Intro to Svc Mktg
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Transcript of Intro to Svc Mktg
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Introduction to
Services Marketing
Services Marketing
BSBA SM 4A
Genita, Joyce Ann
Libre, Nina Joy
Maik, Marielle Anne
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What are Services?What are Services?
Put in a most simple term, services are deeds, processesand performance. The services are non tangible things that
can be touched, seen and felt but are rather intangible
deeds and performance.
All economic activities whose output is not a physical orconstruction, is generally consumed at the time it is
produced, and provides added value in forms that are
essentially intangible concerns of its first purchaser.
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Prentice Hall, 2009
Services Directed at Peoples !odies
Service in this category require the recipient to be
physically present within the service system.
Example !ou need to sit in the train, visit thedentist"s surgery, lie in the massage table in order
to receive the service.
#oveloc$%s &lassification of Service#oveloc$%s &lassification of Service
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Services Directed at Peoples Minds
Services in this category do not require the
customer to be present when the service is being
delivered, although they need to be present at thestart and end of the service.
Example #aundry and dry cleaning may
collect the clothes from the customer and the
customer may never seethe services premises
#oveloc$%s &lassification of#oveloc$%s &lassification of
ServiceService
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#oveloc$%s &lassification of#oveloc$%s &lassification of
ServiceService
Services Directed at Peoples Minds
Services directed at people%s minds include
services such as education, the arts, professionaladvice, news and information.
Example 'nternet and any broadcasting
technologies.
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#oveloc$%s &lassification of#oveloc$%s &lassification of
ServiceService
Services Directed at Peoples Intangi"le
Possessions
Service such as ban$ing, insurance andaccountancy can be delivered with very little
direct interaction between the customer and the
organi(ation.
Example 'nsurance
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Tangibility SpectrumTangibility Spectrum
The broad definition of services implies that
intangibility is a $ey determined of whether an
offering is a service. Although this is true, it is
also true that very few products are purelyintangible or totally tangible. 'nstead, services
tend to be more intangible than manufactured
products, and manufactured tend to be more
tangible than services.
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)ew *ays to +eliver Service)ew *ays to +eliver Service
'n addition to providing opportunities for new
service offerings, technologies is providing
vehicles for delivering existing service in more
accessible, convenience, product ways.Technology also facilitates transaction by
offerings direct vehicle for ma$ing purchases.
inally, specifically internet, provides an easy
way for customers to learn and research.
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Enabling -oth &ustomers andEnabling -oth &ustomers and
EmployeesEmployees
Technology enables both customers and
employees to be more effective in getting
and providing service. Through selfservice technologies, customers can serve
themselves more effectively.
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'nternet is a Service'nternet is a Service
An interesting way to loo$ at the influence of
technology is to reali(e that the internet is ust
/one big service0. All the business and
organi(ation that operates on the internet areessentially providing service 1 whether they are
giving information, performing basic customer
service function or facilitating transaction.
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The Paradoxes and +ar$ Side ofThe Paradoxes and +ar$ Side of
Technology and ServiceTechnology and Service
Although there is clearly great potential for
technology to support and enhance services,
there are potential negative outcomes as well.
&ustomer concerns about privacy andconfidentiality raise maor issues for firms as
they see$ to learned about interact directly with
customers through the internet.
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&haracteristics of Services 'mpacting on
2ar$eting Activities
#oods Service $esults I%plication
Tangible 'ntangible Service cannot be inventories
Service cannot be easily patented
Service cannot be readily displayed or communicated
Standardi(ed heterogeneous Service delivery and customers satisfaction depend onemployee and customers action
Service quality depends on many uncontrollable factors
There is no sure $nowledge that the service delivered matcheswhat was planned and promoted
Productionseparate from
consumption
'nseparatibility1 simultaneous
production andconsumption
3&ustomers participate in and affect the transaction3customers affect each other
3Employees affect the service outcome3+ecentrali(ation may be essential
32ass production is difficult
)on3perishable
Perishable 't is difficult to synchronies supply and demand with service
Services cannot be returned or resold
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4epresent a wide range intangible productofferings that customers value for pay in themar$et place.
S&$'I(& P$)D*(+ are sold by servicecompanies and by none service companies suchas manufacturers and technology companies .
Services as ProductsServices as Products
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The term /Experience Economy0 was first
described in an article published in5667 by pine
and 8ilmore . The article argued that service
companies would evolve from simply providinga service to creating memorable events for their
costumers , with the memory of the experience
becoming the product .
