copy of service marketing for sem -2

8/4/2019 Copy of Service Marketing for Sem -2

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Service Marketing

Service Marketing demands for a passion

for understanding customer expectationand perception and linking them to product

design & delivering and operational planning.


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Services are categorized under:

People processing object processing

Mental stimulus processing

Information processing


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Service is one part of product-service mix being

offered to customers

Service is an intangible offering with little or notransfer of physical products to the customer

The main offering is the product but the supplier

also provides some services

Every product or service or any combination of a

mix of the two, ultimately is supposed to provide

service for customers

SERVICE LEVELS


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Services are Everywhere

Service Industries

(communications, health care, transportation)

R&D

Design

Supporting

Services

(legal)

Manufacturing

Distribution

Repair

Government Support Services

(roads, education, public safety)

Interme-

diary

Private business

supporting services

Commer-

cial

Consu-mer


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Service Sectors

Government

Private nonprofit: museum

and charities Business: Banks

Manufacturing: legal staff Retail: customer services


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Categories ofService Mix

Pure tangible good : consumer

products

Good with accompanying services:Computers

Hybrid: Restaurants

Service with accompany goods:Airline

Pure service: massage,babysitting


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Service Distinctions

Equipment-based or people-based

Service processes: deliver it Clients presence required or not:

surgery or care repair

Personal needs or business needs Objectives and ownership: Profit or

nonprofit


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INCREASING IMPORTANCE OF

SERVICES

Advances in technology

Growth in per capita income

A trend towards outsourcing

Deregulation

Increasing growth in retailing due toincrease in propensity to consumer


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Services impact customers more directly

than products do

Marketing of services has to be more

deliberate and considered

Service provider has to carefully audit his

resources and competencies

Positioning must be razor sharp


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Service provider must define service very

precisely and also design the appropriateservice-product mix

Promotion more challenging due to

intangible nature of services

Same basic service can be provided in

vastly different service facilities providingdifferent levels of amenities and luxuries


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Same service can be delivered in various

ways

Marketing mix conveys the positioning of a

service


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NATURE OF SERVICES

Intangibility

Inseparability

Presence of other consumers

Variability

Perishability


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MANAGING SERVICES

Managing service quality

Companies rated higher on service quality

perform better in terms of market sharegrowth

Big gap exists between the expectations ofthe customers and the level of the servicethey get Real barriers while matchingexpected and perceived service levels ofcustomers


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Does not understand customer requirements:Misconception barriers arise whencompanies misunderstand customerexpectations

No resources: A company may understandcustomer expectations but is unwilling toprovide resources to meet them

Bad delivery: The company is not able todeliver the expected service


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Managements will: A management eager toimprove quality is able to do it

Exaggerated expectations: Exaggeratedpromises may become a problem


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Meeting customer expectations

Important to understand and meet

customer expectations

Consumers of services value not only theoutcome of the service encounter but also

the experience of taking part in it

Access: Is the service provided atconvenient locations and at convenient

times, with little waiting period in availing

the service?


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Reliability: Service provider should beable to deliver the promised service eachtime the customer decides to avail of it

Credibility: Can customers trust theservice company and its staff?

Security: Can the services be usedwithout risk?


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Understanding customer: If the companyunderstands the expectations and also

has the capability to serve them, thecustomer is satisfied with the serviceoutcome

Responsiveness: How quickly do servicestaff respond to customer problems,requests and questions?

Behavior of employees: Do service staffact in a friendly and polite manner?


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Competence: Performance of the

primary service will depend on theknowledge and competencies of the

service providers

Communication: Is the service described

clearly and accurately?

Physical evidence: The company shouldprovide physical evidence to customers

which will assure customers that they

will be provided a good service


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Managing service productivityMeasure of relationship between the various

types of inputs that are required to produce

the service and the service output

Conflict between improving service

productivity and raising service quality

Technology can be used to improve

productivity and service quality

simultaneously


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Customer involvement in production canbe increased

Important to balance supply and demand

By smoothing demand or increasing

flexibility of supply, both productivity

and service quality can be achieved


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Managing service staff

Quality of the service experience is heavilydependent on staff-customer interpersonal

relationship

Companies need to treat their employees

well if customers have to be served well by

their employees

Nature of the job needs and appropriate

personality characteristics to be defined

sharply while selecting service staff


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Socialization allows the newly recruited serviceprofessionals to experience the culture and

tasks of the organization

Maintaining a motivated workforce

Customer feedback essential to maintain

high standards of service quality

Employees of service organizations must

take pride in their jobs


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POSITIONING SERVICES

Differentiate from competition on attributes

that target customers highly value

Entails two decisions:Choice of target market (where to compete)

