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Service Marketing

Transcript of SM PPT

SERVICES MARKETING

TYPES OF SERVICES TRANSPORT SERVICES PUBLIC UTILITY SERVICES COMMUNICATION TRADING SERVICES FINANCIAL & INSURANCE SERVICES REAL ESTATE SERVICES MARKETING RELATED SERVICES

GOVERNMENT PROVIDED SERVICES ENGINEERING SERVICES ENTERTAINMENT SERVICES BUSINESS & PROFESSIONAL SERVICES HOSPITALITY SERVICES HEALTH SERVICES

GROWTH OF SERVICE SECTOR ECONOMYREASONS FOR THE GROWTH: CHANGING LIFESTYLE: Increase in affluency-greater demand for dry-cleaning, carpet cleaning Increase in leisure time- greater demand for entertainment, travel agencies Women in working places- greater demand for domestic help, daycare nurseries

CHANGING WORLD: Increased complexity of life- greater demand for accounting services, legal advisors Increased life expectancy- greater demand for nursing homes, gyms Ecology & resource concerns- greater demand for shared taxi service, environment consultants Globalization- greater demand for courier services, airways, waterways Privatization- greater demand for telecom services, internet

CHANGING ECONOMIES:

CHANGING TECHNOLOGY: Range of new products- greater demand for e-commerce, software programming Product complexity- greater demand for annual maintenance contracts, after sale service, skilled service

CAUSE Technological advances Globalization

EFFECT Higher complexity of products Business internationalizat ion Privatization Specialization & expert knowledge

GREATER DEMAND FOR

Deregulation policies Competition & higher productivity

Cost effectiveness Computer explosion

Optimum utilization of resources & outsourcing Speed of work, availability of sound, picture & motion at affordable cost Increased spending power & wish for comforts

Increase in affluency

Working women Work performed at home being done by others

More leisure time Entertainment & pleasure seeking Greater life expectancy Increased complexity of life Scarcity of resources & concern for ecology Demographic changes Desire to live long

Need for specialized services Need for services that can meet resource crunch Dual career couples

Urbanization

Fast, mechanical & self centred life

SERVICE CHARACTERISTICS Intangibility Inseparability Inventory (Perish ability) Inconsistency (Variability)

INTANGIBILITY Services are activities performed by the provider, unlike physical products they cannot be seen, tasted, felt, heard or smelt before they are consumed. unlike goods, services do not have features that appeal to the customers senses & its evaluation is not possible before actual purchase and consumption. services are not known to the customer before they take them. service provider has to follow certain things to improve the confidence of the client

INSEPARABILITY Services are typically produced and consumed simultaneously. services, cannot be separated from the service provider. Inseparability of production and consumption increases the importance of the quality in services service marketers not only need to develop taskrelated, technical competence of service personnel , but also , require a great input of skilled personnel to improve their marketing and inter personal skills.

INVENTORY (PERISH ABILITY) Services are deeds, performance or act whose consumption take place simultaneously services cannot be stored services go waste if they are not consumed simultaneously

INCONSISTENCY (VARIABILITY) Services are highly variable, as they depend on the service provider, and where and when they are provided Service marketers face a problem in standardizing their service, as it varies with experienced hand, customer, time and firm

SERVICE CLASSIFICATION BY MARKET SEGMENTATION: FINAL CONSUMER: life insurance, tution ORGANIZATIONAL CONSUMER: accounting services, legal services

BY DEGREE OF TANGIBILITY: RENTAL GOODS: hotel room rental, book rental OWNED GOODS: mobile repair, refrigerator repair NON GOODS: accountancy services, legal services, education services

BY SKILLS OF SERVICE PROVIDERS: PROFESSIONALS: medical services, management consulting NON PROFESSIONAL: shoe polishing, washing BY GOALS OF THE PROVIDER: PROFIT: roadways, airways, insurance NON PROFIT: postal services, unversities

BY DEGREE OF REGULATION: HIGHLY REGULATED: insurance, hospitals LIMITED REGULATED: fast food, roadways NON REGULATED: painting, cloth washing

