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Services Marketing in Vehicle Recovery Industry


The success in the marketing sphere is highly dependent on the understanding of major concepts, theories, and techniques. The primary purpose of the paper is to examine the application of services marketing concepts to a specific market context.

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Extended Marketing Mix

Marketing is all about “putting the right product in the right place, at the right price, at the right time” (Liozu 2016). Although these words characterize marketing in the best way, it should be pointed out that evaluation of the market and discovering the needs of the customers is hard work. For the product to succeed, every aspect should be taken into consideration. The marketing mix helps to maintain the aspects together.

The marketing mix can be described through the principle of four Ps. Marketing strategies involve knowledge of the marketing mix as it includes the data regarding the “price, product, placement, and promotion” (Brooks & Simkin 2012).

To get better involved in the issue, four ingredients of the marketing mix should be examined. For the product to succeed on the market, the developers should find the answer to certain questions. First and foremost, they should investigate the customers’ needs and find out what they want and for what reason. Moreover, they need to know how the customers will use the product and what the purchasers expect from it.

Aside from the knowledge regarding the product, the developers should be aware of the place where the product will be sold. The decision requires the understanding of the type of the store, distribution channels, and competitors. In addition, the information regarding the price is also relevant and is essential to be taken into consideration. The developers need to compare the price to the rivals and determine the value of the product.

Furthermore, the question concerning the promotion of the product is vital. The advertisement over the Internet, newspapers, or television, time of the promotion, season, and environmental aspects are to be taken into account. However, it should be stressed that a number of experts claim that the model has limitations as it represents not the client’s point of view but the market’s one. The researchers state that modern reality demands the extension of the marketing mix, and nowadays, the principle of seven Ps is commonly used. The category of people, process, and physical evidence was added to the model. The extended marketing mix is a valid model that is used by marketers to increase the effectiveness of the production.

The transition to the dominant tertiary economy is related to productivity growth in the sphere of industry. However, in the real manifestation is related to the displacement of people from the production process to replace them with the automated and robotic machinery. The service sector includes transport, communications, trade, tourism, and health care (Martin, 2009).

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Marketing Concepts and Techniques

Marketing concepts are related to the understanding of the ways how to satisfy the needs and desires of the customers. Marketing concepts that are used within the service sector can be examined from three perspectives, namely behaviour, network, and economics. In terms of behavioural approach, the major objective is the creation of the relationships with the customer based on trust, loyalty, and satisfaction. Network approach describes the relationships between internal and external customers, whereas economics approached is used for describing the reason the relationships exist. In addition, a concept of the service-profit chain is also used for investigation the relation between the employees’ satisfaction and the behavior of the client or customer.

Effectiveness of the Performance Indicators

The performance indicators help organizations to achieve strategic and tactical (operational) goals. The performance indicators are used to get a better understanding regarding the following aspects, namely “revenue improvement, cost reduction, process cycle-time improvement, and increased customer satisfaction” (Laguna & Marklund 2013). The success of the integration of KPI is not affected by the number of employees or the scales of production.

The fundamental factor that influences the system is the maturity of the business and an adequate accounting system. The experts state that it is impossible to manage what cannot be counted. Key performance indicators can be qualitative (in the form of ranking points), or quantitative (time, money, the amount of goods, people, etc.). KPI is a good opportunity to be aware of the customer’s expectations and the reality of the service (Ryan & Jones, 2009).

Implementation of the Marketing Mix in Vehicle Recovery Industry

The success of the business is highly dependent on the satisfaction of the clients. To measure the quality of customers’ service certain aspect are vital to be taken into consideration, namely conversion rate, cash flow, comparing to competitors, and employee’s productivity (Choudhury 2015). One of the examples of the service sector is vehicle recovery industry. There are three major companies represented in the industry, namely AA, RAC, and Green Flag. The majority of drivers is afraid of vehicle breakdown and stated above companies help to manage such situations (Shallcross 2015).

They offer breakdown membership and breakdown cover for the customers to feel safe and secure, not worrying about the problems. Every company has a web-site, where drivers can purchase the product online. Aiming to buy a breakdown cover, the customer should evaluate the connection between the price and the quality of service. The prices between the companies are similar; however, the prices of Green Flag are the lowest (Shallcross 2015).

The customer will pay more in AA and RAC annually. However, they offer more comfortable service; in addition, there are discounts that can save money. These companies dedicate a lot of time to promotion. Understanding the value of modern technologies, the organizations take advantage of it and have already developed the websites where it is easy and convenient to purchase breakdown cover. Moreover, AA and RAC use TV advertisement to attract buyers.

Twitter’s users leave messages describing the work of the vehicle recovery companies, and it is also the type of the advertisement. According to the statistics, the majority of AA customers are satisfied with the service and the company scored 4,7 out of five (Shallcross 2015). As for the RAC, 92% of users would recommend this service (Shallcross 2015). Green Flag does not have the highest rank and only 86% of the customers are satisfied (Shallcross 2015).

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Another aspect of the marketing mix that influences the company’s success significantly is people. The discussed organizations realize the importance of providing high-quality service, and that is, hire only professional and trained staff. Friendly and helpful employees are essential for the customers’ satisfaction and enjoyment of the service.

The Monitoring Process

Every company keeps track of every action and process when it is performed routinely it can be described as monitoring. Strategies and objectives of the organization make the monitoring more specific. Monitoring should correspond the size and budget of the company. There are four areas that should be monitored, namely inputs, outputs, outcomes, and impacts. While working with KPI, one should consider the type of the provided service, goals, objectives, and expectations of the clients.

The major goal of the vehicle recovery companies is to provide the customers with outstanding road assistance. To improve service, the companies encourage teamwork and provide the employees with essential training to increase their ability to solve problems.

In conclusion, it should be pointed out that there are a lot of factors that influence the success of the business. KPI and extended marketing mix are essential for understanding for the creation of the successful company.

Reference List

Brooks, N & Simkin, L 2012, “Judging marketing mix effectiveness,” Marketing Intelligence & Planning Marketing Intelligence & Plan, vol. 30, no. 5, pp. 494–514.

Choudhury, K 2015, “Service quality and customers’ behavioural intentions,” Asia Pacific Journal of Marketing and Logistics Asia, vol. 27, no. 5, pp. 735–757.

Laguna, M & Marklund, J 2013, Business process modeling, simulation, and design, 2nd ed, Pearson, Upper Saddle River, NJ.

Liozu, S 2016, Pricing and human capital: a guide to developing a pricing career, managing pricing teams, and developing pricing skills, Routledge, New York, NY.

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Martin, DM 2009, “The entrepreneurial marketing mix,” Qualitative Market Research: An International Journal, vol. 12, no. 4, pp. 391–403.

Ryan, D & Jones, C 2009, Understanding digital marketing: marketing strategies for engaging the digital generation, Kogan Page, London, UK.

Shallcross, T 2015, “RAC, AA or Green Flag: which breakdown service can fix our car fastest?,” Sunday Times Driving. Web.

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