aaac3Marketing of services

8/7/2019 aaac3Marketing of services

1/46

Name of Institution

Amity Business

School

Marketing of Services

Sonali P. Banerjee


2/46

Name of Institution

Amity Business

School

Please write one sentence of your own on

Customer Service.

(5 Mins)


3/46

Name of Institution

Amity Business

School

Write Minimum 5 Excuses you hear

customers service representative give for

offering poor or bad customer service.

(5 Mins)


4/46

Name of Institution

Amity Business

School

Common Excuses I dont have enough time.

I dont get paid to be nice. I am measuredby my productivity and accuracy

How can we do good job if the computer is

always down


5/46

Name of Institution

Amity Business

School

Every customer is totally crazy today.

I cant deal with people who do not showme respect.

How can we do a good job if the otherdepartments do not provide the back upwe need?

I am having a bad day. People are basically stupid.

I am always too busy


6/46

Name of Institution

Amity Business

School

A customer simply wants..

You to Greet HIM Value HIM

. Help HIM

. Listen to HIM Invite HIM Back


7/46

Name of InstitutionAmity Business

School

The service sector

The services sector has been growing at a

rate of 8% per annum in recent years More than half of our GDP is accounted

for from the services sector

This sector dominates with the best jobs,best talent and best incomes


8/46


School

Service Sector

Definition

An industry comprised of companies thatprimarily earn revenue throughproviding intangible products and services.Service industry companies are involved

in retail, transport, distribution, food services, aswell as other service-dominated businesses.Also called service sector, tertiary sector ofindustry.


9/46


School

The Nature of Services

regardless of the product, there is a services

component to the offerings of all firms in some cases, a service is the principal purpose of

the transaction, as in the rental of a car, a haircut, or

legal services -- we refer to this as the core servicecore service

in others, service is performed in support of the saleof a tangible product -- these are referred to as

supplementary servicessupplementary services


10/46


School

What is services?

It is the part of the product or the full

product for which the customer is willing to

see value and pay for it.


11/46


School

Difference between physical goods andservices

Physical goods Services

tangible intangible

homogeneous heterogeneousProduction and distribution are

separated from consumption

Production, distribution and

consumption are simultaneous

processes

A thing An activity or process

Core value processed in factory Core value produced in the buyer-seller interaction

Customers do not participate in the

production process

Customers participate in production

Can be kept in stock Cannot be kept in stock

Transfer of ownership No transfer of ownership


12/46


School


13/46


School

Strategic ProductImplications

the core service can be enhanced through

the addition of supplementary services,thereby creating added value

the life cycle of services has to bemanaged

the branding of a service can be difficult asthe customer often has nothing tangible toshow


14/46


School

Continued

Quality is hard to define, measure, control,

and communicate Quality is defined by the consumer

Its important to measure customer

satisfaction with an organizations servicequality.


15/46


School

Pricing Services

The characteristics of perishability, inability

to store, and fluctuating demand for

services create pricing challenges.

Pricing Strategies include:

Discount strategies: Cheaper by the week.

A variable pricing strategy: Kids eat free,movies cheaper on Tuesdays.

Price competition


16/46


School

Distribution of Services

because most services are tied directly to a specific

service provider, most have been distributed directly

to customers

with advancing technology, many firms are now

delivering services through machines

channels of distribution are necessarily short; some

firms use one agent intermediary, such as

insurance, real estate, and travel agents

some firms use franchisesfranchises to distribute services


17/46


School

Promotion of Services customer contact personnel represent the main

channel of customer communication

service providers must ensure that each serviceserviceencounterencounteris a positive one if customers are todevelop a positive image

many professional service firms are now

permitted to advertise other elements of the promotional mix are used,

including publicity and community affairs


18/46


School

The three additional Ps of Service

Marketing

People Physical evidence

Process


19/46


School

When customers visit a service

establishmentTheir satisfaction will be influenced by

Encounters with service personnel

Appearance and features of service

facilities exterior and interior

Interactions with self service equipment

Characteristics and behaviour of other

customers


20/46


School

Four Rs of Service Marketing

Retention

Referrals

Relationships

Recovery


21/46


School

The Changing Environment

for Services The boom in the service economy, reduced regulation

has created an increase in competition. Major focus on increased productivity, efficiency

Work on people aspects of business:

Education, training programs

Change technology: Computer-based technologies used.

