The service marketing mix is also called a protracted marketing mix and can be an vital part of something. The service marketing mixture consists of 7 P's as compared to the 4 P's of a product marketing combination. Simply said, the service marketing mix assumes the service as something itself. Nonetheless it gives 3 more P's that are required for perfect service delivery.
servicemarketingmix Service Marketing Mix
The product marketing combine contains the 4 P's which can be Product, Pricing, Promotions and Placement. They are discussed in my own article on product marketing mixture - the 4 P's.
Product - The merchandise operating marketing mixture is intangible in characteristics. The product element of the marketing combine includes the tangible good and all of the services that accompany that good to produce the final product. Something is a offer, or package, of goods and services that include the total offering. For example, the purchase of a hotel room includes the guest room, fitness center, pool, restaurants, valet service, concierge, housekeeping service, etc. A restaurant meals consists of the actual food, number/hostess, and waiters, etc. Finally, a
travel experience involves a chain of products and services starting atthe time of purchase and closing upon returning from the trip. Everything among, such as hotel service, restaurants, and travel (including taxis and buses), affect the entire experience. A number of the variables that are area of the 'product' decision include variety, quality, design, features/amenities, brand, packaging, promoting services, and warranties. As stated early, the decision regarding the proper mix of goods and services is dependant on the desires and needs of consumers (the concept of marketing.
Place - The area component of the marketing blend includes the distribution
and logistics of creating a service or product and making it
available to the final consumer. The positioning of a creation or
wholesaling facility depends upon taking into consideration the costs of resources
such as labor, raw materials, and real house. In addition, it is necessary
to have access to the preferred mode(s) of travelling for delivering
the products to wholesalers and sellers. The location of your retail
establishment is based mainly on option of the final consumers.
Services have relatively short channels of circulation and concentrate most
of their efforts on finding retail locations that are convenient for consumers.
For example, restaurants have a tendency to choose high traffic areas close
to shopping and other attractions. Similarly, hotels discover their facilities
in areas such as airports, urban centers, commercial centers, and tourist
attractions that are accessible to their respective target marketplaces.
Some of the variables that are area of the 'place' decision include
the type of route, location, assortments, coverage area, inventory,
and transport. Many companies overlook the value of this varying in the proper planning process. The route of distribution
tends to be shorter for the marketing of services than that for
goods, & most service providers act as manufacturer and merchant.
Many managers operating firms assume that after the initial location
is determined this variable diminishes in importance. However, hotels
and restaurants do turn their operations to a far more favorable location
on occasion. That is a significant decision relating company time
and resources, but it can lead to long-term expansion and increased
profit if treated properly. Another good example of a 'place' decision
for a hotel is the Harborside Hyatt in Boston, Massachusetts. .
Promotion - The advertising element of the marketing mix includes all
of the communications associated with marketing something or service.
The promotion mixture includes four elements: advertising, personal
selling, publicity, and sales promotion. Advertising and publicity are
forms of mass communication utilizing a variety of mediums such as
television, radio, paper, magazines, direct email, and the web.
Advertising is a paid form of mass communication with an identified
sponsor, while promotion is a non-paid form of mass communication
without a sponsor (i. e. , it is free and objective). Personal selling is
a form of social communication sponsored by the company. Sales
promotion is a short-term inducement to acquire something or service.
Some examples of sales offers are contests, sweepstakes,
premiums, and product bundles.
Pricing - Costs in case there is services is rather more difficult than in case there is products. Price. Price is the value placed on something or service. Other conditions you can use to refer to the price element of the marketing blend are: charge, rate, tuition, superior, and toll. You will discover non-monetary elements to price as well as a lot more obvious monetary elements. Some examples of non-monetary price are the time it requires to search and evaluate alternate products or services and the convenience of location. If the consumer drives to several locations to look for a product or service, then there are costs associated as time passes, gas, and depreciation on the car. Also, there could be tolls for highways, bridges, or subways. In the long run, it's the recognized price or the perceived value the buyer associates with a product or service that influences the purchase and the level of customer's satisfaction. Value is the trade off between price and quality - the benefits the buyer receives for the purchase price paid.
Here on we start for the extended service marketing blend.
