tafe fashion marketing notes wk 9
DESCRIPTION
services marketingTRANSCRIPT
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Week 9Services Marketing
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How are goods & servicesdifferent?
Most services contain some element of goods.
Goods are the object,a service is the effort, performance or deed
A product can be either a good or a service
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Purchasing a service is often more personal than purchasing
A product.
Bad service sticks in people’s minds!
Any examples of bad service?
Good service?
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All retailers are classified as being in the services sector.
Service retailers in Australia aregrowing faster than product retailers
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Services have four uniquecharacteristics:
Intangibility
Inseparability
Heterogeneity
Perishability
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Intangibility
When a consumer buys a service, or a tangible product that has a service
element, they are buying an experience
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Inseparability
The connection between the service provider, the customer’s
involvement in the service, and theinvolvement of other customers.
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Heterogeneity
This is the lack of ability to control the quality and consistency
of a service before it reaches a customer.
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Perishability
Services can’t be stored, andif they are not sold one daythey cant be kept to be sold
later.
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Services are usually a high involvementpurchase.
This is because there is usually a high level of personalisation.
For this reason, many service organisations
put great emphasis on employee training, evaluation and motivation
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Although a service is intangible,the P of ‘place’ still plays a major
tole in marketing.
Where should the servicebe in order to effectivelyreach the target market?
And to strengthen the brand?
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Guidelines for advertising services
There are common guidelines for
advertising services, which relate back to the four unique
characteristics
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Develop a word of mouthnetwork
Consumers of services oftenlook to personal sources for information
Use testimonials
Use promotions that award therecruitment of friends
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Promise what is possible
Customers prepare expectationsto actual service delivery
Don’t overpromise!
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Tangibilise the intangible
Make the service more concretethrough use of tangible symbols,
recommendations, years ofestablishment etc
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Feature the relationship
A key element of services isthe relationship between provider &
customer
Illustrate the inseparability
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Reduce fears about inconsistency
Use of testimonials, word of mouth, years of service
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Focus on relevant factors
What do people want from your service?
Make that a focal point of your communications
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Show the service as a series of events
Consumers often view servicesas a series of events
Look at marketing from a seriesof events perspective
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The ‘halo’ effect
In services, first impressions areeverything
This can include phone contact,signage, store layout etc
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In service situations, the atmospherecreated is important.
Use sight appeals (furniture, colour) sound appeals (to set mood, Inform)
touch appeals or scent appeals
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The People Problem
People make up the most of the product of every service firm
And they involve customers as co-producers
Both can cause problems.
Like what?
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How do you fix the employee problem?
Training
Empowerment
Enfranchisement (empowerment plus performance
based compensation)
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How do you fix the customer problem?
Do you think customers are becoming too demanding?
So how do you manage customers?
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Occupy waiting times
Communicate with customers
Understand customer habits
Empower staff to deal with customer complaints
Respond to complaints quickly
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Examples?
Good or bad service experiencesin fashion retail?