retailing final(2).docx

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Retailing

In an ideal business world, most marketers would prefer to handleall their distribution activities by way of the corporate channel

arrangement we discussed in the Distribution Decisions tutorial.Such an arrangement provides the marketer with two importantbenefits. First, being responsible for all distribution means themarketing organization need only worry about making decisionsconcerning their product. When others, such as resellers, areinvolved in distribution attention is not given to a single supplierbut is stretched across all products the reseller carries. Second,having control on all distribution means the marketer is always in

direct contact with buyers of their products, which can make iteasier to build strong, long-term relationshipswith customers.

Unfortunately, as we saw in the last tutorial, formany marketing organizations a corporatechannel arrangement is not feasible. Whether dueto high cost or lack of experience needed to run achannel efficiently, the majority of marketingorganizations rely on third parties to get their

products into the hands of customers.

In the next two sections of the Principles of Marketing Tutorials weexamine the key parties through which marketers seek distributionassistance. Choosing which parties to aid in product distribution isimportant since a distributors actions can affect how customersview the marketer and the products they offer. As we discussed inthe Targeting Markets tutorial, a customers perception of a productaffects how they mentally position the product in relation tocompetitive products. How a product is distributed, including whereit is located (e.g., reputation of resellers from whom they purchase)and customer experience with the purchasing process (e.g., howlong to receive, condition when recei ved), will impact a customers
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feelings about the product which in turn affects how a customerpositions the product in their mind.

In this tutorial we examine retailers as resellers of a marketers

products. In terms of sales volume and number of employees,retailing is one of the largest sectors of most economies. We will seethat retailing is quite diverse and marketers, who want to distributethrough retailers, must be familiar with the differences that existamong different retail options. Retailing consists of the sale of goodsor merchandise from a fixed location, such as a department store,boutique or kiosk, or by mail, in small or individual lots for directconsumption by the purchaser. Retailing may include subordinated

services, such as delivery. Purchasers may be individuals orbusinesses. In commerce, a "retailer" buys goods or products inlarge quantities from manufacturers or importers, either directly orthrough a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailersare at the end of the supply chain. Manufacturing marketers see theprocess of retailing as a necessary part of their overall distributionstrategy. The term "retailer" is also applied where a service provider

services the needs of a large number of individuals, such as a publicutility, like electric power.

Shops may be on residential streets, shopping streets with few or nohouses or in a shopping mall. Shopping streets may be forpedestrians only. Sometimes a shopping street has a partial or fullroof to protect customers from precipitation. Online retailing, a typeof electronic commerce used for business-to-consumer (B2C)transactions and mail order, are forms of non-shop retailing.

Shopping generally refers to the act of buying products. Sometimesthis is done to obtain necessities such as food and clothing;sometimes it is done as a recreational activity. Recreationalshopping often involves window shopping (just looking, not buying)and browsing and does not always result in a purchase.


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Concerns of Retailers

Retailers are faced with many issues as they attempt to besuccessful. The key issues include:

Customer Satisfaction Retailers know that satisfied customersare loyal customers. Consequently, retailers must developstrategies intended to build relationships that result in

customers returning to make more purchases.

Ability to Acquire the Right Products A customer will only besatisfied if they can purchase the right products to satisfy theirneeds. Since a large percentage of retailers do not manufacturetheir own products, they must seek suppliers who will supplyproducts demanded by customers. Thus, an importantobjective for retailers is to identify the products customers willdemand and negotiate with suppliers to obtain these products.


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Product Presentation Once obtained products must bepresented or merchandised to customers in a way thatgenerates interest. Retail merchandising often requires hiringcreative people who understand and can relate to the market.

Traffic Building Like any marketer, retailers must usepromotional methods to build customer interest. For retailersa key measure of interest is the number of people visiting aretail location or website. Building traffic is accomplishedwith a variety of promotional techniques such as advertising,including local newspapers or Internet, and specializedpromotional activities, such as coupons

Layout For store- based retailers a stores physical layout is animportant component in creating a retail experience that willattract customers. The physical layout is more than justdeciding in what part of the store to locate products. For manyretailers designing the right shopping atmosphere (e.g.,objects, light, sound) can add to the appeal of a store. Layout isalso important in the online world where site navigation andusability may be deciding factors in whether of a retail websiteis successful.


