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Marketing of Services

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Special Characteristics of Services

Lack of ownership

IntangibilityInseparabilityHeterogeneity / variabilityPerishability

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Classification Of ServicesEnd User

Consumer: leisure, hairdressing, personalfinance, package holidays.Business to business: advertising agencies,

printing, accountancy, consultancy.Industrial: plant maintenance and repair, work

wear and hygiene, installation, projectmanagement.

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B ased on Service TangibilityH ighly tangible: car rental, vending

machines, telecommunications.S ervice linked to tangible goods:domestic appliance repair, car service.

H ighly intangible: psychotherapy,consultancy, legal services.

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B ased on PeopleP eople-based services - high contact:

education, dental care, restaurants,medical services.Eq uipment-based -low contact :

automatic car wash, launderette,vending machine, cinema.

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B ased on ExpertiseP rofessional: medical services, legal

services, accountancy, tutoring.N on-professional: babysitting, caretaking, casual labour.

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B ased on ProfitN ot for-profit: C harities, public sector

leisure facilities.Commercial: banks, airlines, tour operators, hotel and catering services.

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InternalMarketing

Interactive Marketing

ExternalMarketing

CustomersEmployees

enabling the promise

delivering the promise

setting the promise

Company

The Services Marketing TriangleThe Services Marketing Triangle

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7 PsProduct

PricePlacePromotion

P eoplePh ysical EvidenceP rocess

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PeopleService Personnel

Customers

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Concern of Marketing Manager Careful selection and training of personnel;

Laying down norms, rules and proceduresto ensure consistent behaviour Ensuring consistent appearance

Reducing the importance of personalcontact by introducing automation andComputerisation wherever possible.

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Physical EvidenceShaping first impressions

Managing trustFacilitating quality of serviceChanging the image

Providing sensory stimuli

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ProcessWhat are the steps involved in delivering the service tothe consumer?

Are they arranged in the most logical sequence?If not, can some steps be eliminated, combined or rearranged to form a smoother sequence?What are the steps in which the consumer is involved?Can the consumers' contact be reduced or totally

eliminated?Can we introduce automation to speed up the delivery

process?

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G aps ModelT he gaps model positions the keyconcepts, strategies, and decisions inservices, marketing in a manner thatbegins with the customer and builds theorganizations tasks around what areneeded to close the gap betweencustomer expectation and perceptions.

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G ap Model

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G ap 1: Not knowing whatcustomers expect1. Inadequate Marketing Research

Orientation2. Lack of upward communication3. Insufficient Relationship focus

4. Inadequate service recovery

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GAP 2

Not selecting the right service designs &standards

Poor Service Design

Absence of customer defined standardsInappropriate physical evidence

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GA P 3: Not Delivering to servicestandards

Deficiencies in Human ResourcepoliciesFailure to match supply and demandC ustomers not fulfilling roles

Problems with service intermediaries

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G AP 4 : When promises do not match performance

Lack of integrated services marketing

communicationsIneffective management of customer expectations

Over promisingInadequate horizontal

communications

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G AP 5: Service customers receive and theservices they want.

Not knowing what customers expect

Not selecting the right services standardsand designs Not delivering to service standards

Not matching performance to promised

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RecapWhat are the special features of services ?Classify services based on tangibility.What are the types of service marketing?What are the 7 Ps of Services. Marketingmix ?What is the role of physical evidence inservices marketing ?What are the provider gaps 1,2,3 & 4 ?

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Terima Kasih !

(Than you in Malay)