service markeitng

8/22/2019 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.

service markeitng

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