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Location Where to physically locate a retail store may help orhinder store traffic. Well placed stores with high visibility andeasy access, while possibly commanding higher land usage

fees, may hold significantly more value than lower cost sitesthat yield less traffic. Understanding the trade-off betweencosts and benefits of locations is an important retail decision.

Keeping Pace With Technology Technology has invaded allareas of retailing including customer knowledge (e.g., customerrelationship management software), product movement (e.g.,use of RFID tags for tracking), point-of-purchase (e.g., scanners,kiosks, self-serve checkout), web technologies (e.g., onlineshopping carts, purchase recommendations) and many more.


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Ways to Categorize Retailers

There are many ways retailers can be categorized depending on thecharacteristics being evaluated. For our purposes we will separateretailers based on six factors directly related to major marketingdecisions:

Target Markets Served Product Offerings Pricing Structure Promotional Emphasis Distribution Method Service Level

and one operational factor:

Ownership Structure

However, these groups are not meant to be mutually exclusive. Infact, as we will see in some way all retailers can placed into eachcategory.


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Retail Categories: Target Markets Served

The first classification looks at the type of markets a retailer intendsto target. These categories are identical to the classification schemewe saw in the Distribution Decisions tutorial when we discussed thelevels of distribution coverage.

Mass Market Mass market retailers appeal to the largestmarket possible by selling products of interest to nearly allconsumers. With such a large market from which to drawcustomers, the competition among these retailers is oftenfierce.

Specialty Market Retailers categorized as servicing the specialtymarket are likely to target buyers looking for products having

certain features that go beyond mass marketed products, suchas customers who require more advanced product options orhigher level of customer service. While not as large as the massmarket, the target market serviced by specialty retailers can besizable.
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Exclusive Market Appealing to this market means appealing todiscriminating customers who are often willing to pay apremium for features found in very few products and forhighly personalized services. Since this target market is small,the number of retailers addressing this market within a givengeographic area may also be small.

Retail Categories: Product Offerings

Under this classification retailers are divided based on the width(i.e., number of different product lines) and depth (i.e., number ofdifferent products within a product line) of the products they carry.

General Merchandisers These retailers carry a wide range ofproduct categories (i.e., broad width) though the number ofdifferent items within a particular product line is generallylimited (i.e., shallow depth).

Multiple Lines Specialty Merchandisers - Retailers classified in thiscategory stock a limited number of product lines (i.e., narrow

width) but within the categories they handle they often offer agreater selection (i.e., extended depth) than are offered bygeneral merchandisers. For example, a consumer electronicsretailer would fall into this category.

Single Line Specialty Merchandisers Some retailers limit theirofferings to just one product line (i.e., very narrow width), and


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sometimes only one product (i.e., very shallow depth). This canbe seen online where a relatively small website may sell asingle product such as computer gaming software. Anotherexample may be a small jewelry store that only handleswatches.

Retail Categories: Pricing Strategy

Retailers can be classified based on their general pricing strategy.Retailers must decide whether their approach is to use price as a

competitive advantage or to seek competitive advantage in non-price ways.

Discount Pricing Discount retailers are best known for sellinglow priced products that have a low profit margin (i.e., priceminus cost). To make profits these retailers look to sell in highvolume. Typically discount retailers operate with low overheadcosts by vigorously controlling operational spending on suchthings as real estate, design issues (e.g., store layout, websitepresentation), and by offering fewer services to theircustomers.

Competitive Pricing The objective of some retailers is not tocompete on price but alternatively not to be seen as chargingthe highest price. These retailers, who often operate in


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Personal Selling Retailers selling expensive or high-endproducts find a considerable amount of their promotionaleffort is spent in person-to-person contact with customers.While many of these retailers use other promotional methods,in particular advertising, the consumer-salespersonrelationship is key to persuading consumers to make purchasedecisions.

