Mktg Of Services


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A brief overview of services marketing norms.

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Mktg Of Services

  1. 1. Marketing of Services By Syed Haider Raza
  2. 2. Defining a Service <ul><li>Any benefit or activity that is essentially intangible and does not result in ownership of anything. It’s production may or may not be tied to a physical product. (Kotler) </li></ul><ul><li>Service clients pay for expertise, experience, advice, skills, knowledge and the benefits they bring. The benefits may last but service itself is of limited duration. </li></ul>
  3. 3. The Core Product <ul><li>This is the core benefit the product brings. </li></ul><ul><li>Insurance/Security brings peace of mind. </li></ul><ul><li>Hairdresser’s core benefit is to enable people to look and feel good. </li></ul><ul><li>A good cricket team provides us with emotions and enjoyment. </li></ul><ul><li>A car mechanic enables us to enjoy safe, reliable motoring. </li></ul>
  4. 4. Characteristics of Services <ul><li>Intangible : Lack of physical substance. </li></ul><ul><li>Inseparability : Cannot be separated from it’s provider. Does not exist until used. Production at the same time as delivery. </li></ul><ul><li>Heterogeneity : Variability is inevitable because each service is unique. </li></ul><ul><li>Perishability : Cannot be stored. </li></ul><ul><li>Inability to Own : No transfer of property. </li></ul>
  5. 5. Manufacturing v Service Manufacturing Service Output Tangible Intangible Customer Contact Low High Labour Content Low High Uniformity of input High Low Output Uniformity High Low Productivity Measurement Easy Difficult Opportunity to correct quality problems High Low
  6. 6. Unique Aspects of MS <ul><li>The Service usually cannot be demonstrated (it does not exist before actual purchase). </li></ul><ul><li>Direct Contact is necessary. </li></ul><ul><li>Selling is a crucial part of the service. </li></ul><ul><li>Many aspects of quality are difficult to measure. </li></ul><ul><li>Services cannot be automated. </li></ul>
  7. 7. Location, location & Location <ul><li>Production, consumption & selling are spatially united. </li></ul><ul><li>Provider and product both are transportable. As a result site of service can be of huge importance. </li></ul><ul><li>The service cannot normally be exportable, but service delivery system can </li></ul>
  8. 8. Criteria for Services Quality Assesment <ul><li>Services are dependant on human beings who in turn are not always consistent . </li></ul><ul><li>Tangible Features: Physical facilities, the personnel delivering the service. </li></ul><ul><li>Reliability: The ability to perform dependably & accurately. </li></ul><ul><li>Responsiveness: Willingness to help. </li></ul><ul><li>Assurance: Knowledge, courtesy & confidence of the service providing staff. </li></ul><ul><li>Empathy: Caring, individualized attention. </li></ul>
  9. 9. Marketing Mix: the 7 P’s <ul><li>For marketing services it is appropriate to refer to 7 P’s </li></ul><ul><li>Product/Service </li></ul><ul><li>Price </li></ul><ul><li>Promotion </li></ul><ul><li>Place </li></ul><ul><li>Process </li></ul><ul><li>People </li></ul><ul><li>Physical evidence </li></ul>
  10. 10. People <ul><li>The delivery of a service is reliant on people-so people are important part of marketing mix </li></ul><ul><li>Good customer relations are important. </li></ul><ul><li>The key qualities required are : </li></ul><ul><li>Capability Reliability </li></ul><ul><li>Efficiency Assurance </li></ul><ul><li>Availability Responsiveness </li></ul><ul><li>Effectiveness Empathy </li></ul>
  11. 11. Physical Evidence <ul><li>It is the tangible element of a service. </li></ul><ul><li>Premises </li></ul><ul><li>Equipment </li></ul><ul><li>Peripheral products </li></ul><ul><li>Literature explaining the service </li></ul><ul><li>Evidence to support claims whatever they are. </li></ul>
  12. 12. Process <ul><li>This refers to the way service is provided. In part we judge the service on following parameters: </li></ul><ul><li>Waiting time </li></ul><ul><li>The payment process/mode </li></ul><ul><li>Order processing & delivery </li></ul><ul><li>Service delivery at both ends </li></ul><ul><li>Achievement of agreed goals </li></ul>
  13. 13. Effective Marketing Service <ul><li>Achieves preset objectives </li></ul><ul><li>Meets customer needs </li></ul><ul><li>Is balanced and consistent </li></ul><ul><li>Creates a competitive advantage </li></ul><ul><li>Matches corporate resources </li></ul>
  14. 14. Thank you