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8/13/2019 Session 9 MAP
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Service MarketingSession: 9 & 10
Prof: Yasmin S
8/13/2019 Session 9 MAP
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What is services?
• Service is any act or performance that one
can offer to another that is essentially intanand does not result in any ownership of any
Its production may or may not be tied to ph
products..Philip Kotler
• Services marketing is marketing based on
relationship and value.
8/13/2019 Session 9 MAP
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What is a service?
•
It is intangible.• It does not result in ownership.
• It may or may not be attached with a p
product
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Characteristics of Service Se
•
Intangibility• Perish ability
• Inseparability
• Heterogeneity
• Ownership
• Quality measurement
• Nature of demand
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INCREASING IMPORTANCE O
SERVICES•
Advances in technology
• Growth in per capita income
• A trend towards outsourcing
• Deregulation
• Increasing growth in retailing
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6
Generic Differences Between
& Services
Nature of the product
Problems in quality control
Involvement of the customer in production
delivery Absence of inventory
Structure and nature of distribution channels
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NATURE OF SERVICES
•
Intangibility• Inseparability
• Presence of other consumers
• Variability
• Perish ability
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Classification of Serv
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Degree of Involvement of th
customer•
People Processing• Possession Processing
• Mental Stimulus Processing
• Information Processing
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Classification based on Servic
Intangibility•
Highly Tangible• Service linked to tangible goods
• Tangible goods linked to services
• Highly intangible
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Classification based on skills a
expertise required•
Professional service• Non Professional service
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Classification based on Busine
Orientation of Service Provid
• Non Profit organization
• Commercial organization
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Classification based on type of
User•
Consumer Service• Business to Business Services
• Industrial Services
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ALL PRINCIPLES OF MARKAPPLY TO SERVICES
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• Services impact customers more directly tproducts do
• Service provider has to carefully audit hisresources and competencies
• Positioning must be razor sharp
• Services more intractable than products
• Same service can be delivered in various w
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• Service provider must define service very prec
also design the appropriate service-product m
• Promotion more challenging due to intangible of services
• Same basic service can be provided in vastly diservice facilities providing different levels of amand luxuries
• Marketing mix conveys the positioning of a ser
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THE SERVICES MARKETIN
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The Service (Product)
• Pure services are intangible
• Higher perceived risk in decision makinprocess
• People, physical evidence and processe
provide cues about the quality of the se
• Brand name affects perceptions of serv
• Provide service trials wherever possible
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Promotion
• Intangible elements of service may be difcommunicate
• Sales people should develop lists of satisficustomers to be used in reference selling
• Word of mouth is critical to success• Acknowledge the dominant role of person
influence in the choice process and stimulword of mouth communication
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Promotion
• Persuade satisfied customers to inform others
satisfaction
• Develop materials that customers can pass on
• Target opinion leaders in its advertising campa
•
Encourage potential customers to talk to currecustomers
• Communication should also be targeted at em
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Price
•
An indicator of perceived quality• Important in matching demand and su
• Price sensitivity key segmentation varia
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Place
•
Distribution channels for services are mdirect
• Production and consumption is simulta
•
New technologies permit service compto provide services without customers c
to their facility
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People
• Service quality is inseparable from qualityservice providers
• Set standards to improve quality of servicprovided by employees and monitor their
performance• Training of employees crucial
• Adopt a customer-first attitude than putticonvenience first
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People
• Employees of service organizations havadept in multiple roles
• Have empathy to judge the servicerequirement and mood of the custome
• Examine the role played by customers iservice environment
• Seek to eliminate harmful interactions
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Physical Evidence
• The environment in which the service isdelivered
• Includes any tangible goods that facilitaperformance and communication of th
service• Strengthen cues that customers search
judge the quality of services
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Process
• Procedures, mechanisms and flow of activ
which a service is delivered to customers• Control variations in services by targeting
segment of customers
• Process and its visibility are both importacustomers
• Process should be employed only when it required to provide a service and not becacustomers have come to expect it
Process
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Process • Refers to the systems used to assist the orga
delivering the service.
•Imagine you walk into McDonald and you ordand you get it delivered within 2 minutes. Whprocess that allowed you to obtain an efficiedelivery?
• Banks that send out Credit Cards automatic
their customers old one has expired again refficient process to identify expiry dates and re
• An efficient service that replaces old credit foster consumer loyalty and confidence in the
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Service MarketingTriangle
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Service Marketing Triangle
SSM An Indian Perspective C. Bhattacharjee
f h (
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Moment of Truth (MOT
• Service encounter is known as MOT
• “Any episode in which the customer co
contact with the organization and gets
impression of the quality of its service
• Eg. A rude employees behavior makes
customer conclude that he is dealing
rude company.
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SERVICE ENCOUNTE
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• A terrible ending usually dominates a pers
recollection of an experience
• Customers who are mentally engaged in anot notice how long it takes
• Finish strong
• Get the bad experience out of the way ea
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SERVICE RECOVE
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Dealing with service failur
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• Well-intentioned, prompt, and apt reco
can assuage angry customers
• Everyone in the organization must haveskill, motivation, and authority to make
service recovery an integral part of servoperations
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• Solve customers’ problems fast because s
problems quickly escalate
• Train frontline employees and empower t
• Give employees the authority, responsibil
incentives to help customers in unique wa
• Let customers know about corrective meataken and the improvement achieved
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MANAGING SERVIC
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• Managing service quality
– Companies rated higher on service quality
perform better in terms of market share gro
– Big gap exists between the expectations of th
customers and the level of the service they gebarriers while matching expected and perceiv
service levels of customers
•
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• Does not understand customer requireme
– Misconception barriers arise when companiemisunderstand customer expectations
• No resources: A company may understandcustomer expectations but is unwilling to resources to meet them
• Bad delivery: The company is not able to dthe expected service
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• Management’s will: A management ea
improve quality is able to do it
• Exaggerated expectations: Exaggerated
promises may become a problem