Retail Categories: Distribution Method

Retailers sell in many different formats with some requiringconsumers visit a physical location while others sell to customers ina virtual space. It should be noted that many retailers are not tied toa single distribution method but operate using multiple methods.

Store-Based Sellers

By far the predominant method consumers use to obtainproducts is to acquire these by physically visiting retail outlets(a.k.a. brick-and-mortar). Store outlets can be further dividedinto several categories. One key characteristic thatdistinguishes categories is whether retail outlets are physicallyconnected to one or more others stores:


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o Stand-Alone These are retail outlets that do not haveother retail outlets connected.

o Strip-Shopping Center A retail arrangement with two ormore outlets physically connected or that share physicalresources (e.g., share parking lot).

o Shopping Area A local center of retail operationscontaining many retail outlets that may or may not bephysically connected but are in close proximity to eachother such as a city shopping district.

o Regional Shopping Mall Consists of a large self-contained shopping area with many connected outlets.

Non-Store Sellers

A fast growing method used by retailers to sell productsis through methods that do not have customers physicallyvisiting a retail outlet. In fact, in many cases customersmake their purchase from within their own homes.

o Online Sellers The fastest growing retail distributionmethod allows consumer to purchase products via theInternet. In most cases delivery is then handled by athird-party shipping service.

o Direct Marketers Retailers that are principally sellingvia direct methods may have a primary location that


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receives orders but does not host shopping visits. Rather,orders are received via mail or phone.

o Vending While purchasing through vending machinesdoes require the consumer to physically visit a location,this type of retailing is considered as non-store retailingas the vending operations are not located at the vendingcompanys place of business.

Retail Categories: Service Level

Retailers attract customers not only with desirable products andaffordable prices, but also by offering services that enhance thepurchase experience. There are at least three levels of retail service:

Self-Service This service level allows consumers to perform

most or all of the services associated with retail purchasing.For some consumers self-service is considered a benefit whileothers may view it as an inconvenience. Self-service can beseen with: 1) self-selection services, such as online purchasingand vending machine purchases, and 2) self-checkout serviceswhere the consumer may get help selecting the product but


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they use self-checkout stations to process the purchaseincluding scanning and payment.

Assorted-Service The majority of retailers offer some level ofservice to consumers. Service includes handling the point-of-purchase transaction; product selection assistance; arrangepayment plans; offer delivery; and many more.

Full-Service The full-service retailer attempts to handle nearlyall aspects of the purchase to the point where all the consumerdoes is select the item they wish to purchase. Retailers thatfollow a full-price strategy often follow the full-serviceapproach as a way of adding value to a cust omers purchase.

Retail Categories: Ownership Structure

Finally, we can categorize retailers based on the ownershipstructure of the business.

Individually Owned and Operated Under this ownership structurean individual or corporate entity owns and operates one or avery small number of outlets. Single ownership of retail outletsmost frequently occurs with small retail stores, though thereare some cases, for instance in the automotive or furnitureindustries, where single ownership involves very large outlets.


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Corporate Chain A retail chain consists of multiple retail outletsowned and operated by a single entity all performing similarretail activities. While the number of retail outlets required tobe classified as a chain has never been specified, we willassume that anyone owning more than five retail locationswould be considered a chain.

Corporate Structure This classification covers large retailerspredominantly operating in the non-store retail arena such asonline, catalog and vending.

Contractually Licensed and Individually Operated The contractualchannel arrangement discussed in the Distribution Decisionstutorial has lead to a retail ownership structure in whichoperators of the retail outlet are not the out-right owners ofthe business. Instead, the arrangement often involves a legalagreement in which the owner of the retail concept allows theoperator to run the owners business con cept in exchange forfinancial considerations such as a percentage of revenue. Thisstructure is most often seen in retail franchising.