Creation of differential advantage (how to

compete)


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Determine important choice criteria of

customers carefully

Most important decision of a service

organization is selecting the factors on

which it will compete

Select a few factors and provide superlative

performances in the chosen factors

Target marketing

Differential advantage


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THE SERVICES MARKETING MIX


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The service

Pure services are intangible

Higher perceived risk in decision

making process

People, physical evidence and

processes provide cues about the

quality of the service

Brand name affects perceptions of

service

Provide service trials wherever possible


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Promotion

Intangible elements of service may bedifficult to communicate

Sales people should develop lists of

satisfied customers to be used in referenceselling

Word of mouth is critical to success

Acknowledge the dominant role of personalinfluence in the choice process andstimulate word of mouth communication


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Persuade satisfied customers to inform

others of their satisfactionDevelop materials that customers can passon to others

Target opinion leaders in its advertisingcampaign

Encourage potential customers to talk to

current customers

Communication should also be targeted atemployees


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Price

An indicator of perceived quality

Important in matching demand and

supply

Price sensitivity key segmentation

variable


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Place

Distribution channels for services are more

direct

Production and consumption is

simultaneous

New technologies permit servicecompanies to provide services without

customers coming to their facility


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People

Service quality is inseparable from qualityof service providers

Set standards to improve quality ofservice provided by employees and

monitor their performance

Training of employees crucialAdopt a customer-first attitude thanputting own convenience first


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Employees of service organizationshave to be adept in multiple roles

Have empathy to judge the service

requirement and mood of the customer

Examine the role played by customers

in service environment

Seek to eliminate harmful interactions


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Physical evidence

The environment in which the service is

delivered

Includes any tangible goods that facilitatethe performance and communication of the

service

Strengthen cues that customers search for tojudge the quality of services


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Process

Procedures, mechanisms and flow ofactivities by which a service is delivered to

customers

Control variations in services by targetingsmaller segment of customers

Process and its visibility are both important

for customersProcess should be employed only when it is

required to provide a service and notbecause customers have come to expect it


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SERVICE ENCOUNTERS

A terrible ending usually dominates a

persons recollection of an experience

Customers who are mentally engaged in atask do not notice how long it takes

Customers desperately want to make

sense of unexpected events


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Study service encounters from customers pointof view

Finish strong

Get the bad experience out of the way early

Segment the pleasure, combine the pain

Build commitment through choice

Give people rituals and stick to them


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SERVICE RECOVERY

Well-intentioned, prompt, and apt recoverycan assuage angry customers

Everyone in the organization must have theskill, motivation, and authority to makeservice recovery an integral part of serviceoperations

Production-oriented service-deliverysystems have helped in achievingconsistently high service standards


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Inevitable problems will still arise, by

providing for service recovery

Good service providers cover all the costs

that a failure incurs

Customers problem is an opportunity

Companies must be responsive to customer

complaints, and encourage them to complain

Monitor areas of the organization which are

likely to throw up problems more frequently


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Solve customers problems fast becauseservice problems quickly escalate

Train frontline employees and empower them

Give employees the authority, responsibility,

and incentives to help customers in unique

ways

Let customers know about corrective

measures taken and the improvement

achieved


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INNOVATION IN SERVICES

Difficulties in applying traditional methods

of research and development to services

Experiments with new services are mostuseful when they are conducted live ,

though cautiously

Improvements should be planned andexperimented incrementally


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Personnel conducting the experiments mustbe motivated

Successful experiment has to be persisted

with

Experiment only when it can be finally

implemented

Conducting live experiments risky and

cumbersome, but may be inevitable


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INNOVATION IN SERVICESDifficulties in applying traditional methods of

research and development to services

Experiments with new services are mostuseful when they are conducted live , though

cautiously

Improvements should be planned andexperimented incrementally


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PPersonnel conducting the experiments

must be motivated

Successful experiment has to be persisted

with


implemented



ersonnel conducting the experiments must

be motivatedSuccessful experiment has to be persisted

with


implemented



Personnel conducting the experimentsmust be motivated

Successful experiment has to be

persisted withExperiment only when it can be finally

implemented



copy of service marketing for sem -2

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