Restructure jobs.

Bottom line: People are key to success!


22/46


School

Other Considerations in

Marketing Services Impact of Technology:Impact of Technology:

Remember, not everyone likes impersonaltechnology

Performance Measurement:Performance Measurement:

Customer perceptions are essential.

Prospects for Growth:Prospects for Growth: It is very likely that services will continue to take

an increasing share of the consumer pocket.

The use of marketing programs in all services isexpected to increase considerably.


23/46


School

In services, the last

experience remains uppermost

in your mind. Therefore, it is not

enough to be good, you have to

be consistently good


24/46


School

Characteristics of services

Intangibility

Inseparability

Perishability

Variability


25/46


School

Differentiation in services

Offering

Faster and better delivery

Image


26/46


School

Determinants of service quality Reliability delivering on promises

Responsiveness willing to help

Assurance inspiring trust and confidence

Empathy individualising customers

Tangibles- physical representation


27/46


School

Customer Service Expectations

Desired Service the wished for service

Adequate Service the service that wouldbe acceptable


28/46


School

Zone ofTolerance

Difference between the desired serviceand the adequate service


29/46


School

Recovery

Dont

Ignore customer

Blame customer Leave customer to fend for himself

Downgrade

Act as if nothing is wrong pass the buck


30/46


School

Dos

Acknowledge problem

Explain causes Apologies

Compensate/upgrade

Lay out options Take responsibility


31/46


School

Adaptability

Dont

Promise and fail to keep them Show unwillingness to try

Embarrass the customer

Laugh at the customer Avoid responsibility


32/46


School

Dos

Recognise the seriousness

Acknowledge Anticipate

Accommodate

Adjust Explain rules/policies


33/46


School

Spontaneity

Donts

Exhibit impatience

Yell/laugh/swear

Steal from customers

Discriminate

Ignore


34/46


School

Dos

Take time

Be attentive Anticipate needs

Listen

Provide information Show empathy


35/46


School

CopingDont

Take customers dissatisfaction personally

Let customers dissatisfaction affect others


36/46


School

Types of complainers

Passives

Voicers

Irates

Activists


37/46


School

Passive complainers : they will complain

to everyone but the actual business. Since

the business is left unaware of their error

they cannot correct it and the only thing a

passive complainer succeeds in doing is

depriving the company of potential

business.


38/46


School

Voicers : These customers actively

complain to the service provider but they

are less likely to spread negetive word of

mouth to switch or to go to the third parties

with their complaints. These customers

are the Service providers best friend.


39/46


School

Irates : These consumers are more likely

to engage in negetive word of mouth to

friends and relatives and to switch

providers than are others. They are

unlikely to complain to 3rd party. Though

they are angry with the service provider,

but still believe that complaining wouldhave some social benefits. They usually

switch the provider.


40/46


School

Activists : These consumers complain in

an above average way in all dimensions.

They will complain to the provider. They

will tell others and they are more likely to

complain to the third parties


41/46


School

Customer complaints

It pays to resolve customer complaints

On an average only 5 % dissatisfiedcustomers complain. Others simply goover to the competitor

A satisfied consumer speaks to an

average of 3 people on his her experience

A dissatisfied consumer gripes to on anaverage 11 persons about his/her

unpleasant experience


42/46


School

Causes behind service switching

Pricing

High PricePrice Increase

Unfair Pricing

Deceptive Pricing


43/46


School

Inconvenience

Location

Wait forAppointmentWait for Service


44/46


School

Core Service Failure

Service Mistakes

Billing errors

Service Encounter Failure

Uncaring

Impolite

Unresponsive

unacknowledgeable


45/46


School

Response to Service Failure

Negative Response

No ResponseReluctant Response

CompetitionFound Better Service


46/46


School

Involuntary Switching

Customer Moved

Provider Closed

aaac3Marketing of services

Documents

Transcript of aaac3Marketing of services