The objective of this article is to acquire the comparison of service marketing mix [SMM] concept gap and to develop a comprehensive model in identifying SMM. Market strategy and marketing mix strategy are expected to influence customer value creating/customer satisfaction which eventually give positive influence to marketing perfomance. STP in this issue is chosen because of the disagreement among marketing experts. One critisism about 4P frame is having the diffrence between the philosophy behind marketing mix and the fundamental from management school of marketing. The aproach used in this article is journal reviews which contains the concepts from the creation of marketing mix concept , elaborates concept gaps and compains, and eventually it is expected to givea model of designing SMM concept, which will give academical contrubution in developing the concept that can be practically implemented in the businees world.The latest concept used as the main reference in this article is about SMM which basically focusing on the dimentional development of SMM from 4P and 8P [producer] and 8c [customer].
The Developed Concept of Service Marketing Mix : A Literature Survey *Dian Utami Sutiksno, **Aldina Shiratina ABSTRACT The objective of this article is to acquire the comparison of service marketing mix [SMM] concept gap and to develop a comprehensive model in identifying SMM Market strategy and marketing mix strategy are expected to influence customer value creating/customer satisfaction which eventually give positive influence to marketing perfomance STP in this issue is chosen because of the disagreement among marketing experts One critisism about 4P frame is having the diffrence between the philosophy behind marketing mix and the fundamental from management school of marketing The aproach used in this article is journal reviews which contains the concepts from the creation of marketing mix concept , elaborates concept gaps and compains, and eventually it is expected to givea model of designing SMM concept, which will give academical contrubution in developing the concept that can be practically implemented in the businees world.The latest concept used as the main reference in this article is about SMM which basically focusing on the dimentional development of SMM from 4P and 8P [producer] and 8c [customer] Keywords:market strategy, STP, marketing mix strategy, marketing strategy, customer value, marketing performance, service marketing mix 1.Introduction The environmental situation in business/non-business organisation comes through a relatively rapid transformation so that marketing environment [external] could not easily be responded by the resources [internal] This situation affects the company’s position in competition which influences potential advantage in reaching marketing perfomance.The condition demands for aproaching charger in marketing into two processes : creating,communicating and delivering value to customer and managing customer relationship (Soedijati et al, 2011) These processes are directed in such a way so that the company could create superior marketing performance Practically, this is not easy to be done because each business/non-business organisation has their own characteristic For market base company, all components involved in the company should have market orientation Not only the marketing staffs has the responsibility to create the best marketing strategy, but also the other staffs involved in the organisation need to have market orientation Marketing mix strategy has to be applied in market positioning strategy so that the company can have access to market It is how the company decides customer value proportion from marketing mix made it possible to create superior customer value Nevertheless,there are still some disagreement among marketing experts.Some critisism about 4P frame is that the root of difference between the philosophy behind marketing mix and the fundament of management school of marketing It should be based on identification of customer needs and wants, typical external and therefore uncontrollable factors (Constantinides, 2006).The short term versus the long term from marketing mix,and the discussion regarding marketing mix, for instance:theoretical base of marketing mix, practical application from marketing mix concept and pedagogicial function of marketing mix.This different opinion marks the theoritical gaps among marketing experts,especially about the basic concept /dimension in SMM concept This article compiled according to a main article compiled by Bellmunt et al (2005), Constantinides (2006), Borden (1964), Silverman (1995), Shaw et al (2005), Watershoot et al (1992), Morrison et al (2004), Hermans (2009), Zethaml et al (1985), Bartels (1951) Other supporting journals from Rudd et al (2008), Al-Share et al (2011), Gajic (2012), Newman et al (2009), Al Muala et al (2012), Sarker et al (2012), Alipour et al (2011), Dhiman et al (2009), Fu Ho et al(2008), Soedijati et al (2011), Ivi (2008),and other related journals,also other relevant resources.The purpose of this article is to examine the gap / comparison of SMM developed concept and to develop a simple yet comprehensive model which can be used for the development of SMM concept 2.literature review The concept of SMM is used alternately some SMM concepts are often defined as strategy,some other defined as tools/variable/function in marketing strategy which definitely have strong connection