Three considerations that company undertakes while taking actions:

1. Marketing mix
2. PLC
3. Digital marketing mix

The term marketing mix coined by James Culliton. Culliton describes marketers as
"mixers of ingredients".
The 4 Ps, in its modern form, was first proposed in 1960 by E. Jerome McCarthy, who
presented them within a managerial approach that covered analysis, consumer
behavior, market research, market segmentation, and planning.[17] Phillip
Kotler popularized this approach and helped spread the 4 Ps model.

Product: Value creation

Price: Value capture
Place: Value delivery
Promotion: Value communication
Value: Benefit that a consumer derives when using a product
Category Definition/Explanation/Concept Typical Marketing Decisions
 Product design –
features, quality
 Product assortment –
product range, product mix,
Refers to what the business offers for
product lines
sale and may include products or
 Branding
services.
 Packaging and labeling
A product refers to an item that satisfies
Product  Services (complimentary
the consumer's needs or wants.
service, after-sales service,
Products may be tangible (goods) or
service level)
intangible (services, ideas, or
 Guarantees and
experiences).
warranties
 Returns
 Managing products
through the life-cycle[6]
Price refers to the amount a customer
pays for a product.
 Price strategy
Price may also be a consumer's
 Price tactics
expectation for getting a certain
 Price-setting
product (e.g. time or effort).
 Allowances – e.g. rebates
Price is the only variable that has
Price for distributors
implications for revenue.
 Discounts – for
Price is the only part of the marketing
customers
mix that talks about the value for the
 Payment terms – credit,
firm.
payment methods
Price also includes considerations
of customer perceived value.
 Strategies such as
intensive distribution, selective
distribution, exclusive
distribution[24]
 Franchising;[25]
 Market coverage
Refers to providing customer access
 Channel member
Place Considers providing convenience for
selection and channel member
consumers.
relationships
 Assortment
 Location decisions
 Inventory
 Transport, warehousing
and logistics
 Promotional mix - the
appropriate balance of
Product Concept-Levitt and then Mckenna’s work on the Whole Product Concept

The Whole Product Concept is a framework that describes the layers of value a product
provides to meet customer needs.
There are 4 levels of product definition that should be considered for any product.
These are the Generic, Expected, Augmented, and Potential Product.
 The Whole Product Layers
1. Generic Product
Definition: The core product that fulfills the basic need or purpose.
Focus: Fundamental attributes or functionality.
Example:
For a smartphone: The ability to make calls, send texts, and access the internet.
For a car: Transportation from one place to another.
Purpose: Provides the essential utility customers seek.
2. Expected Product
Definition: The set of attributes and features that customers typically expect from a
product in the category.
Focus: Meeting industry standards and customer expectations.
Example:
For a smartphone: A decent camera, sufficient battery life, and a responsive
touchscreen.
For a car: Comfortable seating, a working AC, and a functioning GPS system.
Purpose: Ensures the product competes effectively in the market by meeting minimum
customer expectations.(MVP)
3. Augmented Product:
Definition: Additional features, benefits, or services that differentiate the product from
competitors.
Focus: Exceeding customer expectations and creating added value.
Example:
For a smartphone: Advanced AI cameras, fast charging, and bundled software like cloud
storage or a music subscription.
 For a car: Autonomous driving features, free roadside assistance, or premium
infotainment systems.
Purpose: Enhances customer satisfaction and loyalty while positioning the product as
unique.

4. Potential Product:aka niche(Focus on future possibilities and emerging

trends; typically targeted at early adopters or niche markets in the initial stages.)

Definition: The future possibilities or innovations that the product could offer to delight
customers.
Focus: Anticipating future needs and technological advancements.
Example:
For a smartphone: Holographic displays or fully integrated AI assistants.
For a car: Flying car capabilities or complete self-driving with no human intervention.
Purpose: Helps the company stay ahead of market trends and continuously innovate.

Why the Whole Product Concept Matters

 Strategic Differentiation: Identifying opportunities to augment or innovate a product.
 Customer Loyalty: Delivering value beyond the expected level strengthens brand trust.
 Market Positioning: Helps companies cater to different customer segments by
addressing varied needs at each layer.

Quality Function Deployment (QFD)

Definition:
Quality Function Deployment (QFD) is a systematic process used to translate customer
needs (the voice of the customer) into specific technical requirements or product
specifications at every stage of product development and production.
QFD ensures that the end product aligns with what the customer truly values, focusing
on delivering quality that meets or exceeds expectations.

Key Features of QFD:

1. Customer-Centric: Starts with understanding customer requirements.
2. Cross-Functional: Involves teams from marketing, design, engineering, and production.
3. Structured Approach: Uses matrices like the "House of Quality" to organize and analyze
information.
4. Focus on Quality: Enhances product or service quality by aligning it with customer
needs.
 The Four Phases of QFD:
1. Product Planning: Identifying customer requirements and converting them into
measurable design goals.
o Output: "House of Quality" matrix.
2. Product Design: Translating design goals into specific parts or components.
o Output: Part specifications.
3. Process Planning: Defining the processes needed to produce the desired components.
o Output: Process control plans.
4. Production Planning: Establishing operational requirements for production, quality
control, and delivery.
o Output: Manufacturing and production instructions.

House of Quality (HoQ):

The House of Quality is the primary tool used in QFD. It is a matrix that helps identify
relationships between customer needs and technical specifications.
Components of the House of Quality:
1. Customer Requirements ("What"): Lists customer needs or preferences.
2. Technical Requirements ("How"): Lists technical features or attributes to fulfill customer
needs.
3. Relationship Matrix: Links "What" to "How," showing the strength of the relationships
(e.g., strong, medium, weak).
4. Competitive Benchmarking: Compares the product to competitors based on customer
requirements.
5. Prioritization: Assigns weights to customer needs and technical requirements to focus
on what matters most.

Benefits of QFD:
 Customer Alignment: Ensures products meet customer needs and preferences.
 Improved Quality: Reduces defects and rework by addressing quality at the design
stage.
 Cross-Functional Collaboration: Promotes communication among different teams.
 Market Competitiveness: Helps deliver superior products compared to competitors.

