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Service marketing - specific Industries
Tourism
Tourism
• “Tourism denotes the temporary, short-term movement of people to destination outside the place where they normally live and work and their activity during their stay at these destination”
What Tourism Includes ?
• Traveling for pleasure, health and domestic reasons.
• Persons arriving in the course of sea cruise.• Persons traveling for business or professional
purpose.• Persons travelling for convention.
What is not tourism
• Person arriving for work and occupation.• People shifting from rural areas to urban
areas.• Students in boarding.• Person passing through a country without
stopping.
Features Tourism Product
• Highly Perishable• Extremely Service Oriented• Highly Intangible• Mostly for pleasure• Physical presence of costumer is required• Infrastructure• Heterogeneous Costumers
Direct elements of the Tourism Industry -
Those areas of the tourism industry which come into direct contact with tourists
• Transport • Accommodation • Activities • Attractions • Ancillary Services • Sales
Transport
• Air– Schedule– Charter
• Road• Motorcar• Rail• Campervan• Coach
Campervan
Accommodation
Grading System
• In the United Kingdom, accommodation is graded according to stars, diamonds or crowns. In the USA a 5 star hotel would be graded as ‘deluxe’ then to ‘first class’ to ‘superior’ and the minimum grading would be ‘tourist’ or ‘budget’.
Grading System– Visitors can easily choose accommodation which will suit their needs
and budget, while being assured of quality.
– Accommodation providers have a clear understanding as to what standards are expected of them.
– Accommodation providers can use their rating on their promotional material.
– As more accommodation businesses join the grading scheme the over all quality of a destinations accommodation improves.
– This gives visitors an overall impression of the destination as one of quality.
Accommodation is rated by type:
• Hotel • Backpacker • Holiday home • Holiday park • Student accommodation• Self contained & serviced • Exclusive
Holiday park
Student accommodation
Self contained & serviced
Exclusive
Activities & Attractions
Ancillary Services
• Food and Beverage• Shopping• Insurance– medical care and hospitalization – personal accident – cancellation/curtailment of holiday – delayed departure – baggage loss – money loss – personal liability
Sales
• The customer purchases directly from the supplier
• The customer accesses the supplier through an intermediary
• The customer accesses the supplier through two intermediaries
Hotel
ExclusiveBooking Office
TravelAgent
Indirect elements of the Tourism Industry
Often called support sectors. Those parts of the tourism industry which may not come into direct contact with tourists, but without the rest of the industry could not function.
• Infrastructure • Roads • Airports • Communications • Public Toilets • Signs • Manufacturing • Building Industry • Electricity • Water supply • Sewerage and waste disposal
Marketing in the Travel and Tourism Industry
Definition
• Marketing is about anticipating and identifying the wants and needs of a target market of consumers, then satisfying those needs in order to make a profit
• Firstly, travel and tourism organisations must understand their customers’ demands. This is the ‘anticipating’ and ‘identifying’ part of the definition
Marketing Research
• Anticipating and identifying demands depends on effective marketing research
• Research into the existing and potential market
Marketing Research
• Classifying customers according to – Socio-economic status, – lifestyle– Family circumstances– Gender and so on
• May involve primary research – surveys, observation, questionnaires
• And/or secondary research – statistics and records, quantitative and qualitative
Socio-economic status,
lifestyle
Gender and so on
Classifying Customers
