SERVICE MARKETING

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SERVICE MARKETING

• BY-
• PRAVEEN PARMAR
• PROFESSOR(C.M.)

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What is service ?

• SERVICE IS ANY ACT OR PERFORMANCE THAT ONE
  PARTY CAN OFFER TO ANOTHER THAT IS ESSENTIALLY
  INTANGIBLE AND DOES NOT RESULT IN ANY OWNERSHIP
• 
  -PHILIP KOTLER

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Characteristic of Service

• Intangibility
• Inseparability
• Heterogeneity
• Perishability
• Ownership

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What is Marketing ?

• Definition It is the organizations task is to
  determine the needs, wants, and interests of
  target markets and to deliver the desired
  product/service more effectively and efficiently
  than competitors in a way that preserves or
  enhances the consumers and the societys
  well-being.

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Continue..

• Objective of Marketing
• Sale
• Retain
• Refer - which is carried out by your own
  customers
• Marketing when -
• Supply more Demand
• Supply less Demand
• Supply equal Demand

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The main Steps of Marketing
R STP MM I C
R Research STP Segmentation, targeting
and positioning MM Marketing mix I
Implementation C Control
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7 Ps OF SERVICE MARKETING

• PRICE
• PLACE
• PRODUCT
• PROMOTION
• PHYSICAL EVIDENCE
• PROCESS
• PEOPLE

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PRICE

• Fixed Pricing
• Differential pricing
• Discount pricing
• Diversionary pricing
• Guaranteed pricing
• High price maintenance pricing
• Offset pricing

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PASS. FARE STRUCTURE(2001-2002)
No. of Pass. Suburban 3.0 Billion Non-Suburban
2.09 Billion Pass. Kms. Suburban 93
Billion Non-Suburban 400 Billion
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Ratio of Passenger Earning per PKm to Freight
Earning per TKm
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PLACE (DISTRIBUTION)

• SERVICE DELIVERY POINT
• STATIONS, CITY BOOKING AGENCIES / OUT
  AGENCIES / RESERVATION CENTERS ARE OUR
  SALES OFFICES
• PLACES SHOULD BE CUSTOMER FRIENDLY.
• PLACES SHOULD BE WELL MAINTAINED
• NETWORK SHOULD BE INCREASED

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PRODUCTS

• PASSENGER SERVICE PRODUCTS
• RAJDHANI / SHATABDI TRAINS
• JANSHATABDI TRAINS
  
  
• LONG DISTANCE MAIL EXPRESS TRAINS
• UNRESERVED PASSENGERS TRAINS
• COMMUTER SUBURBAN TRAINS
• MILLENNIUM PARCEL TRAINS

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FREIGHT SERVICE PRODUCTS

• BLOCK RAKES (Varieties of wagons)
• MINI RAKES (Small Traders)
• CONRAJ (High speed)
• RO RO Scheme
• FREIGHT FORWARDER (Collection of piece meal
  traffic)
• TWO POINT BLOCK RAKES
• STATION TO STATION RATES (Concessions)

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PROMOTION

• EACH PRODUCT FEATURES TO BE
  COMMUNICATED TO CUSTOMER IN THAT SEGMENT
  USING SUITABLE MEDIA (LOT OF
  WEAKNESS)
• ADVERTISING
• PERSONAL SELLING
• PUBLICITY
• SALES PROMOTION

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PHYSICAL EVIDENCE

• PERIFERAL EVIDENCE-
• A RESERVED TICKET
• CHEQUE BOOK
• ESSENTIAL EVIDENCE
• ACTUAL EXPERIENCE OF SERVICE

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PROCESS

• PROCESS OF PRODUCTIN AND DELIVERY OF SERVICE.
• CUSTOMER INTERFACE PROCESSES SHOULD BE
  COMPUTERISED, MECHANIZED, RATIONALISED AND
  SIMPLIFIED.
• PROCESSES EXIST ARE COMPLEX ON RAILWAYS
  LIKE SOME PROCESSES ARE
• RESERVATION PROCESS/REFUND PROCESS/ CLAIM
  PROCESS.
• COMMUNICATION PROCESS.
• ENTRAINING/DETRAINING PROCESS.

