Icici b’day ad

Service Marketing
Triangle
Customers

Company Competition

2
THE GAPS MODEL OF SERVICE QUALITY
CUSTOMER
Customer Needs And Expectations
MANAGEMENT
1.The knowledge Gap

Management Definition Of These Needs

2. The standards Gap

Translation Into Design /Design Specs

4.The internal communication
3.The delivery Gap
4
Execution Of Design/Delivery Specs Advertising And Sales Promises

5.the perception Gap 6.The interpretation Gap

Customer Perceptions Of Product Execution

Customer Interpretation Of Communications

7.The service Gap

Customer Experience Relative To Expectations

Classification of Services
Pure Intangible
Banking
Service

Good Transportation

Major Service with

Minor Product
Business Hotels

Product = Service

Computers

Major Product with

Minor Services
Materials / Components

Pure Tangible Product

4
What is a product…..??
 A product is any thing that can be offered
to a market for attention,acqusition,use
or consumption that might satisfy a
want or need. it includes physical
objects , services , persons , places ,
organizations and ideas.
Types of Products

PRODUCTS

Consumer Industrial
Services
Products Products

6
 Service product
 A service product typically consist of a
core product bundled with a variety of
supplementary service elements. The
core element respond to the
customers’ need for a basic benefit
while supplementary services facilitate
and enhance use of the core services.
 For e.g.-financial products
VARIOUS FINANCIAL PRODUCTS
 FINANCIAL PRODUCT:AN INTRODUCTION
• Financial products refer to those instruments that help
you save, invest, get insurance or get a mortgage
they act as an investment avenue and provide the
required financial security to the investors based on
the risk-return profile of the financial products.
• In the past, traditional financial products were offered in
India through government initiatives by Public Sector
Banks (PSBs) (deposit account, credit account), Life
Insurance Corporation (LIC), and postal department
(recurring deposit, National Saving Certificate, Kisan
Vikas Patra).
• However, in recent years with the advent of
liberalization of financial services industry, diverse
financial products have been introduced through
participation of private and foreign entities in addition
to the public sector enterprises.
Banks (financial products of Insurance (LIC’s main
banks) financial products)

Core products Core products

deposits policies

advances annuities

International banking Credit facilities to individual

and companies
consultancy consultancy

Miscellaneous such as-

travelers check & sales of draft
 Product concept……….

“the product concept holds that

•

consumers will favor those products that

offer the most quality , performance ,
and features. Management in these
product - oreintedorganizations focus
their energy on making good products
and improving them over time.”

• -P.Kotler
 Concept of financial product……..

The consumer will favor those financial

•

products that offer most

 quality

 performance &

 features
Sbi dadi ad
PRODUCT LEVEL
 Five Levels Of Product (NEW)
Expected Product Differentiation
Product
Common Core
Status
Attributes Product

Brand Brand Basic

Persona Name Features Superior
Potential value
Product Payment
Core terms /
Latest Benefit Credit
Style
Brand
A.S.S Image
Loyalty
Club
Warranty
Augmented Basic
Product Product
CRM / Services
Product
levels

Delivery
process &
additional
services
 Core Product

“The basic benefit that

the customer is buying.
Marketers must see
themselves as providers
of benefit.”
This central componet address two
questions.
ØWhat is the buyer realy
purchasing?
ØWhat business are we ?
 Supplementary product
•
“These element augment the core
product, both facilitating it’s use and
enhancing it’s value and appeal. The
extant and level of supplementary
service often play a role and
differentiating and position the core
product. Adding supplementary
elements can add value to the core
product and enable the service
provider charge a higher price.”

SUPPLYMENTORY SERVICES OF
BANKS
There are following supplymentory
•

sevices provided by banks….

Ø Deposits
Ø Advances(loans)
Ø international banking
Ø Priority banking
Ø Personnel banking
Ø Concuseltency etc.
Ø
Ø
AXIS BANKS CONCERTANCY ADD
Delivery process
Additional services
financial product levels of axis bank india
Product and service
decision
Branding
Product mix decisions
Customer service strategies
Product life cycle
New product development
Innovation, diffusion and adaptation
Product and Service Decisions

Key Product attributes

Decisions  Quality, features,
Individual style and design
Branding
Product Packaging
Product Line Labeling
Product Mix Product support
services


25
Branding Strategy
 Brands are powerful assets that must be
carefully developed / managed.
 Brands with strong equity have many
competitive advantages:
High consumer awareness
Strong brand loyalty
Helps when introducing new products
Less susceptible to price competition