Example:
Let’s consider a smartphone:
1. Customer Needs (Voice of Customer):
o Long battery life.
o High-quality camera.
o Durable build.
2. Technical Requirements:
o Battery capacity (mAh).
o Sensor quality (megapixels, low-light performance).
o Material durability (e.g., Gorilla Glass, aluminum frame).
3. Relationship Matrix:
o Long battery life ↔ High battery capacity (Strong).
o High-quality camera ↔ Sensor quality (Medium).
o Durable build ↔ Material durability (Strong).
4. Competitive Benchmarking:
o How competitors fare on these attributes (e.g., Apple vs. Samsung vs. Google).
5. Prioritization:
o Focus on long battery life and camera quality based on customer preferences.

Industries Using QFD:

 Manufacturing (e.g., automotive, electronics).
 Software development.
 Services (e.g., hospitality, healthcare).

Let’s apply Quality Function Deployment (QFD) to a real-world example: designing a

laptop for business professionals.

Step-by-Step QFD Example: Business Laptop

Step 1: Understand Customer Needs (Voice of the Customer)

Identify what business professionals expect from a laptop.
Customer Needs (WHAT) Priority
Long battery life High
Lightweight and portable High
High-performance processing High
Reliable connectivity (Wi-Fi, Bluetooth) Medium
Durable and sturdy build High
Ample storage space Medium
High-resolution screen for presentations Medium
Affordable price Medium

Step 2: Define Technical Requirements (Voice of the Engineer)

 List the features or specifications that address these customer needs.
Technical Requirements (HOW)
Battery capacity (mAh)
Processor type and speed
Weight (kg)
Connectivity options (Wi-Fi 6, Bluetooth 5.0)
Chassis material (aluminum, magnesium alloy)
Storage type and capacity (SSD, HDD)
Display resolution (Full HD, 4K)
Price point

Step 3: Build the Relationship Matrix

Analyze how well each technical requirement addresses customer needs. Use ratings
like:
 Strong (9)
 Medium (3)
 Weak (1)
 Blank (0): No relationship.
Customer Batt
Needs/Tec ery We Ch Sto Dis Pr
Proc Connec
hnical Cap igh assi rag pla ic
essor tivity
Requirem acit t s e y e
ents y
Long
9 3 3 0 0 0 0 3
battery life
Lightweigh
t and 0 0 9 0 3 0 0 3
portable
High-
performan
0 9 0 3 0 3 0 3
ce
processing
Reliable
connectivi 0 3 0 9 0 0 0 3
ty
Durable 0 0 0 0 9 0 0 3
Customer Batt
Needs/Tec ery We Ch Sto Dis Pr
Proc Connec
hnical Cap igh assi rag pla ic
essor tivity
Requirem acit t s e y e
ents y
and sturdy
build
Ample
storage 0 0 0 0 0 9 0 3
space
High-
resolution 0 0 0 0 0 0 9 3
screen
Affordable
0 0 0 0 0 0 0 9
price

Step 4: Competitive Benchmarking

Compare how competitors meet these needs (Apple, Dell, Lenovo). Add scores to
understand gaps and opportunities.
Customer Needs Apple Dell Lenovo
Long battery life 9 8 7
Lightweight and portable 7 6 8
High-performance processing 9 8 7
Reliable connectivity 8 7 6
Durable build 9 7 8
Ample storage 8 7 8
High-resolution screen 9 8 7
Affordable price 5 7 8

Step 5: Prioritization
Based on customer needs and competitive benchmarking, focus on these areas:
 Battery life: High priority, currently competitive but essential for differentiation.
 Weight: Needs improvement for portability.
 Durability: Highlight using premium materials like aluminum alloy.
 Processing power: Include latest-gen processors for performance advantage.

Final Outcome:
 The QFD process ensures the laptop design will:
1. Address key customer requirements effectively.
2. Stay competitive with market leaders.
3. Focus on delivering quality features where customer value is highest.
 Introduction to services

SBI YONO case study

Omnichannel refers to a strategy that integrates multiple communication and sales channels
to provide a seamless and consistent customer experience across all touchpoints. Whether a
customer interacts with a brand online, in-store, through mobile apps, via social media, or
through customer service, the goal of an omnichannel approach is to create a unified and
personalized experience, regardless of the medium used.
a bank like SBI's YONO is an example of omnichannel banking. Customers can start a
transaction on their mobile app, continue on a website, and even visit a branch if necessary.
All their activities are tracked and integrated, ensuring a smooth and consistent service
experience.
Key Characteristics of Omnichannel:
1. Seamless Integration:
All channels (physical stores, websites, mobile apps, customer support, etc.) are
interconnected, allowing customers to switch between them without disruption. For
 example, a customer may research a product online, purchase it through an app, and
pick it up in-store with ease.
2. Consistency Across Channels:
The messaging, branding, pricing, and overall customer experience are consistent
across all channels. This ensures that customers receive the same service quality and
information regardless of how they engage with the brand.
3. Personalization:
Omnichannel strategies use data to personalize the customer experience, such as
recommending products based on past behaviors, browsing history, and preferences,
making the interaction more relevant and targeted.
4. Convenience:
Omnichannel allows customers to choose their preferred method of interaction,
whether it's via phone, online, or in person, offering flexibility in how they engage
with the brand.
5. Customer-Centric Focus:
The primary goal of omnichannel is to meet customers where they are, providing a
convenient and efficient experience that aligns with their needs and behaviors.

As per the case study, SBI launched YONO for several strategic reasons, all aimed at meeting
the evolving needs of customers and staying competitive in an increasingly digital and
technology-driven banking environment.
 To Aggregate Multiple Services into One Platform
 To Enhance Customer Experience and Reduce Complexity:
 to reduce the number of clicks and make transactions more intuitive
 reducing the complexity of using separate apps for different services
 SBI sought to make the app more user-friendly, enhancing customer satisfaction and
engagement.
 To Cater to the Growing Digital Consumer Base
 To Leverage SBI’s Large Existing Customer Base
 To Compete with Other Financial and Digital Services:
Cobranding: By collaborating with players like Amazon, Uber, and Airbnb, SBI not
only expanded the app’s capabilities but also capitalized on the existing customer
bases of these platforms, positioning itself as more than just a banking solution
 To Expand Beyond Core Banking Services: to move beyond traditional banking
services and tap into customers' broader lifestyle needs, from shopping to
entertainment and health.
How SBI Evolved Its Services to Meet Customer Needs?
 Omnichannel banking system
 Ease of access: acc open through aadhar and otp+ user friendly app
 Collab with partners
 Focus on intuitiveness: reducing number of steps required for transactions,
streamlined processes to match customer expectations of simplicity and speed.
 Enhanced security measures
 Multilingual and scalable approach
 Cross service integration: linking SBI debit cards, monitor all transactions, demat acc
holdings.