BY DEGREE OF LABOUR INTENSIVENESS: EQUIPMENT BASED SERVICES: Automated: ATMs Operated by relatively unskilled operators: Taxis Operated by skilled operators: Airlines PEOPLE BASED SERVICES: Unskilled labour: Carpet cleaning Skilled labour: Catering, Plumbing Professionals: Lawyers

BY DEGREE OF CUSTOMER CONTACT: HIGH CONTACT: colleges, hotels LOW CONTACT: car servicing

BY END USER: Consumer: leisure, hairdressing, personal finance, package, holidays. Business to business: advertising agencies, printing, accountancy, consultancy. Industrial: plant maintenance and repair, work wear and hygiene, installation, project management.

BY SERVICE TANGIBILITY: Highly tangible: car rental, vending machines, telecommunications. Service linked to tangible goods: domestic appliance repair, car service. Highly intangible: psychotherapy, consultancy, legal services.

BY LABOUR INTENSIVENESS: People-based services - high contact: education, dental care, restaurants, medical services. Equipment-based -low contact automatic car wash, launderette, vending machine, cinema.

BY EXPERTISE: Professional: medical services, legal services, accountancy, tutoring. Non-professional: babysitting, care taking, casual labour.

BY PROFIT ORIENTATION: Not-for-profit: The Scouts Association, charities, public sector leisure facilities. Commercial: banks, airlines, tour operators, hotel and catering services.

SERVICES MARKETING TRIANGLE The Services Marketing Triangle model focuses upon making and keeping promises to customers and suggest three structural relationships as the mode by which this occurs.

Company Management

Internal Marketing :Enabling the promise service environment

SERVICES MARKETING TRIANGLEInteractive Marketing :Delivering the promise service delivery

External Marketing : setting the promise the service product

Employees

Customers

The Model Company Management Employees Customers

University/Registry Directorate Registry/ management team All registry staff Students,University staff, External bodies

External Marketing Setting the promise the service product

Consultation with Customers to identify needs and obtain feedback on performance: Course Organisers Forum Student Union Liaison meetings Student Services Committee Undergraduate Student Questionnaire Enrolment review Service Statements/Plans: Service Provision Statement Departmental Plan

Culture & philosophy Internal Marketing Enabling the promise Staff recruitment the service environment Staff development/ training Motivation and involvement in planning Team meetings/briefings Technical resources

Interactive Marketing The serviscape and Delivering the promise service encounter: Delivery of service service delivery Physical environment Meetings Telephone Post E-mail

SERVICE MARKETING MIX The Marketing mix is generally accepted as the use and specification of the four p's describing the strategic position of a product in the marketplace. In case of services additional 3 ps are also included in these 4 ps.

SERVICE MARKETING MIX Service marketing mix comprises off the 7ps : Product Price Place Promotion People Process Physical evidence

Product It must provide value to a customer but does not have to be tangible at the same time it involves introducing new products or improvising the existing products Its study includes: service product, quality level, range, features/benefits, guarantees, brand names

RATER: Reliability, Assurance, Tangibles, Empathy, Responsiveness

Price Pricing must be competitive and must entail profit Pricing strategy can comprise discounts, offers and the like

Place It refers to the place where the customers can buy the service/product and how the service/product reaches out to that place This is done through different channels, like Internet, wholesalers and retailers Issues involved: location, accessibility, channels of distribution, distribution facilities, service inventory, managing channels

Promotion It includes the various ways of communicating to the customers of what the company has to offer It is about communicating about the benefits of using a particular product or service rather than just talking about its features What should be the channels of promotion: advertising, personal selling, sales promotion, word of mouth, tele-marketing, e-marketing etc

People An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage Consumers make judgments and deliver perceptions of the service based on the employees they interact with Staff should have the appropriate interpersonal skills, aptititude, and service knowledge to provide the service that consumers are paying for Service encounter

Employees: recruitment, training, motivation, team work Customers: education, training Communication: about culture, values

Process Refers to the systems used to assist the organization in delivering the service Imagine you walk into Burger King and you order a Whopper Meal and you get it delivered within 2 minutes