Indian Retail Scenario

Retail in India is still at a very early stage. Most retail firms arecompanies from other industries that are now entering the retail

sector on account of its amazing potential. There are only a handfulof companies with a retail background. One such company isNigerias from Bangalore that started as a dairy and incorporatedother areas in its business with great success. Their achievementhas led to the arrival of numerous other players, most with thebacking of large groups, but usually not with a retail background.
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Most new entrants to the India retail scene are real estate groupswho see their access to and knowledge of land, location andconstruction as prime factors for entering the market.

New retail stores have traditionally started operations in cities likeMumbai and Delhi where there has been an existing base ofmetropolitan consumers with ready cash and global tastes. The newperspective to this trend is that new entrants to the retail scenarioshould first enter smaller cities rather than focusing entirely on themetros. Spending power in India is not concentrated any more injust the 4 metros (Delhi, Mumbai, Chennai, Kolkata). Smaller butupcoming cities like Chandigarh, Coimbatore, Pune, Ahmedabad,

Baroda, Trivandrum, Cochin, Ludhiana, Simla etc will fast becatching up to the metros in their spending capacity.

Cities in south India have taken to the supermarket style ofshopping very eagerly and so far the maximum number of organizedgrocery and department stores are in Chennai, Bangalore andHyderabad. The north has a long way to go to come up to par.International stores now prefer to gauge the reaction of the public inthese cities before investing heavily in a nation-wide expansion.Milou, the Swiss childrens wear retailer, recently opened up its firststore in Chennai, bypassing Delhi and Mumbai.

Besides the urban market, I ndias rural market has just started to beseen as a viable option and companies who understand what therural consumer wants will grow to incredible heights. The bulk of

Indias population still live in rural areas and to be able to caterspecifically to them will mean generating tremendous amounts ofbusiness.Business, specifically retail business must focus on the mostimportant factor in the Indian mind-set----Value for Money. Indianconsumers are ready to pay almost any amount of money for a


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product or service as long as they feel they are getting good Valuefor Money. This is often misconstrued as being tight fisted orinterested in lower priced and/or lower quality products.

In the past decade, international companies entering India (Levis,Pepe, Tommy Hilfiger, Marks and Spencer, Mango) have generallyoffered moderately priced to expensive items. They have aimed forthe upper-middle and rich classes of Indian society. These areconsumers who travel abroad often and can buy these itemsoverseas quite easily. Instead, international companies should befocusing on the lower and lower-middle classes of India. This iswhere the real potential is, the apparitional class of consumers who

want to lead a better lives and believe in education, hard work andabsorb knowledge from every possible angle. The phenomenalsuccess of Big Bazaar, Pantaloons version of Wal-Mart, is proof thatthere is enormous potential in providing products and services tothis class of consumers.

Indians are very curious by nature and will try everything at leastonce before rejecting it. The initial success of KFC in India provedthat Indians could make a success of most new ventures enteringIndia but reject a concept once they have tried and tested theoffering and found nothing worth going back for. The menu at KFCwas rather boring and insipid to the Indian consumer who is used tothe innumerable combinations and permutations of street food. Fortheir second run in India, KFC re-thought its menu and has beenvery successful marketing at specific groups within India, like thePunjabis who have quite a history of loving the Chicken leg andhave made the Chandigarh outlet a huge success!

A company entering India cannot have just one game plan to applyto the entire country as the people, their tastes, the lifestyle, thebudgets etc are all too divergent. International entrants must entereach market specifically focusing only on that area to be successful.


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Metros: Delhi, Mumbai, Chennai and Kolkata.Second rung but willsoon outpace metros: Hyderabad, Bangalore, Ahmedabad, Gurgaon,Pune, BarodaSmall and developing fast: Chandigarh, Coimbatore,Trivandrum, Faridabad, Ludhiana, Cochin, Simla, Mysore


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Services marketing

Services marketing is marketing based on relationship and value.It may be used to market a service or a product.

Marketing a service-base business is different from marketing agoods-base business.

