SERVICES MARKETINGSERVICES MARKETING

TYPES OF SERVICESTYPES 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 GROWTH OF SERVICE SECTOR ECONOMYECONOMY

REASONS 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• CHANGING ECONOMIES:

– Globalization- greater demand for courier services, airways, waterways

– Privatization- greater demand for telecom services, internet

• 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 EFFECT GREATER DEMAND FOR

Technological advances

Higher complexity of products

Globalization Business internationalization

Deregulation policies

Privatization

Competition & higher productivity

Specialization & expert knowledge

Cost effectiveness

Optimum utilization of resources & outsourcing

Computer explosion

Speed of work, availability of sound, picture & motion at affordable cost

Increase in affluency

Increased spending power & wish for comforts

Working women Work performed at home being done by others

More leisure time Entertainment & pleasure seeking

Greater life expectancy

Desire to live long

Increased complexity of life

Need for specialized services

Scarcity of resources & concern for ecology

Need for services that can meet resource crunch

Demographic changes

Dual career couples

Urbanization Fast, mechanical & self centred life

SERVICE CHARACTERISTICS SERVICE CHARACTERISTICS

Intangibility

Inseparability

Inventory (Perish ability)

Inconsistency (Variability)

INTANGIBILITYINTANGIBILITY

• 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

INSEPARABILITYINSEPARABILITY

• 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 task-related, 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)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)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 SERVICE CLASSIFICATION

• BY MARKET SEGMENTATION:FINAL CONSUMER: life insurance, tutionORGANIZATIONAL CONSUMER:

accounting services, legal services

• BY DEGREE OF TANGIBILITY: RENTAL GOODS: hotel room rental, book

rentalOWNED GOODS: mobile repair,

refrigerator repairNON GOODS: accountancy services,

legal services, education services

• BY SKILLS OF SERVICE PROVIDERS:PROFESSIONALS: medical services,

management consultingNON PROFESSIONAL: shoe polishing,

washing

• BY GOALS OF THE PROVIDER:PROFIT: roadways, airways, insuranceNON PROFIT: postal services, unversities

• BY DEGREE OF REGULATION:HIGHLY REGULATED: insurance,

hospitalsLIMITED REGULATED: fast food,

roadwaysNON REGULATED: painting, cloth

washing

• BY DEGREE OF LABOUR INTENSIVENESS:EQUIPMENT BASED SERVICES: Automated: ATMs Operated by relatively unskilled operators: Taxis Operated by skilled operators: AirlinesPEOPLE 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 SERVICES MARKETING TRIANGLETRIANGLE

• 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.

SERVICES MARKETING TRIANGLE

Company Management

Employees Customers

Internal Marketing :“Enabling the promise”

service environment

External Marketing : “setting the promise”

the service product

Interactive Marketing :“Delivering the promise”service delivery

The Model University/Registry

Company Management Directorate Registry/ management team

Employees All registry staff

Customers 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 ForumStudent Union Liaison meetingsStudent Services CommitteeUndergraduate Student QuestionnaireEnrolment review

Service Statements/Plans:Service Provision StatementDepartmental Plan

Internal Marketing

“Enabling the promise”

the service environment

Culture & philosophyStaff recruitmentStaff development/ trainingMotivation and involvement in planningTeam meetings/briefingsTechnical resources

Interactive Marketing

“Delivering the promise”

service delivery

The serviscape and service encounter:Delivery of servicePhysical environmentMeetingsTelephonePostE-mail

SERVICE MARKETING MIXSERVICE 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 p’s are also included in these 4 p’s.

SERVICE MARKETING MIXSERVICE MARKETING MIX

• Service marketing mix comprises off the 7’p’s :

1. Product

2. Price

3. Place

4. Promotion

5. People

6. Process

7. Physical evidence

ProductProduct

• 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

PricePrice

• Pricing must be competitive and must entail profit

• Pricing strategy can comprise discounts, offers and the like

PlacePlace

• 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

PromotionPromotion

• 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

PeoplePeople

• 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

ProcessProcess

• 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

• What was the process that allowed you to obtain an efficient service delivery?

Physical EvidencePhysical Evidence

• Where is the service being delivered?

• Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organization

• If you walk into a restaurant your expectations are of a clean, friendly environment

• Consumers will make perceptions based on their sight of

the service provision which will have an impact on the organizations perceptual plan of the service