1. SERVICE MARKETING
1.Define services marketing.
Services marketing is a subfield of marketing that focuses on promoting and
selling intangible products or services to consumers. Unlike tangible goods,
services cannot be touched, tasted, or seen before the customer purchases
them, making the marketing of services a unique challenge.
Services marketing involves understanding the characteristics and
behaviors of the target market, developing effective marketing strategies,
and delivering high-quality services that meet customer needs and
expectations. It involves managing the service delivery process, including
aspects such as service design, pricing, distribution, promotion, and service
quality. Additionally, services marketing often includes the management of
relationships with customers and the measurement and improvement of
customer satisfaction and loyalty.
OR
Services marketing refers to the marketing of intangible products, such as
services or experiences, rather than physical products. It is the application
of marketing principles to services, which are typically characterized by
their intangibility, variability, perishability, and inseparability from the
service provider.
Services marketing includes all the activities involved in promoting, selling,
and delivering services to customers, such as market research, product
design and development, pricing, distribution, advertising, and customer
service. It also involves understanding the unique characteristics of services
and developing marketing strategies that take into account the unique needs
and preferences of service customers.
Examples of service industries that employ services marketing principles
include healthcare, hospitality, tourism, financial services, education, and
professional services such as consulting and legal services.
2. 2. Nature and characteristics of services.
Services are intangible products that are consumed at the same time they
are produced. Unlike tangible products, they cannot be stored or transported
and their quality may vary depending on the provider and the situation. Here
are some key nature and characteristics of services:
Intangibility: Services cannot be seen, touched, or tasted. They are
intangible, which makes them difficult to evaluate before purchase.
Heterogeneity: Services are highly variable, as they depend on who
provides them, where they are provided, and when they are provided. This
means that each customer experience may differ.
Perishability: Services cannot be stored, and therefore, they cannot be
produced in advance to meet future demand. This makes them perishable
and time-dependent.
Simultaneity: Services are produced and consumed at the same time. The
customer participates in the service production process, which makes it
difficult to separate the service from the service provider.
Inseparability: Services are inseparable from the service provider. The
customer interacts directly with the service provider, which can affect the
quality of the service.
Customer involvement: Services often require high levels of customer
involvement, as customers may be involved in the production process or in
the delivery of the service.
Understanding these characteristics is crucial for developing effective
marketing strategies for services. It requires a focus on customer experience,
building trust, and managing the quality of service delivery.
3. 3. Distinguish between product and services.
Products and services are two different types of offerings that businesses
provide to their customers. While products are tangible items that
customers can see, touch, and feel, services are intangible experiences that
are delivered to customers. Here are some key differences between products
and services:
Tangibility: Products are tangible items that can be physically touched and
felt, while services are intangible experiences that cannot be touched or felt.
Production and delivery: Products are manufactured, produced, and
delivered to customers, while services are performed and delivered to
customers.
Customization: Products are often standardized and produced in large
quantities, while services can be customized and tailored to the specific
needs and preferences of individual customers.
Perishability: Products can be stored and sold at a later time, while services
are perishable and cannot be stored for later use.
Ownership: Products are owned by the customer after purchase, while
services are not owned by the customer but rather experienced and
consumed.
In summary, products are tangible goods that are produced and delivered to
customers, while services are intangible experiences that are performed and
delivered to customers.
4. 4. Problems and challenges in service marketing.
Service marketing poses unique challenges and problems that are not found
in marketing physical products. Here are some of the main challenges that
businesses face in service marketing:
Intangibility: Services are intangible, making it difficult for customers to
assess their quality or value before purchase. This makes it challenging for
businesses to market their services effectively and differentiate themselves
from competitors.
Inseparability: Services are often delivered in real-time and involve the
direct interaction between the service provider and the customer. This
means that the quality of the service experience depends on the performance
of the service provider, which can be difficult to control.
Heterogeneity: Services can vary in quality from one service provider to
another or even from one service encounter to another. This makes it
challenging for businesses to maintain consistency in the quality of their
services.
Perishability: Services are perishable and cannot be stored or saved for
later use. This means that businesses need to manage their service capacity
carefully to avoid underutilization or overbooking.
Customer Expectations: Service customers often have high expectations
for the quality of the service experience. Meeting these expectations can be
challenging and requires a deep understanding of customer needs and
preferences.
Service Recovery: Service failures are inevitable, and it's how businesses
handle them that can make or break their reputation. Recovering from
service failures requires a well-designed service recovery strategy and
effective communication with customers.
5. In summary, service marketing poses unique challenges and problems,
including intangibility, inseparability, heterogeneity, perishability,
managing customer expectations, and handling service failures effectively.
