UNIT V MARKETING STRATEGIES FOR DIFFERENT SERVICES

HEALTHCARE SERVICES

MARKET SEGMENTATION
Healthcare is broadly segmented into the following segments: HOSPITALS

ALLIED SERVICES : Pathological labs Ambulance services Private mortuaries Pharmacy centers

MARKET SEGMENTATION
PARAMEDICAL SERVICES : Fitness centers Beauty clinics ACADEMIC INSTITUTIONS : Medical colleges Nursing Schools

MARKETING MIX STRATEGIES

The several components of marketing mix strategies of Healthcare Industry are the 7 Ps as follows : PRODUCT PLACE PEOPLE PROMOTION PROCESS PRICE PHYSICAL EVIDENCE

PRODUCT
Actual medical treatment provided in hospitals. Education and training provided by medical colleges and nursing schools. R & D activities carried on by research centers.

PLACE
Hospitals Private Clinics Gym Slimming centers

PEOPLE
Patients Medical staff Doctors Technicians Nurses

PROMOTION
Inpatient-Doctor interaction. Word of mouth communication. Care taken by support staff. Free monthly checkups. Treatments at concessional prices. Media based advertisements and promotional messages displayed on hoardings at public places. Heart and Dental checkup camps at concessional rates.

PROCESS
Two Types of Process: Process for Inpatients Process for Outpatients

PROCESS
Widely spread Customer friendly Time saving Mobile clinics Online consultation

PRICE
Based on the following factors: Cost of Running the hospital Overheads Salaries and Wages of the staff Cost of equipments and infrastructure Bed occupancy Quality of service Income levels of patients

PHYSICAL EVIDENCE
Location Ambiance Hygienic and relaxing atmosphere Lighting and Ventilation Infrastructure like electricity, water, sewerage, communication and transportation, security Certificates and awards won by doctors and hospital

RECENT TRENDS IN INDIAN HEALTHCARE INDUSTRY Gained international reputation Clientele includes patients from Pakistan, Iran etc. Offers highly specialized services of heart care, eye care, cancer treatment etc. Enhanced quality services. Offering services at concessional rates upholds the sanctity of the profession.

Indian Healthcare : The Changing Scenario

Cost Advantage
PROCEDURE
US US Heart Surgery Bone Marrow Transplant 40,000 2,50,000 THAILAND THAILAND 7,500 -------

COST (US$)
INDIA UK

6,000 26,000

23,000 1,50,000

Liver Transplant
Knee Replacement Cosmetic Surgery

3,00,000
20,000 20,000

------8,000 3,500

69,000
6,000 2,000

2,00,000
12,000 10,000

HOSPITALITY SERVICES

Hospitality refers to the reception and entertainment of guests and visitors with liberality and goodwill.

Hotel Industry Review - More room for growth

Massive Incredible India promotion campaign undertaken by the Government of India led to more than 24.3% increase in the number of foreign tourists visiting India to cross 3mn mark in the year 2004.

This clubbed with surging occupancy rates (OR) and average room rentals (ARR), converted into strong growth for the companies in the industry.

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Aggregate net sales of the companies rose by 30% to Rs.5.8bn

The main reason for this growth were surging occupancy rates and average room rates across the country. The rise was mainly on back of less than required capacity additions in the country. There is a need to add another 60,000 hotel rooms to the existing stock of nearly 100,000 Government approved rooms, over the next three years.

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Hotel Services
A hotel is a home away from home where all the facilities and services are available on payment.

SERVICES MARKETING MIX OF HOTEL INDUSTRY

Product Mix Physical Evidence Price Mix Place Mix People and Process Mix Promotion

 Fusion of South Indian design cues and classic European elegance Preferred venue -Heads of state , royalty , who's who of the corporate world "Leading Hotels of the World" Facilities and distinctive services

PRODUCT
Hotel Business Services Hotel Leisure and Other Services Recreational services Rooms and suites Dining facilities

Hotel Business Services

Broadband Internet access and Cyber butlers on call for assistance Color copier Laptop computers on hire Multimedia computers Portable printers on hire Secretarial services Three meeting rooms with capacity ranging from 3 to 10 Translation/interpretation services Wireless Internet access Workstations.