• A target market consists of a whole group of potential customers, drawn from the whole population
• It’s better to define the target market as a collection of ‘segments’
• Each segment will have different characteristics
• Each segment’s needs and wants must be satisfied
Marketing of Hotel Industries
Major PlayerGovernment Owned
• ITDC (Indian Tourism Develop Corp.)• HCL (Hotel Corp. of India)• Regional Tourism Department (RTDC, GTDC, UPDC)
• Major Private Player• Indian Hotels (Taj)• East India Hotels (Oberai)• ITC
Government Owned
Major Private Player
Major Private Player
Taj Delhi
Category of Hotels in India
• The Department of Tourism (DOT) assigns the rating– From 1 – Star to 5-Star Deluxe Hotels
– Heritage, Heritage Classic and Heritage grant (Palaces, castles, Forts, Havelies, Hunting, Lodge, Residences)
Hotel In India
Approved Non-Approved
Category of Hotel (Location)
• Hotel• Motel• Truck stops
Category of Room
• Normal• Deluxe• Executive• Suite• Deluxe Suite• Precedential Suite
Precedential Suite
Characteristics of Hotel Industries
• Service Oriented industry• Requires High skill labour• High capital investment (High BEP)• High Demand Variation• Foreign Collaboration (Franchises Agreement)
Service Oriented industry
Requires High skill labour
High capital investment (High BEP)
High Demand Variation
Foreign Collaboration (Franchises Agreement)
Plan of Hotel
• European Plan (Only Room)• Continental Plan (Room + Break Fast)• Half Board , MAP(Room + Break Fast + One
Meal)• Full Board , AP (Room + Three Meals)
Tariff of a Hotels
• FIT ( Free Independent Traveler)• GIT ( Group Inclusive Traveler)
Elements of the Marketing Mix
Product or service• Quality• Value• Perishable • Differentiation
Quality
Value
Differentiation
Perishable
Elements of the Marketing Mix
Price• Seasonality• Strategies• Competitor analysis• Skimming
Strategies
Competitor analysis
Elements of the Marketing Mix
Promotion• Advertising• Endorsements• Sponsorship• Methods – use of different media, brochures/leaflets,
public relations, sales promotion, press releases
Elements of the Marketing Mix
Place• Channels of distribution• Retail services such as travel agents• Direct marketing• Electronic methods, such as using the Internet
Elements of the Marketing Mix
People• Employees• Management• Culture of organisation• Attitude to customer service
Educational Service
Factors affected the Education Industry
• Changing Standards of Lifestyle • Style • Joy• Freedom to woman
• Change in society• Complexity• Increase life expectancy• Environment Concern
Factors affected the Education Industry
• Economical Changes• Globalization / Liberalization• Privatization
• Technological Advancement• IT• Neno Tech• Biochemistry
Product offer (Education)
• Core• Expected • Augmented• Potential
Price ( Factors)
• Tangibility• Consistency• Government regulation• Ability to pay• Demand and Supply
Tangibility
Mayo College Ajmer
Consistency
Doon School
Government regulation
How to put price tag on Educational Product
• Cost Base• Market Oriented• Regulated price• Differential
Place (Educational Product)
• Mono Location• Multi Location
People
Physical Evidence
• Prospectus• Building• Furniture• Playground• Swim pool• Gym• Study Material• Uniform• Accessories• Commuting Facilities
Process
Courier Service
Feature of Courier Service
• Speed, • Security, • Tracking, • Signature, • Specialization and individualization of services• Committed delivery times
• A courier is a person or company employed to deliver messages, packages and mail. Couriers are distinguished from ordinary mail services by features such as speed, security, tracking, signature, specialization and individualization of services, and committed delivery times, which are optional for most everyday mail services. As a premium service, couriers are usually more expensive than usual mail services, and their use is typically restricted to packages where one or more of these features are considered important enough to warrant the cost.