to market strategy Therefore, in this article we describe some terms connected to SMM and explain some of the marketing mix different concepts according to several writers Neil Burden is famous for his concept of marketing mix,which was popularized from a scientific conference Inspired by James Cullington’s professor who gave the term of ‘mixer of ingredients’,Borden’s initial concept was12 dimensions of marketing mix,which consists of:product, planning, pricing, branding, channel of distribution, personal selling, advertising, promotion, packaging, display, servicing, physical handling, fact finding and analysis The 4Ps term became popular because of Mc Carthly ,who elaborated marketing mix dimensions into dimensions,which are:product mix,place mix,promotion mix,price mix SMM itself is created from marketing mix for goods product.As the gap could not be represented by 4Ps dimensions, Booms and Bitner created a SMM concept known as 7Ps which consists of product, price, place, promotion, participants, physical evidence, process Broden’s definition includes several internal variables, or manufacturer’s inggredients, and several external variables which respectively combined to invent the perfect mix which will give profits from available resources This definition is considered to be extensive and useful for every sector ,consequently it develops object list which is easy to remember and to apply Early version of marketing mix suggested by Frey is differentiating groups of variables: offering and equipment, which reflect the object of the trade and the facilitating action The most common used definition is from McCarthy, which minimizing object list into variables: product, price, place, and promotion For almost 25 years there has been a perfect mix between marketing mix concept and 4Ps Kelley and Lazer suggested it in groups: product and service mix (similar to Frey’s, defining customer’s perceptions and company offerings), distribution mix (in physical distribution and agent activity) and communication mix (including way information flow) The latest 4Ps clasification shows a model from elements: product mix, distribution mix, sale mix and communication mix Kottler suggested a separated marketing mix model His purpose is to calculate ‘generic’ group applied to all exchange situation He used generic marketing function to trade as the center of the classification Therefore, the configuration, symbolism, facility, and assessment agree with the product, communication, distribution, and price Eventually, Boom and Bitner suggested a model which expands the 4Ps to service, known as 7Ps (participants, process and physical evidence) Criticism based on the theoretical base of the Marketing Mix The theoretical and practical gaps in marketing is based on a confusing essence: the reduction of marketing concept for design, implementation and control of simplified marketing mix Although it is a dominant marketing paradigm, the concept of marketing mix is frequently criticized From theoretical point of view, those critisism bases are: hypersimplification of Borden’s original concept never explains the characteristics of classification, and its marketing concept is less cohesive Building the idea from this controversion, Bruner and Waterschoot made their contribution (see scheme 2.3) Bruner II suggested the 4Cs: : consept, cost, channel dan communication The characteristic of this model is that the variables are overlapping, not exclusive to each other Waterschoot thought that marketing function as suggested by Kotler is the appropriate property to classify marketing mix, which only has one function (exhaustivity dan exclusivity) This classification overcomes three weaknesses from 4Ps scheme according to Waterschoot: the criteria of the classification is especified, exhaustive, and exclusive Silverman (1995) and Constantinides (2006) studied the marketing mix concept development through Historical Context review and Development of The Marketing Mix Construct from 1911-1960 and 1981-2001 (see table 2.1a and table 2.1b) from both tables, we can see compare the dimension of marketing mix Table 2.1b explains the history of marketing mix concept for service product according to each writers between 1981-2001 Unfortunately, we could not find the missing concept of marketing mix between 1960-1980 Thus, each table can represent the comparison of marketing mix concept development Table 2.1a explains about the concept of marketing mix for goods product (Borden, 1964) Meanwhile, table 2.1b explains about the concept of marketing mix for service product (Booms & Bitner, 1981) Started with marketing mix definition (service) from Dennis Rudd et al (2008), Jonathan Ivy (2008), Both have different dimension from Booms&Bitner (1981), Meanwhile Lamb et al in Satria (2008), Anil Kumar Dhiman et al (2009) about service marketing mix, Elisabeth.K.S, et al (2011), Mehrdad Alipour et al (2011) about marketing mix and the connection to marketing strategy, Palmer (2004) in Su Mei Lin (2011), Hitesh Bhasin (2011) about service marketing mix, Priya Johnson (2012) marketing mix as a strategy,are similar to/are adopting service maketing mix dimensionfrom Booms&Bitner (1981) Stephen Newman et al (2009) had it from customer driven (according to Kotler 2003&Lauterborn 1990), also Moh R Doroodgar, et al (2012) had it from customer driven and company driven with reference to Kotler 2003&Mc Carthy 1964) Definition study also includes the