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PEOPLE

• SERVICE PERSONNEL
• CUSTOMERS
• CAREFUL SELECTION AND TRAINING
• LAYING DOWN NORMS, RULES, PROCEDURES FOR
  PERSISTENCE PERFORMANCE
• CONSTITANCE APPEARANCE
• REDUCE INTERFACE AUTOMATION- COMPUTERISATION

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STATUS OF MARKET SHARE OF INDIAN RAILWAY AS PER
RAILWAY BOARDS STATUS PAPER
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PERCENTAGE OF TRAFFIC TRANSPORTED BY RAILWAYS
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STRENGTHS/OPPORTUNITIES FOR INDIAN RAILWAYS

• A LARGE NETWORK OF 7000 STATIONS EXISTS IN
  THE COUNTRY.
• A SUBSTANTIAL MARKET SHARE EXISTS, IN
  PASSENGER SEGMENT. FOR A COUNTRY OF 1000 MILLION
  PEOPLE WITH LOW PURCHASING POWER
  RAILWAY SYSTEM IS MORE SUITABLE.

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STRENGTHS/OPPORTUNITIES FOR INDIAN RAILWAYS

• FOR LONG DISTANCE AND BULK SECTOR RAILWAYS IS THE
  MOST ECONOMICAL COMPARATIVELY SAFER MODE OF
  TRANSPORT.
• PETROLEUM PRODUCTS PROCURED THROUGH IMPORTS ARE
  VERY EXPENSIVE AND THUS ELECTRICITY BASED RAILWAY
  SYSTEM WILL ALWAYS HAVE AN EDGE ON PARAMERTERS OF
  POLLUTION, ENERGY COST, ENVIRONMENTAL FACTORS.

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STRENGTHS/OPPORTUNITIES FOR INDIAN RAILWAYS

• AVERAGE LENGTH OF HAUL BEING LARGE BREAK EVEN
  DISTANCE FEASIBLE FOR RAILWAY SYSTEM IS
  AVAILABLE.

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WEAKNESSES / THREATS FOR INDIAN RAILWAYS

• THE ORGANISATION IS PRODUCTION ORIENTED.
• THERE IS OVER EMPHASIS ON MAXIMISING PKMS, NTKMS.

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WEAKNESSES / THREATS FOR INDIAN RAILWAYS

• MARKETING IS PERIPHERAL ACTIVITY AND COMMERCIAL
  DEPARTMENT IS BASICALLY ENGAGED IN SELLING
  BUSINESS ONLY
• CUSTOMER FOCUS IS MISSING AND CUSTOMER
  SATISFACTION IS NOT AN ORGANISATIONAL MISSION.

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WEAKNESSES / THREATS FOR INDIAN RAILWAYS

• INDIAN RAILWAYS IS LOOSING ITS MARKET SHARE IN
  PASSENGER AND FREIGHT BUSINESS.
• THERE IS CAPACITY CONSTRAINT - HOW TO BALANCE
  DEMAND AGAINST AVAILABLE CAPACITY.

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WHAT SHOULD BE THE MARKETING STRATEGY FOR INDIAN
RAILWAYS ?

• MARKETING KEY ISSUE
• (PRODUCTION LED ORGANISATION CUSTOMER LED
  ORGANISATION)
• CUSTOMER SATISFACTION SHOULD BE MAIN
  ORGANISATIONAL MISSION.
• FOCUS ON SERVICE PRODUCTS (BUSINESS PLAN FOR EACH
  PRODUCT).

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WHAT SHOULD BE THE MARKETING STRATEGY FOR
INDIAN RAILWAYS ?

• TQM IN ALL PROCESSES.
• COMPUTERISATION OF CUSTOMER INTERFACE
  AREAS(TICKETING, INFORMATION SYSTEM, REFUND
  ETC.)
• DYNAMIC RATING MARKET RELATED PRICING.

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WHAT SHOULD BE THE MARKETING STRATEGY FOR INDIAN
RAILWAYS ?