In an ever-evolving economy, customer behaviors and preferences are continually shaped by

shifts in the broader economic, technological, and social landscape
Beliefs are the foundational convictions or assumptions customers hold about products,
services, or brands. These beliefs often stem from personal experiences, societal influences, or
cultural values.
Belief changes: trust in digital platform, sustainability beliefs

Mindset refers to the established attitudes and mental frameworks that guide how customers
approach decisions, solve problems, and interpret experiences.
Changes in mindset: convenience over cost, growth oriented mindset(as economy grows more
dynamic, they adopt a mindset of self improvement and growth by seeking out products and
services that helps them advance in their career, health and personal life.

Perception is how customers view or interpret a brand, product, service, or experience based
on their individual understanding, past experiences, and external influences.
Changes in perception: perception of value(Seeking services that offer ROI in terms of time
saving, money or overall value of enhancement. Eg YONO saved time by offering a range of
services.)
Brand transparency

Attitude refers to the overall evaluative response a customer has toward a brand, product, or
service. It is shaped by emotions, experiences, and cognitive beliefs.
Changes: positive attitude towards innovation

Beliefs are shaped by trust in digital technologies and a growing emphasis on sustainability.

Mindsets reflect a preference for growth, convenience, and long-term value.

Perceptions have shifted toward a demand for transparency, as well as a focus on value.

Attitudes toward innovation are positive, but customers are also more discerning, expecting genuine benefits
and practicality.
Examples of service industries:
 Health Care: hospital, medical practice, dentistry, eye care
 Professional Services: accounting, legal, architectural
 Financial Services: banking, investment advising, insurance
 Hospitality: restaurant, hotel/motel, bed & breakfast, ski resort, rafting
 Travel: airlines, travel agencies, theme park
 Others: hair styling, pest control, plumbing, lawn maintenance, counseling services,
health club

India at an advantage in service marketing: (describe more)

Robust demand: large customer base, changing customer pref, diverse needs across regions
Competitive advantage: cost effectiveness, skilled workforce, technological prowess
Policy support: govt initiatives, ease of doing business, focus on service export
Increasing investments: FDI, Venture capitals and startups, infra development(digital infra,
logistics, and urban)

India enjoys a significant advantage in service marketing due to a combination of demand,

competitive strengths, supportive government policies, and growing investments. Here's how
these factors contribute:

1. Robust Demand
 Large Customer Base:
o With over 1.4 billion people, India has a vast and diverse market for
services, ranging from education, healthcare, and entertainment to
financial services and e-commerce.
 Changing Customer Preferences:
o Urbanization, rising incomes, and exposure to global trends have shifted
consumer preferences towards personalized, high-quality, and convenient
services.
o For example, demand for OTT platforms like Netflix, Hotstar, and Amazon
Prime has surged due to changing entertainment preferences.
 Diverse Needs Across Regions:
o India's cultural and regional diversity requires businesses to tailor services
to meet varied preferences. For instance:
 Food delivery apps like Swiggy and Zomato offer region-specific
cuisines.
  Healthcare providers like Practo cater to regional languages and
diverse healthcare needs.

2. Competitive Advantage
 Cost Effectiveness:
o India provides high-quality services at a fraction of the cost compared to
many developed countries, making it a hub for outsourcing industries like
IT, BPOs, and KPOs.
o Example: Infosys and Wipro deliver IT solutions to global clients cost-
effectively.
 Skilled Workforce:
o India has a vast pool of educated, English-speaking professionals, especially
in sectors like IT, healthcare, and engineering.
o Example: The availability of skilled software developers has fueled the
growth of startups and unicorns like Byju's, Razorpay, and Freshworks.
 Technological Prowess:
o India is at the forefront of digital transformation, with strengths in
emerging technologies like AI, blockchain, and cloud computing.
o Example: Indian IT firms like TCS and HCL lead global digital innovation
projects.

3. Policy Support
 Government Initiatives:
o Policies like Digital India, Skill India, and Startup India promote service-
based businesses and innovation.
o Example: UPI (Unified Payments Interface) has revolutionized financial
services, making digital payments accessible across the country.
 Ease of Doing Business:
o Reforms in taxation (e.g., GST), streamlined regulations, and faster
approvals encourage service sector growth.
o India ranks 63rd in the World Bank's Ease of Doing Business Index (2023).
 Focus on Service Export:
o Government incentives like the SEIS (Service Export from India Scheme)
boost sectors like IT, healthcare, and tourism for global markets.

4. Increasing Investments
 Foreign Direct Investment (FDI):
 o Liberalized FDI norms have attracted significant investments in retail, IT,
and telecom services.
o Example: Walmart’s investment in Flipkart boosted India’s e-commerce and
logistics services.
 Venture Capital and Startups:
o India has emerged as a startup hub, with over 100 unicorns and growing VC
funding in tech-driven service platforms.
o Example: Startups like Zomato and Ola received significant funding to
expand their service offerings.
 Infrastructure Development:
o Digital Infrastructure:
 The growth of internet penetration (with over 800 million users) and
affordable data services has fueled digital service platforms.
 Example: Jio’s digital ecosystem has transformed telecom and
content streaming services in India.
o Logistics:
 Investments in logistics (e.g., highways, expressways, ports) have
improved supply chain efficiency, benefiting e-commerce and retail
services.
o Urban Development:
 Smart Cities initiatives are enhancing urban service delivery,
including healthcare, education, and public transport.

Conclusion
India’s service marketing advantage is driven by a synergistic combination of robust demand,
competitive strengths, policy support, and rising investments. These factors position India as
a global leader in service sectors like IT, healthcare, education, and e-commerce while
simultaneously catering to its vast and diverse domestic market. By leveraging these strengths,
India continues to shape its service economy for long-term growth and global competitiveness.

Defining services

One of the first to define services was the American Marketing Association, which, as
early as in 1960, defined services as activities, benefits, or satisfactions which are
offered for sale, or provided in connection with the sale of goods.
Kotler and Bloom, in 1984, defined services as any activity or benefit that one party can
offer to another that is essentially intangible and does not result in the ownership of
anything. Its production may or may not be tied to a physical product.

