Finally, marketing is a social process that occurs in all economies, regardless of their political structure and orientation.
Eventually, the decision to buy or not may be based on the perceived value of the entire product or marketing mix offering. Services are also intangible products but they are the result of an economic activity that does not result in ownership.
Therefore your experiences allow you to evaluate the level and nature of the service. In the case of a camera, they are able to capture memories forever through the purchase of a product Actual — Here, any additional benefits are added on to differentiate the product and highlight its USP.
Consumer Goods — Items that are used directly by the end user such as food, clothing, cars, etc, Consumer Services — Services that are for the benefit of end users directly such as education, courier services, grooming services, etc.
Fixed and variable Costs Market segments, targeting and positioning decisions External Factors Those factors which have a significant impact on pricing decisions but are not completely controllable by the company are known as external factors.
Pricing of services is tougher than pricing of goods. Those who make up the marketing department may include brand and product managers, marketing researchers, sales representatives, advertising and promotion managers, pricing specialists, and customer service personnel.
Determine Price Using all the information collected and analyzed till this point, a company is now in a good position to set the best price for its products. If these competitors were to get together and decide to sell at a fixed price, it would mean more expensive products for the user and more benefits for the company.
Another type of processing is possession processing, and an example would be where you take your dog to be groomed, or you organise a service for your car i.
Thus, there are hair salons that have well designed waiting areas often with magazines and plush sofas for patrons to read and relax while they await their turn. Thus, a restaurant is known as much for its food as for the service provided by its staff. The process of service delivery is crucial since it ensures that the same standard of service is repeatedly delivered to the customers.
These four components help determine a clear and effective strategy to bring a product to market. Homogeneous Homogeneity is where services are largely the same the opposite of variability above.
The same is true of banks and department stores. Define the Right Pricing Any pricing decisions for a product need to be made through proper research, analysis and an eye on strategic objectives for the organization and the product.
Establishing Value Another important reason to conduct services marketing is to establish the value of the services. These characteristics help determine all subsequent actions such as pricing, communication strategy and additional features or add-ons.
Credence quality is based upon the credibility of the service that you undertake. Many organizations and businesses assign responsibility for these marketing functions to a specific group of individuals within the organization.
Think about the number of insurance agencies that are in your locale or how many personal injury attorney commercials you see on television.
This localization means that consumption is inseparable from production. Each product item will have three main elements that need to be focused on.
The traditional marketing mix which includes productplaceprice and promotion could be stretched to compensate for these factors. Homogeneous Homogeneity is where services are largely the same the opposite of variability above. Consequently, customer service training for staff has become a top priority for many organizations today.
All these institutions perform the same function. We now look at the 3 new elements of the services marketing mix - people, process and physical evidence - which are unique to the marketing of services. Food Service Industry Challenges Shortage in the supply of raw materials: View all posts by Tim Friesner Posted on.
What is the main or core benefit that a product offers to its consumers? There are very few products that have no clear competition in the market.
Designer cars and premium brand stores are a good example of this type of pricing. Product marketing tends to be straightforward with the ability to provide a picture and point to specific features. If an organization has multiple revenue streams, it may not be too focused on recovering a hundred percent of its costs.
This is a tricky category, as special offers for seniors and children are acceptable while presenting only high cost options to higher income consumers may not be well received.
One benefit would be that if you are unhappy with you makeover you can tell the beautician and that instant feedback means that the service quality is improved.
It is therefore, a good idea for a company to study the competition and the market, but not to enter agreements to the detriment of the consumer.Of course the marketing mix for services still needs to address the remaining 4Ps of pricing, product, place and promotion.
Let’s consider some examples of these four elements from the perspective of.
The Insurance Marketing focuses on the formulation of an ideal mix for Insurance business so that the Insurance organisation survives and thrives in the right perspective. → MARKETING –MIX FOR INSURANCE COMPANIES: The marketing mix is the combination of marketing activities that an organisation engages in so as to best meet the needs of its /5(20).
A service is the action of doing something for someone or something. It is largely intangible (i.e. not material).
Therefore the marketing mix has seen extended and adapted to create the services marketing mix, also known as the 7P’s or the extended marketing mix – physical evidence, process and people.
motor insurance may have a.
What is Social Marketing? by Nedra Kline Weinreich. The health communications field has been rapidly changing over the past two decades. It has evolved from a one-dimensional reliance on public service announcements to a more sophisticated approach which draws from successful techniques used by commercial marketers, termed "social marketing.".
Jan 03, · The traditional marketing mix, built around the 4Ps — product, price, place and promotion — arguably discount the breadth and complexity of current-day marketing. We now look at the 3 new elements of the services marketing mix - people, process and physical evidence - which are unique to the marketing of services.
People: People are a defining factor in a service delivery process, since a service is inseparable from the person providing it.Download