The Product In Service Marketing Mix

The intersection point In work Marketing MixThe assistance merchandise liquify is besides known as an excourseed market pre mixture and is an integral ingredient of a operate . The go marketing mix consists of 7 Ps as comp ared to the 4 Ps of a increase marketing mix. Simply said, the receipts marketing mix assumes the gain as a increase itself. However it adds 3 more than Ps which are required for optimum service deli re wholey.servicemarketingmix Service Marketing MixThe yield marketing mix consists of the 4 Ps which are Product, Pricing, Promotions and Placement. These are discussed in my article on product marketing mix the 4 Ps.Product The product in service marketing mix is intangible as post in character. The product subdivision of the marketing mix includes the tangible honourable and all of the service that accompany that good to expose the closing product. A product is a package, or bundle, of goods and go that comprise the total offering. For examp le, the purchase of a hotel room includes the guest room, fitness center, pool, restaurants, valet service, concierge, housekeeping service, etc. A restaurant meal consists of the literal food, host/hostess, and waiters, etc. Finally, atravel see to it consists of a chain of products and go starting atthe beat of purchase and ending upon returning from the trip. Everything in between, such as hotel service, restaurants, and transportation (including taxis and buses), affect the overall experience. most of the variable stars that are part of the product purpose include variety, quality, design, features/amenities, brand name, packaging, supporting run, and warranties. As stated earlier, the purpose regarding the proper mix of goods and services is based on the wants and needs of consumers (the concept of marketing.Place The place element of the marketing mix includes the distributionand logistics of producing a product or service and making itavailable to the final consumer. The attitude of a manufacturing orwholesaling facility is determined by recalling the lives of resourcessuch as labor, crude(a) materials, and real estate. In appendage, it is necessaryto have access to the preferred mode(s) of transportation for deliveringthe products to wholesalers and retailers. The billet of a retailestablishment is based mainly on accessibility to the final consumers.Services have relatively dead channels of distribution and focus mostof their efforts on finding retail locations that are convenient for consumers.For example, restaurants tend to choose high gear traffic areas closeto shopping and other attractions. Similarly, hotels locate their facilitiesin areas such as airports, urban centers, industrial centers, and touristattractions that are accessible to their respective target markets.Some of the variables that are part of the place decision includethe type of channel, location, assortments, coverage area, inventory,and transportation. Many ser vice providers overlook the importance of this variable in the strategic planning process. The channel of distributiontends to be shorter for the marketing of services than that forgoods, and most service providers act as manufacturer and retailer.Many managers in service firms assume that once the initial locationis determined this variable diminishes in importance. However, hotelsand restaurants do switch their operations to a more favorable locationon occasion. This is a major decision involving company timeand resources, but it shtup result in long-term growth and increasedprofit if handled properly. Another good example of a place decisionfor a hotel is the Harborside Hyatt in Boston, Massachusetts..Promotion The promotion element of the marketing mix includes allof the communications associated with marketing a product or service.The promotion mix consists of four elements advertising, personal selling, promotion, and sales promotion. ad and promotional material are grade s of mass communication using a variety of mediums such astelevision, radio, sweetlys authorship, magazines, direct mail, and the Internet.Advertising is a paid fig of mass communication with an identifiedsponsor, while publicity is a non-paid form of mass communicationwithout a sponsor (i.e., it is free and objective). Personal selling isa form of social communication sponsored by the firm. Salespromotion is a short-term inducement to purchase a product or service.Some examples of sales promotions are contests, sweepstakes, aids, and product bundles.Pricing Pricing in case of services is rather more difficult than in case of products. Price. Price is the value placed on a product or service. Other terms that can be used to refer to the toll cistron of the marketing mix are fee, rate, tuition, premium, and toll. There are non-monetary elements to price as well as the more obvious monetary elements. Some examples of non-monetary price are the time it takes to search and evalua te alternative products or services and the convenience of location. If a consumer drives to several locations to shop for a product or service, then there are costs associated with time, gas, and depreciation on the car. Also, there could be tolls for highways, bridges, or subways. In the end, it is the perceived price or the perceived value the consumer associates with a product or service that crooks the purchase and the level of clients satisfaction. pry is the trade off between price and quality the benefits the consumer receives for the price paid.Here on we start towards the broad service marketing mix. sight The role of the service employee