity
of purchase will reassure the customer, make him less anxious and involve him in the purchase
process. Retailers thus seek to increase store loyalty, by stressing on convenient location and
time, store ambience and atmospherics and providing value added, optimum service.

Self Assessment

State whether the following statements are true or false:
14. The service marketer should try and make all the purchase situations routine.

15. If the service offer is completely new to the customer, the situation that he faces is routine
task.

3.5 Summary

The four traditional Ps of the marketing mix – product, place, price, and promotion are

adequate for marketing a product but they are not enough to market a service.
For services marketing, the strategists have suggested an extended mix which includes

people, process and physical evidence, in addition to the other Ps.
Services have special characteristics like perishibility, intangibility and inseparability,

which distinguish them from goods. People, process and physical evidence play a greater
role in the marketing of services than in the marketing of products.
Marketers have identified three levels in developing the product element of the marketing

mix as far as services are concerned- core level, augmented level and tangible level.
The pricing of services is very different from the pricing of goods for various reasons.

Services for example, can be differentiated based on their price, as a higher price is generally
associated with better quality. Another differentiating factor between services and goods
as far as pricing is concerned, is the cost component involved.
Service consumers experience a high level of perceived risk when compared to consumers

of products because of the intangible nature of services. Service providers should aim to
promote their services in order to eliminate the elements of this perceived risk.
Due to the inseparability of services, they are produced and consumed at the same place.

This inseparability of services makes it impossible for service providers to produce the
service at a place where the costs are low and sell it at a place where there is a high demand
for it.
Many service organizations involve their personnel both at the point of frontline delivery

and during the production process that does not involve the final consumer. Many services
involve consumers as co-producers in designing the service offering to suit their individual
preferences.
The production and delivery process in the manufacturing sector is easier than in the

services sector. Marketers of services are often confused, as there is little difference between
marketing and operations management in services. This is because the production, delivery
and consumption of services take place simultaneously.

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