2. Why Service Marketing?
1. Service Based Economies
-Developed in response to the tremendous
growth of service industries, resulting
in their increased importance to the U.S.
and world economies.
-In 2003 the service sector represented just
over 80% of total employment.
3. Why Service Marketing? Cont..
-Trade in service is growing worldwide.
-American Express, McDonald’s, and
Marriott Hotels, together with many small
service companies, are exporting
information, knowledge, creativity, and
technology that the world badly needs.
4.
5. Why Service Marketing? Cont..
2. Service as a Business Imperative in
Manufacturing and IT
-As banking, transportation, and health
care industries evolve and become more
competitive, the need for effective services
management and marketing strategies
continues.
6. Why Service Marketing? Cont..
-Manufacturing and technology industries
such as automobiles, computers, and
software are also recognizing the need to
provide quality service and revenue
producing service in order to compete
world-wide.
-Example: General Electric and IBM
7. Why Service Marketing? Cont..
3. Deregulated Industries and Professional
Service Needs
-Specific demand for service marketing
concepts has come from the deregulated
industries and professional services.
-Large service industries, including
airlines, banking, telecommunications have
been deregulated by the U.S. government.
8. Why Service Marketing? Cont..
-Professionals like physicians, lawyers,
accountants, engineers and architects have
also demanded new concepts and
approaches for their business as these
industries have become increasingly
competitive.
9. Why Service Marketing? Cont..
4. Service Marketing is Different
5. Service Equals Profits
-Through the 1980s and early 1990s many
firms jumped on the service bandwagon,
investing in service initiatives and
promoting service quality as ways to
differentiate themselves and create
competitive advantage.
10. Why Service Marketing? Cont..
-Investments were based on faith and
intuition by managers who believed in
serving customers well and who believed
in their hearts that quality service made
good business sense.
11. Why Service Marketing? Cont..
-Marketing Science Institute suggest that
corporate strategies focused on customer
satisfaction, revenue generation, and
service quality may actually be more
profitable than cost cutting strategies.