The role of the service worker becomes a lot more critical since to an extremely real extent the
employee is the service, given the lack of any tangible artifact. They take the duty of
projecting the image of the service organization. Due to the inseparability of creation and
consumption of services, service delivery is seen as a connections between customers and
service employees. Service employees who experience positive individuals resource techniques can devote
their energies and resources to effectively portion their customers. The service firm's human
resource management routines can create an environment that elicit more positive, courteous and
helpful tendencies from the employees toward customers. Subsequently, the habit that employees display
will positively effect on service quality.
Physical Data :
Physical proof service includes all the tangible representations of service such as clear signage,
good ventilation, sufficient space, internet presence, equipment and facility. As services are
intangible, customers are searching for any tangible cues to help them understand the nature of the
service experience. For instance, in the hotel industry, the design, furnishing, lighting, design and
decoration of the hotel as well as the looks of its employees will effect customer
perceptions of the service quality and experience. For theme parks, restaurants, health golf clubs,
hospitals or classes, the physical service is crucial in interacting the service and making the
entire customer experience positive. Ambient conditions include background characteristics of the
environment such as heat range, air quality, lighting, noises, music, and aroma have an effect on the five senses.
Spatial structure of the gear, and furnishings assemble, the size and shape of these items, and the
spatial relationships included in this are also imperative to influence customers' conception.
Process is referred to as the procedures, mechanisms and movement of activities by which the service is
delivered i. e. the service delivery and os's. Delivering customer anticipations depends
on how well various steps function along. Highly bureaucratized services frequently follow
complicated and considerable series of actions, and the logic of the steps included often mistake the
customer. Customers may complain that service companies are sluggish in response and bureaucratic with the
many steps included. They want quick access to the service process, and they want what to be
handled quickly, ideally by the first service staff. Customers describe frustrating experiences
when they have to run from pillar to post to complete a straightforward deal, experience long waiting
time, rules and regulations, and workers who drop to serve them with the excuse "I'm not
allowed to get this done" or "this is against our policy".
An Ordinance was granted on 19th January, 1956 nationalizing the life span Insurance sector and LIFE INSURANCE COVERAGE Corporation had become in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies-245 Indian and international insurers in every. The LIC possessed monopoly till the later 90s when the Insurance sector was reopened to the private sector. History
Life Insurance Organization of India (LIC) was formed in Sep 1956 following the Parliament of India handed the Life Insurance Corporation Work in Jun 1956. The business was created with the objective of spreading life insurance coverage more generally, especially to attain all the insurable people in the rural areas and offer them with enough financial cover at an acceptable cost. Aside from its commercial office, LIC had five zonal offices, 33 divisional offices and 212 branch office buildings in 1956. The type of life insurance coverage contracts being long-term coupled with the necessity to provide a variety of services during the term of the insurance plan, LIC re-organised itself by opening a number of new branch offices. After its re-organisation, servicing functions were used in branches which were changed into accounting models.
As on Mar 2008, LIC experienced 2, 048 fully computerised branch office buildings, 109 divisional office buildings, eight zonal offices aside from its corporate office. LIC's network attaches all the branches through wide area network. The company also has tie-ups with certain bankers and companies to provide on-line
premium collection facility in select places. Besides, ECS and ATM prime payment center to its customers, the company in addition has commissioned IVRS and information centres at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune, among other locations. LIC in addition has launched Satellite television Sampark offices in order to provide quick access to its insurance plan holders.
The company possessed 340 such office buildings as on Mar 2008. LIC also provides cover financing through LICHFL. It has additionally formed a secured asset management company known as LICMF AMC. The corporation has also extended its procedures to the international world; through various JVs and subsidiaries
it operates in as many as nine countries.
Products & Services
LIC offers several insurance products to its customers such as insurance plans, pension ideas, unit-linked programs, special plans and group design. During FY08, the business introduced certain new products such as Earnings Plus, Lot of money Plus, Jeevan Akshay, Jeevan Amrit & Amulya Jeevan. As of Mar 2007, total number of providers of the company stood at 1. 1 mn while the final number of policies issued was 38. 2 mn. The prime earned by the business reported a rise of 41% in FY07 when compared to the previous calendar year. During the calendar year, the company covered with insurance 34. 28 mn individuals for the first time
7 P`s of Services Marketing in LIC
The marketing mix is the mixture of marketing activities an organization
engages in to be able to best meet the needs of its targeted market. The Insurance business discounts in
selling services and for that reason credited weight-age in the formation of marketing combine for the
Insurance business is necessary. The marketing mixture includes sub-mixes of the 7 P's of
marketing i. e. the merchandise, its price, place, advertising, people, process & physical attraction.