Services as ExperiencesServices as Experiences
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's also critical aspect of what we mean by
/SE49'&E0 customer services is the service
provided in support of a company"s core
products.
&ustomer Service&ustomer Service
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's yet another way to loo$ what service means.
'n the article /:;
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;ver time, business people have realised that
mar$eting and managing services presents
issues and challenges not faced in the mar$eting
of products . A service businesses began to turnto mar$eting and decide to employ mar$eting
people , they naturally recruited from the best
mar$eters in the world.
3 Procter > 8amble ,8eneral oods and=oda$ .
Service 2ar$eting 's +ifferentService 2ar$eting 's +ifferent
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4esponded to these forces and began to
wor$ across disciplines and with
academics and business practitionersfrom around the world to develop and
document mar$eting practices .
Service 2ar$etersService 2ar$eters
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Suggests that corporate strategies focused
on customer satisfaction , revenue
generation , and services quality mayactually be more profitable than strategies
focused on cost3cutting or strategies that
attempt to do both simultaneously .
2ar$eting Science 'nstitute2ar$eting Science 'nstitute
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A case for the ?Service3profit chain@ lin$ing
internal service and employee satisfaction to
customer value and ultimately to profits .
I%portant ke to these success 3 is that the
right strategies are chosen and that these
strategies are implemented appropriately and
well.
4esearch rom The arvard4esearch rom The arvard
-usiness School -uild-usiness School -uild
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In-or%ation +echnolog
's currently shaping the field and profoundly
influencing the practice of service mar$eting.
Potential .or /e Service )--ering
ow dramatically different your word would be
without these basic technology services.
Service and TechnologyService and Technology
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Intangi"ilit
The most basic distinguishing characteristics of
services is intangibility . -ecause services are
performances or actions rather than obects , they
cannot be seen. elt , tasted or touched in the same
manner that you can sense tangible goods.
4esulting 2ar$eting4esulting 2ar$eting
'mplications'mplications
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Heterogeneit
Also results because no two customers are precisely
ali$e@ each will have unique demands or experience
the service in a unique way . Thus, the heterogeneityconnected with services is largely the result of human
interaction and all of the vagaries that accompany it.
-ecause services are heterogeneous across time,
organi(ations and people ensuring consistent servicequality is challenging. Buality actual depends on
many factors that cannot be fully controlled by the
service.
4esulting 2ar$eting 'mplications4esulting 2ar$eting 'mplications
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Insepara"ilit
Also means that customers will frequently
interact with each other during the serviceproduction process and thus may affect
each others% experiences.
4esulting 2ar$eting4esulting 2ar$eting
'mplications'mplications
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-ecause services are often produced andconsumed at the same time, mass
production is difficult. The quality of
service and customer satisfaction will behighly dependent on what happens in real
time including actions and employees and
the interactions between employees andcustomers.
4esulting mar$eting4esulting mar$eting
implicationimplication
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Perisha"ilit
4efers to the fact that services cannot be
saved, stored, resold or returned.A primary issue that mar$eters face in
relation to service perishability is the
inability to hold stoc$. +emand forecasting
and creative planning for capacity utili(ation
re therefore important and challenging
decisions areas.
4esulting 2ar$eting4esulting 2ar$eting
'mplications'mplications
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Services 2ar$eting TriangleServices 2ar$eting Triangle
Insert
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Services 2ar$eting 2ixServices 2ar$eting 2ix
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Expanded 2ix for ServicesExpanded 2ix for Services
People All human actors who play a part in service delivery
and thus influence the buyer%s perceptions namely,the firm%s personnel, the customer, and othercustomers in the service environment.
Phsical &vidence
The environment in which the service is delivered
and where the firm and customer interact, and any
tangible components that facilitate performance orcommunication of the service.
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Prentice Hall, 2009 150
Expanded 2ix for ServicesExpanded 2ix for ServicesProcess
The actual procedures, mechanisms, andflow of activities by which the service isdelivered 1 the service delivery andoperating systems.
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Prentice Hall, 2009 151
The ?Servuction% System 2odelThe ?Servuction% System 2odel
'nvisible ;rgani(ation and Systems
'nanimate
EnvironmentService Personnel
&ustomer
;ther
&ustomer
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Staying ocused on the &ustomerStaying ocused on the &ustomer
rom the firm%s point of view, all strategies are developed with an eye on the customer,
and all implementations are carried out with an understanding of their impact on the