Hotel Leisure and Other Services

Babysitting Beauty parlor/Hair salon - The Image Studio Car hire service Currency exchange Doctor-on-call Express laundry/dry cleaning - Fabric Care Services Florist House doctor Travel assistance

Recreational services
Fitness and fun 24-hour Fitness Center with Steam and Sauna Cigar and evenings with Live Jazz Large screen sports entertainment Shopping arcade Souvenir shop Swimming pool

Outdoor fun Golf Tennis

Rooms and suites

Superior Rooms Luxury Rooms Taj Club Room Executive Suites Club Luxury Suites Grandlux Suites

Presidential Suites

Dining facilities

Golden Dragon Match Point Southern Spice The Patio

PLACE
Chennai's city's prime business and residential area. Access to shopping and entertainment Ambience and dcor

Tourism Services
Tourism is one of the largest & important industry which is useful for the development of a nation. It occupies 11% of the world's GDP and may create 7 million new jobs by the year 2010. Tourism in India has grown very much during the last decades. It gives the second highest net foreign exchange earnings to our economy.

Services Marketing Mix of Tourism Services

Product Mix Price Mix Promotion Mix Place Mix People Mix Process Mix Physical Evidence

METHODS OF TOURISM PROMOTION IN INDIA

Promotion is the strategy of tourism marketing one of the important and visible variable of marketing mix i.e. external mix. The primary role of promotion is thus to convince the potential customers of the various advantages of buying or using the products and services of a particular enterprise, organisation. Tourism promotion in India is done through various techniques like Advertising, E tourism, Trade Fairs, public relations, and through sales support i.e. brochures and packaging that are printed materials.

Advertising
Advertising in tourism is an activity designed to spread information with a view to promote the tourist products and their services. It is defined as all nonpersonal forms of mass communication. It includes many mediums like: newspapers, magazines, films, t.v. prime time advertising, radio, and displays etc which are the forms of mass media. Thus it is mainly used to create awareness and interest in the tourist service. Even Indian tourism supports Outdoor travel advertising through posters or billboards.

E- Tourism
E Tourism is about using Internet technologies to transform the key tourism promotion. It is a modern business methodology in the tourism sector that addresses the consumers. Their sites benefits all the travel agencies, tour operators, hotels, airlines in India.

Through E- Tourism that is the internet era the travel portals offers wide options of travel related services such as reservations, information about the destination, bookings of the hotels, resorts.
One of the e.g. of E Tourism is Makemytrip.Com which is an on-line travel company.

Trade Fairs
Trade fairs are events held in the tourism industry where new products and services can be presented and promoted. Their aim is to create opportunities for contact and business discussions, contract negotiations and exchange information within the industry. The advantages of trade fairs are both to the buyers and sellers. INDIAN TRADE FAIRS

Public Relations
Public relations is an important promotional technique. It defined as the continuous and consistent representation of an organizations policies to the public at large. Public relations in tourism is used to support and strengthen advertising and sales support activities.

Sales support
Sales support techniques are grouped under two areas as printed material and special offer which establishes indirect contact with the customers. The aim of the sales support activities is to inform the customers. This is the promotional activity designed to assist the seller to influence customers and the travel trade of the tourist product.

The printed materials are the marketing tool for selling a product that are the brochures, leaflets, folders or travel catalogues.

The Printed Materials

Brochures are the primary sales tools to boost tourism business. The folders are simple piece of illustrated paper which can be folded. Travel catalogues contains various choices of accommodations with numerous destinations and excursions, also various price ranges with alternative departure dates and transport arrangements.

Special Offers
Special offers techniques are an additional sales support tool.

Some of the special offers given by the travel agencies or tour operators are temporary price reductions, free gifts like packaged foodstuffs or cosmetics, reduced air fares, special off season rates.
Even packaging has become a special offer used for attracting the customers. A package may include a wide variety of services such as lodging, meals, entrance fees to attractions, entertainment, transportation costs (air, train, cab or bus), guide service etc.