definition of service maketing mix and the definition ofstrategy, considering that this article is about service marketing mix.We thought that we there are lack of journals explicitly using the term of service marketing mix,but implicitly the term of strategy and service are already included in the concept itself Yet, it is needed to enrich the term/definition in business dictionary From what has been mentioned before, we can conclude that there are some definition gaps and dimensional gaps from service marketing mix between 19812001 Some writers from 2000s until now are still adopting the opinion fromBooms&Bitner (1981), which stated that although there are some criticism about essential weakness from service marketing mix, Booms&Bitner’s concept are strong and frequently adopted by many researchers According to some studies, we try to make a definition about service marketing mix which is a combination of service, tools or marketing key elements which can be controled by the company or organisation to get the marketing target From the definition study, it can be said that many experts agreed that the marketing mix concept contains factors (Bellmunt, 2005): WHAT (set variables that the organization can control), WHO (the marketing manager), and HOW (by combining then in a marketing programme) Table 2.1a Historical Context and Development of The Marketing Mix Construct (1911-1960) Source: Silverman (1995:27) Author Butler (1911) Shaw (1916) Converse (1930) Cullington (1948) Borden (1953) Frey (1956) Howard (1957) Borden (1958) Kenyon(1958) Oxenfeldt(1958) Kelley&Lazer (1958) Mc Carthy (1960) Contribution Defined marketing as everything the promoter of a product has to prior to his actual use of salesmen and advertising Defined the agencies of demand creation as ‘middlemen’ (i.e distribution), ‘direct salesmen’, and ‘advertising’ Defined organization of demand creation as ‘analysis of the market’ (i.e markt research), and ‘price policies’ Clearly defined the major elements of marketing in firm (product, pricing, distribution, advertising and selling) Emphasized the critical need to coordinate all aspects of the organization to meet customer nees better than competitors Described the role of the marketing administrator asa’mixer of ingredients’ Specified ‘order getting ingredients’ –communications, channels, product performance, pricing, etc Specified the process for ‘putting order-getting ingredients together’—planning & controlling organizational systems & people, studying competitors, adjusting to organizational norms, checking results, etc Coined the phrase marketing mix to define elements of a marketing program (product planning, pricing, branding, channels of distribution, personal selling, advertising, promotion, packaging, display, servicing, physical handling, and fact finding) & forces affecting the program ((consumer attitudes&methods, competition&governmental controls) Defined the componens of the marketing mix as (1) the offer, & (2) methods&tools Frey highlighted the effiency which results from a properly designed marketing mix Suggested that the marketing manager uses product, channels, price, advertising, personal selling, and location to ‘fit’ the company with the constraints of he environment (e.g, marketing law, competition, demand, non-marketing costs, structure of distribution) Clarified that the elements of marketing mix are the means for conforming & adjusting to the dynamics of the market forces Also introduced the notion of ‘push’ & ‘pull’ roles for the marketing mix Identified the marketing mix as the means for achieving a given marketing objective The integration of activities formed an’essential’ part of the mixing process integraton of business&marketing activities ensures all areas contribute to business success Apparently the first to suggest the noton of synergy due to the marketing mix Offered a more specific description of how the marketing mix is used by manufacturers to push product to distributors&pull product through retailers Introduced a systems perspective to the marketing mix Suggested that the intracton among three elements (goods&services mix, distribution mix, & communcationsss mix) is the most important aspect of developing optimal returns & profits Codified the notion of the marketing mix as the four P’s: product, price, place, promotion Built upon Frey (1956) & Keller&Lazer (1958) to develop ‘THE’marketing mx Table 2.1b Historical Context and Development of The Marketing Mix Construct (1981-2001) Source : Constantinides (2006:418-420) Author Booms andBitner 1981 Cowell 1984 Brunner 1989 Ruston and Carson 1989 Fryar 1991 Contribution Recognising the special character of the services as products, they demonstrated theimportance of Environmental factors(PhysicalEvidence) influencing the quality perception.They included the Participants (personnel and customers) and the Process ofservice delivery as the additional MarketingMix factors Three aspects justifying the revision of theoriginal Marketing mix framework:- the original mix was developed formanufacturing companies- empirical evidence suggesting that marketing practitioners in the service sector find the marketing mix not being inclusive enoughfor their needs The 4P Marketing mix elements must be extended to include more factors affecting theservices marketing thus becoming mixesthemselves The unique characteristics of the services –intangibility, inseparability, perishability and variability – make