OBJECTIVES THROUGH THE SESSION Why services? What are services? Five I‟s of services. The Marketing Mix – extended [7P‟s]. What is services marketing triangle?
WHY SERVICES? From the morning when we wakeup with the message „Gud Mrning!‟ By the day - dry cleaning, entertainment, transportation, medical care, telecom, internet, electricity, personal care and consultancy etc. etc. Till late night television show… … And the whole night security. The most important it contributes 54.9% in GDP
WHAT ARE SERVICES? For a layperson, services are essentially intangibles. Their purchase does not result in the ownership of anything physical. Nimit Chowdhary In most simple terms, services are deeds, processes and performances. Valarie A Zeithmal et. al. For common we can understand it as, services are the business of promise.
FIVE „I‟S OF SERVICES Intangibility – Conceptual connotations and experience only. Inconsistency – Variability of outcome and enacted exclusively each time. Inseparability – Simultaneity of production and consumption. Inventory Less – Ephemeral, can not be stored for future use and perishable. Involvement – Participation of customer in service delivery process.
THE MARKETING MIX [7P‟S] First 4P‟s – Product, Price, Place and Promotions you must have discussed in the marketing management. Our issue is to discuss the extended 3P‟s those are People, Process and Physical evidence.
EXTENDED 3P‟S [CONTEXTUAL CUES] People Participants involved in a service delivery. Employees, Customers and Co-customers. Process Way of creating and delivering a service. Procedure, Task, Schedule, Mechanism, Routines and Activities. Physical Evidence Environment and place where the service is to be delivered. Physical Amenities like – signage parking and décor.
WHAT IS SERVICES MARKETING TRIANGLE? Company (Management) Internal Marketing External Marketing“enabling the promise” “setting the promise” Employees Interactive Marketing Customers “delivering the promise”
WAYS TO USE THE SERVICES MARKETINGTRIANGLEOverall Strategic Specific ServiceAssessment Implementation How is the service What is being organisation doing on promoted and by all three sides of the whom? triangle? How will it be delivered and by whom? Where are the Are the supporting weaknesses? systems in place to What are the deliver the promised strengths? service?
EXTERNAL AND INTERACTIVE MARKETING External Marketing : "Setting the Promise" Marketing to END-USERS. Involves pricing strategy, promotional activities, and all communication with customers. Performed to capture the attention of the market, and interest in the service. Interactive Marketing : (Moment of Truth, Service Encounter) This refers to the decisive moment of interaction between the front-office employees and customers. This step is of utmost importance, because if the employee falters at this level, all prior efforts made towards establishing a relationship with the customer, would be wasted.
INTERNAL MARKETING Internal Marketing : "Enabling the Promise" Marketing to EMPLOYEES. Involves training, motivational, and teamwork programs, and all communication with employees. Performed to enable employees to perform the service effectively, and keep up the promise made to the customer. “Viewing employees as internal customers, viewing jobs as internal products and then endeavoring to offer products that satisfy the needs and wants of these internal customers while addressing the objectives of the organisation.” - L.L. Berry (1981)
LEARNING AFTER THE SESSION Through the session we have learned: Why we need to study services marketing as a separate subject? What do we mean by services and services marketing? Characteristics of services marketing. Marketing MIX for services. What is services marketing triangle? How triangle get functioned in services delivery?
REFERENCES Chowdhary, N. and Prakash, M. (2005). Text book of marketing of services: The Indian experience. Delhi: Macmillan India Ltd. Woodruffe, H. (1995). Services Marketing. London: Pearson Professional Ltd. Zeithmal, V. A., Bitner, M. J., Gremler, D. D. and Pandit, A. (2006). Services Marketing: Integrating customer focus across the firm. New York: McGraw Hill Companies Inc. Prakash, M., Kaurav, R. P. S. and Sharma, A. (2011). Changing scenario of services marketing: A reference book. New Delhi: Wisdom Publication House.