26
 Steps in branding
s.n. Brand Positioning Brand Name Brand Sponsorship Brand Development
selection

1 Product attributes Good Brand Manufacturer brands Line extensions

Names

2 Benefits Private (store) brands Brand extensions

3 Beliefs and values Licensed brands Multibrand

4 Co-branding New brands

Article : Differentiation is the
Key in Financial Services Branding

By: Anish V. Koshy

• Anish V. Koshy presently handles content management
for the website, Intranet and internal newsletter
development as well as advertising with
• i-flex solutions limited, Bangalore, India as
Assistant Manager - Corporate Communications.

Few ways to create the brands'
value in any financial services
organization ………
vExplore and identity the company's core values
and reasons for existence. Scan the heritage of
its past, the founder's vision and thoughts. Run
through its internal publications.
v
vActivate the most important value the company
owns to its consumer: It may be reliability, it
may be expertise or flexibility, and it may be a
niche area of operation. Use it as a
sledgehammer.
v
vCreate an icon or a visible package that can
spell out the financial service offered.
Few ways to create the brands'
value in any financial services
organization
v
vLink the organization with a cause that it can
identify with.
•

vBe visible. Be where decision makers voice their

opinions. Try to match your offering with the
theme of the event.
v
vRide on your people achievement. Invest in them. The
value of good, resourceful employees is more than
anything a company can want.
v
vDifferentiate yourselves on the basis of unique
emotional values, instead of focusing on
functional category values

 Why Market Leaders or big
brands Suffered ?
v HMT vs. Titan
v HLL vs. Nirma
v Bajaj vs. Honda
è
è
• “Market leadership today cannot be taken for granted.
New and more efficient companies are able to upstage
leaders in a much shorter period.”


31
Product and service
decision
Branding
Product mix decisions
Customer service strategies
Product life cycle
New product development
Innovation, diffusion and adaptation
WORKFLOW of product mix decisions

AAspecific
specific version
version of
of aa product
product
Product
Product Item
Item that
that can be designated as
can be designated as aa
distinct
distinct offering
offering among
among an an organization’s
organization’s products.
products.

AAgroup
group of
of closely-related
closely-related
Product
Product Line
Line product
product items.
items.

All
All products
products that
that an
an
Product
Product Mix
Mix organization
organization sells.
sells.

33
Product mix decisions
• “Product-mix decisions are concerned
with the combination of product lines
offered by the company. Management of
the companies' product mix is the
responsibility of top management”
•

 Managing the product mix for a

company is very demanding and
requires constant attention. Top
management must provide accurate
and timely analysis (BCG) of their
company's product mix so the
appropriate adjustments can be made
to the product line and individual
products.

 PRODUCT MIX
 Is the set of all product lines.
 P.Mix Width: How many different product lines that
the company has.
 P. Mix Length: Total no. of items or brands in the p.
Line.
 P. Mix Depth: refers to how many different variants
are offered in each product category. (variants &
SKU’s)
 The Consistency of the product mix refers to how
closely related the P.Lines are in end use,
production requirements, distrbn. Channels etc.
 The above four factors determine the company’s
product Strategy.
 PRODUCT MIX DECISIONS
 A product line is a group of products that are
closely related because they perform a
similar function, are sold to the same group
of customers, are marketed through the
same channels.
 Company can expand its business
 By adding new lines (mix widening),
 By adding new brands (lengthen) and
 By adding new variants (deepening of Product
Mix).
 PRODUCT MIX DECISIONS
 Decision to pursue more product line or less
depending on whether it wants to acquire a strong
reputation in one field or participate in several
fields.
 A Product Mix consists of various product lines. It is
the assortment of items that a Co. is offering for
sale.