the control of the marketingprocess, using the generalised tools ofmarketing, inadequate Segmentation and differentiation is the basis of successful positioning of services Furthermorethe personal relationship with the customerand the quality of the service are importantelements of the services Marketing Heuvel 1993 Doyle 1994 Melewar, Saunders 2000 English 2000 Grove et al., 2000 Beckwith 2001 Interaction between the one delivering theservice and the customer is very important andhas direct effect on the service quality andquality perception The Product element can be better demonstrated as having two components, the primary and secondary service elements as well as the process While recognising that the content of the 4Ps inthe service sector is somehow different from that of the tangibles he does accept the 4Ps asthe elements of the services marketing mix Heidentifies special difficulties in Promotion andPlace preferring to replace them by the termsCommunication and Distribution The Corporate Visual Identity System (CVIS) isthe basis of the corporate differentiation andthe core of the company’s visual identity The traditional Marketing has never been an effective tool for health services marketing Services Marketing can be compared to atheatrical production How the service isperformed is as important as what isperformed Critical factor is therefore thecustomer experience The traditionalMarketing Mix does not adequately capture the special circumstances that are presentwhen marketing a service product Marketing services in a changing worldrequires focusing on increasing the customer satisfaction and rejecting old productparadigms and marketing fallacies Silverman (1995) and Constantinides (2006) studied the marketing mix concept development through Historical Context review and Development of The Marketing Mix Construct from 1911-1960 and 1981-2001 (see table 2.1a and table 2.1b) from both tables, we can see compare the dimension of marketing mix Table 2.1b explains the history of marketing mix concept for service product according to each writers between 1981-2001 Unfortunately, we could not find the missing concept of marketing mix between 1960-1980 Thus, each table can represent the comparison of marketing mix concept development Table 2.1a explains about the concept of marketing mix for goods product (Borden, 1964).Meanwhile, table 2.1b explains about the concept of marketing mix for service product (Booms & Bitner, 1981) Started with marketing mix definition (service) from Dennis Rudd et al (2008), Jonathan Ivy (2008), Both have different dimension from Booms&Bitner (1981), Meanwhile Lamb et al in Satria (2008), Anil Kumar Dhiman et al (2009) about service marketing mix, Elisabeth K S et al ( 2011), Mehrdad Alipour et al (2011) about marketing mix and the connection to marketing strategy, Palmer (2004) in Su Mei Lin (2011), Hitesh Bhasin (2011) about service marketing mix, Priya Johnson (2012) marketing mix as a strategy,are similar to/are adopting service maketing mix dimensionfrom Booms&Bitner (1981) Stephen Newman et al (2009) had it from customer driven (according to Kotler 2003 & Lauterborn 1990), also Moh R Doroodgar et al (2012) had it from customer driven and company driven with reference to Kotler 2003&Mc Carthy (1964) Result/Analysis To get the access into the market, a company has to define marketing mix strategy into market positioning strategy The company should determine customer value proposition from marketing mix so it is possible to achieve superior customer value To gain an adequate picture of service marketing mix concept, some researches has been done by marketing researchers, one of them is Jelena Gajic who saw the importance of marketing mix in the implementation of marketing strategy on higher education based on the model developed by Zeithaml, et al (2006) The facts from the combination of instrumental characteristics in a complex process is proved by most of international researches From a series of empirical studies, done at Singidunum Belgrade University in 2008 and 2009 to a group of university students (504 from the first year and 305 from the second year), we get the information about marketing application, the importance of certain marketing instrument and strategic concept Stephen Newman & Khosro Jahdi (2009), literature study about marketing mix in education Analysing the reason behind and the effect of marketization on education to institutional marketing.Looking at marketing mix from customer’s orientation with its 7C of Customer solution (product),Convenience (place), Customer cost (price), Communication (promotion), Calibre/champion (people), Capabilities (process) and Charisma/collateral (physical evidence) On the other hand, Hsuan-Fu Ho and ChiaChi Hung (2008), studying the formula of marketing mix on higher education (living, learning, reputation, economy and strategy) The main variables are : living, learning, reputation, economy, strategy Using AHP method (Analytic Hierarchy Process),Cluster Analysis method and Correspondence Analysis Survey at 14 Universities in Taiwan The result is highlighting the effectiveness and the application from an integrated AHP model, CA and Correspondence Analysis to the development of marketing mix on higher education Jonathan Ivy (2008) also did the same study with the main variables of premium, prominence, promotion, price, programme, prospectus, and people.TheSurvey method is done to university students