Services MarketingServices Marketing

Strategies for Marketing Services

Strategies for dealing with intangibility

Strategies for dealing with inventory Strategies for dealing with

inconsistency Strategies for dealing with

inseparability

Strategies for Intangibility

Tangiblising the service offer Visualisation Association Physical Representation Documentation People Place

Strategies for Intangibility

Tangiblising through Positioning Tangiblisation through Promotion Taniblisation through Physical

Evidence

Strategies for Inventory

Demand Management Managing Marketing Mix and Demand Communicating the Customers Timing and Location of Service Delivery Price Adjustments Time Management Staff Management Facility & Equipment Management

Strategies for Inconsistency

Process Management People Management Use of Technology

Strategies for Inseparability

Build Membership Relationship Personalise the Service Provide Sensitivity training

Customer Retention Customer Retention refers to focusing

the firm’s marketing efforts toward the existing customer base.

In contrast of seeking new customers, firm engaged in customer retention efforts work to satisfy existing customers with the intent of developing long-term relationships between the firm and its current clientele

Importance of Customer Retention

Stagnation in the markets Increase in Competition Rising costs of Marketing Changes in Channels of Distribution Changing Customer

Benefits of Customer Retention

Profits derived from sales Profits from reduced Operating Costs Profits from Referrals

Customer Retention Tactics Maintain Proper Perspective Remember Customers between Calls Build Trusting Relationships Monitor the Service Delivery Process Properly Install Equipment and Train

Customers in using the service Be there when you are needed the most Provide discretionary effort

Emerging Customer Retention Programs

Frequency Marketing Marketing technique that strives to make

existing customers purchase more often from the same provider.

Relationship Marketing Marketing technique based on

developing long-term relationships with customers

Emerging Customer Retention Programs

Aftermarketing Marketing techniques that emphasizes

marketing after the initial sale has been made.

Service Guarantees

The Services Marketing TriangleThe Services Marketing Triangle

Internal Marketing

Interactive Marketing

External Marketing

Company(Management)

CustomersEmployees

“enabling thepromise”

“delivering the promise”

“setting thepromise”

Source: Adapted from Mary Jo Bitner, Christian Gronroos, and Philip Kotler

The Services Marketing TriangleThe Services Marketing Triangle

External Marketing : "Setting the Promise"

· Marketing to END-USERS. · Involves pricing strategy, promotional activities, and all communication with customers. · Performed to capture the attention of the market, and arouse interest in the service.

The Services Marketing TriangleThe Services Marketing Triangle

Internal Marketing : "Enabling the Promise"

· Marketing to EMPLOYEES. · Involves training, motivational, and teamwork programs, and all communication with employees. · Performed to enable employees to perform the service effectively, and keep up the promise made to the customer.

The Services Marketing TriangleThe Services Marketing Triangle

Interactive Marketing : (Moment of Truth,

Service Encounter) · This refers to the decisive moment of interaction between the front-office employees and customers, i.e. delivery of service. · This step is of utmost importance, because if the employee falters at this level, all prior efforts made towards establishing a relationship with the customer, would be wasted.

Relationship Marketing

A long term strategy to build relationship with individual

customers

Definition

Relationship marketing was first defined as a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and satisfaction, rather than a dominant focus on sales transactions