Types of courier
• Bicycle Courier• Motorbike Courier• Truck Courier• Railway Courier• Aircraft Courier• JIT (Just in time Courier)
Bicycle Courier
Motorbike Courier
Truck Courier
Railway Courier
Aircraft Courier
JIT (Just in time Courier)
Major Player• First Flight courier - India's leading courier company
Professional Courier - south India's leading courier FCML Worldwide Couriers - North India's Leading Courier Company. LDH Worldwide Express Capital Mail - Familiar in Bulk delivery both Domestic and International Flyking Courier Services Pvt. Ltd. - Oldest Courier group in India. Carrypak Services Ltd. Vayu Seva UPEX Express India Pvt. Ltd.- Courier & freight forwarding services Shree Shyam Air Service Aramex India - Courier & parcel delivery services Blue Dart - Integrated express transportation company DHL India - Drop-off locations and information on sending shipments to India OCS (Overseas Courier Service) Desk To Desk Courier & Cargo - Courier and cargo services Elbee Express - Domestic & International Express Courier Services FedEx India - Courier & freight forwarding services First Flight Couriers - Domestic & international courier services TNT India - Domestic courier, cargo shipping and document delivery Team United Express - Domestic and international courier services UPS India - Letters and package delivery services Vichare - Courier services provider Gurdev Courier Services Local Domestic & International Overnite Express - Domestic & International Courier services ACX Couriers (I) Pvt Ltd - International Express
• Express Mail Service (EMS) is an international express postal service offered by postal-administration members of the Universal Postal Union (UPU) which created the EMS Cooperative in 1998 within the framework of the UPU, a specialized agency of the United Nations, to promote the harmonization and development of postal services worldwide. Currently EMS is offered by 153 of the 191 UPU member countries' postal authorities and an integral part of their normal postal services. Seven additional countries have arrangements to deliver EMS items. An independent auditor measures the express delivery performance of all international EMS operators and each member is awarded a Gold, Silver, or Bronze certificate depending on their yearly performance. These countries are recorded in the EMS Cooperative's Hall of Fame
Product Mix
• Dispatching Letters ( National and International)
• Dispatching Packets ( National and International)
• Dispatching Valuable ( National and International)
Promotion Mix
• Advertisement• Publicity• Personal Selling• Word of mouth• Sales promotion• Telemarketing
Advertisement
Sales promotion
Personal Selling
Price Mix
• Cost Base• Competitive pricing• Differential• Institutional pricing or Corporate pricing• Collaborative Pricing
Marketing of Financial Service
InsuranceBankingFinance
Insurance Industry (Some Facts)
• 300 million people can afford• 20 % are having insurance (only 25 % are having ideal policy)
Insurance ServiceIndian Partner International Partner
Tata AIG (US)
ICICI Prudential (UK)
HDFC Standard Life (UK)
Kotak Chubb (US)
Vesya Bank ING
IDBI Federal Bank
Product
• “ Life insurance is a contract for payment of a sum of money to the person assured (Or failing him / her , to the person entitled to receive the same) on the happening of the event insured against”
Type
• Fire Insurance • Motor Insurance• Life Insurance • Child Insurance • Cargo Insurance • Health Insurance • Accident Insurance • Cattle / agriculture / crop / Insurance etc.
Cargo Insurance
Crop Insurance
Features
• Super to other saving plan• Compulsory saving• Customized installment• Ready Marketability for quick borrowing• Disability Benefit• Accidental Death Benefits
Pricing (Factors affecting)
• Mortality• Expenses• Interest
Distribution (Promotion)
• Personal Selling• Direct Mail• Agent• Financial Consultant• Financial Institutions• Advertisements
Process & People
• Process :- Should be fair and consumer friendly
• People :- understanding consumer allows to design better products
Banking
Why Marketing
• Costumer Understanding (Market research)
• Satisfying the consumer (Understanding Consumer Need)
• Facing Competition• Designing the marketing mix
Who are the consumers
• General User• Industrial User• Prospects
Product
• Deposit• Time• Demand
• International Banking• Letters of Credit• Foreign Currency
• Consultancy • Tax• Merchant Banking ( LC )• Project Consultancy• Investment Banking
Product
• Advances• Fund – oriented• Term Loan etc.
• Miscellaneous• Safe Custody• Credit Card• Standing Instruction
Promotion
• Advertisement• Personal Selling• Public Relation• Sales Promotion• Tele marketing
Advertisement
Sales Promotion
Sales Promotion
Sales Promotion
Sales Promotion
Sales Promotion
Public Relation
Public Relation
Public Relation
Price
• Regulated by RBI
Place
• Making service Accessible• Security• Availability of infrastructure• Environment Friendly
People
Physical Evidence
• Infrastructure• Peripherals
Process
• Systematic• Smooth• User friendly• Uniform• Accuracy• Use of Technology
Telecom Service Marketing
Some FactsIndian telecommunication industry
• About 525 million mobile phone connections (Dec 2009)• Third largest telecommunication network in the world • the second largest in terms of number of wireless
connections• The Indian telecom industry is one of the fastest growing
in the world• India will have 'billion plus' mobile users by 2015
(Projected)• Will overtake China’s in the next 10 years
Milestone (Indian Telecom)• 1851 First operational land lines were laid by the government near Calcutta (seat• of British power)• 1881 Telephone service introduced in India• 1883 Merger with the postal system• 1923 Formation of Indian Radio Telegraph Company (IRT)• 1932 Merger of ETC and IRT into the Indian Radio and Cable Communication• Company (IRCC)• 1947 Nationalization of all foreign telecommunication companies to form the Posts, Telephone
and Telegraph (PTT), a monopoly run by the government's Ministry of Communications• 1985 Department of Telecommunications (DOT) established, an exclusive provider of domestic
and long-distance service that would be its own regulator (separate from the postal system)• 1986 Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam
Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.