in South Africa.The research about the application of marketing mix at Universities in South Africa Elisabeth Koes Soedijati & Sri Astuti Pratminingsih (2011), analyzing the effect of marketing mixto student’s choice according to the theory from Kotler&Fox(1995) Denis Rudd & Richard Mills (2008), were studying the expansion of marketing principals to sell through marketing mix approach to 115 universities/colleges Some models in Rudd et al journal (2008), model about traditional mix 4Ps reffers to William Pride’s concept, model about marketing mix application on sporting industry, reffers to Bernard Mullin, model used in his research on higher education, and model about recruitment cycle accoeding to Hayes (2002) His result was that college/university has to understand the basic of marketing, which marketing is very important, has to be consistent and continuous and marketingcan not treat all problems If college/university could not provide the needs from the students for a reasonable value, marketing can only small things to increase student population Mehrdad Alipour&Elham Darabi (2011), the used method is based on goals and nature Descriptive-surveyin data compilation in hypothetical test statistical population because the purpose of this research is to reassure the part and function ofservice marketing mix and its effect on marketing It covers all technical service and technical service consultation from a car manufacturer in Iran The result is: generally,service marketing mixdo not have the same effect on marketing auditat a engineeringservice company and every factor based on different condition has different effect from the other Beside that, FriedmanTespriorities have been specified according to marketing mixelements and product, peopleand physical assetson high ranks Price, process management, promotion andplace are on the next ranks The implementation research of marketing mix concept on tourism industry (Mula et al 2012 and Sarker et al 2012) is using the similar main variables, which areproduct, place, promotion, price, people/personnel, process and physical evidence We can also find different main variables from service industry with different characteristic They all go back to the concept of category on service mix (pure tangible good, tangible good with accompanying services, hybrid, major service with accompanying minor goods and services, and pure service) So it depends on ‘augmented/core’ Edo Rajh et al (2009), researching about The Effect Of Marketing Mix Elements On Service Brand Equity, survey method using 532 respondents university students about service categories (fast food restaurant, banks and retail outlets) =10 brands are selected The result of marketing mix elementsresearch sangat berpengaruh bagi service barand equity and suggest for adding the element of marketing mix for the next research Su-Mei Lin (2011:1063410644), her research about marketing mix 7P and performance assestment, with survey method to western fast food industry in Taiwan Adopting Palmer’s Model (2004) ‘school of thought’ analysis In this section, we try to combine the school of thoughts about service marketing mix concept based on previously discussed concepts With the dicipline of status quoteritis approach, marketing mix is reviewed according to the publication which reffering to sub-diciplines of traditional and modern marketing management: Consumer Marketing, Services Marketing, Industrial Marketing, Retail Marketing, Relationship Marketing, Network Marketing/Online Marketing (e-Marketing), It is necessary to make a comprehensive conclusion and assesment about the problem from the begining of the concept We can see briefly from table 3.1 above: Table 3.1 ‘school of thought’ analysis Peneliti lain Latar Authors belakang Model penelitian/teori bidang ilmu yang dikembangkan keahlian The Marketing Mix & The Consumer’s Marketing public No strategic elements are to Ohmae (1982) speaker and be found in the marketing dalam mix The marketing strategy Constantinides management consultant is defined by three factors (2006::414=41 5) yang Perubahan atau mengadopsi perkembangan model konsep saat ini penelitian/teori Kotler 1984, Robins 1991, Vignalli & Davies 1994, Doyle 1994, Bennet 1997, Yudelson 1999, Schultz 2001 Start from 3C (customers, competitors, corporation)=Ohmae; , ke end-customer controls the market, network systems should define the orientation of anew marketing, and new marketing mix must be based on the marketing triad (marketer, employee & customer)=Schultz The Marketing Mix & The Relationship Marketing Lauterborm Professor of The 4PsMarketing Mix is (1990) dalam Advertising in productoriented, The Constantinides the School of successful marketing plan (2006::416-417) must place the customer in Journalism The centre of the marketing and Mass Planning Communicati on at University of North Carolina at Chapel Hill The Marketing Mix & The Services Marketing Booms & Marketing Recognising the special Bitner (1981) character of the services as products, they dalam demonstrated the Constantinides importance of Environmental (2006::418factors (Physical 420) Evidence) influencing the quality perception They included the Participants (personnel and customers) and the Process of service delivery as the additional Marketing Mix factors Marketing Mix & The Retail Marketing Ster van der own business The retail format is the focus (1993) dalam as Technical of retail marketing, the basis of Constantinides