The above mentioned 7 P's can be used for marketing of Insurance products, in the following
A product means that which we produce. If we produce goods, it means tangible product
and when we produce or generate services, this means intangible service product. Something is
both just what a seller must sell and a buyer must buy. Thus, an Insurance company sells
therefore services are their product. In India, the life span Insurance Organization of India (LIC) is
the leading companies offering insurance services to the users. Apart from offering
life plans, they also offer underwriting and talking to services. When a person
or an organization buys an Insurance policy from the insurance company, he not only purchases a
policy, but along with it the assistance and advice of the agent, the prestige of the insurance
company and the facilities of boasts and compensation. . In a nutshell, the formulation of
product-mix should be in the face of impressive product strategy. While initiating the
innovative process it is necessary to take into consideration the strategies implemented by private
and foreign insurance firms through various strategies like Endowment plan, pension plan,
In the insurance business the rates decisions are worried with:
i) The superior charged against the procedures, ii) Interest charged for defaulting the
payment of superior and credit facility, and
iii) Commission recharged for underwriting and consultancy activities. . The rates in
insurance is by means of top quality rates. The superior rates are revised if there are
any significant changes in any of the below factors.
This element of the marketing combine is related to two important facets --
i) Managing the insurance employees, and \
ii) Locating a branch. .
While finding branches, the branch director needs to consider a number of factors, such
as smooth accessibility, availability of infrastructural facilities and the management of branch
offices and premises. Furthermore additionally it is significant to provide safety measures and also
factors like office furnishing, civic amenities and facilities, parking facilities and interior
office decoration should be given proper attention. Thus the area management of insurance
branch offices requires a new vision, distinctive way and an impressive style. That is essential
to make the work place conducive, attractive and proactive for the era of efficiency
among employees. The branch professionals need professional excellence to make place
Advertising and Promotion, organization of conferences and seminars, incentive to
policyholders are impersonal communication. Planning exhibitions, participation in fairs
and celebrations, rural wall structure paintings and promotion drive through the mobile publicity van units
would succeed in creating the impulse buying and the rural prospects would be easily
transformed into actual policyholders.
Understanding the customer better allows planning appropriate products. Being a
service industry that involves a higher level of folks interaction, it is very important to use
this resource efficiently to be able to fulfill customers. Training, development and strong
relationships with intermediaries will be the key areas to be stored under consideration. Training
the employees, use than it for efficiency, both at the personnel and agent level, is one of the
important areas to look into.
The process should be customer friendly in insurance industry. The velocity and accuracy
of payment is of great importance. IT & Data Warehousing will smoothen the process
flow. IT will help in servicing large no. of customers effectively and bring down overheads.
Technology can either accentuate or supplement the stations of distribution cost
effectively. It can also assist in improving customer service levels. The use of data warehousing
management and mining will help to discover the profitability and probable of various
customers product segments.
The physical research are includes such as coverage document, assertions, intimation
letter, uniforms of workers, vending machine of LIC enquiry option, LIC logo and their honors.
Axis Bank Limited was the to begin the new private banks to have begun functions in 1994, following the Administration of India allowed new private banking institutions to be established. THE LENDER was marketed jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Organization of India (LIC) and Basic Insurance Corporation of India (GIC) and other four PSU insurance companies, i. e. National Insurance Company Ltd. , THE BRAND NEW India Confidence Company Ltd. , The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. THE LENDER today is capitalized to the level of Rs. 358. 56 crores with the public holding (apart from promoters) at 57. 60%. The Bank's Registered Office reaches Ahmedabad and its own Central Office is located at Mumbai. Currently, the Bank has a very wide network of more than 701 Branch office buildings and Expansion Counters. THE LENDER has a network of over 2854 ATMs providing 24 hrs per day banking convenience to its customers. That is one of the largest ATM sites in the united states. THE LENDER has strengths in both retail and corporate and business banking and it is committed to implementing the best industry routines internationally in order to achieve quality. Axis Bank Small has been promoted by the major and the best Financial Institution of the united states, UTI. THE LENDER was setup with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC - Rs. 7. 5 crore and GIC and its four subsidiaries adding Rs. 1. 5 crore each.