5. Marketing mix of services
The marketing mix of services, also known as the 7 Ps of services marketing,
includes the following elements:
Product: In services marketing, the product is the service experience that is
being offered. This includes not only the core service but also additional
features, such as customer support, delivery, and warranties.
Price: Pricing services can be more complex than pricing physical products,
as services are often customized, vary in quality, and can be difficult to
compare to competitors. Services marketers need to carefully consider
pricing strategies that reflect the value of the service experience to
customers.
Place: The distribution or place of a service refers to how the service is
delivered to customers. This can include online channels, physical locations,
or even mobile services that come to the customer.
Promotion: Promotion for services involves communicating the value of the
service experience to potential customers. This can include advertising,
public relations, personal selling, and digital marketing.
People: People refer to the service providers and support staff who are
responsible for delivering the service experience to customers. Training,
hiring, and managing staff are critical to ensuring that the service experience
meets customer expectations.
Process: Service processes refer to the steps involved in delivering the
service experience, including how customers are engaged, how the service
6. is performed, and how feedback is collected.
Physical Evidence: This element includes any physical cues that customers
can use to evaluate the service, such as the appearance of the service
location, the equipment used to provide the service, or the uniforms worn
by service staff.
In summary, the marketing mix of services includes product, price, place,
promotion, people, process, and physical evidence, all of which are critical to
delivering a high-quality service experience to customers.
6. Extended marketing mix and its significance.
The extended marketing mix, also known as the 7 Ps of marketing, includes
the original 4 Ps (product, price, place, promotion) as well as three
additional elements: people, process, and physical evidence. These
additional elements are particularly relevant in service industries, but can
also be applied to any business that aims to deliver a high-quality customer
experience. Here's how each of the additional 3 Ps adds to the marketing
mix:
People: People refer to the staff, employees, or team members who are
responsible for delivering the service or product to the customer. This
includes not only customer-facing employees but also those who work
behind the scenes to ensure the quality of the product or service. By hiring
and training the right people and creating a positive work culture,
businesses can improve customer satisfaction and build a strong brand
reputation.
Process: Process refers to the systems, procedures, and processes that are
used to deliver the product or service to the customer. This includes
everything from how the product is manufactured to how the service is
delivered, and can have a significant impact on the quality of the customer
experience. By designing efficient and effective processes, businesses can
improve the consistency and reliability of their offerings.
7. Physical Evidence: Physical evidence refers to the tangible cues that
customers use to evaluate the quality of the product or service, such as the
appearance of the packaging, the cleanliness of the store, or the design of the
website. By investing in high-quality physical evidence, businesses can
create a positive impression on customers and differentiate themselves from
competitors.
The significance of the extended marketing mix lies in its ability to provide a
more comprehensive framework for marketing strategy. By considering all
seven elements, businesses can create a more cohesive and effective
marketing plan that addresses all aspects of the customer experience. This,
in turn, can lead to greater customer satisfaction, stronger brand loyalty, and
improved business performance.
7. Classify the interactive, internal and relationship
marketing.
Interactive, internal, and relationship marketing are three different types of
marketing strategies that businesses can use to engage with customers and
build long-term relationships. Here's how each one is classified:
Interactive Marketing: Interactive marketing refers to marketing efforts
that involve direct interaction between the business and the customer. This
can include customer service interactions, social media engagement, and
other forms of direct communication. Interactive marketing is often focused
on engaging with customers in real-time and providing personalized
experiences.
Internal Marketing: Internal marketing focuses on creating a positive
company culture and engaging employees as brand ambassadors. This can
include training programs, internal communication, and other efforts to
align employee values and behaviors with the company's mission and goals.
By creating a strong internal culture, businesses can improve employee
satisfaction and performance, which can in turn improve the customer
experience.
Relationship Marketing: Relationship marketing is focused on building
long-term relationships with customers by creating personalized
8. experiences and providing ongoing value. This can include loyalty programs,
targeted promotions, and other efforts to build trust and loyalty over time.
Relationship marketing is often aimed at retaining existing customers rather
than acquiring new ones, and can lead to increased customer lifetime value
and improved business performance.
In summary, interactive marketing involves direct interaction between the
business and the customer, internal marketing focuses on creating a positive
company culture and engaging employees, and relationship marketing is
focused on building long-term relationships with customers. All three types
of marketing are important for businesses to consider as part of their overall
marketing strategy.
8. Differentiation strategy for services
Differentiation strategy for services involves creating a unique and desirable
service offering that sets a business apart from competitors. Here are some
steps that businesses can take to develop a differentiation strategy for
services:
Understand customer needs: Businesses need to have a deep
understanding of their target customers and their needs, preferences, and
pain points. This can be done through market research, customer surveys,
and feedback.
