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Services marketing  ch. 6
Services marketing  ch. 6
Services marketing  ch. 6
Services marketing  ch. 6
Services marketing  ch. 6
Services marketing  ch. 6
Services marketing  ch. 6
Services marketing  ch. 6
Services marketing  ch. 6
Services marketing  ch. 6
Services marketing  ch. 6
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Services marketing ch. 6

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  • 1. Services Marketing Management Chapter 6 Service Marketing Process2/17/2013 Presentation by Prof. H.Ganguly 1
  • 2. Importance of Contact Employees in Services -- In most of service organisations, the contact employees provide total personal or professional service e.g. legal, medical, advisory, car-maintenance, haircut etc. -- In customers‟ eyes the contact employee providing service is the company. By their performance, contact employees may provide satisfaction to customers to organisation‟s advantage or deliver service poorly to its detriment. -- Contact employees perform the role of marketers in service industry and also act as marketing tool promoting service organisations.2/17/2013 Presentation by Prof. H.Ganguly 2
  • 3. 1. Service Marketing Triangle Service marketing is all about promises : “Promises made and promises kept to satisfaction of customers”. -- So framework of service may be split into three arms viz. * making the promise * enabling the promise & * delivering the promise Management Internal Marketing External Marketing (enabling the promise) ( making the promise) Contact employee Customers Interactive Marketing2/17/2013 Presentation by Prof. H.Ganguly (delivering the promise) 3
  • 4. -- Three arms of ‘Service Marketing Triangle’ represent acts of promoting, developing and delivering service. Service Marketing Process -- Is represented by a triangle, comprising of three arms, depicting different activities viz. * External Marketing -- i.e. Communication [making promises to customers] represented by „Management–Customer‟ arm on right. * Internal Marketing – i.e. Training and Developing contact employees represented by „Management– Contact Employee‟ arm on left to fulfill promises. * Interactive Marketing – Actual service-encounter of delivering service i.e., satisfaction at base of triangle.2/17/2013 Presentation by Prof. H.Ganguly 4
  • 5. External Marketing of Services It comprises of activities through which company makes promises to customers about „service‟ like Advertising, Sales Promotion, Pricing, Availability, Franchisees etc. In addition, promises are made by • Contact employees during interactions • Proper design and décor of service area (ambience) • Development of service process ( blueprint) Effective external marketing involves consistent and realistic promises which the company can keep. And not overpromises that raise customers‟ expectation unduly, thereby leads to dissatisfaction and poor customer relationship.2/17/2013 Presentation by Prof. H.Ganguly 5
  • 6. Internal Marketing Service providing companies develop a „Service Blueprint‟ depicting step by step progress of service process. Contact employees are trained and developed to impart service on- and off-the-job as per blueprint. In addition, company should equip contact employees with suitable tools, requisite knowledge and skills to provide service satisfactorily. Company should ensure proper motivation and control of contact employees so that they remain in ship-shape to provide satisfactory service.2/17/2013 Presentation by Prof. H.Ganguly 6
  • 7. Interactive Marketing -- In Service Marketing, customer interacts with „contact employee‟(i.e. service provider) in the process of service delivery, unlike products where customers only consume or use the product without interacting with operator during its manufacture. -- Hence it is essential that contact employee is equipped with skills, knowledge, tools and also motivated to do his best in service delivery to impress customer. -- For same reasons, the „Ambience‟ i.e. arena where service is delivered should be congenial both for customers and service-providers. Technology is fast emerging as the fourth apex of „Service Triangle‟ for customer satisfaction, giving it the shape of a „Pyramid’ in preference of a Triangle.2/17/2013 Presentation by Prof. H.Ganguly 7
  • 8. Strategy for Customer Satisfaction through Quality Service Delivery -- Key aspects of this strategy is that the contact employees should be willing and also be able to deliver quality service. -- So successful service-providing companies build teams of customer-oriented, service-minded contact employees in the „Internal Marketing‟ process through : * hiring right persons * developing them properly to deliver quality service * provide them with needed tangibles including motivation & * retaining the best efficient people.2/17/2013 Presentation by Prof. H.Ganguly 8
  • 9. 2. Services Marketing Mix Marketing mix are elements that marketer uses to satisfy or communicate with customers. -- Traditionally, marketing mix composes of 4 P‟s viz. product, price, place (distribution) and promotion. -- These elements are interrelated and collectively help in delivering satisfaction to customers in selected segments at profit to organisation. Expanded Marketing Mix for Services Because services are marginally different from products that services are to be produced and consumed simultaneously, so in most cases service customer should be present in close physical proximity of service provider when service is produced.2/17/2013 Presentation by Prof. H.Ganguly 9
  • 10. Secondly, services are intangible, quite often customers use the ambience i.e. building, lawns or accompanying tangibles like equipments in operation theatre of hospitals to gauge the level of service. Realising importance of these additional variables in service- marketing , marketers use three additional elements as mix- elements viz.: 1. People – Human actors who play role in service delivery to influence customers‟ service experience and perception like employees, customers etc. 2. Physical Evidence – Environment where service is delivered or service-provider and customer interact, the ambience, facility design, equipments, employee-dress, logo, business card and other tangibles. 3. Process -- Actual procedure, flow of activities etc. that2/17/2013 deliver services. Presentation by Prof. H.Ganguly 10
  • 11. Gronroos 7P’s of Service Marketing It was concluded by Gronroos that because of unique characteristics of services, service marketing mix elements are : * Product (service) * Price * Place (distribution) * Promotion * People * Physical Evidence and * Process. ----2/17/2013 Presentation by Prof. H.Ganguly 11

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