• SWITCH OVER TO MATRIX ORGANISATION.
• (RESTRUCTURE ON PRODUCT AND FUNCTIONAL
  DIMENSIONS)
• UNRESERVED PASSENGER SEGMENT NEED MORE FOCUS AND
  REVIVAL STRATEGY.
• HORIZONTAL INTEGRATION FOR WEAK PRODUCTS. (ROAD
  BRIDGING)

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WHAT SHOULD BE THE MARKETING STRATEGY FOR INDIAN
RAILWAYS ?

• DEMAND MANAGEMENT / STAGGERING STRATEGY.(IN
  CAPACITY CONSTRAINT SITUATIONS)
• TRAINING OF FRONTLINE STAFF IN CUSTOMER CARE /
  COURTESY.

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WHAT SHOULD BE THE MARKETING STRATEGY FOR INDIAN
RAILWAYS ?

• INTERNAL MARKETING - TRAIN AND MOTIVATE THE
  EMPLOYEES TO SERVE CUSTOMERS WELL
• INTERACTIVE MARKETING - EMPLOYEES SKILL IN
  SERVING THE CLIENT
• We Treat Our Employees The Way We Want Them to
  Treat Our Guests
• A Knowledgeable, Satisfied Employee Is Our Best
  Marketing Agent
• SATISFYING BOTH EMPLOYEES AND CUSTOMERS

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WHAT SHOULD BE THE MARKETING STRATEGY FOR INDIAN
RAILWAYS ?

• FORWARD / BACKWARD / HORIZONTAL
  INTEGRATION.(STRATEGIC ALLIANCE WITH OTHER MODES)
• DEVELOP DEMAND FORECASTING MODELS, LONG RANGE
  DECISION SUPPORT SYSTEMS, COSTING MODELS, SYSTEMS
  FOR GATHERING COMMERCIAL INTELLIGENCE (OUTSMART
  COMPETITORS).

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WHAT SHOULD BE THE MARKETING STRATEGY FOR INDIAN
RAILWAYS ?

• LOBBY WITH GOVERNMENT / OPINION MAKERS/ PLANNING
  COMMISSION FOR EVEN PLAYING FIELD FOR INVESTMENT
  IN RAILWAY PROJECTS (SOCIAL COST BENEFIT ANALYSIS
  DATA SHOULD PROMOTE RAILWAY AS BETTER CHOICE FOR
  TRANSPORT INFRASTRUCTURE).

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SERVICE RECOVERY

• IMPROVE THE AFTER SALE SERVICE
• ADMIT APOLOGISE
• RECTIFY
• COMPENSATE
• MINOR PERFORMANCE LAPSES NEEDS MONITORING

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MARKETING STRATEGY FOR INDIAN RAILWAYS

• TO CONCLUDE -
• DESIGN, DEVELOP, DELIVER APPROPRIATE SERVICE
  PRODUCT QUICKLY AND MODIFY / EXTEND THE
  PRODUCTS AS PER NEEDS AND WANTS OF CUSTOMERS.

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STRATEGY FOR PASSENGER MARKETING

• Analysis of earning/profitability/dynamic correct
  rating
• Census of passenger trains and adjustment of
  coaching stock of the train based on occupations
• Route wise analysis of waiting list/demand
  profile
• Improve system of ticketing and passenger
  information
• Emphasize - SLR leasing
• Introduce Shatabdi
• Passenger Amenities
• Catering services
• Palace or wheels

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STRATEGY FOR FREIGHT MARKETING

• To provide the correct dynamic rating/earning,
  profitability analysis.
• Development of containers, piggy back and road
  rollers for niche market.
• Improve after sales service.
• Development of F.O.I.S.
• Expeditions settlements of goods refund cases
• Efficient functioning of N.R. cell
• Improving Public Relations

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THANK YOU
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References 1. Services Marketing by Lovelock 2.
The Essence of Services Marketing by Adrian
Payne 3. The Marketing Management - An Asian
Perspective by Philip Kotler 4. The Principles of
Marketing by Philip Kotler 5. The marketing of
services by Donal Cowell