Identify unique features: Once a business understands customer needs, it
can identify unique features of its service offering that differentiate it from
competitors. These can be anything from the quality of customer service to
the convenience of the service delivery process.
Communicate the value proposition: Once the unique features are
identified, businesses need to communicate them effectively to customers.
This can be done through advertising, promotions, and other marketing
efforts.
9. Continuously improve the service: To maintain differentiation, businesses
need to continuously improve the service offering and stay up-to-date with
customer needs and preferences. This can involve investing in technology,
training employees, and seeking customer feedback.
Service quality: One way to differentiate a service is by providing a higher
level of quality than competitors. This can include providing faster service,
more reliable service, or more personalized service.
Service customization: Customizing services to meet the unique needs of
individual customers can also be a way to differentiate a service. This can
involve tailoring services to meet specific preferences or offering
personalized recommendations.
Service innovation: Developing new and innovative services that meet
unmet customer needs can also be a way to differentiate a service. This can
involve investing in research and development to create new services or
modifying existing services to improve their value proposition.
Branding: Creating a strong brand identity and image can also be a way to
differentiate a service. This can involve creating a unique brand personality,
developing a distinctive visual identity, and using advertising and marketing
to create a strong emotional connection with customers.
Customer service: Providing exceptional customer service can also be a
way to differentiate a service. This can include investing in training and
development for customer-facing employees, creating a customer-centric
culture, and using feedback and customer data to continually improve the
service experience.
Some examples of service differentiation strategies include offering
personalized services, providing high-quality customer service, offering
faster delivery times, and providing a unique service experience. By
developing a strong differentiation strategy, businesses can attract and
retain customers, and ultimately, improve their financial performance.
10. 9. Significance of growth and development of services.
The growth and development of services have significant implications for
businesses, consumers, and the economy as a whole. Here are some of the
key reasons why:
Economic growth: Services are a major driver of economic growth in many
countries. As service industries grow and expand, they create new jobs and
opportunities for workers, which can contribute to overall economic growth
and development.
Innovation: The development of new services can also spur innovation and
creativity in other areas of the economy. By introducing new technologies,
processes, and business models, service providers can drive change and
progress in a wide range of industries.
Consumer benefits: The growth and development of services can also lead
to a range of benefits for consumers. This can include greater access to high-
quality services, more personalized and customized service offerings, and
more affordable prices due to economies of scale.
Business growth: For businesses, the growth and development of services
can create new opportunities for revenue growth and expansion. By
developing new service offerings, businesses can tap into new markets and
customer segments, and increase their competitiveness in the marketplace.
Globalization: The growth of services has also been a major driver of
globalization, as businesses seek to expand their operations and reach new
customers in different countries and regions. This has led to increased trade
and investment, as well as greater cultural exchange and understanding.
Overall, the growth and development of services are essential for driving
economic growth, innovation, and progress in a wide range of industries and
sectors. As service industries continue to evolve and expand, they are likely
to play an increasingly important role in shaping the future of the global
economy.
11. 10. How can marketers maintain service quality in
services?
Maintaining service quality is essential for any business that wants to
provide excellent service experiences and build long-term customer loyalty.
Here are some strategies that marketers can use to maintain service quality
in services:
Define service standards: Establish clear service standards and
communicate them to all employees. This can include specific guidelines on
how to interact with customers, how to handle complaints and service
requests, and how to deliver consistent service experiences.
Train and empower employees: Provide ongoing training and
development opportunities for employees to help them stay up-to-date with
the latest service trends and best practices. Empower employees to make
decisions and take ownership of service experiences, so they can respond
quickly and effectively to customer needs.
Collect customer feedback: Use customer feedback to identify areas for
improvement and make necessary changes to service delivery processes.
This can include conducting customer surveys, monitoring social media and
review sites, and soliciting feedback through other channels.
Use technology: Utilize technology to streamline service delivery and
improve service quality. This can include using chatbots, self-service kiosks,
and other automated tools to reduce wait times and improve customer
experiences.
Monitor performance: Regularly monitor performance metrics such as
service speed, accuracy, and customer satisfaction to ensure that service
quality standards are being met. This can involve using dashboards and
other analytics tools to track performance and identify areas for
improvement.
Continuous improvement: Implement a culture of continuous
improvement to encourage ongoing innovation and learning. This can
involve encouraging employees to share ideas and feedback, rewarding
employees for innovation and service excellence, and investing in research
12. and development to stay ahead of customer needs and expectations.
Overall, maintaining service quality requires a proactive and customer-
centric approach that focuses on continuous improvement, ongoing training
and development, and a willingness to listen to customer feedback and adapt
to changing market conditions. By following these strategies, marketers can
help ensure that their service offerings remain relevant and competitive, and
that they continue to provide high-quality service experiences that meet the
needs and expectations of their customers.