becomes much more critical since to a very real extent theemployee is the service, given the absence of any tangible artifact. They carry the responsibility ofprojecting the part of the service firm. Because of the inseparability of production andconsumption of services, service delivery is characterized by interactions between cust omers andservice employees. Service employees who experience positive human resource practices can devotetheir energies and resources to efficaciously serving their customers. The service firms humanresource focussing practices can create an purlieu that elicit more positive, courteous andhelpful behavior from the employees toward customers. In turn, the behavior that employees display lead positively impact on service quality. natural Evidence Physical evidence of service includes all the tangible examples of service such as clear signage,good ventilation, decorous space, internet presence, equipment and facility. As services areintangible, customers are searching for any tangible cues to help them construe the nature of theservice experience. For example, in the hotel fabrication, the design, furnishing, lighting, layout anddecoration of the hotel as well as the appearance of its employees will influence customerperceptions of the service quality and experiences. For theme parks, restaurants, health clubs,hospitals or schools, the physical facility is critical in communicating the service and making theentire customer experience positive. Ambient conditions include background characteristics of theenvironment such as temperature, air quality, lighting, noise, music, and scent affect the five senses.Spatial layout of the equipment, and furnishings arranged, the size and shape of these items, and the spacial relationships among them are also crucial to influence customers perception.Process Process is referred to as the procedures, mechanisms and flow of activities by which the service isdelivered i.e. the service delivery and operating systems. Delivering customer expectations dependson how well various steps function together. extremely bureaucratized services frequently followcomplicated and extensive series of actions, and the logic of the steps involved a great deal confuse thecustomer. Customers may complain that service firms are slow in respon se and bureaucratic with the numerous steps involved. They want easy access to the service process, and they want things to behandled quickly, preferably by the premier(prenominal) service employee. Customers describe frustrating experienceswhen they have to run from pillar to post to complete a fair transaction, experience long waitingtime, rules and regulations, and personnel who decline to serve them with the excuse Im notallowed to do this or this is against our policy.ServiceLICAn Ordinance was issued on 19th January, 1956 nationalizing the Life indemnity sector and Life indemnity commode came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies-245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. HistoryLife Insurance lodge of India (LIC) was formed in Sep 1956 after the Parliament of India passed the Life Insurance Corpor ation chip in Jun 1956. The company was created with the objective of spreading purport insurance more widely, especially to reach all the insurable people in the rural areas and provide them with adequate financial cover at a reasonable cost. Apart from its corporal office, LIC had five zonal offices, 33 divisional offices and 212 branch offices in 1956. The nature of life insurance contracts being long-term coupled with the need to provide a variety of services during the term of the policy, LIC re-organised itself by opening a number of new branch offices. After its re-organisation, run functions were transferred to branches which were reborn to accounting units.OperationsAs on Mar 2008, LIC had 2,048 fully computerised branch offices, 109 divisional offices, eight zonal offices apart from its corporate office. LICs ne devilrk connects all the branches through wide area net fix. The company also has tie-ups with certain(prenominal) banks and service providers to offer on- linepremium collection facility in select cities. Besides, ECS and ATM premium payment facility to its customers, the company has also commissioned IVRS and information centres at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, innovative Delhi, Pune, amongst other cities. LIC has also launched Satellite Sampark offices in edict to provide easy access to its policy holders.The company had 340 such offices as on Mar 2008. LIC also provides housing finance through LICHFL. It has also formed an asset steering company known as LICMF AMC. The corporation has also extended its operations to the international arena through various JVs and subsidiariesit operates in as many an(prenominal) as nine countries.Products ServicesLIC offers a wide roll of insurance products to its customers such as insurance plans, pension plans, unit-linked plans, special plans and group scheme. During FY08, the company introduced certain new products such as Profit Plus, Fortune Plus, Jeevan Aks hay, Jeevan Amrit Amulya Jeevan. As of Mar 2007, total number of agents of the company stood at 1.1 mn while the total number of policies issued was 38.2 mn. The premium earned by the company reported a growth of 41% in FY07 when compared to the previous year. During the year, the company insured 34.28 mn individuals for the first time7 Ps of Services Marketing in LICThe marketing mix is the combination of marketing activities that an take away-upengages in so as to crush meet the needs