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Assignment, Service Marketing, BBA-BI 5th semester, Ace Institute of Management
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A Group Presentation onChapter 1
Service Providers
Group Members
Sapan
Satish
Chhitiz
Ashish Aayush
IntroductionAny act or performance that one party can
offer to another that is essentially intangible and does not result in ownership of anything.
E.g. if we subscribe NTC Internet we don’t become its owner we just use the service.
“ Service are deeds, process and performances. ”
Examples of ServicesProfessional service- accounting,
legal authorities, architectureHealth care- hospital, eye care,
dentistryFinancial services- banking,
insurance, advising, brokerage firesHospitality services- restaurant,
hotelsTravel services- airlines, buses,
agenciesOther services- electrician, plumbing,
health club, counseling services
Service - Contribution In World EconomySector World
economy (2004)
Nepal (2010)
Agriculture 4 % 35%
Industry 32% 16%
Services 62% 49%
Service - Contribution In World Economy
Service - Contribution In World Economy
Characteristics of ServicesIntangibilityHeterogeneitySimultaneous production and consumptionPerishability
Differences Between Services And GoodsGoods Services
Goods are tangible. Services are intangible.
Goods are homogeneous. Services are heterogeneity.
Goods are non perishable. Services are perishable.
In case of goods, the consumption
In case of services, production , consumption and distribution goes simultaneously,
Trade marks/ Patent rights can be gained in goods.
No such rights are there in services.
Brand loyalty can be found in case of goods,
Brand loyalty cannot be found in case of services.
Goods Services
Standard can be setup in goods,
It is difficult to set up the standard in services.
Demand and supply for the goods can be in equilibrium.
In services, the firm cannot match demand and supply.;
Goods are measured in terms of quantity.
Services are measured in terms of quality.
Goods can be stored for consumption in future.
Services cannot be stored/inventoried for future
The pricing of goods is easier due to availability about actual cost of production of goods.
As actual cost of production is hard to determine, the pricing is difficult in services.
Differences Between Services And Goods
Service Marketing MixCompilation of different factors that helps in
selling a product.
Service Marketing
Mix
Traditional
product
price promotional
place
Extended
people
Physical evidence
process
Traditional “4” P’s
Product
•Physical good features •Accessories•Packing •Branding•Product lines•durability
Price
•Flexibility•Price level•Terms•Differentiation•Allowances•discount
Promotion
•Promotion on blend•Sales people•Adverting•Sales promotion•publicity
Place•Channel type•Exposure•Intermediately•Outlet location•Transportation •storage
Extended “3” P’s
people
• People
• Customer employees
• Communicating cultures and values
• research
Physical evidence
• Signage• Equipment• Employee
dress• Other tangible
process
• Flow of activates
• Number of steps
• Level of customer involvement
Challenges of Service Marketers How would you define and improve service quality- exact definition not thereEg. Services provided by a dentist is difficult to define. Likewise, it is difficult to
compare services provided by two different doctors.
How would you design new service and how can one test when it is not there.Eg. The high price at KFC might not attract general income earners although it is
a multinational company.
One can’t store and one cant always match demand and supply and bring it in equilibrium
How can one set up price when it is difficult to determine the actual cost of production
Eg. It takes years and years, huge amount of money to be a dentist. If the dentist charges Rs.5000 to his/her patients, then people might not visit him/her because it is too expensive. But for dentist, it might be a fair price as he/she has completed dentistry devoting his/her time and huge amount of money.
Challenges of Service MarketersService can’t be patentedOne cannot communicate your serviceIt is always difficult to motivate and select
right workerHow would you set up standardOne cannot expect services to be good all
time
Service Marketing Trianglecompany
customeremployee
Internal Marketing
“Enable The Promise”
External Marketing
“Setting Promise”
Interactive Marketing
“ Deliver The Promise ”
Company
Customer
Employee
Cycle Chain
profit
Customer Satisfaction
Employee Satisfaction
Service Profit Chain
Gain Loyalty
Revenue growth Profit
Customer Satisfaction
External Service Value
Employee Satisfaction
Employees retention Employees productivity
The End
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