Difference between product and services

• Products are tangible – they are physical in nature such that they can be touched,
smelled, felt and even seen. Services are intangible and they can only be felt not seen.

• Need vs. Relationship– a product is specifically designed to satisfy the needs and
wants of the customers and can be carried away. However, with a service, satisfaction is
obtained but nothing is carried away. Essentially, marketing of a service is primarily
concerned with creation of customer relationship.

• Perishability- services cannot be stored for later use or sale since they can only be
used during that particular time when they are offered. On the other hand, it can be
seen that products are perishable. For example, fresh farm and other food products are
perishable and these can also be stored for later use or sale.

• Quantity- products can be numerically quantified and they come in different forms,
shapes and sizes. However, services cannot be numerically quantified. Whilst you can
choose different service providers, the concept remains the same.

• Inseparability- services cannot be separated from their providers since they can be
consumed at the same time they are offered. On the other hand, a product can be
separated from the owner once the purchase has been completed.

• Quality- quality of products can be compared since these are physical features that
can be held. However, it may be difficult to compare the quality of the services rendered
by different service providers.

• Returnability- it is easier to return a product to the seller if the customer is not

satisfied about it. In turn, the customer will get a replacement of the returned product.
However, a service cannot be returned to the service provider since it is something that
is intangible.
• Value perspective- the value of a service is offered by the service provider while the
value of the product is derived from using it by the customer. Value of a service cannot
be separated from the provider while the value of a product can be taken or created by
the final user of the product offered on the market.
Paradigm in Service Marketing
the present marketing scenario is a lot more different from what it used to be earlier. The
belief, mindset, perception and attitude of the consumers have changed tremendously.
Discussed below are the new set of paradigm for modern marketing in terms of services:

1. Service Categories :
Service industry seems to be more complicated than the manufacturing industry. The services
can be either tangible or intangible; people-oriented or product oriented. These are further
classified into the following four major categories based on their applicability:
People Processing Services: People processing here refers to the physical presence of the
customer at the service system or location, to avail the service. For example, a person needs to
be physically present at the ‘salon’ to get a hair cut.

Product/Possession Processing Services: Such services are related to a specific product or its
possession with limited or no involvement of the customer. For instance, the services offered
by ‘packers and movers’ are primarily concerned with the safe shifting of customer’s
belongings, i.e., furniture and assets from one place to another.

Mental Stimulus Processing Services: The services which influence the consumer’s mental
abilities, religious believes, behaviour, perception, lifestyle and attitude are termed as mental
stimulus processing services. Like, educational institutes deliver knowledge which develops the
mental ability of a person.

Information Processing Services: These are a unique form of intangible products where the
information acts as a product, or information technology is used. Such decisions are
considered to be critical due to massive investment and a high level of risk; therefore, absolute
customer involvement can be seen over here.

2. Customer Oriented
In the service industry, customization of the product offering becomes essential as compared
to that of the manufacturing industry. The customer’s needs, perception and requirements are
given significance while carrying out the business operations in as a service provider.

3. Single Take
Service is a one-take action, i.e., it cannot be restored, redone, replaced or exchanged. It is
intangible and irreversible; thus, it needs to be perfect and well-delivered at the first time
itself.
An organization, therefore, requires trained and experienced personnel to provide services
because a lousy consumer experience may lead to negative publicity, which affects the brand
name and equity.

4. Service as a Process
In the service industry, the process plays an important role. The process here refers to the
steps
involved in availing the service by the consumer.
An organization must keep a watch over each of these steps. It must ensure humbleness,
honesty and sincerity of the personnel involved in the interaction with the consumers, while
the execution of each of these steps.

5. Speed and Accuracy

The consumers prefer prompt services without any interruption. Therefore, the rate with
which the service is provided is considered as a parameter for efficient service. It is also
responsible for the selection of one service provider over the other, by the consumers.
Characteristics of Service:

INTANGIBILITY
Services are intangibles, which cannot be seen, tasted, felt, heard or smelt before the
purchase is made. For example, before actually staying in a hotel room, a customer cannot
know the quality of service. Before travelling in a bus or an airline, we cannot understand its
quality and reliability. We cannot make a trial trip on the bus or airline before buying the
ticket. Customers have to buy the service and use it to experience the quality. This is due to
the intangible nature of services. There are some services like a doctor’s diagnosis or surgery,
where the patient will not be able to understand the quality of service performed even after it
is completed.
Marketing implications of intangibility:
 Service cant be stored or stocked like inventory for future this creates a problem of
matching demand and capacity for marketer. For eg, heavy demand for hotel during
winter in goa and low in rainy. To overcome this, hotels give dicounts during off season.
 service cant be patented, so innovative service concepts can be copied.
 Customers may not understand service quality bcoz service cant be displayed or easily
communicated to customers like tangible products.
 Pricing an intangible service is difficult

HETEROGENEITY
There can be variations in the service provided. It is very difficult for any service provider to
standardize a service. The quality of service depends on who provides them as well as when,
where and how they are provided. Quality variation can occur due to other factors like the
customers not co-operating or not playing their intended role in service production and
presence of other customers who are troublesome or quarrelsome. Even the same doctor who
gave his complete attention during a patient’s last visit may behave a little differently the next
time.
Marketing implications of heterogeneity:
difficulty to ensure consistent quality across time, organizations and people.

PERISHABILITY
Most of the services cannot be stored for future sale and hence, are perishable (i.e., become
useless or waste or are lost forever). If the services of a doctor are not used by needy
customers, they cannot be stored up for future use. For example, if there is a hartal or bund
on a particular day, and no patients are able to visit a doctor, that day’s practice or service of
the doctor goes waste or perishes.
 Perishability also implies that in contrast to physical products, services cannot be returned if
the customer is unhappy, For example, a bad haircut cannot be returned or exchanged for a
better one.

INSEPARABILITY
This means that it is not possible to separate the service from the service provider. The
provider’s presence is essential for service production. For example, a plumber or an
electrician has to be present to do a repair job. The doctor has to be in the clinic to treat the
patients. However, in some services like banking, ticket booking, etc., self-service technology
and use of the Internet have eliminated the need for the physical presence of service provider
to a large extent.

IHIP theory

Goods services continuum

Goods services continuum
The goods-services continuum is a concept that illustrates the range between pure
goods and pure services, emphasizing how most offerings in the market are a mix of
both. This continuum helps businesses identify the nature of their product and
optimize the combination of goods and services to meet customer needs.

