07.service marketing
DESCRIPTION
Service Marketing by Tharaka DiasTRANSCRIPT
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THARAKA DIASMBA(USA), BBA(USA), Dip in Mgt, ACIM(UK),
FAEA(Dip in AEA-UK), FinstSMM(UK), CPM(Asia),
MSLIM
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Services Marketing - YouTube(1).mp4
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� The services sector has been growing at a
rate of 8% per annum in recent years
� More than half of our GDP is accounted for
from the services sectorfrom the services sector
� This sector dominates with the best jobs,
best talent and best incomes
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-Theodore Levitt-
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It is the part of the product or the full product for which the customer is
willing to see value and pay for it.
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� It is intangible.
� It does not result in ownership.
� It may or may not be attached with a physical
productproduct
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Physical goods Services
tangible intangible
homogeneous heterogeneous
Production and distribution are
separated from consumption
Production, distribution and
consumption are simultaneous separated from consumption consumption are simultaneous
processes
A thing An activity or process
Core value processed in factory Core value produced in the buyer-seller
interaction
Customers do not participate in the
production process
Customers participate in production
Can be kept in stock Cannot be kept in stock
Transfer of ownership No transfer of ownership
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They could be
� Equipment based
� People based – varying skill levels
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� Personal needs – haircuts, tution, massage
parlours
� Business needs – courier services, office
cleaning services, delivering fresh flowerscleaning services, delivering fresh flowers
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� Intangibility
� Inseparability
� Perishability
Variability� Variability
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� People
� Physical evidence
� Process
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12
Mr Bean - Bad Customer Service -- Schlechter Kundenservice - YouTube.flv
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� Search qualities
� Experience qualities
� Credence qualities
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� Offering
� Faster and better delivery
� Image
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� Gap between management perceptions and consumer expectations
� Gap between management perceptions and service quality specificationsGap between service quality specifications and � Gap between service quality specifications and service delivery
� Gap between service delivery and external communication
� Gap between expected service and perceived service
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� Reliability – delivering on promises
� Responsiveness – willing to help
� Assurance – inspiring trust and confidence
Empathy – individualising customers� Empathy – individualising customers
� Tangibles- physical representation
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� It is the customer – service encounter
� Every positive or negative experience of the
consumer would have fall-out on the overall
service experienceservice experience
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� Continuous auditing of competitor service
levels versus own company
� Importance - performance analysis
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Concentrate
here
Keep up the
good work
I
M
P
O here good work
Low priority Possible overkill
O
R
T
A
C
E
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Their satisfaction will be influenced by
� Encounters with service personnel
� Appearance and features of service facilities –
exterior and interiorexterior and interior
� Interactions with self service equipment
� Characteristics and behaviour of other
customers
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� Desired Service – the ‘wished for’ service
� Adequate Service – the service that would be
acceptable
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Difference between the desired service and the adequate service
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� Recovery
� Adaptability
� Spontaneity
Coping� Coping
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Don’t� Ignore customer� Blame customer� Leave customer to
fend for himself
Do
� Acknowledge problem
� Explain causes
� Apologisefend for himself
� Downgrade� Act as if nothing is
wrong� ‘pass the buck’
� Apologise
� Compensate/upgrade
� Lay out options
� Take responsibility
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Don’t� Promise and fail to
keep them� Show unwillingness to
try
Do
� Recognise the
seriousness
� Acknowledgetry
� Embarrass the customer
� Laugh at the customer� Avoid responsibility
� Acknowledge
� Anticipate
� Accommodate
� Adjust
� Explain rules/policies
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Don’t
� Exhibit impatience
� Yell/laugh/swear
� Steal from customers
Do
� Take time
� Be attentive
� Anticipate needs� Steal from customers
� Discriminate
� Ignore
� Anticipate needs
� Listen
� Provide information
� Show empathy
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Don’t
� Take customer’s
dissatisfaction
personally
Do
� Listen
� Try to accommodate
� Explainpersonally
� Let customer’s
dissatisfaction affect
others
� Explain
� Let go of the customer
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� Passives
� Voicers
� Irates
Activists� Activists
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� It pays to resolve customer complaints
� On an average only 5 % dissatisfied customers
complain. Others simply go over to the competitor
� A satisfied consumer speaks to an average of 3 � A satisfied consumer speaks to an average of 3
people on his her experience
� A dissatisfied consumer gripes to on an average 11
persons about his/her unpleasant experience
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� Pay attention to quality and training of manpower recruited
� Have clear benchmarks on service quality and communicate to employeesTake remedial steps to improve customer � Take remedial steps to improve customer satisfaction and prevent repeats of customer dissatisfaction
� Have a data base on customer complaints that is periodically analysed and policies adjusted
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� Morale
� Motivation
� Mood
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� Giving quality service is an expensive business� Not every consumer is willing to pay extra for
service quality� Service providers would have to find their optimum
service quality/cost ratiosservice quality/cost ratios� Can technology substitute part of the labour
content?� Can customers substitute part of the labour
content?� Making services obsolete by product innovations
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Thank you
Thank you
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