 4 classifications based on profitability
 Core products
 Staples
 Specialty items
 Convenience items
Product Mix
 Width – how many product lines a company has
 Length – how many products are there in a product line
 Depth – how many variants of each product exist within a
product line
 Consistency – how closely related the product lines are in
end use

39
 Gillette’s Product Lines & Mix
Width of the product mix
Depth of the product lines

Blades and Writing

razors Toiletries instruments Lighters
Fusion – 5 blade
Mach 3 Turbo
Mach 3 Series Paper Mate Cricket
Sensor Adorn Flair S.T. Dupont
Trac II Toni S.T. Dupont Atra Right
Guard
Swivel Silkience
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic Brush Plus

40
investments deposits loans cards Demat Nri services Any-where Mobile
services banking banking
 formulates corporate objectives
 product line.
Product and Service Decisions

Key Product line length

Decisions  Line stretching:
Individual adding products
that are higher
Product or lower priced
Product Line than the existing
line
Product Mix  Line filling: adding
more items
within the
present price 43
range
Product and Service Decisions

Key Product line width:

Decisions  number of
different product
Individual lines carried by
Product company
Product line depth:
Product Line
 Number of
Product Mix different versions
of each product
in the line
Product line
44
consistency
Product and Service Decisions

Key Product attributes

Decisions  Quality, features,
Individual style and design
Branding
Product Packaging
Product Line Labeling
Product Mix Product support
services


45
Brand Strategy

Key  Three levels of

Decisions positioning:
 Brand Positioning
 Product
 Brand Name
attributes
Selection  Least
 Brand effective
Sponsorship  Benefits

 Brand  Beliefs and

Development values
46
 Taps into
Brand Strategy

Key  Good Brand Names:

Decisions  Suggest something
 Brand about the product
Positioning or its benefits
 Brand Name  Are easy to say,
recognize and
Selection remember
 Brand  Are distinctive
 Are extendable
Sponsorship  Translate well into
 Brand other languages
Can be registered
Development 
and legally 47
Brand Strategy

Key  Manufacturer brands

Decisions  Private (store) brands
 Brand Positioning  Costly to establish
and promote
 Brand Name  Higher profit margins
Selection  Licensed brands
 Brand  Name and character
licensing has
Sponsorship grown
 Brand  Co-branding
 Advantages /
Development disadvantages 48
Brand Strategy

Key  Line extensions

Decisions  Minor changes to
existing products
 Brand Positioning  Brand extensions
 Brand Name  Successful brand
names help
Selection introduce new
products
 Brand
 Multibrands
Sponsorship  Multiple product
entries in a
 Brand product category
Development  New brands
49
 New product
 The 4 Ps & 4Cs

Marketing Convenience
Mix

Place
Product

Customer
Promoti
Solution Price
on

Customer Communication
Cost

50
Core Concepts of Marketing

è Need – food ( is a must )

è Want – Pizza, Burger, French fry's ( translation of a need
as per our experience )
è Demand – Burger ( translation of a want as per our
willingness and ability to buy )
è Desire – Have a Burger in a five star hotel

51
Customer –
 CUSTOMER has needs, wants, demands and
desires
 Understanding these needs is starting point of the
entire marketing
 These needs, wants …… arise within a framework
or an ecosystem
 Understanding both the needs and the ecosystem is
the starting point of a long term relationship


52
Customers - Problem Solution

 As a priority , we must bring to our customers

“WHAT THEY NEED”
 We must be in a position to UNDERSTAND their
problems
 Or in a new situation to give them a chance to
AVOID the problems

53
Drivers of Customer Satisfaction
 Many aspects of the firm’s value proposition contribute
to customer satisfaction:
 The core product or service offered
 Support services and systems
 The technical performance of the firm
 Interaction with the firm and it employees
 The emotional connection with customers
 Ability to add value and to differentiate as a firm
focuses more on the top levels

54
 Analysis Of Competition

•Who are your competitors?

•What are their strengths and weaknesses?

•What have been their strategies?

•How are they likely to respond to your

Marketing plan?

55
The Give and Get of Marketing

56
Stages of Customer Interaction

57
Strategic Planning
 Strategic Planning is the managerial process of
creating and maintaining a fit between the
organization’s objectives and resources and the
evolving market opportunities.

è Also called Strategic Management Process
è All organizations have this
è Can be Formal or Informal

58
The Marketing Mix
 The conventional view of the marketing mix consisted of
four components (4 Ps): Product, Price, Place/
distribution and Promotion.
 Generally acknowledged that this is too narrow today;
now includes , Processes, Productivity
[technology ]People [employees], Physical
evidence
 Marketers today are focused on virtually all aspects of
the firm’s operations that have the potential to affect
the relationship with customers.

59
 2.GenericProduct- the basic version - can be the initial product offering.

3. Expected Product-conditions (attributes) that consumers normally expect.

Minimumlevels of offerings .
4. Augmented product:
One that includes additional services and benefits that
differentiates firms offer from competitors.

5. Potential Product:
Encompasses all augmentations and the transformations that the
product will undergo in the future