Services Marketing Strategy

Table of Contents


Company overview..


Proposed changes.

Areas where customer potential exceeds.

Reflection and Conclusion.


Introduction to The Mediation Effect of Customer Satisfaction

Service Marketing mix which is generally subjected as Extended Marketing Mix which is an essential part associated with any service plan. It includes the 7Ps which are considered too be very significant in term of marketing. The service marketing mix takes service as a product within itself. It is in the context of optimal service delivery, as all P components are required. The 7Ps associated with the service marketing mix include the product, place, price, promotion, people, process as well as physical evidence.

Company Overview

In this study, Australian Associated Motor Insurance Limited, otherwise known as AAMI will be evaluated. The company is a general insurance (auto, home, travel, life as well as business insurance) provider in Australia. AAMI has centers for vehicle assessment in Victoria, Queensland, New South Wales, South Australia along with Western Australia (, 2020).

Evaluation of The Mediation Effect of Customer Satisfaction


The products in context to the AAMI organization are generally intangible in nature. As stated by Khorsheed et al. (2020), unlike other physical products, the service products are not measurable. There are several services in this company for the consumers to choose from like car insurance, auto insurance, home insurance and others. The organization looks into bringing products for their clients that can fulfill their need and fit into the ordinary people’s life.


As stated by Solimun & Fernandes (2018), in the case associated with a service, this mix determines where the service will be the best situated. The organization AAMI is spread all over Australia and also has a subsidiary. Due to the nature of the products, it is imperative that the location or the place distribution needs to be in such a way that ordinary people can reach them. The organization is clustered over Victoria, New South Wales, Queensland, South Australia as well as Western Australia.


As stated by Pogorelova et al. (2016), promotion is an issue in the context of the marketing mix associated with services. Promotional activities can make or break an organization especially in today’s time. Certain organization mainly focuses on traditional media which do not decipher any good results. However, this particular organization generally promotes themselves through social media platforms. They run campaigns in social media platforms like the facebook to subject their offers. Apart from that they have an attractive company website which subject offers and promotions.


AAMI follows a pricing strategy that is dynamic for consumers from various segments. As stated by Kwok Tang & Yu (2020), the organization understands the fact that pricing mix is a very important aspect. Their insurance policies have a wide range when it comes to price and duration. Their strategy of pricing is primarily to increase the whole market share of AAMI.


As stated by Wu & Li (2018), people are a very important part associated with the mix of service marketing. In the organization AAMI, the branch's staff as well as clients is defined by their behavior. In the service market, an organization can be built or broken down by people. Thus, the organization AAMI plays a very important role in the direction of focus on customer satisfaction; they train their employees in interpersonal skills as well as customer service.


AAMI has adopted a process in recent terms where the consumers are no longer required to come to the service branch for every minor issue or monthly payments. As stated by Thabit & Raewf (2018), majority of their service is available online. The consumers can readily access any of their services within a click (website or mobile application).

Physical evidence

AAMI is situated almost in all places in Australia from the urban to regional. AAMI understands the requirement in context to personal services and assistance for which the organization have established new branches all over Australia. The insurance company is set to expand in other continents as well. The aim of the company is to acquire a global presence. The company wants to open hundreds of AAMI branches around the globe which will help the company gain a worldwide recognition. They also have a subsidiary company and a good online presence (Chatterjee, 2018).

Proposed Changes

As stated by Aras et al. (2017), the 7P associated with service marketing mix helps businesses examine as well as define key issues that affect the marketing associated with products as well as services. The proposed changes in this context are:


AAMI has a range of services and products to offer but in this context it is very important that they focus to identify the profitable and valuable services and products. Also, cancel out some of the under profitable products and services. These can be effectively identified from the statement of income activities (Lahtinen, Dietrich & Rundle-Thiele, 2020).


AAMI’s pricing strategy has proven in the direction of being very effective in Australia. All their services are priced in accordance to the consumers and the organization needs to keep it in that way to ensure service as its best.


Since the organization is already clustered all over Australia, AAMI now needs to think into expanding to other continents. As stated by Khorsheed et al. (2020), however, there are certain nations where the system is complex regarding insurance and banking so the organization needs to chose wisely where it wants to expand.


The organization needs to offer more discounts to the consumers. As stated by (), This can be one through traditional media and non traditional media. Additionally, it can also provide facilities in context to referrals. They need to promote their insurance policies more effectively so that they can reach more consumers.


The organization AAMI should continue valuing their consumers and offer consumer satisfaction through their services. In this context the organization should pay attention towards their stakeholders such as potential customers, clients, the culture and society around the insurance organization (Solimun & Fernandes, 2018).


