Service marketing
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Service marketing

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    Service marketing Service marketing Presentation Transcript

    • Abhishek Singh 12PGP004 Arnab Roy 12PGP011Bir Bahadur Singh 12PGP014 Harsh Vardhan 12PGP017 Mahesh Kumar 12PGP025
    •  What is a Service? Categories of Service Mix Characteristics of Services ◦ Marketing Challenges ◦ Marketing Strategies Seven Ps of Service Marketing. Gaps in the Service Marketing Service Marketing as a Differentiating Strategies Indian Institute of Management Raipur 12/6/2012 2
    • A service is any act of performance that one party can offeranother that is essentially intangible and does not result in theownership of anything; its production may or may not be tied toa physical product. - Kotler, Armstrong, Saunders & Wong (1999) All economic activities that create value and provide benefit for customers at specific times and place as a result of bringing about a desired change in or on behalf of – the recipient of the service. - Christopher Lovelock Indian Institute of Management Raipur 12/6/2012 3
    • Objects of transaction offered by firms and institutions thatgenerally offer services or that consider themselves as aservice organ. - Gronroos…services…anything that cannot be dropped on your foot. - The Economist Indian Institute of Management Raipur 12/6/2012 4
    • Service dominates most economies and are growing rapidly Services accounts for 64% of world GDP Most new employment is provided by services Strongest growth area of marketing Indian Institute of Management Raipur 12/6/2012 5
    •  Pure tangible good: - Tangible Good Tangible good with service: - Tangible Good + Services Hybrid: - Tangible Good + Services Major service with minor goods: - Tangible Good + Services Pure service: - Services Indian Institute of Management Raipur 12/6/2012 6
    •  Search Qualities ◦ Attributes that can be determined prior to purchase of a product. Experience Qualities ◦ Attributes that can be determined after purchase (or during consumption) of a product Credence Qualities ◦ characteristics that may be impossible to evaluate even after purchase and consumption Indian Institute of Management Raipur 12/6/2012 7
    • Most Most Goods ServicesEasy to evaluate Difficult to evaluate High in search High in experienceHigh in credence qualities qualities Institute of Management Indian qualities Raipur 12/6/2012 8
    • GOODS SERVICES Tangible Intangible Standardized HeterogeneousProduction is separate from Simultaneous production and Consumption consumption Non perishable Perishable
    • Intangibility Inseparability Variability Perishability12/6/2012 Indian Institute of Management Raipur 10
    •  Intangibility: - Services cannot be seen, tasted, heard or smelled before they are bought. Example: - A person going for a hair cut can not see the results before buying the service but he can see the result after the purchase Indian Institute of Management Raipur 12/6/2012 11
    •  Services cannot be stored. Services cannot be patented. Cannot readily display or communicate services. Prices are difficult to set. Stress tangible cues. Simulate or stimulate word of mouth communications. Engage in post-purchase communication. Create strong Organization image. Indian Institute of Management Raipur 12/6/2012 12
    • Indian Institute of Management Raipur 12/6/2012 13
    • Place People EquipmentCommunication material Symbols Price Indian Institute of Management Raipur 12/6/2012 14
    •  Inseparability: - Unlike physical tangible goods services are generally produced and consumed simultaneously and in case of entertainment and professional services the specific provider of the service has to be present Indian Institute of Management Raipur 12/6/2012 15
    •  Consumer involved in production. Other Consumer involved in production. Centralized mass production is difficult. Problem in Market Expansion.  Use multisite communications.  Work in larger group.  Innovative techniques of indirect communication. Indian Institute of Management Raipur 12/6/2012 16
    •  Mission:- Providing a high quality education to anyone, anywhere Website supplies a free online collection of more than 3,600 micro lectures via video tutorials Indian Institute of Management Raipur 12/6/2012 17
    •  SBI has 21000+ ATMs to facilitate money transactions. The reach of ATM is from the metro to very rural areas of India. Indian Institute of Management Raipur 12/6/2012 18
    •  Variability: - Quality of service is variable as it is dependent on provider of the service, time of providing, place of providing the service.Example: - The quality of hair cut depends on the barber’s skills. Indian Institute of Management Raipur 12/6/2012 19
    •  Difficult to achieve Standardization.  Customize service.  Industrialize Service Indian Institute of Management Raipur 12/6/2012 20
    • •India’s biggest e-commerce site.• The website recorded anaverage of 4.47 lakh e-tickets per day Indian Institute of Management Raipur 12/6/2012 21
    • McDonald •McDonald quickly adjusted to Indian sensibilities and introduced a tailored menu for India, adding chicken, lamb and fish. Today, 70% of McDonald’s menu is Indianized and McAloo Tikki burger is their highest selling product. Indian Institute of Management Raipur 12/6/2012 22
    •  Perishability: - As services cannot be stored, there is a chance that the service can be perished when demand fluctuates.Example: - A person going for hair cut has to get the hair cut done in the shop itself. Indian Institute of Management Raipur 12/6/2012 23