There are several major differences, including:

1. The buyer purchases are intangible2. The service may be based on the reputation of a single person3. It's more difficult to compare the quality of similar services4. The buyer cannot return the service

The major difference in the education of services marketing versusregular marketing is that apart from the traditional "4 P's," Product,Price, Place, Promotion, there are three additional "P's" consisting ofPeople, Physical evidence, and Process. Service marketing alsoincludes the servicewomen referring to but not limited to theaesthetic appearance of the business from the outside, the inside,

and the general appearance of the employees themselves. ServiceMarketing has been relatively gaining ground in the overallspectrum of educational marketing as developed economies movefarther away from industrial importance to service orientedeconomies. What is marketing? Marketing is the flow of goods andservices from the producer to consumer. It is based on relationshipand value. In common parlance it is the distribution and sale ofgoods and services. Marketing can be differentiated as:

Marketing of products Marketing of services.
http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Service_%28economics%29http://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Service_%28economics%29http://en.wikipedia.org/wiki/Marketing


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Marketing includes the services of all those indulged may it be thenthe wholesaler retailer, Warehouse keeper, transport etc. In thismodern age of competition marketing of a product or service plays akey role. It is estimated that almost 50% of the price paid for acommodity goes to the marketing of the product in US. Marketing isnow said to be a term which has no particular definition as thedefinitions change everyday.

"Managing the evidence" refers to the act of informing customersthat the service encounter has been performed successfully. It isbest done in subtle ways like providing examples or descriptions ofgood and poor service that can be used as a basis of comparison. The

underlying rationale is that a customer might not appreciate the fullworth of the service if they do not have a good benchmark forcomparisons.

However, it is worth remembering that many of the concepts, aswell as many of the specific techniques, will work equally wellwhether they are directed at products or services. In particular,developing a marketing strategy is much the same for products andservices, in that it involves selecting target markets and formulatinga marketing mix. Thus, Theodore Levitt suggested that "instead oftalking of 'goods' and of 'services', it is better to talk of 'tangibles'and 'intangibles'". Levitt also went on to suggest that marketing aphysical product is often more concerned with intangible aspects(frequently the `product service' elements of the total package) thanwith its physical. Sales after service are very important in servicesector. Properties. Charles Revson made a famous commentregarding the business of Revlon Inc.: `In the factory we makecosmetics. In the store we sell hope.' Arguably, service industrymarketing merely approaches the problems from the opposite endof the same spectrum


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Characteristics of service

The services have unique characteristics which make them differentfrom that of goods. The most common characteristics of services

are:

Intangibility.Inseparability.Perishability.Variability

Intangibility

Services are activities performed by the provider, unlike physicalproducts they cannot be seen, tasted, felt, heard or smelt before theyare consumed. Since, services are not tangibles, they do not havefeatures that appeal to the customers senses, their evaluation,unlike goods, is not possible before actual purchase andconsumption. The marketer of service cannot rely on product-basedclues that the buyer generally employs in alternative evaluationprior to purchase. So, as a result of this, the services are not knownto the customer before they take them. The service provider has tofollow certain things to improve the confidence of the client: Theprovider can try to increase the tangibility of services. For example,by displaying a plastic or a clay model showing patients an expectedstate after a plastic surgery. The provider can emphasize on thebenefits of the service rather than just describing the features. Notall the service product has similar intangibility. Some services arehighly intangible, while the others are low i.e. the goods (or the

tangible component) in the service product may vary from low tohigh.


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For example: Teaching, Consulting, Legal advices are serviceswhich have almost nil tangible components; While restaurants, fastfood centers, hotels and hospitals offer services in which theirservices are combined with product (tangible objective) , such asfood in restaurants, or medicines in hospitals etc

Inseparability

Services are typically produced and consumed simultaneously.Incase of physical goods, they are manufactured into products,distributed through multiple resellers, and consumed later. But,

incase of services, it cannot be separated from the service provider.Thus, the service provider would become a part of a service.

For example: Taxi operator drives taxi, and the passenger uses it.The presence of taxi driver is essential to provide the service. Theservices cannot be produced now for consumption at a later stage /time. This produces a new dimension to service marketing. Thephysical presence of customer is essential in services. For example:to use the services of an airline, hotel, doctor, etc a customer mustbe physically present.

