Augmented Marketing Mix (Booms and Bitner, 1981):
Augmented Marketing Mix (Booms and Bitner, 1981) People Process Physical Evidence
Augmented Marketing Mix (Booms and Bitner, 1981):
Augmented Marketing Mix (Booms and Bitner, 1981) The interaction between the customer and service provider in service industry means that the employee often represents the company to the customer. As in most of the services the customer moves to the provider, the issue of staff presentation, customer interaction and levels of satisfaction with the service encounter is crucial in service industry. The organisational structure and culture dictates the extent to which responsibility for staff recruitment, training and motivation is shared between marketing operations and human resources. Organisational culture may be defined as, “A set of assumption or ideology shared by the members of an organisation”. People use these assumptions to identify what is important and how things work in the company. When these assumptions get formalised, rules of behaviour are established, so that, people know how to act.
Augmented Marketing Mix…contd.:
Augmented Marketing Mix…contd. For service marketers, however, the core of the service element is the interaction between those providing services and the customer, which is known as the service encounter- often described as ‘the moment of truth’. To achieve customer satisfaction, appropriate processes are designed to ensure that the service encounter meets customer expectations. To deliver the satisfactory services, the employees of a company have to play an important role. These employees must possess personal qualities, ability to understand and satisfy customer needs, flexibility, skills and knowledge. According to Kotlar, if the service personnel are cold or rude, they can undermine the marketing work done to attract the customers. If they are friendly and warm, they increase customer satisfaction and loyalty. Therefore, the service industry employees must by trained to retain the customers and they should aim at ‘Zero-defection’ of customers. Dissatisfied employee cannot deliver a satisfactory service. Management in order to deliver satisfactory service must develop jobs to satisfy the individual needs of the employees and address following issues:-
Augmented Marketing Mix…contd.:
Augmented Marketing Mix…contd. People Physical Evidence/ Facilities Process Employees: Recruitment ─ Associate with winners Training Motivation ─ Use of Praise; Combination approaches Rewards ─ Empowerment; Involvement; Job-involvement; High involvement Team work Customers: Education Training Communication Culture and Values Facility Design: Aesthetics Functionality Ambient conditions Equipment Signage Employee dress Other tangibles Reports Business cards Statements guarantees Flow of Activities Standardized Customised Number of steps Simple Complex Level of customer involvement
THE MARKETING MIX FOR SERVICES:
THE MARKETING MIX FOR SERVICES Place Location Accessibility Distribution Channels Distribution Coverage Product Range Quality Level Brand Name Warranty Post Transaction Service Price Discounts Allowances Commissions Payment terms Consumers perceived value Quality/price relationship-s Promotion Advertising Personal Selling Sales Promotion Publicity & Public Relations People Personnel Training Commitment Incentives appearance Inter-personal behaviour Other customers Degree of involvement Customer contact Physical Evidence Environment Furnishings Colour Layout Noise levels Facilitating goods Tangible clues Process Policies Procedures Mechanisation Employee discretion Customer involvement Flow of activities
Service Management Trinity:
Service Management Trinity The Marketing Imperative Create ongoing relationships with specific types of customers by delivering carefully defined service package of consistent quality that meets their needs and is perceived as offering superior value to competitive alternatives The Human Resource Imperative Recruit, train, motivate, and retain managers and other employees who can work well together for realistic compensation package to balance the twin goals of customer satisfaction and operational effectiveness The Operation Imperative Create and deliver the specified service package to targeted customers by selecting operational techniques executed by appropriately skilled employees or contractors and supported by necessary facilities, equipment and technology that consistently meet schedule, cost quality and productivity goals. Customers