THE SERVICE MARKETING MIX OF AXIS BANK
The main products of AXIS Lender are Saving Account, Current Profile and Demat Consideration. The other products are Home loan, personal loan, Insurance, Bank cards, etc.
For better marketing of products, the products are categorized under Axis Loan provider and Axis Sales.
Products under Axis Bank or investment company are
Products under Axis Sales are
The price of the product depends upon the services provided by the Bank on the individual product to the clients. Detailed rates changes every once in awhile and the same can be found on the site of Axis loan provider.
Place takes on an important role in tangibilizing service offerings. Quality of service is identified by many customers by means of host to delivery- locational charm, interiors, ambience, etc. When a bank is positioned in a crowded 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 appealing to the customers portion. More recently, a few of the private banking institutions in India like AXIS Loan provider are providing very attractive tangibles by means of their locations, exteriors and interiors.
Promotion can tangibilize services in various forms:
Visualization tangibilizes services through hoardings, Television and print campaigns or adverts. Physical representation in services has a good promotional appeal to customers like use of colors to symbolize prosperity and status. Providers use records in their deals in support of their statements for dependability, popularity and responsiveness
People are a typical factor in every service. And people tangibilize services. Good people (means good performance) make good or successful services. Bad performers deliver bad services.
Customer described business process- Process inventions and continuous improve-
ment through people engagement.
Result oriented methodology- Each process has been created by first planning the desired results.
Axis Bank is constantly taking initiatives to own best in school service that seek to enhance customer experience.
Reduce paper consumption- Due to technologies such as use of Finacle software for key banking alternatives.
It has situated it self as a standard bank gives higher standard of services through product development.
Satisfies the diverse need of individual and commercial clients.
It is customer centric, and service focused.
Now we will compare the strategies of both axis loan company and adlabs,
LIC provides life insurance coverage, like Endowment plan, pension plan,
Axis bank also offers variety of products like Keeping Account, Current Profile and Demat
Account. The other products are Home loan, cash advance, Insurance, Credit cards
In LIC the rates decisions are concerned with :i) The prime charged from the plans, ii) Interest recharged for defaulting the repayment of prime and credit facility, and iii) Percentage costed for underwriting and consultancy activities. . The charges in insurance is by means of top quality rates.
The price of the product depends upon the services provided by the Bank on the particular product to the customers.
LIC consider a amount of factors, such as even accessibility, option of infrastructural facilities and the management of branch offices and premises
Quality of service is recognized by many customers in the form of place of delivery- locational appeal, interiors, ambience, etc. When a bank is situated in a congested market the place or location is a negative tangibilizes. AXIS Loan company are providing very attractive tangibles in the form of their locations, exteriors and interiors.
Advertising and Promotion, organization of conferences and seminars, motivation to
policyholders are impersonal communication. Organizing exhibitions, involvement in fairs and festivals, rural wall membrane paintings and publicity drive through the mobile
Visualization tangibilizes services through hoardings, Tv set and print campaigns or advertising. Physical representation in services has a good promotional appeal to customers like use of colors to symbolize prosperity and status. Service providers use documentation in their offers to get their promises for dependability, level of popularity and responsiveness
. LIC being truly a service industry that involves a high level of individuals interaction, it is vital to utilize this resource efficiently in order to gratify customers. Training, development and strong romantic relationships with intermediaries will be the key areas to be stored in mind.
In axis loan company 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 and reliability of repayment is of great importance. IT & Data Warehousing will smoothen the processflow. IT will help in servicing large no. of customers proficiently and bring down overheads
Customer described business process- Process inventions and constant improve-ment through people participation. Result oriented approach- Each process has been created by first planning the required results. Axis Loan provider is constantly taking initiatives to own best in class service that seek to enhance customer experienc
The physical proof are includes such as insurance plan document, assertions, intimation
letter, uniforms of staff, vending machine of LIC enquiry option, LIC brand and their awards
In Axis bank or investment company physical evidenceReduce newspaper usage- Due to technologies such as use of Finacle software for core banking solutions. They have positioned itself as a standard bank gives higher standard of services through product technology.
There is littile little bit similarity in the service marketing mix of LIC and axis bank but you can find difference in the marketing strategy of the both companies
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