Key Points:
1. Pure Goods
These are tangible items with minimal or no associated services. Examples:
o Salt
o Steel
o Bottled water
2. Goods Dominant with Some Services
These include tangible products with supplementary services, such as installation or
warranty. Examples:
o Cars (with warranty and maintenance services)
o Smartphones (with software updates and support)
3. Balanced Goods and Services
These are offerings where goods and services are equally important. Examples:
o Restaurants (food as the tangible good and dining experience as the service)
o Furniture (physical product plus assembly service)
4. Service Dominant with Some Goods
Services with a tangible component that complements the service. Examples:
o Airlines (service of transportation with physical tickets or refreshments)
o Hospitals (treatment with medicines or equipment)
5. Pure Services
These are intangible activities or benefits provided with no accompanying goods.
Examples:
o Teaching
o Consulting
o Entertainment (like concerts or movies)

Why the Continuum Matters:

 Strategic Positioning: Helps businesses decide their focus and differentiate
themselves in the market.
 Customer Experience: Blending goods and services can enhance customer
satisfaction and loyalty.
 Pricing Strategies: Pricing for a good with an associated service might differ from
pricing for a standalone good or service.

Let’s apply the goods-services continuum to the automobile industry:

1. Pure Goods
 Example: Car parts (like tires, batteries, or spark plugs sold individually).
 Nature: Tangible goods with little to no accompanying service.
2. Goods Dominant with Some Services
 Example: Car sales (when purchasing a vehicle from a dealership).
 Nature: The car is the primary good, but it often includes services like financing
options, extended warranties, or free maintenance for a limited time.
3. Balanced Goods and Services
 Example: Car rental services (like Hertz or Zoomcar).
 Nature: Physical goods (the car) are rented, but the service of renting, support,
and maintenance is equally significant.
4. Service Dominant with Some Goods
 Example: Ride-hailing services (like Uber or Ola).
 Nature: The primary offering is transportation (a service), but the vehicle used to
provide the ride is a tangible good.
5. Pure Services
 Example: Driving lessons or vehicle insurance consulting.
 Nature: No tangible goods are involved; it's solely about transferring knowledge
or providing expertise.

SD Logic
a framework in marketing and business theory that emphasizes service as the
fundamental basis of economic exchange.
Proposed by Stephen Vargo and Robert Lusch in 2004
S-D Logic shifts the focus from the traditional goods-centered view (Goods-Dominant
Logic) to a service-centered view, where value is co-created through interactions
between providers and consumers.

Core Principles of S-D Logic:

1. Service as the Basis of Exchange
All businesses provide service, either directly or indirectly. Goods are simply tools or
appliances for delivering services. For example, a smartphone isn't just a product; it
provides services like communication and information access.

2. Value Co-Creation
Value is not created by the provider alone but is co-created through interaction and
integration of resources with the customer. For instance, an education institution
creates value only when students actively engage with the learning process.

3. Customer as a Co-Creator of Value

Customers are not passive recipients of value but active participants in creating value.
For example, a gym provides equipment and training services, but the customer must
engage in the workout to realize health benefits.

4. Resources Are Operant, Not Operand

Resources are categorized into:
o Operand resources: Resources like raw materials that need to be acted upon.
o Operant resources: Knowledge, skills, and competencies that act upon
operand resources to create value. S-D Logic focuses on operant resources as the
primary source of competitive advantage.

5. Value-in-Use over Value-in-Exchange

The value of a product or service lies in its usage and the benefits it brings to the
customer, not just in its purchase or exchange. For example, the value of a car isn't in
owning it but in the mobility and convenience it provides.

6. Collaborative Ecosystems
Firms, customers, and other stakeholders interact in networks or ecosystems to co-
create value. This perspective recognizes the interconnected nature of modern markets.
 Key Implications for Businesses:
 Focus on relationships: Building long-term customer relationships is crucial, as value
co-creation depends on collaboration.
 Customization and flexibility: Businesses should adapt offerings to meet individual
customer needs and enhance their role in co-creating value.
 Innovation through knowledge: Firms should emphasize knowledge and skills
development to drive innovation.

Example of Service-Dominant Logic:

Airbnb:
Airbnb doesn't just provide lodging; it facilitates connections between hosts and guests,
enabling them to co-create experiences. Hosts provide operant resources like hospitality
and local knowledge, while guests contribute to the experience by sharing feedback or
participating in local culture.
In summary, Service-Dominant Logic redefines business by focusing on services,
relationships, and value co-creation, aligning closely with customer-centric strategies in
today's economy.

7P’s of service

The Service Marketing Mix expands on the traditional marketing mix to cater to the unique characteristics of
services, such as intangibility, heterogeneity, perishability, and inseparability. It includes the 7Ps: the original
4Ps (Product, Price, Place, Promotion) and three additional Ps (People, Process, Physical Evidence) that are
particularly relevant to services.

1. Product
 Definition: The core offering in a service, which may include both tangible and intangible
elements.
 Focus in Services:
o The quality of service.
o The ability to meet customer needs effectively.
 Example:
o Airlines: The product includes seat comfort, in-flight meals, and entertainment options.
o Education: The syllabus, certifications, and faculty expertise.

2. Price
 Definition: The value customers are charged for the service.
 Focus in Services:
o Perceived value, pricing strategy (e.g., subscription, pay-per-use).
o Special offers or bundles.
 Example:
o Streaming Services: Netflix offers different pricing tiers based on video quality and
simultaneous users.
o Healthcare: Hospitals charge for consultations, procedures, or health packages.

3. Place
 Definition: The distribution and delivery channels through which services are provided.
 Focus in Services:
o Accessibility and convenience.
o Online and offline service delivery.
 Example:
o Restaurants: Physical locations combined with food delivery apps like Zomato.
o Banking: Services available through ATMs, mobile apps, and branches.

4. Promotion
 Definition: Communicating the service offering to potential customers.
 Focus in Services:
o Emphasis on brand trust and customer testimonials.
o Leveraging digital and traditional media.
 Example:
o Hospitality: Hotels promote their services via travel platforms like Booking.com and
Google Ads.
o Fitness Centers: Offers on social media and partnerships with fitness influencers.

5. People
 Definition: All individuals involved in the service delivery process.
  Focus in Services:
o Employee-customer interactions.
o Staff training and appearance.
 Example:
o Retail Stores: Courteous and knowledgeable staff at stores like IKEA or Decathlon.
o Call Centers: Well-trained customer support representatives ensure a positive
experience.