• 1997 Telecom Regulatory Authority of India created (TRAI)• 1999 Cellular Services are launched in India. New National Telecom Policy is adopted.• 2000 DoT becomes a corporation, BSNL
Major Player
Product Mix
• Basic Phone• Mobile ( GSM + CDMA)• GPRS• SMS• 3G• Broadband• GPS• Fax• Video Conference• Pager
Place• Regulated by TRAI
• Aircel Digilink India Limited Haryana, Rajasthan, U.P. ( East) • Aircel Limited Chennai, Tamil Nadu• Airtel , Bharti Cellular Limited Delhi (Metro), Mumbai (Metro), Kolkata (Metro), Chennai
(Metro), Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Orissa, Punjab, Rajasthan, Tamil Nadu, UP (West), UP (East), West Bengal
• BPL Cellular Limited Mumbai (Metro), Kerala, Maharashtra & Goa, Tamil Nadu• Hutch Group Mumbai, Delhi, Kolkata, Chennai, Gujarat, Andhra Pradesh,
Karnataka,Punjab• Idea Cellular Limited Andhra Pradesh, Maharashtra, Gujarat, Madhya Pradesh,Kerala,
Haryana, U.P.(W), Madhya Pradesh• Reliance Telecom Limited Assam, Bihar, Himachal Pradesh, Kolkata, Madhya Pradesh,
North East, Orissa, West Bengal• Spice Communications Limited Karnataka, Punjab
Price
• Regulated• Cost base• Plans Base (Packages)• Competitive pricing• CUG (Close User Group)• Target Market
Plans Base (Packages)
Competitive pricing
Competitive pricing
CUG
CUG
Target Market
Promotion
• Advertisement• Sales Promotion• Personal Selling• Public Relation• Publicity
Advertisement
Sales Promotion
Sales Promotion
Public Relation
Public Relation
Publicity
Professional Services
Professional services are infrequent, technical, or unique functions performed by independent contractors or consultants whose occupation is the rendering of such services. Examples of professional services contracts given below
• Accountants, • Actuaries, • Appraisers, • Architects, • Attorneys, • Brokerage firms, • Business consultants, • Business development
managers, • Copywriters,
• Engineers, • Law firms, • Physicians, • Public relations
professionals, • Recruiters, researchers, • Real estate brokers, • Translators, • Software engineers • Web designers
Why, Marketing Professional services
• Creating Need• Awareness Generation• To increase clientage• Building Goodwill
Users of Professional Services
• Individual• Domestic • International
• Organization• Domestic • International
Market Segmentation (Place)
• National• Regional• Local
Market Segmentation (Place)
• Identification of target market• Selection of clients• Understand the market condition (Environment)
• Setting objectives
Product
• Creating Product portfolio as per the expertise• Technological Advancement• Innovation in product offering
Creating Product portfolio as per the expertise
Creating Product portfolio as per the expertise
Creating Product portfolio as per the expertise
Creating Product portfolio as per the expertise
Innovation in product offering
Innovation in product offering
Innovation in product offering
Technological Advancement
Price
• Fee Segmentation ( Price Discrimination)• Package Pricing• Leader Pricing • Prestige Pricing • Competitive Pricing• Skimming Pricing• Penetration Pricing• Discounting Pricing (loyalty Pricing)• Market-Based Pricing
Fee Segmentation ( Price Discrimination)
Package Pricing
Leader Pricing
Leader Pricing
Prestige Pricing
Competitive Pricing
Skimming Pricing / Penetration Pricing
Discounting Pricing (loyalty Pricing)
Market-Based Pricing
Promotion
• Advertisement• Public Relation• Publicity• Sales Promotion• Personal Selling• Word of mouth• Telemarketing
Public Relation
Publicity
Sales Promotion
Transportation Service
Mode of Transport
• Transport or transportation is the movement of people and goods from one location to another
