Service Marketing for II Sem.ppt 1

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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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