of its targeted market. The Insurance business deals inselling services and therefore due weight-age in the formation of marketing mix for theInsurance business is needed. The marketing mix includes sub-mixes of the 7 Ps ofmarketing i.e. the product, its price, place, promotion, people, process physical attraction.The above mentioned 7 Ps can be used for marketing of Insurance products, in the followingmannerPRODUCTA product means what we produce. If we produce goods, it means tangible productan d when we produce or generate services, it means intangible service product. A product is both(prenominal) what a seller has to sell and a buyer has to buy. Thus, an Insurance company sellsservices andtherefore services are their product. In India, the Life Insurance Corporation of India (LIC) isthe lead story companies offering insurance services to the users. Apart from offeringlife insurance policies, they also offer underwriting and consulting services. When a personor an organization buys an Insurance policy from the insurance company, he not only buys apolicy, but along with it the assistance and advice of the agent, the prestige of the insurancecompany and the facilities of claims and compensation. . In short, the formulation ofproduct-mix should be in the face of innovative product strategy. While initiating theinnovative process it is necessary to take into consideration the strategies adopt by privateand foreign insurance companies through various plans like Endowment p lan, pension plan,ULIP. determineIn the insurance business the set decisions are concerned withi) The premium supercharged against the policies, ii) Interest charged for defaulting thepayment of premium and credit facility, andiii) thrill charged for underwriting and consultancy activities. . The pricing ininsurance is in the form of premium rates. The premium rates are revised if there areany significant changes in any of the below factors.a) Mortalityb) Expensesc) InterestPLACEThis component of the marketing mix is related to two important facets i) Managing the insurance personnel, and ii) Locating a branch. .While locating branches, the branch manager needs to consider a number of factors, suchas smooth accessibility, availability of infrastructural facilities and the management of branchoffices and premises. In addition it is also significant to provide safety measures and alsofactors like office furnishing, civic amenities and facilities, lay facilities and interioroffice decoration should be given proper attention. Thus the place management of insurancebranch offices needs a new vision, distinct approach and an innovative style. This is essentialto make the work place conducive, fascinating and proactive for the generation of efficiencyamong employees. The branch managers need professional excellence to make placedecisions productive.PROMOTIONAdvertising and Publicity, organization of conferences and seminars, incentive topolicyholders are indifferent communication. Arranging exhibitions, participation in fairsand festivals, rural wall paintings and publicity drive through the mobile publicity van unitswould be effective in creating the impulse buying and the rural prospects would be easilytransformed into actual policyholders.PEOPLE pinch the customer better allows designing appropriate products. Being aservice industry which involves a high level of people interaction, it is very important to usethis resource efficiently in order to compensate customers. Training, development and strongrelationships with intermediaries are the key areas to be kept under consideration. Trainingthe employees, use of IT for efficiency, both at the staff and agent level, is one of theimportant areas to look into.PROCESSThe process should be customer friendly in insurance industry. The speed and verityof payment is of great importance. IT Data Warehousing will smoothen the processflow. IT will help in servicing large no. of customers efficiently and wager down overheads.Technology can either complement or supplement the channels of distribution costeffectively. It can also help to improve customer service levels. The use of data warehousingmanagement and mining will help to find out the profitability and potential of variouscustomers product segments. animal(prenominal) EVIDENCEThe physical evidence are includes such as policy document, statements, intimationletter, uniforms of personnel, vending elevator car of LIC enquiry option , LIC lo go and their awards.AXIS BANKAxis wedge Limited was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The blaspheme was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The bound at once is capitalized to the extent of Rs. 358.56 crores with the public holding (other than promoters) at 57.60%. The Banks Registered Office is at Ahmedabad and its Central Office is laid at Mumbai. Presently, the Bank has a very wide network of more than 701 Branch offices and Extension Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a day banking convenie nce to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence. Axis Bank Limited has been promoted by the largest and the best Financial Institution of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each.THE SERVICE selling MIX OF AXIS BANKPRODUCTThe main products of AXIS Bank are prudence Account, authentic Account and Demat Account. The other products are sign loan, personal loan, Insurance, Credit cards, etc.For better marketing of products, the products are categorized under Axis Bank and Axis Sales.Products under Axis Bank areeconomy AccountCurrent AccountForex DepartmentSalary