6. Process
 Definition: The systems and workflows used to deliver services consistently and efficiently.
 Focus in Services:
o Speed, accuracy, and ease of the service delivery process.
o Use of technology to streamline services.
 Example:
o Fast Food: McDonald's ensures quick service using standardized processes.
o E-commerce: Amazon uses automated order processing and delivery tracking.

7. Physical Evidence
 Definition: Tangible components that support or symbolize the service.
 Focus in Services:
o Physical cues that build trust and enhance the customer experience.
o Facilities, packaging, branding, and environmental design.
 Example:
o Healthcare: Clean and well-equipped hospital rooms.
o Education: Well-designed classrooms and study materials in coaching institutes.

Unique Features of Service Marketing Mix

1. Intangibility:
o Services can't be seen or touched; hence, branding and testimonials play a significant
role.
2. Perishability:
o Services cannot be stored. For example, an unsold airline seat for a flight is lost revenue.
3. Inseparability:
o Services are often produced and consumed simultaneously, e.g., a haircut or a live
concert.
4. Heterogeneity:
o Services may vary based on who delivers them, e.g., quality of teaching in an
educational institution.

Examples Across Industries

Industry 7Ps Application
Product: Room stay; Price: Seasonal pricing; Place: Online bookings; People:
Hospitality
Trained staff; Physical Evidence: Hotel decor.
E- Product: Online shopping experience; Price: Competitive; Process: Easy checkout;
 Industry 7Ps Application
commerce Physical Evidence: Packaging and website.
Product: Consultations; Price: Insurance-based packages; Place: Clinics and
Healthcare
telemedicine; People: Skilled doctors.
Product: Courses; Process: Online/offline learning; People: Faculty expertise;
Education
Physical Evidence: Certifications.

Conclusion
The Service Marketing Mix (7Ps) ensures that businesses deliver services effectively by focusing on intangible
and customer-centric elements. It allows companies to differentiate themselves in competitive service
industries by emphasizing quality, efficiency, and customer satisfaction.

Extended Marketing Mix in 1981 by Booms & Bitner, which added 3 new elements to the 4 Ps Principles. This
allowed the extended Marketing Mix to include products that are services and not just material goods.
People
Process
Physical Evidence

IMP: Digital Marketing Mix

The Digital Marketing Mix refers to the application of the traditional marketing mix (4Ps:
Product, Price, Place, Promotion) to online or digital channels. Over time, it has evolved to
include newer elements to adapt to the unique characteristics of the digital landscape. Here's
a breakdown:

1. Product
 In digital marketing, the "product" extends beyond physical goods to include
digital products (e.g., e-books, software, apps) and services (e.g., subscriptions,
consultations).
 Focus is on creating personalized and innovative offerings to meet customer
needs.
 Key aspects:
o Usability and design of websites/apps.
o Features like free trials, downloads, or interactive product demos.

2. Price
 Online pricing strategies are dynamic and customer-centric.
 Factors:
o Competitive Pricing: Customers can easily compare prices online.
o Discounts and Offers: Digital platforms allow coupons, promotional codes,
and flash sales.
o Freemium Models: Offer basic services for free with premium upgrades.

3. Place
 In digital marketing, "place" refers to digital channels where the product or
service is available.
 Includes:
o Websites, e-commerce platforms, and apps.
o Third-party marketplaces like Amazon, Flipkart, or Etsy.
o Social media platforms with integrated shopping features.
o Seamless and efficient user experience on these platforms is key.

4. Promotion
 This involves creating awareness and generating demand for the product or
service via online promotion tools and techniques.
 Strategies include:
o Search Engine Optimization (SEO): Improving organic visibility.
o Pay-Per-Click (PPC) Ads: Google Ads, social media ads.
 o Content Marketing: Blogs, videos, infographics.
o Social Media Marketing: Engaging audiences on platforms like Instagram,
Facebook, LinkedIn.
o Email Marketing: Personalized campaigns.
o Influencer Marketing: Leveraging influencers for credibility.
o Retargeting: Re-engaging users who previously interacted with the brand.

Extended Digital Marketing Mix (3Ps of Services)

5. People
 Focus on building relationships through:
o Chatbots for real-time interaction.
o Customer reviews and testimonials for trust.
o Employee training for managing online queries and support.
6. Process
 Ensures a seamless customer journey, from awareness to purchase:
o Optimized website navigation.
o Fast loading times.
o Transparent checkout processes.
o Omnichannel experiences (mobile, web, in-store).
7. Physical Evidence
 Demonstrates credibility and value through:
o Well-designed websites and apps.
o User-generated content (reviews, photos).
o Case studies, certifications, and trust badges.

Emerging Elements in the Digital Era:

 Personalization: Using data to deliver customized experiences.
 Data-Driven Marketing: Leveraging analytics to refine strategies.
 Automation: Tools like CRM systems and email automation.
 Sustainability: Highlighting ethical and eco-friendly practices in digital campaigns.

Digital marketing strategy

The process of digital marketing is a systematic approach that helps businesses achieve their
marketing objectives using digital channels. It typically involves the following key stages:

1. Research and Planning consulting

 Objective: Understand the target audience, market dynamics, and competition.
  Steps:
o Define clear marketing goals (e.g., brand awareness, lead generation,
sales).
o Conduct market research to identify target personas.
o Analyze competitors to understand their strategies.
o Select the most appropriate digital marketing channels (e.g., SEO, social
media, email).
o Create a digital marketing plan or strategy blueprint.

2. Building an Online Presence : Website strategy

 Objective: Create a strong digital foundation for your brand.
 Steps:
o Develop a user-friendly and optimized website or e-commerce platform.
o Ensure mobile responsiveness and fast loading speeds.
o Build profiles on relevant social media platforms.
o Set up business listings, such as Google My Business.

3. Content Creation and Optimization seo

 Objective: Produce valuable content that engages, informs, or entertains your
audience.
 Steps:
o Develop a content calendar with topics aligned to audience needs.
o Write blogs, create videos, design infographics, etc.
o Optimize content for search engines (SEO) to improve visibility.
o Use relevant keywords and ensure readability for different devices.