Transportation / Logistics Services Industry

Transportation/ Logistics refers to
the activity that facilitates physical movement of goods as well as individuals from one place to another.

It is the key infrastructural input

for the growth & promotion of national integration.

It plays an important role of

promoting the development of the backward regions. growth of the country.

It is a key factor for the economic

 Changing economic scenario

has enhanced the need of transportation.

Largely influenced by

information and communication technologies. much less than in the developed countries.

Transport volumes in India is

The growth in road transport

(12 percent) whereas railways have grown at just under (2 percent).

Modes of Transport

Waterways

Airways

Modes of Transport

Roadways

Railways

Services Marketing Mix of Roadways

Product Buses, Lorries, Trailers, Recovery vans, Tar roads, Medians, Pavements
Cities, Towns, Villages, Forests, Toll gates Materials, Wages, Salaries, Surveys

Place Price

Promotion Publicity, Word-of-Mouth Promotion, Public Relations Phy. Evid Buses, Signs, Milestones, Road roller, Tar, White and Yellow Lines, Zebra Crossing Lamp posts, Speed breakers, Drivers, Conductors, Checking Inspection Committees, Government departments, Traffic Police, Engineers, Labor.. Route Scheduling, Route Sequencing, Route Assigning with vehicles and crew members, Peak load arrangements, Digging, Laying, Repairs, Rolling, Purchasing, Planning, Contracting, Surveying.

People

Process

Services Marketing Mix of Railways

Product Train Coaches, Locomotives, Signals, Platforms, Bridges, Tickets Tracks,

Place Price Promotion

Stations, Booking Counters, Booking agents offices Travel class, Distance traveled, Luggage Advertising, Publicity, Sales promotion, Word-of-Mouth Promotion, Public Relations, Broadcasting Trains, Tracks, Fish plates, Signals, Crossing, Stations, Stalls

Phy. Evid

People

Drivers, Guards, Maintenance staff, Railway Police, Station Master, Ticket collectors
Routing, Ticketing, Repair, Track laying, Signaling, Coach manufacturing, Transporting

Process

Services Marketing Mix of Airways

Product Aero planes, Tickets, Magazines, Sky shopping Place Airports (Restricted areas) Price Distance traveled, Travel class, Schemes Advertising, Publicity, Sales promotion, Word-ofPromotion Mouth Promotion, Telemarketing, Public Relations, Broadcasting Aero planes, Airports, Tarmacs, Radars, Control Phy. Evid Towers, Aerobridges, Terminals, Passengers, Cargo, Conveyors, Ladders Pilots, Cabin crew, Caterers, Administrative staff, Technicians, Engineers Security, Helpers, Customs People personnel

Ticketing, Boarding, Transporting, Hospitality, Bookings, Announcements, Displaying information, Public Relations, Protocols, Communications, Legal Process procedures, Selling, Traffic control, Logistics Management

Financial Services in India: Past and Present

PAST EXPERIENCE Confined market place

Financial Services
PRESENT EXPERIENCE Unlimited market place

Competition player

among

the Competition among the brand

Extensive product breadth Customization and innovation E-enable service Multi channel players Focus on revenue growth Revenue generated through fees

Limited product line One-size-fits all product Personalized service Branched focused Focus on business growth Revenue through margin

Banking Services

Services Marketing Mix of Banking Product Mix Industry Savings account, debit card
Salary savings account Current account Fixed deposits Recurring deposits Loans like two wheeler, home, personal, home-equity loans Overdrafts, cash credits; credit, virtual, charge, smart cards Payment services of utility bills Advisory and consultancy services Depository services Selling or cross-selling of products, prospectus of other institutions Transfer of money through demand drafts, checks, challans Public limited companies' public issue services Net, phone, mobile, ATM, mobile A TM banking, home banking 24-hour customer care service Anytime and anywhere banking (where the customer is allowed to conduct transactions in any of the bank's branches) Add-on debit and credit cards

Price Mix
Value pricing Going rate pricing Mark up pricing

Place Mix
The Trade Area Population Characteristics Commercial Structure Industrial Structure Banking Structure Proximity of other convenient outlets Real Estate Rates Proximity to public transportation Drawing Time Location of Competition Visibility Access

 Promotion Mix
Public Relations Personal Selling Sales Promotion Word of mouth Promotion Telemarketing Internet

People Mix Process Mix

Producing of proper documents Filling up of application form Paying for the initial down payment.

