SERVICES MARKETINGSERVICES MARKETING
TYPES OF SERVICESTYPES OF SERVICES
• TRANSPORT SERVICES
• PUBLIC UTILITY SERVICES
• COMMUNICATION
• TRADING SERVICES
• FINANCIAL & INSURANCE SERVICES
• REAL ESTATE SERVICES
• MARKETING RELATED SERVICES
• GOVERNMENT PROVIDED SERVICES
• ENGINEERING SERVICES
• ENTERTAINMENT SERVICES
• BUSINESS & PROFESSIONAL SERVICES
• HOSPITALITY SERVICES
• HEALTH SERVICES
GROWTH OF SERVICE SECTOR GROWTH OF SERVICE SECTOR ECONOMYECONOMY
REASONS FOR THE GROWTH:• CHANGING LIFESTYLE:• Increase in affluency-greater demand for
dry-cleaning, carpet cleaning• Increase in leisure time- greater demand
for entertainment, travel agencies• Women in working places- greater
demand for domestic help, daycare nurseries
• CHANGING WORLD:– Increased complexity of life- greater demand for
accounting services, legal advisors– Increased life expectancy- greater demand for
nursing homes, gyms– Ecology & resource concerns- greater demand
for shared taxi service, environment consultants• CHANGING ECONOMIES:
– Globalization- greater demand for courier services, airways, waterways
– Privatization- greater demand for telecom services, internet
• CHANGING TECHNOLOGY:– Range of new products- greater demand
for e-commerce, software programming– Product complexity- greater demand for
annual maintenance contracts, after sale service, skilled service
CAUSE EFFECT GREATER DEMAND FOR
Technological advances
Higher complexity of products
Globalization Business internationalization
Deregulation policies
Privatization
Competition & higher productivity
Specialization & expert knowledge
Cost effectiveness
Optimum utilization of resources & outsourcing
Computer explosion
Speed of work, availability of sound, picture & motion at affordable cost
Increase in affluency
Increased spending power & wish for comforts
Working women Work performed at home being done by others
More leisure time Entertainment & pleasure seeking
Greater life expectancy
Desire to live long
Increased complexity of life
Need for specialized services
Scarcity of resources & concern for ecology
Need for services that can meet resource crunch
Demographic changes
Dual career couples
Urbanization Fast, mechanical & self centred life
SERVICE CHARACTERISTICS SERVICE CHARACTERISTICS
Intangibility
Inseparability
Inventory (Perish ability)
Inconsistency (Variability)
INTANGIBILITYINTANGIBILITY
• Services are activities performed by the provider, unlike physical products they cannot be seen, tasted, felt, heard or smelt before they are consumed.
• unlike goods, services do not have features that appeal to the customers senses & its evaluation is not possible before actual purchase and consumption.
• services are not known to the customer before they take them.
• service provider has to follow certain things to improve the confidence of the client
INSEPARABILITYINSEPARABILITY
• Services are typically produced and consumed simultaneously.
• services, cannot be separated from the service provider.
• Inseparability of production and consumption increases the importance of the quality in services
• service marketers not only need to develop task-related, technical competence of service personnel , but also , require a great input of skilled personnel to improve their marketing and inter personal skills.
INVENTORY (PERISH ABILITY)INVENTORY (PERISH ABILITY)
• Services are deeds, performance or act whose consumption take place simultaneously
• services cannot be stored
• services go waste if they are not consumed simultaneously
INCONSISTENCY (VARIABILITY)INCONSISTENCY (VARIABILITY)
• Services are highly variable, as they depend on the service provider, and where and when they are provided
• Service marketers face a problem in standardizing their service, as it varies with experienced hand, customer, time and firm
SERVICE CLASSIFICATION SERVICE CLASSIFICATION
• BY MARKET SEGMENTATION:FINAL CONSUMER: life insurance, tutionORGANIZATIONAL CONSUMER:
accounting services, legal services
• BY DEGREE OF TANGIBILITY: RENTAL GOODS: hotel room rental, book
rentalOWNED GOODS: mobile repair,
refrigerator repairNON GOODS: accountancy services,
legal services, education services
• BY SKILLS OF SERVICE PROVIDERS:PROFESSIONALS: medical services,
management consultingNON PROFESSIONAL: shoe polishing,
washing
• BY GOALS OF THE PROVIDER:PROFIT: roadways, airways, insuranceNON PROFIT: postal services, unversities
• BY DEGREE OF REGULATION:HIGHLY REGULATED: insurance,
hospitalsLIMITED REGULATED: fast food,
roadwaysNON REGULATED: painting, cloth
washing
• BY DEGREE OF LABOUR INTENSIVENESS:EQUIPMENT BASED SERVICES: Automated: ATMs Operated by relatively unskilled operators: Taxis Operated by skilled operators: AirlinesPEOPLE BASED SERVICES: Unskilled labour: Carpet cleaning Skilled labour: Catering, Plumbing Professionals: Lawyers
• BY DEGREE OF CUSTOMER CONTACT:
HIGH CONTACT: colleges, hotels
LOW CONTACT: car servicing
• BY END USER:Consumer: leisure, hairdressing, personal
finance, package, holidays.Business to business: advertising
agencies, printing, accountancy, consultancy.