4. Execution of Campaigns email and marketing automation, paid ads

 Objective: Implement digital strategies across selected platforms.
 Steps:
o Launch paid advertising campaigns (Google Ads, social media ads).
o Execute email marketing campaigns targeting specific segments.
o Share content through social media and engage with the audience.
o Roll out influencer marketing or affiliate programs as needed.

5. Lead Generation and Nurturing emqil qnd marketing automation

 Objective: Capture leads and guide them through the sales funnel.
 Steps:
o Use landing pages with lead capture forms.
 o Offer gated content like e-books or free trials in exchange for contact
details.
o Nurture leads through email marketing and retargeting ads.
o Personalize communication to build relationships with potential customers.

6. Engagement and Interaction

 Objective: Build trust and loyalty through direct interaction with the audience.
 Steps:
o Respond to comments, reviews, and inquiries on social media and other
platforms.
o Monitor brand mentions and participate in discussions.
o Use chatbots or live chat features for real-time communication.

7. Analytics and Monitoring

 Objective: Measure the performance of campaigns and strategies.
 Steps:
o Track key performance indicators (KPIs) such as website traffic, conversion
rates, and ROI.
o Use tools like Google Analytics, social media insights, and marketing
dashboards.
o Identify gaps or underperforming areas in campaigns.
o Continuously monitor customer behavior and preferences.

8. Optimization and Iteration

 Objective: Improve strategies based on data-driven insights.
 Steps:
o A/B test different versions of ads, emails, or landing pages.
o Optimize campaigns for better reach, engagement, and ROI.
o Update content to reflect current trends or keywords.
o Repeat the cycle to refine and improve future campaigns.

Central Themes in the Digital Marketing Process:

1. Customer-Centric Approach: Always focus on delivering value to your target
audience.
2. Agility: Be ready to adapt to changing trends and audience behavior.
3. Data-Driven Decisions: Leverage analytics to inform every step of the process.

https://seoresellerscanada.ca/digital-marketing-campaign-strategies-that-actually-work/
Connected Marketing Mix
As digital technology and social media began reshaping consumer behavior, the marketing
approach shifted again to the Connected Marketing Mix. This model emphasizes the
interconnectedness of marketing activities and places the customer at the heart of the
strategy. The focus is not just on a one-way exchange but on building relationships,
engagement, and co-creation.

The "Connected Marketing Mix" incorporates four key elements: Co-Creation, Currency,
Communal Activation, and Conversation. These concepts focus on the interconnectedness of
modern marketing strategies, engaging customers through dynamic and participatory
approaches.
Co-Creation: This involves customers being active participants in the creation of
products, services, or experiences. By involving them in the design, development, or
innovation process, brands can create products that resonate more with consumers and
align with their needs and desires. Co-creation can happen through feedback,
collaborations, or crowdsourcing ideas.
Example: Think about a shoe company that lets customers design their own shoes. They
can choose colors, materials, and styles. This makes the product feel more personal and
special to the customer.

Currency: In today's digital economy, "currency" can refer to the value exchange
between brands and consumers. It can be a literal currency (like money) or more
symbolic, such as consumer attention, loyalty points, social influence, or data. Brands
create value by offering incentives, rewards, or experiences that hold significance for
their target audience, building a deeper, more mutually beneficial relationship.
Example: A coffee shop gives you a stamp on a card every time you buy a coffee. After
10 stamps, you get a free coffee. Here, the currency is your loyalty (buying coffees), and
the reward is a free coffee. The coffee shop is exchanging something of value for your
repeat business.

Communal Activation: This concept focuses on building communities around a brand or

cause. It encourages consumer participation and interaction with each other, creating a
sense of belonging and collective identity. Through communal activation, brands can
foster stronger emotional connections by providing platforms for users to share
experiences, ideas, and content.
 Example. Beastlife protein power has social media engagement. The followers of flying
beast those who participate in his campaigns get offers and rewards in terms of
discount.

Conversation: Marketing today thrives on two-way communication. Brands must

engage in real-time conversations with their audience through social media, customer
service, or other direct channels. This dialogue allows brands to understand consumer
needs better and allows consumers to feel heard and valued. Conversation helps build
trust and loyalty, and it can also drive advocacy when customers share their experiences
with others.
Example, Zomato responds to tweets and comments in a funny way

7C of marketing

The 7Cs framework is designed to keep the focus on the customer and ensure a holistic, value-
driven approach to marketing:
1. Customer: Understand your customers.
Example: If you’re a company selling skincare products, you need to understand
your customers' concerns, like acne, dry skin, or aging, so you can tailor your
products to meet their specific needs.

2. Cost: The total cost to the customer (not just price), including the time spent,
effort, and any psychological costs related to the purchase.
Example: A premium brand like Apple charges higher prices, but customers feel
the cost is worth it because of the quality, status, and experience they get.

3. Convenience: Make it easy for customers to buy.

Example: Amazon is known for its convenience—easy navigation, quick delivery,
and smooth checkout process. This makes it easy for customers to buy almost
anything with minimal hassle.

4. Communication: Two-way conversation with customers.

Example: Brands like Starbucks actively communicate with customers on social
media, responding to feedback and engaging in conversations about their
products and services.
5. Credibility: trust
6. Connection: relationship
 7. Customer service

Product Lifecycle
A product life cycle is the total amount of time that a product is available to consumers, from
when it’s first introduced until it’s removed from the market. A product’s life cycle begins
when it’s initially developed and introduced to the market and ends when the product is no
longer available for purchase.
Marketing professionals and organizational leaders can map a product’s lifecycle to guide core
decision making processes. This lifecycle map will help leaders determine product price points,
identify ideal audiences, select advertising strategies, design packages, and more. The product
life cycle map also outlines a product’s path from development to market maturity.

