Download - Service Marketing August 10
-
8/8/2019 Service Marketing August 10
1/19
SERVICE MARKETING
Designing and ManagingServices
-
8/8/2019 Service Marketing August 10
2/19
INDIAN SCENARIO
Indias services sector has matured considerably duringthe last few years and has been globally recognized for
its high growth and development.
Presently services sector account for about 55% of IndiasGDP
This sector dominates with the best jobs, best talent andbest incomes
-
8/8/2019 Service Marketing August 10
3/19
INDIAN SCENARIO
Sectors 1984 1994 2003 2004
Agriculture 35.2 30.4 22.8 21.2
Industry 26.2 27.1 26.4 27
Manufacturing 16.4 16.9 15.6 16.1
Services 38.7 42.5 50.7 51.8
% of GDP
Sectors 1984-94 1994-04 2003 2004Agriculture 3.4 2 9.6 1.1
Industry 6.3 5.6 7.0 7.7
Manufacturing 6.2 5.6 6.9 7.7
Services 6.7 8.2 8.9 8.9
Average Annual Growth
-
8/8/2019 Service Marketing August 10
4/19
INDIA vs. OTHERS
Country Share of GDP (%) 2007
India 55%
USA 78.5%
EU 65 75%
Australia 72%
Japan 73.1
-
8/8/2019 Service Marketing August 10
5/19
SERVICE MARKETING
There are no such thing as service industries. There areonly industries whose service components are greater orless than those of other industries. Everybody is in
service. Theodore Levitt
A service is any act or performance that one party canoffer to another that is essentially intangible and does
not result in the ownership of anything. Its productionmay or may not be tied to a physical product
Kotler, 2004
-
8/8/2019 Service Marketing August 10
6/19
THE NATURE OF SERVICES
Regardless of the product, there is a servicescomponent to the offerings of all firms
In some cases, a service is the principal purpose of thetransaction, as in the rental of a car, a haircut, or legalservices -- we refer to this as the corecore serviceservice
In others, service is performed in support of the sale of atangible product -- these are referred to as
supplementarysupplementary servicesservices
-
8/8/2019 Service Marketing August 10
7/19
CATEGORIES OF SERVICE MIX
Pure tangible good
Tangible good with accompanying services
Hybrid Major service with accompanying minor goods
Pure services
-
8/8/2019 Service Marketing August 10
8/19
THE GOODS-SERVICES CONTINUM
FMCGs Restaurants Repairs:auto, AirTravel
InsuranceConsultingTeaching
MOSTLY GOODS MOSTLY SERVICES
ReadymadeClothes
Auto-mobiles
MOSTLY GOODS MOSTLY SERVICES
-
8/8/2019 Service Marketing August 10
9/19
CHARECTERSTICS OF SERVICES
INTANGIBILITY
Cannot be seen, tasted, felt, heard or smelt before
Difficult to sample and to evaluateFor example, how could you sample a haircut or a
flight to Mauritius?
Service companies demonstrate their service qualitythrough physical evidence and presentation
Tangibilizing the Intangibles Through proper designing of place, people, equipment,
communication material, symbols, price
-
8/8/2019 Service Marketing August 10
10/19
ELEMENTS OF PHYSICAL EVIDENCE
PHYSICAL FACILITY
Exterior Building design
Architecture Signage
Parking
Surrounding environment
Landscape
Interior Design
Equipment and facilities Dcor Layout Atmosphere (lighting,music, air temperature,etc.)
Other tangibles Staff Uniforms Brochures Stationery Company logo
Tickets, Business cards
-
8/8/2019 Service Marketing August 10
11/19
-
8/8/2019 Service Marketing August 10
12/19
CHARECTERSTICS OF SERVICES
VARIABILITY
Indicates that a service performance is unique to thecustomer, or group of customers, being serviced.
A level of inconsistency is inherent in service provision.
Steps to increase service quality control Good hiring and Training
Standardize the service performance
Monitor customer satisfaction
-
8/8/2019 Service Marketing August 10
13/19
PERISHABILITY
Offerings that cannot be saved, stored, resold, orreturned.
It is not possible to delay the consumption of services.
Those not sold can not be stored Demand fluctuatesfirms have problem
Strategies on the demand side Differential Pricing
Non peak Demand Complementary services
Reservations
-
8/8/2019 Service Marketing August 10
14/19
CHARECTERSTICS OF SERVICES(cont)
PERISHABILITY
On Supply side
Part-time employees Peak time efficiency
Increased consumer participation
-
8/8/2019 Service Marketing August 10
15/19
MARKETING MIX FOR SERVICES
Product
Price
Place
Promotion
Process
Physical Evidence
Personnel / People
-
8/8/2019 Service Marketing August 10
16/19
-
8/8/2019 Service Marketing August 10
17/19
Determinants of service quality
Reliability Delivering on promises
Responsiveness Willing to help, prompt
service Assurance Inspiring trust and confidence
Empathy Individualized attention tocustomers
Tangibles- physical representation
-
8/8/2019 Service Marketing August 10
18/19
MOMENTS OF TRUTH
It is the customer service encounter
Every positive or negative experience of the
consumer would have fall-out on the overallservice experience
In services, the last experience remainsuppermost in your mind. Therefore, it is not
enough to be good, you have to be consistentlygood
-
8/8/2019 Service Marketing August 10
19/19
CUSTOMER COMPLAINTS
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 people on
his her experience
A dissatisfied consumer gripes to on an average 11
persons about his/her unpleasant experience