Industrial: plant maintenance and repair, work wear and hygiene, installation, project management.
• BY SERVICE TANGIBILITY:Highly tangible: car rental, vending
machines, telecommunications.Service linked to tangible goods: domestic
appliance repair, car service.Highly intangible: psychotherapy,
consultancy, legal services.
• BY LABOUR INTENSIVENESS:People-based services - high contact:
education, dental care, restaurants, medical services.
Equipment-based -low contact automatic car wash, launderette, vending machine, cinema.
• BY EXPERTISE:Professional: medical services, legal
services, accountancy, tutoring.Non-professional: babysitting, care taking,
casual labour.
• BY PROFIT ORIENTATION:
• Not-for-profit: The Scouts Association, charities, public sector leisure facilities.
• Commercial: banks, airlines, tour operators, hotel and catering services.
SERVICES MARKETING SERVICES MARKETING TRIANGLETRIANGLE
• The Services Marketing Triangle model focuses upon making and keeping promises to customers and suggest three structural relationships as the mode by which this occurs.
SERVICES MARKETING TRIANGLE
Company Management
Employees Customers
Internal Marketing :“Enabling the promise”
service environment
External Marketing : “setting the promise”
the service product
Interactive Marketing :“Delivering the promise”service delivery
The Model University/Registry
Company Management Directorate Registry/ management team
Employees All registry staff
Customers Students,University staff,
External bodies
External Marketing
“Setting the promise”
the service product
Consultation with Customers to identify needs and obtain feedback on performance:Course Organisers ForumStudent Union Liaison meetingsStudent Services CommitteeUndergraduate Student QuestionnaireEnrolment review
Service Statements/Plans:Service Provision StatementDepartmental Plan
Internal Marketing
“Enabling the promise”
the service environment
Culture & philosophyStaff recruitmentStaff development/ trainingMotivation and involvement in planningTeam meetings/briefingsTechnical resources
Interactive Marketing
“Delivering the promise”
service delivery
The serviscape and service encounter:Delivery of servicePhysical environmentMeetingsTelephonePostE-mail
SERVICE MARKETING MIXSERVICE MARKETING MIX
• The Marketing mix is generally accepted as the use and specification of the four p's describing the strategic position of a product in the marketplace.
• In case of services additional 3 p’s are also included in these 4 p’s.
SERVICE MARKETING MIXSERVICE MARKETING MIX
• Service marketing mix comprises off the 7’p’s :
1. Product
2. Price
3. Place
4. Promotion
5. People
6. Process
7. Physical evidence
ProductProduct
• It must provide value to a customer but does not have to be tangible at the same time
• it involves introducing new products or improvising the existing products
• Its study includes: service product, quality level, range, features/benefits, guarantees, brand names
• RATER: Reliability, Assurance, Tangibles, Empathy, Responsiveness
PricePrice
• Pricing must be competitive and must entail profit
• Pricing strategy can comprise discounts, offers and the like
PlacePlace
• It refers to the place where the customers can buy the service/product and how the service/product reaches out to that place
• This is done through different channels, like Internet, wholesalers and retailers
• Issues involved: location, accessibility, channels of distribution, distribution facilities, service inventory, managing channels
PromotionPromotion
• It includes the various ways of communicating to the customers of what the company has to offer
• It is about communicating about the benefits of using a particular product or service rather than just talking about its features
• What should be the channels of promotion: advertising, personal selling, sales promotion, word of mouth, tele-marketing, e-marketing etc
PeoplePeople
• An essential ingredient to any service provision is the use of appropriate staff and people.
• Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage
• Consumers make judgments and deliver perceptions of the service based on the employees they interact with
• Staff should have the appropriate interpersonal skills, aptititude, and service knowledge to provide the service that consumers are paying for
• Service encounter
• Employees: recruitment, training, motivation, team work
• Customers: education, training
• Communication: about culture, values
ProcessProcess
• Refers to the systems used to assist the organization in delivering the service
• Imagine you walk into Burger King and you order a Whopper Meal and you get it delivered within 2 minutes
• What was the process that allowed you to obtain an efficient service delivery?
Physical EvidencePhysical Evidence
• Where is the service being delivered?
• Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organization
• If you walk into a restaurant your expectations are of a clean, friendly environment
• Consumers will make perceptions based on their sight of
the service provision which will have an impact on the organizations perceptual plan of the service
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