ug_svcs_1.pdf
TRANSCRIPT
SERVICES MARKETING
Kapil R. Tuli
Associate Professor of Marketing
Lee Kong Chian School of Business
Singapore Management University
Some Rules
Go Beyond the Book and create a MESS
(Mental Engagement Stimulation & Simulation)
Participate and enjoy this class
(More than a century of cumulative experience)
Listen & Respect your peers
In Class on Time
Be prepared, read the materials
Avoid cell phones and laptops
Service Industries
Health Care
hospital, medical practice, dentistry, eye care
Professional Services
accounting, legal, architectural
Financial Services
banking, investment advising, insurance
Hospitality
restaurant, hotel/motel, bed & breakfast
ski resort, rafting
Travel
airline, travel agency, theme park
Others
hair styling, pest control, plumbing, lawn maintenance, counseling services, health club, interior design
1-3
Services are an Increasing Important Sector
1-4
Source: Park and Shin (2012), ADB Working Paper Series No. 322 Copyright: Dr. Kapil R. Tuli
Do you see a Trend?
5
Source: Park and Shin (2012), ADB Working Paper Series No. 322 Copyright: Dr. Kapil R. Tuli
Do you see a Trend?
6
Source: Park and Shin (2012), ADB Working Paper Series No. 322 Copyright: Dr. Kapil R. Tuli
What About the Singapore Economy?
Source: http://www.singstat.gov.sg/statistics/browse_by_theme/national_accounts.html
2014 2014
2010 2011 2012 2013 I II
GDP AT 2010 MARKET PRICES 322,361 341,886 350,446 363,942 91,696 93,690
Goods Producing Industries 84,230 90,109 91,712 93,983 23,750 24,226
Manufacturing 65,040 70,118 70,342 71,512 18,081 18,542
Construction 14,221 14,923 16,201 17,194 4,378 4,322
Utilities 4,851 4,944 5,044 5,155 1,258 1,332
Other Goods Industries1
118 123 124 122 32 30
Services Producing Industries 208,683 222,564 228,717 240,929 60,661 62,060
Wholesale & Retail Trade 58,449 62,619 62,545 66,355 16,331 16,956
Transportation & Storage 25,423 26,773 28,157 29,059 7,222 7,437
Accommodation & Food Services 5,921 6,561 6,713 7,015 1,779 1,756
Information & Communications 11,073 11,935 12,655 13,200 3,328 3,424
Finance & Insurance 33,154 36,184 36,837 40,802 10,617 10,912
Business Services 42,119 44,424 46,847 48,867 12,320 12,452
Other Services Industries 32,544 34,069 34,963 35,632 9,064 9,123
Ownership of Dwellings 11,514 11,649 11,958 12,237 3,145 3,147
Gross Value Added At Basic Prices 304,428 324,322 332,386 347,149 87,556 89,432
Add: Taxes on Products 17,933 17,565 18,060 16,793 4,140 4,258
Contribution of Services 65% 65% 65% 66% 66% 66%
Million Dollars
8
Manufacturers are Entering Into Services
Boeing
Offering Services: Challenges & Opportunities
10
Challenges Implications Opportunities
Intangibility Display, Communication, Pricing, and
Inventory.
Differentiate on tangibles.
(A380, Toast Box, Kopitiam)
Heterogeneity Employees are service, Uncontrollable
factors play a big role
Strive to deliver a uniform
experience.
(McDonalds, Starbucks, Ya
Kun Kaya Toast)
Simultaneity Customers participate in production,
Affect each other, Mass production is
difficult
Leverage customer
participation.
(Salad Stop, Marche,
Hibachi Grill)
Perishability Supply & demand synchronization
difficult
Leverage perishability as a
business model
(Scoot, Tiger Air, Priceline)
Dual Lenses View
12
Service Challenges
Intangibility
Heterogeneity
Simultaneity
Perishability
Service
Excellence
Product
Price
Place
Promotion People
Physical
Processes
How do we overcome the challenges by utilizing the critical assets?
An Experience
Taste &
People
Buy & Consume
Short to
No Inventory
Product
Excellence
Copyright: Dr. Kapil R. Tuli