Maritime merchant Consultant at (2006::422“Towingline” differentiation and the 423) element that attracts potential customers in the retail outlet The Marketing Mix for retailers is divided into two groups of factors the logistical and commercial ones Rozenberg Czepiel 1992, Gronroos 1994, Gummesson199 4, 1997, Goldsmith 1999, Patterson & Ward 2000, Healy et al 2001 Start from Four Cs replace the 4Ps, indicating the customer orientation - Customer needs - Convenience - Cost (customer’s) - Communication Became The Relationship Marketingaddresses the elements of Marketing Management identified by the Marketing Relationship trilogy: - Relationships - Neo-Relationship Marketing - Networks Cowel 1984, Brunner 1989, Ruston&Carson 1989, Fryar 1991, Heuvel 1993, Doyle 1994, Melewar Saunders 2000, English 2000, Grove et al 2000, Beckwith 2001 Start from The Services Marketing Mix includes next to the 4Ps three more P’s: - Participants - Physical Evidence - Process Became Four keys of modern (services) marketing - Price - Brand - Packaging - Relationships Boekema et al 1995, Rousey, Morgansky 1996, Mulhern 1997, Wang et al 2000, Kotler 2003 Start from The Retailing Marketing Mix: Logistics Concept: - Place Mix - Physical Distribution Mix - Personnel Mix Commercial Concept - Product Mix - Presentation Mix - Price Mix - Promotion Mix Became Retailer’s marketing Decisions: - Target Market - Product assortment and Procurement - Services and Store Atmosphere - Price Decision - Promotion decision - Place Decision The Marketing Mix & The Industrial Marketing Turnbull, Marketing/Bu More than 20 years of Ford & siness research by the Cunningham International Marketing and Peter (1996) dalam Turnbull, Purchasing Group (IMP) indicate that Constantinides (Professor at UMIST, success in (2006::424) Manchester, Business to Business UK), David Marketing is based Ford, on the degree and the (University of quality of the Bath, UK), interdependence between Malcolm firms Cunningham, (Professor at UMIST, Manchester, UK) The Marketing Mix & E-Marketing Peattie (1997) Ken Peattie, (Professor of dalam Constantinides Marketing and Strategy, (2006::427Director of 429) BRASS, Cardiff Business School, University of Wales College of Cardiff, Cardiff, UK) The new communication and interaction capabilities will change everything around marketing in many industries, yet the basic marketing concept will remain unchanged New role for the 4P’s of the Marketing Mix Davis, Brush 1997, Parasuraman 1998, Andersen, Narus 1999 Start from Competitive advantage of firms engaged in B2B marketing will depend on: - Interaction with Customers - Interaction Strategies - Organisation Evolution - Improvements in Customer Portfolios - Inter-organisational – Personal Contacts - Network Mobilisation Became Valuebased positioning orients and updates each of the four Ps Aldridge 1997, Mosley 1997, Evans et al 1999, Chaffey et al 2000, Lawrence et al 2000, Kambil et al 2000, O’Connor et al 1997, Bhatt et al 2001, Schultz 2001, Allen et al 2001, Constantinides 2002 Start from: - Product: co-design and production - Price: more transparency - Place: direct contacts with customers - Promotion: more control of the customer, interaction became The 4S model offers a comprehensive, integral approach on managing the online presence: - Scope: Strategic issues - Site: Operational issues - Synergy: Organisational issues - System: Technological issues The explanation about ‘school of thought’ started from a brief history studied by Bartels (1951:4), about the people who contributed their thoughts for the development concept about marketing (through teaching or writing) It was started before 1902 until 1923 Around 1922-1923 came Borden who later is known for his ”concept of marketing mix” Marketing mix conceptcame from ‘school of marketing management’ (Shaw et al 2005:244-245) Marketing management emerged from the question, how should a manager organized their product and service? Some concepts occured from 1950sto the beginning of 1960s Wendell Smith’s (1956) had the idea of ‘product differentiation and market segmentation as alternative marketing strategies’; Chester Wasson’s idea (1960) about the ‘product life cycle’; and Robert Keith’s perspective from customer orientation (1960) which is known as ‘marketing concept’ The most important concept probably mentioned in this article on the school of thought is Neil Borden’s (1964) which expressed the ‘marketing mix’ In his classic article of history, Borden ensued James Culliton (1948) by explaining marketing executive as a ‘decider’, a ‘mixer of ingredients’ Following Borden’s idea, in the 1950s, on the concept of what this mixer of ingredients is a ‘marketing mix’ McCarthy (1960: 52) resulting A.W Frey’s The Effective Marketing Mix in 1956 with the first marketing mix checklist Some initial books titled Marketing Management are written by D Maynard Phelps (1953), and Keith R Davis (1961), even though both are focusing onsales management Another book is Management in Marketing written by Lazo and Corbin (1961), but focusing on the management functions of planning, organizing and controlling as applied to marketing Wroe Alderson’s (1957) Marketing Behavior and Executive Action explaining much about science, theory, and systems, but he decided that the last three of his books were about executive decision-making in marketing According to Bartels (1988:178), ‘Alderson had a role in ‘marketing management’ In the