Session-1 Intro to Service Mktg
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Transcript of Session-1 Intro to Service Mktg
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SERVICES MARKETING
SESSION-1
INTRODUCTION TO SERVICES
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DEFINITION SERVICES TO INCLUDE ALL ECONOMIC
ACTIVITIES WHOSE OUT PUT IS NOT A
PHYSICAL PRODUCT OR CONSTRUCTION, ISGENERALLY CONSUMED AT THE TIME IT ISPRODUCED AND PROVIDES ADDED VALUE INFORM (SUCH AS AMUSEMENT,CONVENIENCE, TIMELINESS, COMFORT, ORHEALTH) THAT ARE ESSENTILLYINTANGIBLE CONCERNS OF ITS FIRSTPURCHASER.
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CLASSIFICATION OF SERVICES
RETAILING & WHOLESALING
TRANSPORTATION, DISTRIBUTION & STORAGE
BANKING AND
INSURANCE REAL ESTATE
COMMUNICATION AND INFORMATION
PUBLIC UTILITIES, GOVT ANDDEFENCE
HEALTH CARE
BUSINESS,PROFESSIONAL AND PERSONAL SERVICES RECREATIONAL AND HOSPITALITY SERVICES
EDUCATION
OTHER NON-PROFIT ORGANIZATION
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REASONS FOR GROWTH
DEMOGRAPHIC CHANGES LIFE EXPECTANCY INCREASED
NEED FOR INFRASTRUCTURE AND SUPPORT SERVICES FORNEW TOWNS
SOCIAL CHANGES INCREASED NO OF WOMEN WORKFORCE
QUALITY OF LIFE IMPROVED
INTERNATIONAL TRAVEL & Mobility
COMPLEXITY OF LIFE- MORE LEGAL AND FINANCIAL
ECONOMIC CHANGES GLOBALIZATION
INC SPECIALIZATION WITHIN THE ECONOMY
POLITICAL AND LEGAL HUGE INFRASTRUCTURE OF GOVT
INTERNALIZATION
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SERVICES CHARACTERISTICS
Inseparability
Perish ability
Heterogeneity
Intangibility
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SERVICES ARE DIFFERENTTangible Intangible Services Can Not Be Inventoried
Can Not Be Patented
Readily Displayed/Comm
Pricing Is Difficult
Standardized Heterogeneous Services Delivery & CustomerSatisfaction Depend On EmployeesQuality Depends On ManyUncontrollable Factors
No Surety That Svc Matches
As Planned/ Promoted
Prod Separate
FromConsumption
Simultaneous Prod
& Consumption
Customer Participate In And AfterThe Transaction
Customer Affect Each Other
Employees Affect Outcome
Centralization
Mass Production Difficult
Nonperishable Perishable It Is Difficult To SynchronizeSupply And Demand
Services Can Not Be Returned OrSold
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Marketing Challenges Intangibility
Fluctuations in demand can not be met. No patent, therefore can easily be copied. Quality can be judged.
Unit of service cost is hard to determine Heterogeneity
Across time, org and people Many uncontrollable factors for quality Customer and service providers are different Subcontracted.
Simultaneously production and consumption mass production is difficult.
Real time happening may produce inconsistent results Problem customers influence others
perish ability Service can not be resold. Inability to inventory
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SERVICE MARKETING TRIANGLECOMPANY
PROVIDERSCUSTOMERS
INTERACTIVE MKTG
Keeping Promises
INTERNAL MKTG
Enabling Promises
EXTERNAL MKTG
Making PromisesTechnology
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MARKETING MIX
PRODUCT PLACE PROMOTION PRICE
GOOD FEATURE CHANNEL TYPE PROMOTIONBLEND
FLEXIBILITY
QUALITY LEVEL EXPOSURE SALES PEOPLE PRICE LEVEL
ACCESSORIES OUTLET LOCATION ADVERTISING TERMS
PACKAGING TRANSPORTATION SALES PROMOTION DIFFERENTIATION
WARRANTIES STORAGE PUBLICITY DISCOUNTS
BRANDING
PRODUCT LINES
MANAGINGCHANNELS
ALLOWANCES
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EXPANDED MARKETING MIXPEOPLE PHYSICAL
EVIDENCEPROCESS
EMPLOYEES FACILITY DESIGN FLOW OF ACTIVITIES
Recruiting, training EQUIPMENT Standardized
Motivation SIGNAGE Customized
Teamwork & RewardsD
RESS NUMBER OF STEPSCUSTOMERS OTHER TANGIBLES Simple, Complex
Education Reports/Business Cards CUSTOMERINVOLVEMENT
Training Statements, gurantees
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CHALLENGES FOR SERVICES MARKETERS
How Can Service Quality Be Defined And Improved
New Services Designed And Tested Effectively
Accommodation Of Fluctuating Demand Select And Motivate Employees
Setting Of Prices
Org Of Firms
Balance Between Std And Personalization
Protection Of New Svc Concept
Communication Of Quality And Value To Customer
Delivery Of Consistent Quality
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DEFINITION A SERVICE IS AN ACTIVITY WHICH HAS
SOME ELEMENTS OF INTANGIBILITY
ASSSOCIATED WITH IT, WHICH INVOLVESSOME INTERACTION WITH CUSTOMERS ORWITH PROPERTY IN THEIR POSSESSION,
ANDDOES NOT RESULT IN A TRANSFER OFOWNERSHIP. A CHANGE INCONDITION MAYOCCUR AND PRODUCTION OF THE SERVICEMAY OR MAY NOT BE CLOSELY ASSOCIATEDWITH A PHYSICAL PRODUCT.
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CLASSIFICATION SCHEMES FACTORS
TYPE OF SERVICES
TYPE OF SELLER
TYPE OF PURCHASER
DEMAND CHARACTERISTICS
RENTED VS OWNED SERVICES
DEGREE OF INTANGIABILITY
BUYING MOTIVES
EQPT BASED VS PEOPLE BASED AMOUNT OF CUSTOMER CONTACT
DEGREE OF CUSTOMIZATION
DEGREE OF LABOUR INTENSITY