Marketing

of

ServicesBy

Syed Haider Raza

Defining a Service

Any benefit or activity that is essentially intangible and does not result in ownership of anything. It’s production may or may not be tied to a physical product. (Kotler)

Service clients pay for expertise, experience, advice, skills, knowledge and the benefits they bring. The benefits may last but service itself is of limited duration.

The Core Product

This is the core benefit the product brings.

Insurance/Security brings peace of mind.

Hairdresser’s core benefit is to enable people to look and feel good.

A good cricket team provides us with emotions and enjoyment.

A car mechanic enables us to enjoy safe, reliable motoring.

Characteristics of Services

Intangible: Lack of physical substance.

Inseparability: Cannot be separated from it’s provider. Does not exist until used. Production at the same time as delivery.

Heterogeneity: Variability is inevitable because each service is unique.

Perishability: Cannot be stored.

Inability to Own: No transfer of property.

Manufacturing v Service

Manufacturing Service

Output Tangible Intangible

Customer Contact Low High

Labour Content Low High

Uniformity of input High Low

Output Uniformity High LowProductivity Measurement

Easy Difficult

Opportunity to correct quality problems

High Low

Unique Aspects of MS

The Service usually cannot be demonstrated (it does not exist before actual purchase).

Direct Contact is necessary.

Selling is a crucial part of the service.

Many aspects of quality are difficult to measure.

Services cannot be automated.

Location, location & Location

Production, consumption & selling are spatially united.

Provider and product both are transportable. As a result site of service can be of huge importance.

The service cannot normally be exportable, but service delivery system can

Criteria for Services Quality Assesment

Services are dependant on human beings who in turn are not always consistent.Tangible Features: Physical facilities, the personnel delivering the service.

Reliability: The ability to perform dependably & accurately.

Responsiveness: Willingness to help.

Assurance: Knowledge, courtesy & confidence of the service providing staff.

Empathy: Caring, individualized attention.

Marketing Mix: the 7 P’sFor marketing services it is appropriate to refer to 7 P’s

Product/Service

Price

Promotion

Place

Process

People

Physical evidence

PeopleThe delivery of a service is reliant on people-so people are important part of marketing mix

Good customer relations are important.

The key qualities required are:

Capability Reliability

Efficiency Assurance

Availability Responsiveness

Effectiveness Empathy

Physical Evidence

It is the tangible element of a service.

Premises

Equipment

Peripheral products

Literature explaining the service

Evidence to support claims whatever they are.

ProcessThis refers to the way service is provided. In part we judge the service on following parameters:

Waiting time

The payment process/mode

Order processing & delivery

Service delivery at both ends

Achievement of agreed goals

Effective Marketing Service

Achieves preset objectives

Meets customer needs

Is balanced and consistent

Creates a competitive advantage

Matches corporate resources