Physical Evidence

INSURANCE SERVICES

MARKET SEGMENTATION
Insurance Industry is broadly segmented in the following segments : Individuals Institutions Industry Trade

Services Marketing Mix of Insurance services

The several components of marketing mix strategies of Insurance Industry are the 7 Ps as follows : PRODUCT PRICE PLACE PROMOTION PROCESS PEOPLE PHYSICAL EVIDENCE

PRODUCTS OF INSURANCE
Life Insurance Accident Insurance Health Insurance House Insurance Travel Insurance Property Insurance Automobile Insurance Marine-cargo Insurance

PRICE
The pricing of various insurance products is based on the following factors: Competition Prevailing Rate of Interest Competitors Strategy Demand Fluctuations Customers Perception

PLACE
Internet Telemarketing Banc assurance Personal Selling

PROMOTION
Advertising Reduced Premiums Discounts Gift coupons Maintaining good public relations Tie ups with banks, and automobile companies

PROCESS
Customer friendly Convenient Save on cost and time of customers Simplify customer interaction

PEOPLE
Agents Insurance Advisors Retired employees from banks Housewives as agents

PHYSICAL EVIDENCE
Building, infrastructure, equipment etc contribute very little to physical evidence. Other physical evidences are : Well dressed and well behaved employees Policy certificates and Receipts of Payments Achievements of the company Logo and Brand name of the company displayed in advertisements.

RECENT TRENDS
Global + Indian Brands Companies AIG Tata Allianz Bajaj Prudential ICICI Sun Life Birla Canada ING Vysya = Joint Venture & Strategic Alliance Tata AIG Bajaj Allianz ICICI Prudential Birla Sun Life ING Vysya

RECENT TRENDS
Increased awareness among customers. Service portfolio expansion. Increased market size. Technological developments and international standards improved service quality. Innovative distribution channels New promotional strategies Serving niche markets

Information Technology Services

Of the wide canvas of Indias service sector, the IT-related and software services are on the top of the table. IT is a term referring to both telephony and computer technology. IT includes all forms of technology used to create, store, exchange and use information in its various forms.

Services Marketing Mix of IT Services

Product Mix Computer technologies Communication technologies Price Mix Place Mix Promotion Mix Process Mix Physical Evidence

Educational Services

Services Marketing Mix of Educational Services

Product Mix Place Mix People Mix Price Mix

Promotion Mix Process Mix Physical Evidence

Entertainment Services
Entertainment services include all those services, which help a person feel entertained and relaxed. Entertainment services constitute a part of the media services and include entertainment through movies, leisure, music, television shows, sports, etc.

Indian entertainment Industry

The Indian Film Industry Television Industry Radio Music Industry Multiplexes Live Events Shopping Malls Theme Parks

Services Marketing Mix of Entertainment Industry

Product Movies, Cameras, Filters, Lights, Reflectors, Light meter, Clap board, Film, Console, Cables, Liquids, Make-up kits, Animators, Tapes Studios, Movie theatres, Dubbing theatres, Recording theatres, Film Cities, Public places, Labs Salary, Wages, Signing amount, Location, Shooting period, Equipments, Rentals, Costumes, Special effects, Advertising Trailers, Hoardings, Contests, Advertising, Publicity, Sales promotion, Wordof-Mouth Promotion, Personal selling, Telemarketing, Public Relations, Broadcasting Vans, Generators, Lights, Studios, Theatres, Film Cities, Reels, Equipments, Tickets, Hoardings, Crowds, Copyrights Art director, Artists, Audio-graphers, Designers, Choreographers, Suppliers, Technicians, Directors, Distributors, Editors, Financiers, Assistants, Mediators, Musicians, P.R.O, Producers, Engineers, Fans, Stuntmen, Lyricists, Writers Editing, Directing, Choreography, Stunts, Music, Production, Financing, Scripting, Processing, Printing, Developing, Recording, Dubbing, Exhibiting, Distributing, Acting, Mixing, Animating, Casting, Screenplays

Place
Price

Promotion

Phy. Evid

People

Process

Public Utility Services

Any railway service or any transport service for the carriage of passengers or goods by air; Any section of an industrial establishment, on the working of which the safety of the establishment or the workmen employed therein depends; Any postal, telegraph, or telephone service; Any industry which supplies power, light or water to the public; Any system of public conservancy or sanitation; Any industry specified in the First Schedule.

