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McGraw-Hill © 2000 The McGraw-Hill Companies
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SM
McGraw-Hill © 2000 The McGraw-Hill Companies
Presented by,Swetha.T.S.Roll No.383
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SM
McGraw-Hill © 2000 The McGraw-Hill Companies
INTRODUCTION
TO
SERVICE MARKETING
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SM Challenges for ServicesChallenges for Services
� Defining and improving quality
� Communicating and testing new services
� Communicating and maintaining a
consistent image
� Motivating and sustaining employee
commitment
� Setting prices
� Standardization versus personalization
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Examples of ServiceExamples of Service
IndustriesIndustries
� Health Care± hospital, medical practice, dentistry, eye care
� Professional Services
± accounting, legal, architectural� Financial Services
± banking, investment advising, insurance
� Hospitality± restaurant, hotel/motel, bed & breakfast,
� Travel± airlines, travel agencies, theme park
� Others:± hair styling, pest control, plumbing, counseling
services, health club
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Differences BetweenDifferences Between
Goods and ServicesGoods and Services
INTANGIBI-
LITY PerishabilityHeterogeeity
LACK OF
OWNER SHIPINSPAR ABI-
LITY
PERISHABI-
LITYVARIABILITY SIMULTANEI-
TY
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SM Service MarketingService Marketing
Process of identifying, pricing,
promoting and providing of the rightservice in right time to the customers
with a view to satisfy their requirements
and the objectives of the service provider.
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SM Implications of PerishabilityImplications of Perishability
It is difficult to synchronize supply and
demand with services Services cannot be returned or resold
SERVICE
MARKETING
MIX
SM
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SM
Marketing mix in case of service is the
combination of various elements such asservice, place, price, promotion, people,
physical evidence and process designed to meet
the requirements of the target audience.
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Traditional Marketing MixTraditional Marketing Mix
All elements within the control of the firm that
communicate the firm¶s capabilities and image to
customers or that influence customer satisfactionwith the firm¶s product and services:
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Expanded Mix for ServicesExpanded Mix for Services ----
the 7 Psthe 7 Ps
� Product
� Price� Place
� Promotion
� People
� Process
� PhysicalE
vidence
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SM PRICEPRICE
� Marketer must be tricky while pricing
services
� Quality consideration override price
consideration
� Competitive practices are taken into account
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SM PRODUCTPRODUCT
� Here it refers to services offered
� Product mix places a great emphasis on
quality of services
� Demand from different segments
determines ultimate product mix
� Product innovation also plays a great role
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SM PROMOTIONPROMOTION
� Strategies to make the consumer aware of
the existence of service
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SM PLACEPLACE
� The means by which products and services
get from producer
to consumer and where they can be
accessed by the consumer
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SM PEOPLEPEOPLE
� Quality of provision of service depend onpeople who provide it
� Every employee become sales person
� People to whom services are provided arealso important
� Customers are important to influence other customers
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SM PROCESSPROCESS
� It is the method by which service is
provided
� Process of delivery is more important in
service organisation
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SM PHYSICAL EVIDENCEPHYSICAL EVIDENCE
� How the service is provided?
� First-adequate facilities
� Second-peripherals
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3 MORE P¶S BY PATRICK3 MORE P¶S BY PATRICK
LOW & KIM CHE
NGLOW & KIM CHE
NG
� PROFESSIONALISATION-Way the
service firm runs its business.
� PRODUCTIVITY-R ate of production after
maintaining a proper quality standard.
� PROACTIVENESS-Way the provider &
employees provide service.
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