• Mode of transport– Air– Rail– Road– Water– Cable– Pipeline– Space
User of Transport
User of Transport
General User Industrial User
Market
• Class Wise ( Fist Class, II Class, Executive, Business etc) • Sex (Female compartment, Female Bus Transport)• Route• Rural• Urban• Agricultural• Industrial• Institutional
Class Wise (Fist Class, II Class, Executive, Business etc)
Sex (Female compartment, Female Bus Transport)
Route
Rural
Age
Urban
Agricultural
Industrial
Institutional
Product• Airline
• Business Class• Economy Class• Cargo• Chartered
• Bus• Luxury• Ordinary• Cargo
• Train• I Class• II Class• Sleeper• Ordinary• Seating• Cargo• Mail
Bases of Place selection
• Market Segment• Profitability• Infrastructure
Market Segment
Profitability
Infrastructure
Price
• Government Regulated• Competitive• Facility• Package• Cost Base• Negotiated• Seasonal• Psychological• Positioning • Collaborative Pricing• Telescopic Pricing
Government Regulated
Facility
Competitive
PackagesIRCTC takes care of the tourism operations of the Indian Railways. The Indian Railways operates several luxury trains such as Palace on Wheels, Golden Chariot, Royal Orient Express and Deccan Odyssey; that cater mostly to foreign tourists. For domestic tourists
too, there are several packages available that cover various important tourist and pilgrimage destinations across India.
Positioning
Telescopic Pricing
Collaborative Pricing
Promotion
• Advertisement• Public Relation• Sales promotion• Personal Selling• Word of mouth
Advertisement
Public Relation
Sales promotion
Physical evidence
• Website• Boarding Place (Airport, Bust Station, Railway Station, Dockyard)
• Food• Facilities, Infrastructure• Ticket• Welcome Kit• Bedding • luggage Trolley• Signage, Marks, Hording etc.
People
• Service Facilitators• Inside (Airhostess, Driver, Pilot, Attendant, Conductor, TC, Captain, Waiter, Cleaner etc.)
• Outside (Reception, Security, Porter, other facilitators)
Media Services
Mass media denotes a section of the media specifically designed to reach a large audience
Type of Mass Media • Broadcast & Telecast
• Television• Radio
• Film• Internet• Outdoor• Blogs• Publications
• Newspapers• Magazine• Books• Journals• Comics• Annual Report etc.
Media Marketing (Attributes)
• Type of Costumers• Audience• Readers• Visitors• Advertiser
• Limited Shelf Life• Latest technology needed• Reach should be maximum
Market Segment
• Class Wise• Uses• Sex• Age • Rural• Urban• Industrial• Institutional
Class Wise
Uses
Sex
Age
Rural & Urban
Industrial
Institutional
Place
• International• National• Regional• Area Specific• Community Specific• Organizational• Industry Specific
Products
• Medial Itself• Advertisement• Publicity• Public Relation
Media Business Revenue Model
Subscription / Circulation/ TRP/
Readers / Audience / Visitors / location
High Cost of Medial Itself,
Advertisement,Publicity,
Public Relation
High Revenue
Profit Profit
Price
Subscriber / Circulation/ TRP/ Readers / Audience / Visitors
• Revenue• Prestige • Government Regulated• Subsidized• Cost• Competitive
• Based on number of Subscriber / Circulation/ TRP/ Readers / Audience / Visitors
Advertiser, PR ,Publicity
Media Promotion to Increase Subscriber / Circulation/ TRP/ Readers / Audience / Visitors
• Attractions• Value Added Services• Advertisement• Sales Promotion• Public Relation• Publicity• Personal selling
Attractions
Attractions
Value Added Services
Value Added Services
Advertisement
Sales Promotion
Public Relation
Media Promotion to Increase Advertiser
• Advertisement• Sales Promotion (Commissions , Scheme, Discounts etc.)
• Personal selling
Advertisement
Advertisement
Sales Promotion (Commissions , Scheme, Discounts etc.)