Transcript
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SERVICE MARKETING
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Core Marketing Concept
Needs, Wants & Demands
Market offers
Value &satisfaction
Exchanges,&
Transactions
Markets
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Core Marketing Concept
Marketing offers
1. Goods
2. Services
3. Events
4. Experiences
5. Persons
6. Places
7. Properties
8. Organization
9. Information
10. Ideas
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Definition of Service
A service is any act or performance that one party can offer to another that is
essentially intangible and does not result in ownership of anything .
Its production may or may not be tied to a physical product
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Reasons for growth in service industry
Changing Life Style
ChangingWorld
Changing Technology
Changing Economics
Increasein affluence
Increase in Leisure time
Women in Working place
Globalization
Privatization/Deregulation
IncreasedComplexity
of life
Increased Life
expectancy
Product complexity
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Transformation of the service economyInternational
-isationGovernment regulation
Social changes
Business trends
Advances in technology
Increased demand and competition
• Computers and telecommuni-cations
• Digitalisation
• Enhanced software
• Increased services trade
• Globalcustomers
• Deregulation/ privatisation
• New trade agreements in services
•Increased consumer expectations
•Increased affluence and leisure time
•Working women
•Outsourcing•Quality movement
•Franchising
Facilitated by information technology
Growth and focus on service marketing and management
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Type of service-Partial List
Transportation Services
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Type of service-Partial List
Public Utility Services
Water Supply
Electric Supply
Gas Supply
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Type of service-Partial ListCommunication Services
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Type of service-Partial ListFinancial and Insurance Services
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Type of service-Partial ListReal state Services
Investment and Property consultant
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Type of service-Partial ListMarketing related Services
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Type of service-Partial ListGovernment provided Services
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Type of service-Partial ListEngineering services
Construction design
Technical Research
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Type of service-Partial ListEntertainment Services
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Type of service-Partial ListHospitality Services
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Type of service-Partial ListOther Services
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Puregoods
Goodsrelated
ServiceRelated
Pureservices
Soap
Tooth-paste
Salt
Pizza-food services
Car
Computer
Airlines- Aero plane
Service Contract-Computers
Training
Legal Service
Banking
Consultation
Goods services continuum
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Puregoods
Pureservices
Goods services continuum
For Exercise Equipment
Exerciseequipment
PersonalTrainer
Usingexercise
equipmentat hotel
orhealth
club
Rental of exercise
equipmentat home
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DISTINCTIVECHARACTERSTICSOF SERVICES
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Services
Intangibility
Inconsistency
Inseparability
Inventory
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Intangibility
No physical attributes
Impossible to tasteFeelhearsmell
before buying
Cant be easily displayed
Tangibilizing the Intangibles
VisualizationAssociationPhysical RepresentationDocumentationPeople InvolvementPromotionBranding
Mkt problem presented Marketing Strategy
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Visualization Hotels depicting benefits of dinning at restaurant through Advertisement
Tangibilizing the Intangibles
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Association
Tangibilizing the Intangibles
Shah Rukh with Air-tel
Abhishek with Idea
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Physical Representation
Tangibilizing the Intangibles
Airlines Dress Symbolizes visibility, reliability and cleanliness
Citibank credit Card in Gold or Platinum Symbolizes wealth & Status
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Documentation
Tangibilizing the Intangibles
Major Awards Won By Jet Air
% Of People Preferring Jet Air
Citing facts & figures in support of performance
100% placementNo. 1 rank in India
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People Involvement
People are often Critical Element in service delivery
Tangibilizing the Intangibles
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Promotion
Personal Care through Promotion Campaigns/ Communication Material offers life long assurance scheme
Tangibilizing the Intangibles
HDFC- “Sir utha ke jiyo”
Aviva- “Kal par control”
Brochures
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Branding
Branding helps in differentiation of the service from competitors
The world on time
The family Restaurant
Tangibilizing the Intangibles
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Inconsistency
Variability & Heterogeneity in Services(Different services on different occasions and with different customers)Standardization hard to achieveHard to set upQuality controlCan only predict qualityor determine it afterservice is performed
Customer surveys and feedbackTraining in interpersonal and technical skillsProvide product KnowledgeBuild quality into all processes
Mkt problem presented Marketing Strategy
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Different services
Performance of an Artist
Inconsistency
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ATM Machine
Automatic car wash facilities
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Inseparable
Simultaneous production and consumptionHarder to mass productionThe customer is involved (partial employee)Customers must be present
Needs strong training Programmes, incentivesFocus on personal AttentionManage customer interactionsManage the physical evidence
Mkt problem presented Marketing Strategy
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IIM Bangalore has extended its popular postgraduate programme in software enterprise management to participants in Chennai using video-conferencing technology
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Types of service production
1. Co-production
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Types of service production
2. Isolated Production
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Types of service production
3. Self service
Automatic vending machine
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Inventory
Value can be short LivedCapacity is infiniteTime period may be limitedCan not be inventoried
Mkt problem presented
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InventoryEmpty seats in a stadium for aCricket game can not be carriedto the next game
Empty seats at 10 am flight to Mumbai does not mean seats may be available in the next flight
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Inventory
Differential pricing
Marketing Strategy
Stretch the existing Capacity- 24hrs banking
Predict fluctuation in demand &
match capacity by shifting demand—
sunday open
Reservation systems
Effective communication- e-mail alerts
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Meru Cabs Taxi service Provider
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Meru Cabs Taxi service Provider
Meru Cab wins NASSCOM – CNBC IT User Award 2008
Meru Cabs and Hotel Surya Palace,Vadodara win at 'IT User Awards 2008'
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Don’t drink and drive Promotion campaign Meru Cabs has identified 4 Pubs and 160 restaurants, where it has placed tent cards and is utilizing their LCD screens to spread the message. The tent cards carry the message, 'If you find this hard to read, it's time to book a
Meru Cab'.
In another interesting innovation, colour coding is used on coasters. A customer is given the first drink on a black coaster.The subsequent drinks follow on green, amber and red coasters.The red coaster signifies that it's time to call for a cab and comes with the message,
'You do the drinking, we do the driving'.
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