Inseparability of production and consumption increases theimportance of the quality in services. Therefore, service marketersnot only need to develop task-related, technical competence ofservice personnel , but also , require a great input of skilledpersonnel to improve their marketing and inter personal skills.


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Perishability

Services are deeds, performance or act whose consumption takeplace simultaneously; they tend to perish me the absence of

consumption. Hence, services cannot be stored. The services gowaste if they are not consumed simultaneously i.e. value of serviceexists at the point when it is required.

The perishable character of services adds to the servicemarketers problems . The inability of service sector to regulatesupply with the changes in demand; poses many qualitymanagement problems. Hence, service quality level deteriorates

during peak hours in restaurants, banks, transportation etc. This is achallenge for a service marketer. Therefore, a marketer shouldeffectively utilize the capacity without deteriorating the quality tomeet the demand.

Variability

Services are highly variable, as they depend on the service provider,and where and when they are provided. Service marketers face aproblem in standardizing their service, as it varies with experiencedhand, customer, time and firm. Service buyers are aware of thisvariability. So, the service firms should make an effort to deliverhigh and consistent quality in their service; and this is attained byselecting good and qualified personnel for rendering the service.

Retail in India is still at a very early stage. Most retail firms arecompanies from other industries that are now entering the retail

sector on account of its amazing potential. There are only a handfulof companies with a retail background. One such company isNilgiris from Bangalore that started as a dairy and incorporatedother areas in its business with great success. Their achievementhas led to the arrival of numerous other players, most with thebacking of large groups, but usually not with a retail background.


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Most new entrants to the India retail scene are real estate groupswho see their access to and knowledge of land, location andconstruction as prime factors for entering the market.

New retail stores have traditionally started operations in cities likeMumbai and Delhi where there has been an existing base ofmetropolitan consumers with ready cash and global tastes. The newperspective to this trend is that new entrants to the retail scenarioshould first enter smaller cities rather than focusing entirely on themetros. Spending power in India is not concentrated any more injust the 4 metros (Delhi, Mumbai, Chennai, and Kolkata). Smaller butupcoming cities like Chandigarh, Coimbatore, Pune, Ahmedabad,

Baroda, Trivandrum, Cochin, Ludhiana, Shimla etc will fast becatching up to the metros in their spending capacity.

Cities in south India have taken to the supermarket style ofshopping very eagerly and so far the maximum number of organizedgrocery and department stores are in Chennai, Bangalore andHyderabad. The north has a long way to go to come up to par.International stores now prefer to gauge the reaction of the public inthese cities before investing heavily in a nation-wide expansion.Milou, the Swiss childrens wear retailer, recently opened up its firststore in Chennai, bypassing Delhi and Mumbai.

Besides the urban market, Indias rural market has just started to beseen as a viable option and companies who understand what therural consumer wants will grow to incredible heights. The bulk of

Indias population still live in rural areas and to be able to caterspecifically to them will mean generating tremendous amounts ofbusiness.Business, specifically retail business must focus on the mostimportant factor in the Indian mind-set----Value for Money. Indianconsumers are ready to pay almost any amount of money for a


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product or service as long as they feel they are getting good Valuefor Money. This is often misconstrued as being tight fisted orinterested in lower priced and/or lower quality products.

In the past decade, international companies entering India (Levis,Pepe, Tommy Hilfiger, Marks and Spencer, Mango) have generallyoffered moderately priced to expensive items. They have aimed forthe upper-middle and rich classes of Indian society. These areconsumers who travel abroad often and can buy these itemsoverseas quite easily. Instead, international companies should befocusing on the lower and lower-middle classes of India. This iswhere the real potential is, the aspirational class of consumers who

want to lead a better lives and believe in education, hard work andabsorb knowledge from every possible angle. The phenomenalsuccess of Big Bazaar, Pantaloons version of Wal-Mart, is proof thatthere is enormous potential in providing products and services tothis class of consumers.