Principles of Public Utility Services Pricing

Cost of Service Value of Service Competitive Price Social Relevance

Telecommunication Services

Services Marketing Mix of Telecommunication Services

Product Mix
Fixed land line/wireless services Mobile services Cellular phone service Personal Handyphone System (PHS) service Pager service Internet Video telecom services

Price Mix Place Mix Promotion Mix People Mix Physical Evidence Process mix

A few examples:

PHYSICAL EVIDENCE

Indian Postal Services

Indian Postal Service Challenges & Opportunities

INDIA POST-THE ORGANIZATION

INDIA POST a giant organization A 150 year old postal network

Worlds largest network of over 1,55,618 post offices of which 1,25,148 serve rural areas. A post office for every 21.13 sq.km.
Each Post Office covers on an average of 6,602 people

Over 5 lakh personnel of which 45.65% is departmental employees and 54.35% are Gramin Dak Sevaks (Post Man).
Average Revenue of approximately Rs.38000 million since past one decade

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PRODUCT PORTFOLIO
Main Categories
Mail Services Premium Services Financial Services

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PRODUCT PORTFOLIO
Mail Services
Registration Parcels Insurance Value Payable Article Surface Air Lifted

87

PRODUCT PORTFOLIO
Premium Service
Express Parcel Media Post Greeting Post Speed Post Passport Service

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Some of the newly introduced products are

Speed Post Business Post Western Union

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PRODUCT PORTFOLIO
Financial Services
Banking Postal Life Insurance Money Order & Instant Money Order Corporate Money Order Mutual Funds Electronic Funds Transfer

90

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Services Marketing Mix of Postal and Courier Services

Product Place Price Promotion Letters, Cards, Stamps, Savings schemes, Post boxes, Mail bags Post offices, Post Box, Collection centers, Door receipts Distance, Weight, Nationality, Speed, Size Advertising, Publicity, Sales promotion, Word-ofMouth Promotion, Public Relations Letters, Packets, Parcels, Documents, Receipts, Proof of delivery (POD). Post box, Mail van, Stamps, Seals, Pin codes, Addresses, Consignment slips Government servants, Private operators, Postmen, Delivery boys, Booking staff, Logistics staff Enquiries, Booking, Documentation Transportation, Delivery,

Phy. Evid People

Process

Services Marketing Mix of Fire Control Services

Product Fire Engines, Clothing, Helmets

Place Price

Wherever fires erupt eg. Houses, Offices, Forests, etc. Free service for public which is indirectly collected through taxes Advertising, Publicity, Word-of-Mouth Promotion, Public Relations Fire engines, First aid kits, Hoses, Water, Fire-proof clothing, Cranes, Fire stations Trauma care personnel, Drivers, Fire - Fighters Training, Fire fighting, Medical aid, Counseling, Safety education

Promotion

Phy. Evid

People Process

Services Marketing Mix of Electricity Services

Product Place

Uninterrupted stable power supply, Meters, Transformers, Switch boards, Distribution towers and lines, Energy, Fuses
Homes, Offices, Factories, Commercial Establishments, Manufacturing, Agriculture, Services, Medical centers

Price
Promotion Phy. Evid People Process

Industrial consumption, Domestic consumption, Subsidies

Advertising, Publicity, Word-of-Mouth Promotion, Public Relations Transmission towers, Grids, Transformers, Meters, Fuses, Lines, Generating stations, Meter reading cards, Bills Electricity boards, Technicians, Administrative staff Resource assimilation, Generation, Supply, Metering, Billing, Collections, Vigilance, Repairs Emergency calls, Installations