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8/10/2019 Featurs of Service
1/20
10/16/2014 S.M. Monirul Islam1
Course Introduction
Course Code: MKT 6404Course Title: Service Marketing
Course Teacher:
S.M. Monirul IslamLecturer in Marketing
Phone: (041) 813844 (Office)E-mail: [email protected]
mailto:[email protected]:[email protected]8/10/2019 Featurs of Service
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10/16/2014 S.M. Monirul Islam2
Course Definition
Service marketing is the
advance level course for
marketing professional whichmake the marketing practices
different from goods marketing
and focus on how to design theservice marketing mix.
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Course Objectives
1. Make understanding the differences between
goods and services.
2. Realize how marketing task of services
create more challenges than goods marketing
3.Acheive skill to develop the marketing mix
strategies for service product.
4.Know the service gap recovery system and
manage service customer.
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Instruction Methodology
Interactive lectures on recommended
topics
Multimedia visualization
Group work, presentation,
Assignment/project.
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asis of Continues
assessment
Class attendance
Class test
Assignment/project
Class performance & Presentation
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Text & Reference
Essentials of Service Marketing
-- Hoffman & Bateson
Ref: The marketing of ServicesCowell, D.
Service Marketing --- Lovelock, C. & Wirtz, J.
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Defining Service
work done by one person or group thatbenefits another
Service is deeds, efforts, performance of humanwhich satisfy the demands of another. It is
invisible and untouchable which make it differentfrom physical goods.
A service is the non-material equivalent of agood. A service provision is an economicactivity that does not result in ownership,and this is what differentiates it fromproviding physical goods.
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The Molecular model
A conceptual model of the relationship
between tangible and intangible
components of a firmsoperation.
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The servuction Model
A model used to illustrate the factors thatinfluence the service experience, including those
are visible to the consumer and those are not.
Customer A
Customer B
Bundle of service
benefits received by
customer A
Invisible Visible
Organizational
system
Inanimate environment
Contact Personnel
Service Provider
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Inanimate environment:
All the nonliving features that present during
the service encounter, like furniture, interior
design, music, wall hangings etc.
Contact personnel:
Employees other than the primary serviceproviders who briefly interact with the
customers.
Service provider:Who provides the core services to the
customers with direct interaction with them.
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Customer A:
The recipient of the bundle of servicebenefits provided by the marketer.
Customer B:
Other customers whose serviceexperience influence the customer A.
Organizational system:
The rules, regulations, processes on which theorganization is based.
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Differences BetweenGoods and Services
Intangibility:
A distinguishing characteristics of services
that makes them unable to be touched orsensed as like goods.
Inseparability:
It reflects the interconnection among theservice provider, service receiver and other
customer during delivering the service.
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Heterogeneity:The variation in consistency from one service
transaction to the next.
Perishability:Service is perishable over the passage of
time. It cannot be saved, stored or inventoried
the unused capacity.
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Marketing problem causedby intangibility
Lack of ability to be stored
Lack of protection by patent
Difficulty in Displaying or communicating
Difficulty in pricing
Possible Solutions
Use of tangible clues
Use of personal sources of information
Creation of strong organizational image
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Marketing problemcaused by Inseparability
Physical connection of service provider
to the service
Involvement of the customer in theproduction process
Involvement of other customer in the
production processSpecial challenges in mass production
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Possible solutions:
Emphasize on selection and training the
contact personnel and service providers
Consumer managementUse of multisite location
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Marketing problem causedby Heterogeneity
Difficult to standardize and quality
control
Possible Solutions: Customization
Standardization
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Marketing problemcaused by Perishability
Higher demand than Maximum available
supply level
Higher demand than optimal supplylevel
Lower demand than optimal supply level
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Possible solutions:
1. Demand strategy:
Creative pricing
Reservation system Development of complementary
services
Development of nonpeak demand
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2. Supply strategy
Part-time employment
Capacity sharing
Advance preparation for expansion
Utilization of third parties
Increase customer participation
Possible solutions: