Service marketing

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Service marketing

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Service marketing

  1. 1. SERVICE MARKETING BY, BHAVITHRA ASOKAN
  2. 2. WHAT IS SERVICE ? <ul><li>SERVICE IS ANY ACT OR PERFORMANCE THAT ONE PARTY CAN OFFER TO ANOTHER THAT IS ESSENTIALLY INTANGIBLE AND DOES NOT RESULT IN ANY OWNERSHIP OF ANYTHING.ITS PRODUCTION MAY OR MAY NOT BE TIED TO PHYSICAL PRODUCTS . </li></ul><ul><li>PHILIP KOTLER </li></ul><ul><li>SERVICES MARKETING IS MARKETING BASED ON RELATIONSHIP AND VALUE. IT MAY BE USED TO MARKET A SERVICE OR A PRODUCT </li></ul>
  3. 3. CHARACTERISTIC OF SERVICE MARKETING <ul><li>It has 4 major characteristic </li></ul>Intangibility Inseparability Variability Perishability SERVICE MARKETING
  4. 4. INTANGIBILITY <ul><li>Services are intangibility cannot be seen, tasted, felt, heard or smelled before purchase. </li></ul><ul><li>It draws inferences about : </li></ul><ul><ul><li>PLACE </li></ul></ul><ul><ul><li>PEOPLE </li></ul></ul><ul><ul><li>EQUIPMENT </li></ul></ul><ul><ul><li>COMMUNICATION MATERIAL </li></ul></ul><ul><ul><li>SYMBOLS </li></ul></ul><ul><ul><li>PRICE </li></ul></ul>
  5. 5. <ul><li>Intangibility is used in marketing to describe the inability to assess the value gained from engaging in an activity using any tangible evidence </li></ul><ul><li>To reduce uncertainty. </li></ul>
  6. 6. INSEPARABILITY <ul><li>Services are produced and consumed simultaneously . </li></ul><ul><li>provider – client interactions is a special feature of </li></ul><ul><li>service marketing </li></ul><ul><li>In Inseparability ,key quality of services as distinct from goods </li></ul>
  7. 7. VARIABILITY <ul><li>It is otherwise called heterogeneity. </li></ul><ul><li>Services are highly variable </li></ul><ul><li>“ The state or characteristic of being variable&quot; </li></ul><ul><li>Eg: service firms </li></ul>
  8. 8. PERISHABILITY <ul><li>Perishability is used in marketing to describe the way in which service capacity cannot be stored for sale in the future. </li></ul><ul><li>Services cannot be stored. </li></ul>
  9. 9. Some Service firms: <ul><li>Banking, stock broking </li></ul><ul><li>Restaurants, bars, catering </li></ul><ul><li>Insurance </li></ul><ul><li>News and entertainment </li></ul><ul><li>Transportation (freight and passenger) </li></ul><ul><li>Postal service </li></ul><ul><li>Health care </li></ul><ul><li>Education </li></ul><ul><li>Wholesaling and retailing </li></ul><ul><li>Laundries, dry-cleaning </li></ul><ul><li>Repair and maintenance </li></ul><ul><li>Professional (e.g., law, architecture, consulting) </li></ul>
  10. 10. Additional ‘P’s of Service Marketing <ul><li>People [employees]: selection, training& motivation of employees can make a huge difference in customer satisfaction. </li></ul><ul><li>Process: Here service companies can choose different processes to deliver their service. </li></ul><ul><li>EG : Restaurants have developed such different Formats as cafeteria-style, fast-food, buffet & candlelight. </li></ul><ul><li>Physical evidence: Actual experience of service </li></ul><ul><li>EG: RAILWAY- </li></ul><ul><li>A reserved ticket </li></ul><ul><li>Cheque book </li></ul>
  11. 11. Qualities of services <ul><li>Search qualities : The buyer can evaluate before purchase. </li></ul><ul><li>Experience qualities : The buyer can evaluate after purchase. </li></ul><ul><li>Credence qualities : The buyer normally finds hard to evaluate even after consumption </li></ul>
  12. 12. Differentiation in services <ul><li>Offer: The Offer can include innovation features . </li></ul><ul><li>Delivery: A service company can hire and train better people to deliver its service. It can develop a more attractive physical environment in which to deliver the service. </li></ul><ul><li>Image: Images are differentiated through symbols & branding. </li></ul>
  13. 13. Managing Service quality <ul><li>Gap between management perceptions and consumer expectations. </li></ul><ul><li>Gap between management perceptions and service quality specifications. </li></ul><ul><li>Gap between service quality specifications and service delivery. </li></ul><ul><li>Gap between service delivery and external communication. </li></ul><ul><li>Gap between expected service and perceived service. </li></ul>
  14. 14. Determinants of service quality <ul><li>Reliability – delivering on promises </li></ul><ul><li>Responsiveness – willing to help </li></ul><ul><li>Assurance – inspiring trust and confidence </li></ul><ul><li>Empathy – individualizing customers </li></ul><ul><li>Tangibles- physical representation </li></ul>
  15. 15. Managing product support services <ul><li>The real differentiator of </li></ul><ul><li>customer – centricity in a commoditised world of financial products – </li></ul><ul><li>Customer Service ! </li></ul>
  16. 16. Drivers of Customer Satisfaction <ul><li>Many aspects of the firm’s value proposition contribute to customer satisfaction: </li></ul><ul><ul><li>The core product or service offered </li></ul></ul><ul><ul><li>Support services and systems </li></ul></ul><ul><ul><li>The technical performance of the firm </li></ul></ul><ul><ul><li>Interaction with the firm and it employees </li></ul></ul><ul><ul><li>The emotional connection with customers </li></ul></ul><ul><li>Ability to add value and to differentiate as a firm focuses more on the top levels </li></ul>
  17. 17. <ul><li>CUSTOMERS </li></ul><ul><li>HAVE </li></ul><ul><li>3 </li></ul><ul><li>SPECIFIC WORRIES: </li></ul>
  18. 18. <ul><li>They worry about reliability and failure frequency. </li></ul><ul><li>E.g.: a farmer may tolerate a combine that ll break down once a year, but not 2 or 3 times a year. </li></ul><ul><li>Customer worry about out- of- pocket costs of maintenance and repair. where here reliability is important. </li></ul><ul><li>Customer worry about downtime duration. The longer the downtime, the higher the cost. The Customer counts on the selling sellers service dependability. </li></ul>
  19. 19. CONCLUSION <ul><li>Thus to provide the best support, a manufacturer must identify the services that customer value and their relatively important. </li></ul>
  20. 20. Thank You <ul><li>Marketing </li></ul><ul><li>is all about creating a pull, </li></ul><ul><li>sales </li></ul><ul><li>is all about push . . . </li></ul>

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