same year as Alderson’s , John Howard’s book (1957), titled Marketing Management, emphasizing the elements from marketing mixwhixh are called ‘decision’ areas: ‘product’, ‘marketing channel’, ‘price’, ‘promotion – advertising’, ‘promotion – personal selling’, and ‘location’ decisions This was followed by Kelley and Lazer’s (1958) Managerial Marketing; a book about marketing mix elements which is called‘strategic’ areas: ‘product’, ‘price’, ‘distribution channels’, and ‘communications’ In his both books, the basic element from marketing mixis what now called ‘place’ Gene McCarthy’s (1960) textbook, Basic Marketing: A Managerial Approach, creating the marketing mix four P’s mnemonic for ‘product’, ‘price’, ‘promotion’, and ‘place’ Kotler’s selling (1967) responded to that model, which is named the ‘fundamental theorem of market share’, providing a logically coherent rationale for the marketing mix There are essential concepts: First is the idea that a firm’s sales are a direct response to changes in its marketing mix, ceteris paribus The second idea is that a firm’s market share responds directly to the effectiveness of its marketing mix and inversely to the marketing mix of the industry (or direct competition) As mentioned before, table 3.1 ‘school of thought’ fromservice marketing mix concept, With the dicipline of status quoteritis approach, marketing mix is reviewed according to the publication which reffering to sub-diciplines of traditional and modern marketing management: Consumer Marketing, Services Marketing, Industrial Marketing, Retail Marketing, Relationship Marketing, Network Marketing/Online Marketing (e-Marketing) The Marketing Mix and the Consumer’s Marketing Some weaknesses of Marketing Mix has caused some writers show that 4P frame should not be used as a fundamental of customer marketing management The criticisms are now focused on three main aspects: (1) Internal orientation: lack of customer orientation Kotler (1984), Robins (1991), and Vignali Davies (1994) Bennett (1997) and Schultz (2001) identified this as mix main limitation (2), lack of customer interaction: Doyle (1994), and Yudelson(1999) suggested that Mix ignores the developing characteristic from customers who demand for higher value, communication and transaction process This allows better interaction, lowers the number of customer loss and increases customer’s trust (3), Lack of strategic element: Ohmae (1982) Vignali and Davies (1994) suggested that the lack of strategic content is its main weakness Most writers suggested an alternative temporary work frame or proposing a modification version, with new elements added to traditional parameter The Marketing Mix and the Relationship Marketing Some marketing mix limitations are: firstly, product orientation is bigger than customer orientation (Lauterborm 1990, Rozenberg, Czepiel 1992) Explicit focus of mix on internal process weakens customer feedback element and interaction as the basic of building the relationship and retention Secondly, one way orientation: no interaction and personal communication considering the background and character of mix as a mass marketing concept (Gummesson 1994,1997; Gronroos 1994; Gold smith 1999) Third is that 4P frame is considered to be offensive rather than collaborative (Patterson and Ward 2000) All writers suggest a new conceptual frame where communication, personality interaction act as the essence The Marketing Mix and the Services Marketing Two reasons for giving contribution to this development are: (1) Servicehas been the main generator of economic events and substantial as the resource of company income in the west after the economical industry era (2) Service is already a part of a product, as an element from augmentedproduct dimension (Kotler et al, 2001; Jobber 2001) All writers agreed about the specific characteristic from service vs.tangibles and highlight the need for specific management attitudes when dealing with services marketing issues The main feature of a key factor in services marketing from marketing of physical products is human element, frequently include as a new parameter of services marketing mix (Booms and Bitner 1981; Cowell 1984; Heuvel 1993; Melewar and Saunders 2000; Grove et al 2000) Human Factor which is highlighted:the personal nature of the services marketing; service providers play a double role in the marketing Interaction and quality often identified as missing issues frome 4P framework, there has been no special attention given to service marketing (Rushton and Carson 1989; Fryar 1991; Beckwith 2001) The forming of one-to-one communication and relationship is also a fundamental element from the services marketing which is not included in 4Ps (Doyle 1994), English (2000) Many researchers refused to apply the 4Ps as a single to design services marketing, suggesting aditional elements from the Mix or substituting from different approach Marketing Mix and the Retail Marketing The writers agreed that 4P does not provide the adequate platform for concepting marketing activities in this domain They suggested to change ‘mix’ with a new concept or to add new elements Personnel, presentation, and retail format are the contributing factors to customer unique experience as the base of differentiation and retention The Marketing Mix and the Industrial Marketing Marketing Mix criticism from industrial marketing domain is concentrating to these issues: (1), industrial marketing emphasis on colaboration