Download - Service Markeitng
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MARKETING
MANAGEMENT
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LEARNING OBJECTIVESWhat are services?
Services mix
Characteristics of Services
Service-quality perception
Brand strategies for services
Post-sales service strategy
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INCREASING IMPORTANCE OF
SERVICESAdvances in technology
Growth in per capita income
A trend towards outsourcing
Deregulation
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NATURE OF SERVICES
Intangibility
InseparabilityPresence of other consumers
Variability
Perishability
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Service is much more than processing customer andtheir orders; it is the appearance of the facilities, thebehavior of the employee, presence of anothercustomer, and the impression made when the
customer come into the contact with all theseelements.
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Services Marketing Mix: Traditional Marketing Mix
- Product
- Place- Promotion
- Price
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Extended Marketing Mix Booms and Bitner included three additional 'Ps' to
accommodate trends towards a service or knowledgebased economy:
o People
o Process
o Physical Evidence
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Promotion
Intangible elements of service may be difficult tocommunicate.
Word of mouth is critical to success.
Persuade satisfied customers to inform others of their
satisfaction.
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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 service companies to provideservices without customers coming to their facility
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People Service quality is inseparable from quality of service
providers.
Set standards to improve qualityof service provided by employees and monitor theirperformance
Training of employees crucial
Adopt a customer-first attitude than putting ownconvenience firs
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Physical evidence The environment in which the service is delivered
Includes any tangible goods that facilitate theperformance and communication of the serviceStrengthen cues that customers search for to judge thequality of services
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Process Process is the way of undertaking transaction,
supplying information and providing services in a waywhich is acceptable to the customer and effective tothe organisation
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TraditionalMarketing
InteractiveMarketing
InternalMarketing
Company
Employees Customer
Internal Marketing :Marketing by a service firm to train andmotivate customer contract employees to provide customer satisfaction
InteractiveMarketing :Marketingby service firm thatrecognizes that servicequality of the buyer-seller
interaction
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The Customer Gap Customer satisfaction is a function of expectations and
perceptions both of which can be influenced by themarketer.
ExpectedServices
PerceivedServices
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The provider Gaps Not knowing what customer expect
Not selecting the right service designs and standards
Not delivering to service design and standards Not matching the performance to promises.
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Managing Service Brands Differentiating Services
- Primary Service Package
- Secondary Service Package
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Developing Brand Strategy for
Services Choosing Brand Element
Establishing Image Dimensions
Devising Branding Strategy
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Because service business cannot inventory service,per se, an added challenge of marketing is tomatch the timing of demand and capacity.