    •  Services cannot be inventoried. Part time employees Part time efficiency Increased Consumer participation. Differential Pricing Complementary Services Reservation System Non Peak Demand Indian Institute of Management Raipur 12/6/2012 24
    • PART TIME EMPLOYEES Indian Institute of Management Raipur 12/6/2012 25
    • DIFFERENTIAL PRICING RESERVATION SYSTEMS Indian Institute of Management Raipur 12/6/2012 26
    •  Product Price Place Promotion People Process Physical Evidence Indian Institute of Management Raipur 12/6/2012 27
    • People Physical Process EvidenceExtended marketing mix for services Indian Institute of Management Raipur 12/6/2012 28
    • PEOPLE PHYSICAL PROCESS EVIDENCEEmployees Facility design Flow of activitiesCustomers Equipment Number of stepsCommunicating Signage Level of customerculture and values involvementEmployee research Employee dress Other tangibles
    • • Travel website Cleartrip has introduced cab bookings for travellers who can avail the services along with flight bookings.• It has tied up with Meru Cabs to enable users book cabs to and from the airport.• These cabs will be available for booking directly through Cleartrip at no extra charges only in Mumbai, New Delhi, Bangalore and Hyderabad.• Travellers can pay the cab directly at the drop off at the airport.• The online travel portal recently introduced a one-click booking facility called Expressway for both online and mobile booking.• This will allow customers to store their credit, debit and payment card details in their Cleartrip accounts, so that bookings will happen fast. Indian Institute of Management Raipur 12/6/2012 30
    •  Free home visit Cost estimation, color consultancy Professional supervision Post paint clean up At least one year warranty Offers preview of home painted in different color schemes and texture Indian Institute of Management Raipur 12/6/2012 31
    • Customer Gap Model Expected CUSTOMER Service Customer Perceived Gap Service External Service Delivery Communications to Customers COMPANY GAP 3 GAP 4 GAP 1 Customer-Driven Service Designs and Standards GAP 2 Company Perceptions of Consumer Expectations Indian Institute of Management Raipur 12/6/2012 32
    • Customer Gap Model  Customer Gap:  difference between expectations and perceptions  Provider Gap 1(The Knowledge Gap)  not knowing what customers expect  Provider Gap 2(The Service Design & Standard Gap)  not having the right service designs and standards  Provider Gap 3(The Service Performance Gap)  not delivering to service standards  Provider Gap 4(The Communication Gap)  not matching performance to promises Indian Institute of Management Raipur 12/6/2012 33
    • Customer Expectation  Inadequate marketing researchGAP 1  Lack of upward communication  Insufficient relationship focus  In adequate service recovery Company Perception Of Customer Expectation Indian Institute of Management Raipur 12/6/2012 34
    • Customer Driven Service Design & Standards  Poor service design.GAP  Absence of customer driven 2 standards.  Inappropriate physical evidence and service gap. Management Perception Of Customer Expectation Indian Institute of Management Raipur 12/6/2012 35
    • Customer Driven Service Design & Standards  Deficiencies in human resources policies.GAP 3  Customer who do not fill roles.  Problem with service intermediaries.  Failure to match supply and demand. Service Delivery Indian Institute of Management Raipur 12/6/2012 36
    • Service Delivery  Lack of integrated services marketing communications.  Ineffective management of customerGAP 4 expectations.  Overpromising External Communications to customers Indian Institute of Management Raipur 12/6/2012 37
    • General Electric sends out 700,000 response cards a year asking a households to rate its service people’s performance. Citibank aims to answer phone calls within 10 seconds and customer letters within 2 days.HP tries to respond to every e-mailswithin an hour and usually within 10minutes to ensure it meets it service-quality standards. Indian Institute of Management Raipur 12/6/2012 38
    • Top Management Commitment  Organizations such as Marriot, Disney, Xerox, Apollo Hospitals, Infosys and Wipro have a thorough commitment to service quality.  McDonalds measures each outlet on its conformance to QSCV: Quality, Service, Cleanliness and Value. Wal-Mart requires the following employee pledge “I solemnly swear and declare that every customer that comes within 10 feet of me, I will smile, look them in the eye, and greet them”. Indian Institute of Management Raipur 12/6/2012 39
    •  Customer expects primary service package Service provider needs to add innovative features called secondary service features Primary Secondary Final service service service package feature Indian Institute of Management Raipur 12/6/2012 40
    •  Speed of delivery  Pickup packages from customers’ home  Money back guarantee  Charge a price premium for its servicesIndian Institute of Management Raipur 12/6/2012 41
    •  Delivers solely via FedEx and hence operates across the nation unlike other stores Offers a wide range of products starting from grocery items, non- prescription drugs to other items Does not charge a membership fee for its loyalty program Indian Institute of Management Raipur 12/6/2012 42
    •  First TV channel to Create a daytime lifestyle block in 2010  Celebrate life’s special moments everydayIndian Institute of Management Raipur 12/6/2012 43
    • THANK YOU Indian Institute of Management Raipur 12/6/2012 44