07.service marketing


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Service Marketing by Tharaka Dias

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07.service marketing

  1. 1. THARAKA DIAS MBA(USA), BBA(USA), Dip in Mgt, ACIM(UK),FAEA(Dip in AEA-UK), FinstSMM(UK), CPM(Asia), MSLIM
  2. 2. Services Marketing - YouTube(1).mp4AOT - www.tharakadias.com 2
  3. 3. The services sector has been growing at arate of 8% per annum in recent yearsMore than half of our GDP is accounted forfrom the services sectorThis sector dominates with the best jobs,best talent and best incomes AOT - www.tharakadias.com 3
  4. 4. -Theodore Levitt-
  5. 5. It is the part of the product or the full product for which the customer iswilling to see value and pay for it.
  6. 6. It is intangible.It does not result in ownership.It may or may not be attached with a physicalproduct AOT - www.tharakadias.com 6
  7. 7. Physical goods Servicestangible intangiblehomogeneous heterogeneousProduction and distribution are Production, distribution andseparated from consumption consumption are simultaneous processesA thing An activity or processCore value processed in factory Core value produced in the buyer-seller interactionCustomers do not participate in the Customers participate in productionproduction processCan be kept in stock Cannot be kept in stockTransfer of ownership No transfer of ownership AOT - www.tharakadias.com 7
  8. 8. They could be Equipment based People based – varying skill levels AOT - www.tharakadias.com 8
  9. 9. Personal needs – haircuts, tution, massageparloursBusiness needs – courier services, officecleaning services, delivering fresh flowers AOT - www.tharakadias.com 9
  10. 10. IntangibilityInseparabilityPerishabilityVariability AOT - www.tharakadias.com 10
  11. 11. PeoplePhysical evidenceProcess AOT - www.tharakadias.com 11
  12. 12. Mr Bean - Bad Customer Service -- Schlechter Kundenservice - YouTube.flv AOT - www.tharakadias.com 12
  13. 13. Search qualitiesExperience qualitiesCredence qualities AOT - www.tharakadias.com 13
  14. 14. OfferingFaster and better deliveryImage AOT - www.tharakadias.com 14
  15. 15. Gap between management perceptions andconsumer expectationsGap between management perceptions and servicequality specificationsGap between service quality specifications andservice deliveryGap between service delivery and externalcommunicationGap between expected service and perceivedservice AOT - www.tharakadias.com 15
  16. 16. Reliability – delivering on promisesResponsiveness – willing to helpAssurance – inspiring trust and confidenceEmpathy – individualising customersTangibles- physical representation AOT - www.tharakadias.com 16
  17. 17. It is the customer – service encounterEvery positive or negative experience of theconsumer would have fall-out on the overallservice experience AOT - www.tharakadias.com 17
  18. 18. AOT - www.tharakadias.com 18
  19. 19. Continuous auditing of competitor servicelevels versus own companyImportance - performance analysis AOT - www.tharakadias.com 19
  20. 20. IM Concentrate Keep up thePO here good workRTACE Low priority Possible overkill PE R F O RMAN C E AOT - www.tharakadias.com 20
  21. 21. Their satisfaction will be influenced by Encounters with service personnel Appearance and features of service facilities – exterior and interior Interactions with self service equipment Characteristics and behaviour of other customers AOT - www.tharakadias.com 22
  22. 22. Desired Service – the ‘wished for’ serviceAdequate Service – the service that would beacceptable AOT - www.tharakadias.com 23
  23. 23. Difference between the desired service and the adequate service
  24. 24. RecoveryAdaptabilitySpontaneityCoping AOT - www.tharakadias.com 25
  25. 25. Don’t DoIgnore customer Acknowledge problemBlame customer Explain causesLeave customer to Apologisefend for himselfDowngrade Compensate/upgradeAct as if nothing is Lay out optionswrong Take responsibility‘pass the buck’ AOT - www.tharakadias.com 26
  26. 26. Don’t DoPromise and fail to Recognise thekeep them seriousnessShow unwillingness to AcknowledgetryEmbarrass the Anticipatecustomer AccommodateLaugh at the customer AdjustAvoid responsibility Explain rules/policies AOT - www.tharakadias.com 27
  27. 27. Don’t DoExhibit impatience Take timeYell/laugh/swear Be attentiveSteal from customers Anticipate needsDiscriminate ListenIgnore Provide information Show empathy AOT - www.tharakadias.com 28
  28. 28. Don’t DoTake customer’s Listendissatisfaction Try to accommodatepersonally ExplainLet customer’s Let go of the customerdissatisfaction affectothers AOT - www.tharakadias.com 29
  29. 29. PassivesVoicersIratesActivists AOT - www.tharakadias.com 30
  30. 30. It pays to resolve customer complaintsOn an average only 5 % dissatisfied customerscomplain. Others simply go over to the competitorA satisfied consumer speaks to an average of 3people on his her experienceA dissatisfied consumer gripes to on an average 11persons about his/her unpleasant experience AOT - www.tharakadias.com 31
  31. 31. Pay attention to quality and training of manpowerrecruitedHave clear benchmarks on service quality andcommunicate to employeesTake remedial steps to improve customersatisfaction and prevent repeats of customerdissatisfactionHave a data base on customer complaints that isperiodically analysed and policies adjusted AOT - www.tharakadias.com 32
  32. 32. MoraleMotivationMood AOT - www.tharakadias.com 33
  33. 33. Giving quality service is an expensive businessNot every consumer is willing to pay extra forservice qualityService providers would have to find their optimumservice quality/cost ratiosCan technology substitute part of the labourcontent?Can customers substitute part of the labourcontent?Making services obsolete by product innovations AOT - www.tharakadias.com 34
  34. 34. Thank youAOT - www.tharakadias.com 35