and personal approach is in contradiction to mass impersonal orientation and the character of orienting acquisition from ‘mix’ (Turnbull, Ford and Cunningham 1996) Interdependency and close relation between a seller and industrial customers are an important aspect in industrial marketing (2), Building a successful industrial connection needs value creation for customers, something depends on the comprehension and delivering value (Parasuraman 1998, Andersen and Narus 1999) The Marketing Mix and E–Marketing Issuefrom E-marketing and 4P role inside is: (1), Comparing criticism on "traditional" marketing, writers argue that researcher and writer proportion seems to support 4P as an E-Commerce marketing paradigm, even in a basic form, it is relatively high (Peattie 1997; O'Connor and Galvin 2000; Bhatt and Emdad 2001; Allen and Fjermestad 2001) Other writers chose small transformation such as making a more suitable work frame for internet environment (Aldridge etal, 1997; Lawrenceetal, 2000) (2), Most writers agree to use new approaches (Mosley 1997, Evans and King 1999, Chaffeyetal 2000; Kambil and Galvin 2000, Schultz 2001, Constantinides 2002) Internal orientation, the lack of interactivities and personalization, the lack of strategic elements and the lack of community building are some of the weaknesses mentioned from Mix With those weaknesses, we can develop a model of service marketing mix The model development of service marketing mix is on scheme 3.1 below : MODEL DEVELOPMENT Model development on inspected topic from writers point of view Scheme 3.1Service Marketing Mix Model (Construct) From the gap existing concepts and weaknesses / shortcomings of the concept of service marketing mix, the author tries to design a model based on the construct (scheme 3.1 above) To be positioning in the target market, the company did servicemarketing mix strategy, this part of the course material inspiered from Prof Sucherly 2012 Are divided by 2, of the company (company oriented) then there 8PS (product, price, place, promotion, process, people, physical evidence andproductivity & quality), a concept based on Kotler 2009 In terms of the consumer (customer oriented) there 8C (customer solution, customer cost, convenience, communication, capabilities, caliber / champion, charisma / collateral and customer experience), 7C of the concept of Stephen Newman & Khosro Jahdi 2009, while C is the eighth is construct the author, of P is the eighth, Productivity & Quality is perceived as a Customer Experience of customer oriented From oriented company, the company will execute company interaction orientation Company interaction orientation, customer interaction orientation, and interactive interaction orientation are inspired by holistical marketing service model from Kotler 2009 sekaligus dengan melihat rangkuman kelemahan marketing mix menurut 6(enam) mazhab pada school of thought di atas, bahwa kelemahan terbesarnya adalah kurangnya interaksi secara eksternal/dengan konsumen Meanwhile circumtances either in company oriented or in customer oriented are inspired by Koichi Shimizu’s Compass Model in 2003 and 2009 on customer and circumtances section Conclusions Internal orientation from mix - the lack of market inputs explicitly in terms of the origin of the concept Mix was originally developed as a concept that is suitable for the marketing of consumer products in the manufacturing sector of the U.S massoriented '60s Lack of personalization ie massorientations-market of the Mix, can also be traced in the original framework Significant consumer (individualization, reducing brand preference, value orientation, increasing sophistication, etc.) important parameter for any theoretical development is the confidence of practitioners in the marketing mix is important 4P features namely simplicity, applicability and enrich it The weakness ofmarketing mixconcept according to marketing theoretical dicipline is: (1), According toconsumer’s marketing : internal orientation, lack of customer interaction and lack of strategic elements (2), According to relationship marketing : bigger product orientation, one way orientation, and a more offensive 4P to colaborative character (3), According to service marketing : service as the main generator, service is a part of phisical product (augmentedproduct dimension), human is the exeptional factor also interactionand quality frequently dissapear from marketing mix (4), According to retail marketing : mixadded by personnel, presentation and customers experience (5), According to industrial marketing: personal approach and delivering value (6), According to e-marketing : e-commerce marketing, internal orientation, lack of interaction and personality and lack of strategic elements References Alipour, Mehrad et al, 2011, The Role of Service Marketing Mix And Its Impact On Marketing Audit In Engineering And Technical Service Corporations, Global Journal of Management And 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saw the importance of marketing mix in the implementation of marketing... from mix - the lack of market inputs explicitly in terms of the origin of the concept Mix was originally developed as a concept that is suitable for the marketing of consumer products in the manufacturing... et al, 2005, The Rise And Fall of The Marketing Mix, The Evolution of & Debate Surrounding The Concept, ESIC Market, Vol 05, hal 400-417 Borden, Neil H, 1984, The Concept of The Marketing Mix,