Indians are very curious by nature and will try everything at leastonce before rejecting it. The initial success of KFC in India provedthat Indians could make a success of most new ventures enteringIndia but rejects a concept once they have tried and tested theoffering and found nothing worth going back for. The menu at KFCwas rather boring and insipid to the Indian consumer who is used tothe innumerable combinations and permutations of street food. Fortheir second run in India, KFC re-thought its menu and has beenvery successful marketing at specific groups within India, like thePunjabis wh o have quite a history of loving the Chicken leg andhave made the Chandigarh outlet a huge success!Companiesentering India cannot have just one game plan to apply to the entirecountry as the people, their tastes, the lifestyle, the budgets etc areall too divergent.


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Categories of service mix:

Pure tangible goods:

In these services, the customer gets a tangible product, though itmay sometimes last for only a short period. For example, if a persontakes a PC on rent, he gets the PC , which he can use for the period ofcontract. After the contract period is over, the PC is returned to theservice provider.

Tangible goods with accompanying services:

Some services offer a tangible product along with the servicerequested by the customer. For example, airline services offer foodand magazines to passengers, and market research firms provideclients with detailed report of the research results.

Hybrid:

The offering consists of equal part of goods and services. E.g.customer patronize restaurant for food as well as services.

Major Services with accompanying minor goods and services:

Some organizations offer a warranty period to their own customers.During this, they offer free service if the customer reports anyproblem with the product. For example, if an organization buys aprinter, the manufacturer offers free service for a specified timefrom the date of purchase.

Pure Service:

These are highly intangible services, which do not providecustomers with any tangible product. In Movie Theater, people getentertained by watching movie they do not get any tangible product.


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Service Marketing Mix/Extended Marketing Mix

Having discussed the characteristics of a service, let us now look atthe marketing mix of a service.

The service marketing mix comprises off the 7ps. These include: ProductPrice Place Promotion People Process Physical evidence.

Lets now look at the remaining ps:

People

An essential ingredient to any service provision is the use ofappropriate staff and people. Recruiting the right staff and trainingthem appropriately in the delivery of their service is essential if theorganization wants to obtain a form of competitive advantage.Consumers make judgments and deliver perceptions of the servicebased on the employees they interact with. Staff should have theappropriate interpersonal skills, aptitude, and service knowledge toprovide the service that consumers are paying for. Many Britishorganizations aim to apply for the Investors In People accreditation,which tells consumers that staff are taken care off by the companyand they are trained to certain standards.


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Process

Refers to the systems used to assist the organization in deliveringthe service. Imagine you walk into Burger King and you order a

Whopper Meal and you get it delivered within 2 minutes. What wasthe process that allowed you to obtain an efficient service delivery?Banks that send out Credit Cards automatically when theircustomers old one has expired again require an efficient process toidentify expiry dates and renewal. An efficient service that replacesold credit cards will foster consumer loyalty and confidence in thecompany.

Physical Evidence

Where is the service being delivered? Physical Evidence is theelement of the service mix which allows the consumer again to makejudgments on the organization. If you walk into a restaurant yourexpectations are of a clean, friendly environment. On an aircraft ifyou travel first class you expect enough room to be able to lay down!Physical evidence is an essential ingredient of the service mix,consumers will make perceptions based on their sight of the serviceprovision which will have an impact on the organizations perceptualplan of the service.


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RETAILING SSERVICES


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ACKNOWLEDGMENT

We take this as a great opportunity to thanks all the people who has

helped us in making this project successful.

It was an incredible experience working on the project of

MARKETING MANAGEMENT thankful to all the people withoutwhose co-operation and support working on this project would not

have been so pleasurable.

We would like to thank our Prof. Mr. Yogesh Funde for his guidance

and support throughout the completion of this project. Without his

help this project could not been as successful as it is today.


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INDEX1.

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BIBLOGRAPHY

Books:Marketing Management Author By Prof. Mr. Yogesh Funde

Website:

www.wikipedia.com

www.google.com
http://www.wikipedia.com/http://www.wikipedia.com/http://www.google.com/http://www.google.com/http://www.wikipedia.com/


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