To say that a product has a life cycle asserts four things

1. Products have a limited life.
2. Product sales pass through distance stages, each posing different
challenges, opportunities, and problems to the seller.
3. Profits rise and fall at different stages of the product life cycle.
4. Products require different marketing, financial, manufacturing, purchasing,
and human resource strategies in each life-cycle stage.
Marketing Strategies
Introduction stage
Create product awareness and demand by stressing on benefits
1. Basic product offer : Beard shampoo, mamaearth toxin free, cruelty free baby
products
2. Price: cost plus(JIO) or skimming(Oppo)
Skimming Pricing: High price to recover costs (e.g., new tech gadgets like the first
iPhone).
Penetration Pricing: Low price to gain market share quickly (e.g., introductory
offers for OTT platforms), JIO
3. Selective Distribution: Focus on key target markets and innovators.PUSH strategy.
Apple – when first iphone launched, they partnered exclusively through AT&T as
its sole carrier for distribution. This gave it a sense of sxclusivity, prestige, reduced
operations complexity.
PUSH strategy by colgate: point of sale displays in stores, free samples to
distributors
PUSH strategy by mamaearth: Partnered with firstcry, used promo discounts,
used social media vlogger couples like flyingbeast(built trust)
 4. Awareness Creation: Use advertising and PR campaigns to introduce the product
to the market among early adopters and innovators.
Tesla EV focused on creating awareness and targeted niche market through high
end products.
Mamaearth parenting blogging inflencer marketing
Fitbit content marketing shared informative content on fitness
5. Promotions: Free trials, samples, or introductory discounts.
Amazon kindles free trials
Hotstar free trials
Spotify free trial cancel anytime scam
Refer a friend program used extensively by paytm payments bank
B1G1 nykka, myntra referral points

Marketing strategy by mamaearth at intro stage:

Focus on safety
Sustainability
Social media adv
Basic product baby shampoo, diapers, wellness

Growth Stage
Focus on brand loyalty and differenciation
Maximize market share
Product: improve product quality(apple), improve styling, add new models
 Product extensions Activa 2G,3G,4G,5G, maggi flavours, veeba sauces, Zepto cafe
 Enter new segment coca cola intro of Diet Coke and coke zero, McD for regional places
like vegetarian for haridwar
 Quality improvement, service warranty

Price: Penetration pricing to attract lower segment, lower prices to attract price sensitive
market
Netflix, uber surges pricing, youtube freemium model, JIO increases its product line as well as
increased its reacharge cost from rs 75 to 99 per month for jio phone

Distribution: Intensive Distribution

Amazon partnered with third party logistics and expanded delivery centers in new regions
Mamaearth expanded to offline stores like pharmacies and partnered with platforms like
Amazon, nykaa etc
Maggi in kirana, supermarket,school canteens, e com platform
Advertising: Awareness in mass market, shift from product awareness to product preference
advertising
Nike Just Do It campaign
Airbnb Belong everywhere campaign
McD Im loving it campaign
Cadbury kuch meetha hojaye

Sales Promotion: reduce expenditure, start building brand loyalty and differenciation
Dominos buy one get one during weekends and promoted coupons

Maturity Stage
Company has build brand loyalty by now
Maximise profits while defending market share
Diversification
Product: diversification
Samsung A series for budget friendly alongwith S series for rich segment
Maggi oat noodles, atta noodles
Surf excel matic, heavy wash, eco friendly wash
Dairy milk packaging for festivals in a tin box

Price: match or beat competition

Surf excel adjust its pricing with Tide to match competition, it intead of cutting the price,
decreases the grams of surf given for that price to maintain their profits, also uses offers like
Rs 10 surf, get 10 g extra to beat the competition.
Pepsi reduced its price of small bottles from rs 15 to 10 to match coca cola

Distribution: More intensive

Max product availability across all potential sales channels
Colgate penetrated into small villages
Dairy milk penetrated into every region

Advertising: Stress on brand differences and benefits

Emphasis on USP and differenciation to maintain brand loyalty by telling the customer why
they should buy from me only
Apple ecosystem
McD local menu customizations advertisement, info about where they source potato from,
their manufacturing process etc to show transparency and trust

Sales promotion: Encourage brand switching to switch from competitors to them

Offer discounts, pos promotions, cashbacks on cred upi

Decline stage
Killing a brand to keep the customer (discontinue Maruti 800)

Element Strategy Examples

Phase out weak Apple iPod discontinuation, P&G
Product items, focus on narrowing product lines
profitable ones discontinued toilet paper.
Price cutting to clear
inventory or cater to Nokia price discounts, Sony DVD
Price
price sensitive players.
market
Kodak in niche stores, Nestlé
Focus on selective, phased out weak performing
Distribution
profitable outlets items in supermarkets but
retained presence in retail stores.
Minimal advertising BlackBerry targeting business
Advertising to retain loyal users, Tropicana's low calorie
customers reduced advt
Reduce large-scale
Sales Samsung trade-in offers, DVD
promotions, offer
Promotion clearance discounts.
clearance sales
 Nestle’s Maggi Product Life Cycle Case Study

Introductory Stage in the Product Life Cycle of Maggi: - Maggi entered the Indian
market in 1982, facing no competition in the instant noodle market. - It segmented its
target audience based on age and urban areas, focusing on kids, youth, and office goers.
- The tagline, 'Taste Bhi, Health Bhi,' emphasized the product's quick preparation.
- Marketing efforts aimed at creating product awareness and adapting to Indian tastes.

Growth Stage in the Product Life Cycle of Maggi: - By 1985, Maggi gained consumer
acceptance, leading to increased sales. - Top Ramen entered the market in 1990, posing
a minor threat to Maggi's market share. - Maggi launched a new flavor in 1997, which
did not perform well. - In 1999, it re-launched its original flavor, resulting in increased
sales and profits. - New product variations like ketchup, pasta, soup, and oats were
introduced, but the focus remained on the original product.

Maturity Stage in the Product Life Cycle of Maggi: - Maggi faced stiff competition with
Top Ramen during this stage. - To capture a larger market segment, it introduced a 5
rupees packet in 2010, expanding its distribution. - This strategy allowed Maggi to gain a
larger market share and become a household name.
 Decline Stage in the Product Life Cycle of Maggi: - In 2015, Maggi faced a crisis when it
was banned due to high lead content. - The ban led to the perception that Maggi had
entered the decline stage. - Through effective PR and marketing, Maggi proved its safety
for consumption. - It invested in research, employee engagement, and social media
campaigns. - Maggi exclusively re-launched itself with Snapdeal, offering pre-orders to
loyal customers. - The brand's message, 'Your Maggi is safe, has always been,' helped it
regain popularity.

Refer notebook for more.

AI and ML in Marketing
https://www.spiceworks.com/marketing/ai-in-marketing/articles/what-is-artificial-
intelligence-machine-learning-in-marketing/

https://www.ficode.co.uk/blog/digital-transformation-in-marketing-explained-its-role-and-
key-pillars
https://www.quibustrainings.com/marketing-strategy-of-amul/

https://youtu.be/bilOOPuAvTY