However, advanced technology has made the process easier as well as more meaningful in the organization. However, it will be heavy depending on the ICT system as well as the database. So the organization AAMI needs to pay attention in mitigating any issues that comes from these processes.

Physical evidence

As stated by Wu & Li (2018), this could be enhanced through the identification of top as well as the least active branch by determining the number of consumers coming in and out. This deliberately reduces the slow and expanding other popular branches.

Areas Where Customer Potential Exceeds

Poor online and outdated application system

As stated by Lahtinen, Dietrich & Rundle-Thiele (2020), nowadays, many have realized the importance associated with online application (mobile apps, internet banking) as it is instant, accurate as well as easy in the direction of use. It is very important that AAMI updates their system so that the mobile application works without flaws. To improve the service delivery and transaction it is very important. Customers will look forward to a modern looking web interface that will work smoothly without lags. Nevertheless, the website was also slow as well as in some cases it was not usable.

Strategy: As stated by Thabi & Raewf (2018), in the direction of improving the current online application system, the organization can outsource IT staff, in the direction of developing as well as improving this system. This strategy pays off because the costs associated with outsourcing are much lower than hiring a team in the direction of doing the job.

Long consumer service phone on hold period

During this period, consumers have wait on their phones until a representative arrives. Since the organization is an important element associated with any business or even individuals, it needs to look after this problem and solve this. As stated by Chatterjee (2018), when customers call, they expect to get a smooth process rather than waiting for long hours. In most customer review forecast, the average wait time is 40-50 minutes. This is something that the organization needs to look into in effective terms (, 2020).

Strategy: As stated by Pogorelova et al. (2016), in the direction of reducing the standard waiting time, the organization can decrease the number associated with phone calls by expanding their channels of communication. The organization can set up "live chat" support through various media platforms (such as Facebook, Twitter). By providing more methods associated with-communication in the direction of the customers, the customers can easily communicate with the organization which will enhance their satisfaction. This particular strategy pays as with live online-chat the customer representative can compare numerous customers at once with one phone call.

Reflection and Conclusion on The Mediation Effect of Customer Satisfaction

In conclusion, it can be stated that the organization AAMI is a good service providing organization for consumers. However I feel that there are certain things that are required to be fixed and addressed. Addressing the needs will help the organization grow and develop. AAMI is already providing excellent insurance service to their consumers but their problems associated with poor online and outdated application system, long hold time can be a barrier. It is very imperative that the organization looks after their problems so that they become one of the best companies in the future. Thus, I feel that the proposed changes in the aforesaid study will be very helpful for the organization to understand where they need to improve.

References for The Mediation Effect of Customer Satisfaction (2020), AAMI, from: [RetrivedOn:30th September 2020]

Aras, M., Syam, H., Jasruddin, J., Akib, H., & Haris, H. (2017, July). The effect of service marketing mix on consumer decision making. In International Conference on Education, Science, Art and Technology (pp. 108-112).

Chatterjee, J. (2018). Role of Services Marketing Mix and Customer-Company Identification in building Engaged Customers.

Khorsheed, R. K., Abdulla, D. F., Othman, B. A., Mohammed, H. O., & Sadq, Z. M. (2020). The Role of Services Marketing Mix 7P's on Achieving Competitive Advantages (The Case of Paitaxt Technical Institute in Kurdistan Region of Iraq).

Kwok, L., Tang, Y., & Yu, B. (2020). The 7 Ps marketing mix of home-sharing services: Mining travelers’ online reviews on Airbnb. International Journal of Hospitality Management, 90, 102616.

Lahtinen, V., Dietrich, T., & Rundle-Thiele, S. (2020). Long live the marketing mix. Testing the effectiveness of the commercial marketing mix in a social marketing context. Journal of Social Marketing.

Pogorelova, E., Yakhneeva, I., Agafonova, A., & Prokubovskaya, A. (2016). Marketing Mix for E-commerce. International journal of environmental & science education, 11(14), 6744-6759.

Solimun, S., & Fernandes, A. A. R. (2018). The mediation effect of customer satisfaction in the relationship between service quality, service orientation, and marketing mix strategy to customer loyalty. Journal of Management Development.

Thabit, T., & Raewf, M. (2018). The evaluation of marketing mix elements: A case study. International Journal of Social Sciences & Educational Studies, 4(4).

Wu, Y. L., & Li, E. Y. (2018). Marketing mix, customer value, and customer loyalty in social commerce. Internet Research.

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