Service marketing

SERVICE MARKETING

BY, BHAVITHRA ASOKAN

WHAT IS SERVICE ?SERVICE IS ANY ACT OR PERFORMANCE SERVICE IS ANY ACT OR PERFORMANCE

THAT ONE PARTY CAN OFFER TO THAT ONE PARTY CAN OFFER TO ANOTHER THAT IS ESSENTIALLY ANOTHER THAT IS ESSENTIALLY

INTANGIBLE AND DOES NOT RESULT IN INTANGIBLE AND DOES NOT RESULT IN ANY OWNERSHIP OF ANYTHING.ITS ANY OWNERSHIP OF ANYTHING.ITS

PRODUCTION MAY OR MAY NOT BE TIED PRODUCTION MAY OR MAY NOT BE TIED TO PHYSICAL PRODUCTSTO PHYSICAL PRODUCTS..

PHILIP KOTLER

SERVICES MARKETING IS SERVICES MARKETING IS MARKETING BASED ON RELATIONSHIP AND VALUE. IT MAY BE

USED TO MARKET A SERVICE OR A PRODUCT

CHARACTERISTIC OF SERVICE MARKETING It has 4 major characteristic

Intangibility

Inseparability

Variability

Perishability

SERVICE MARKETING

INTANGIBILITY

Services are intangibility cannot be seen, tasted, felt, Services are intangibility cannot be seen, tasted, felt, heard or smelled before purchase.heard or smelled before purchase.

It draws inferences about : It draws inferences about :

• PLACEPLACE

• PEOPLEPEOPLE

• EQUIPMENTEQUIPMENT

• COMMUNICATION MATERIALCOMMUNICATION MATERIAL

• SYMBOLSSYMBOLS

• PRICEPRICE

Intangibility is used in Intangibility is used in marketing to describe the inability to assess the value gained from engaging in an activity using any tangible evidence

To reduce uncertainty. To reduce uncertainty.

INSEPARABILITY

Services are produced and consumed Services are produced and consumed simultaneouslysimultaneously.

provider – client interactionsprovider – client interactions is a special feature is a special feature of of

service marketingservice marketing

In Inseparability ,key quality of services as In Inseparability ,key quality of services as

distinct from goodsdistinct from goods

VARIABILITY

It is otherwise called heterogeneity.It is otherwise called heterogeneity.

Services are highly variableServices are highly variable

““The state or characteristic of being The state or characteristic of being variable" variable"

Eg: service firmsEg: service firms

PERISHABILITY Perishability is used in Perishability is used in marketing to describe

the way in which service capacity cannot be stored for sale in the future.

Services cannot be stored.Services cannot be stored.

Some Service firms: Banking, stock Banking, stock

brokingbroking

Restaurants, bars, Restaurants, bars, cateringcatering

InsuranceInsurance

News and News and entertainmententertainment

Transportation Transportation (freight and (freight and passenger)passenger)

Postal servicePostal service

Health careHealth care

EducationEducation

Wholesaling and Wholesaling and retailingretailing

Laundries, dry-Laundries, dry-cleaningcleaning

Repair and Repair and maintenancemaintenance

Professional (e.g., Professional (e.g., law, architecture, law, architecture, consulting)consulting)

Additional ‘P’s of Service Marketing

People [employees]: selection, training& selection, training& motivation of employees can make a huge difference motivation of employees can make a huge difference in customer satisfaction.in customer satisfaction.

Process: Here service companies can choose Here service companies can choose different processes to deliver their service. different processes to deliver their service.

EGEG: Restaurants have developed such different Formats : Restaurants have developed such different Formats as cafeteria-style, fast-food, buffet & candlelight.as cafeteria-style, fast-food, buffet & candlelight.

Physical evidence: ActualActual experience of service experience of serviceEG:EG: RAILWAY- RAILWAY-

• A reserved ticketA reserved ticket• Cheque book Cheque book

Qualities of servicesSearch qualitiesSearch qualities:: The buyer can

evaluate before purchase.

Experience qualitiesExperience qualities:: The buyer can evaluate after purchase.

Credence qualitiesCredence qualities:: The buyer normally finds hard to evaluate even after consumption

Differentiation in services

Offer:Offer: The Offer can include innovation The Offer can include innovation featuresfeatures .

Delivery:Delivery: A service company can hire A service company can hire and train better people to deliver its service. and train better people to deliver its service. It can develop a moreIt can develop a more attractive physical attractive physical environment in which to deliver the service.environment in which to deliver the service.

Image: Image: Images are differentiated Images are differentiated through symbols & branding.through symbols & branding.

Managing Service quality Gap between management perceptions and consumer Gap between management perceptions and consumer

expectations.expectations.

Gap between management perceptions and service Gap between management perceptions and service quality specifications.quality specifications.

Gap between service quality specifications and service Gap between service quality specifications and service delivery.delivery.

Gap between service delivery and external Gap between service delivery and external communication.communication.

Gap between expected service and perceived service.Gap between expected service and perceived service.

Determinants of service quality

Reliability – delivering on promisesReliability – delivering on promises

Responsiveness – willing to helpResponsiveness – willing to help

Assurance – inspiring trust and confidenceAssurance – inspiring trust and confidence

Empathy – individualizing customersEmpathy – individualizing customers

Tangibles- physical representationTangibles- physical representation

Managing product support servicesThe real differentiator of The real differentiator of

customer – centricity in a commoditised customer – centricity in a commoditised world of financial products – world of financial products –

Customer Service !Customer Service !

Drivers of Customer Satisfaction Many aspects of the firm’s value proposition Many aspects of the firm’s value proposition

contribute to customer satisfaction:contribute to customer satisfaction:

• The core product or service offeredThe core product or service offered

• Support services and systemsSupport services and systems

• The technical performance of the firmThe technical performance of the firm

• Interaction with the firm and it Interaction with the firm and it employeesemployees

• The emotional connection with customersThe emotional connection with customers Ability to add value and to differentiate as a Ability to add value and to differentiate as a

firm focuses more on the top levelsfirm focuses more on the top levels

CUSTOMERSCUSTOMERS

HAVE HAVE

3 3

SPECIFIC WORRIES:SPECIFIC WORRIES:

They worry about reliability and failure They worry about reliability and failure frequency.frequency.

E.g.: a farmer may tolerate a combine that ll break E.g.: a farmer may tolerate a combine that ll break down once a year, but not 2 or 3 times a year.down once a year, but not 2 or 3 times a year.

Customer worry about out- of- pocket costs of Customer worry about out- of- pocket costs of maintenance and repair. where here reliability is maintenance and repair. where here reliability is important.important.

Customer worry about downtime duration. The Customer worry about downtime duration. The longer the downtime, the higher the cost. The longer the downtime, the higher the cost. The Customer counts on the selling sellers service Customer counts on the selling sellers service dependability.dependability.

CONCLUSION

Thus to provide the best Thus to provide the best support, a manufacturer support, a manufacturer

must identify the services must identify the services that customer value and that customer value and

their relatively important.their relatively important.

Thank YouThank YouMarketing Marketing

is all about creating is all about creating a pull,a pull,

sales sales

is all about push . . .is all about push . . .