AccountsProducts under Axis Sales areHome loanPersonal loan,Demat AccountPRICEThe price of the product depends upon the services provided by the Bank on the respective product to the customers. Detailed pricing changes from time to time and the same can be strand on the website of Axis bank.PLACEPlace plays an important role in tangibilizing service offerings. Quality of service is perceived by many customers in the form of place of delivery- locational appeal, interiors, ambience, etc. If a bank is located in a herd market the place or location will be a negative tangibilizes. Providing excellent tangibles in the form of place or location and interiors is particularly important for charitable to the customers segment. More recently, some of the private banks in India like AXIS Bank are providing very attractive tangibles in the form of their locations, exteriors and interiors.PROMOTIONPromotion can tangibilize services in different formsVisualization knowledgePhysical representationDocumentation.Visualization tangibilizes services through hoardings, TV and pri nt campaigns or advertisements. Physical representation in services has a good promotional appeal to customers like use of colors to constitute wealth and status. Service providers use documentation in their promotions in support of their claims for dependability, popularity and responsivenessPEOPLEPeople are a common factor in every service. And people tangibilize services. Good people (means good performance) make good or successful services. naughty performers deliver bad services.PROCESSCustomer delineate business process- Process innovations and endless improve-ment through people involvement.Result oriented approach- Each process has been knowing by first planning the want results.Axis Bank is constantly taking initiatives to offer the best in class service that seek to grow customer experience.PHYSICAL EVIDENCEReduce paper usage- Due to technological innovations such as use of Finacle software for core banking solutions.It has positioned it self as a bank which gives higher(prenominal) standard of services through product innovation.Satisfies the diverse need of individual and corporate clients.It is customer centric, and service oriented .Now we will compare the strategies of both axis bank and adlabs,LIC provides life insurance policy, like Endowment plan, pension plan,ULIP.Axis bank also offers variety of products like Saving Account, Current Account and DematAccount. The other products are Home loan, personal loan, Insurance, Credit cardsIn LIC the pricing decisions are concerned with i) The premium charged against the policies, ii) Interest charged for defaulting the payment of premium and credit facility, and iii) Commission charged for underwriting and consultancy activities. . The pricing in insurance is in the form of premium rates.The price of the product depends upon the services provided by the Bank on the respective product to the customers.LIC consider a number of factors, such as smooth accessibility, availability of infrastructur al facilities and the management of branch offices and premisesQuality of service is perceived by many customers in the form of place of delivery- locational appeal, interiors, ambience, etc. If a bank is located in a crowded market the place or location will be a negative tangibilizes. AXIS Bank are providing very attractive tangibles in the form of their locations, exteriors and interiors.Advertising and Publicity, organization of conferences and seminars, incentive topolicyholders are impersonal communication. Arranging exhibitions, participation in fairs and festivals, rural wall paintings and publicity drive through the mobilepublicity van.Visualization tangibilizes services through hoardings, TV and print campaigns or advertisements. Physical representation in services has a good promotional appeal to customers like use of colors to symbolize wealth and status. Service providers use documentation in their promotions in support of their claims for dependability, popularity and responsiveness.LIC being a service industry which involves a high level of people interaction, it is very important to use this resource efficiently in order to satisfy customers. Training, development and strong relationships with intermediaries are the key areas to be kept under consideration.In axis bank Good people (means good performance) make good or successful services. Bad performers deliver bad services.The process should be customer friendly in insurance industry. The speed and accuracy of payment is of great importance. IT Data Warehousing will smoothen the processflow. IT will help in servicing large no. of customers efficiently and bring down overheadsCustomer defined business process- Process innovations and continuous improve-ment through people involvement.Result oriented approach- Each process has been designed by first planning the desired results.Axis Bank is constantly taking initiatives to offer the best in class service that seek to enhance customer experiencT he physical evidence are includes such as policy document, statements, intimationletter, uniforms of personnel, vending work of LIC enquiry option , LIC logo and their awardsIn Axis bank physical evidenceReduce paper usage- Due to technological innovations such as use of Finacle software for core banking solutions.It has positioned it self as a bank which gives higher standard of services through product innovation.CONCLUSIONThere is littile bit similarity in the service marketing mix of LIC and axis bank but there is difference in the marketing strategy of the both companies