Service ,Service marketing, SERVICE TRIANGLE ,PURCHASE PROCESS

3. Services Marketing Concept
• Service marketing is marketing based on
relationship and value.
• It may be used to market a service or a
product.
• With the increasing prominence of services in
the global economy, service marketing has
become a subject that needs to be studied
separately.

4. • The American Marketing
Association, defines services as
activities, benefits, or satisfactions
that are offered for sale or provided
with sale of goods to the customer,
that is, pre-sale and after-sales
services.
• Berry states, ‘while a product is an
object, devise or physical thing, a
service is a deed, performance, or an
effort’.

5. Features of Services:
• Intangibility:
• A physical product is visible and concrete.
Services are intangible.
• The service cannot be touched or viewed, so it
is difficult for clients to tell in advance what
they will be getting.
• For example, banks promote the sale of credit
cards by emphasizing the conveniences and
advantages derived from possessing a credit
card.

6. Inseparability
• Personal services cannot be separated from
the individual.
• Services are created and consumed
simultaneously.
• The service is being produced at the same
time that the client is receiving it; for example,
during an online search or a legal consultation.
• Dentist, musicians, dancers, etc. create and
offer services at the same time.

7. Heterogeneity (or variability)
• Services involve people, and people are all
different.
• There is a strong possibility that the same enquiry
would be answered slightly differently by
different people (or even by the same person at
different times).
• It is important to minimize the differences in
performance (through training, standard setting
and quality assurance).
• The quality of services offered by firms can never
be standardized.

8. Perishability
• Services have a high degree of perishability.
Unused capacity cannot be stored for future use.
• If services are not used today, it is lost forever.
• For example, spare seats in an aeroplane cannot
be transferred to the next flight.
• Similarly, empty rooms in five-star hotels and
credits not utilized are examples of services
leading to economic losses.
• As services are activities performed for
simultaneous consumption, they perish unless
consumed.

9. Changing demand
• The demand for services has wide fluctuations
and may be seasonal.
• Demand for tourism is seasonal, other
services such as demand for public transport,
cricket field and golf courses have fluctuations
in demand.

10. Pricing of services
• Quality of services cannot be standardized.
• The pricing of services are usually determined
on the basis of demand and competition.
• For example, room rents in tourist spots
fluctuate as per demand and season and
many of the service providers give off-season
discounts.

11. Direct channel
• Usually, services are directly provided to the
customer.
• The customer goes directly to the service
provider to get services such as bank, hotel,
doctor, and so on.
• A wider market is reached through franchising
such as McDonald’s and Monginis.

12. Problems in Marketing Services:
• A service cannot be demonstrated.
• Sale, production and consumption of services takes place
simultaneously.
• A service cannot be stored. It cannot be produced in
anticipation of demand.
• Services cannot be protected through patents.
• Services cannot be separated from the service provider.
• Services are not standardized and are inconsistent.
• Service providers appointing franchisees may face
problems of quality of services.
• The customer perception of service quality is more directly
linked to the morale, motivation and skill of the frontline
staff of any service organization.

13. Service triangle or The service marketing
triangle
• The service marketing triangle or the Service
triangle as it is commonly called, underlines
the relationships between the various
providers of services, and the customers who
consume these services.
• DEVELOPED BY CHRISTIAN GRONROSS

14. • As we know, relationships are most
important in the services sector.
• The service triangle outlines all the
relationships that exist between the
company, the employees and the customers.
• Furthermore, it also outlines the importance
of systems in a services industry and how
these systems help achieve customer
satisfaction.

16. • As the name suggests, the service marketing
triangle can also be used to market the service
to consumers.
• The marketing completely depends on the
interaction going on between the customer
and the service provider.
• We will look at each of these interactions in
detail, and also read on how to market to your
customer based on the interaction.

17. • There are 6 main relationships in the Service
triangle.
• And based on these relationships, there are
three ways to apply marketing tactics.

18. Company to Customers
• One of the critical thing is to communicate the
service strategy to the customers.
• Most of the E-commerce companies are
nowadays employed in convincing the customers
to buy from their portal only.
• For this buying, they are communicating various
service advantages which the customers have.
• Communication of the service strategy to
customers is important to build the trust of
customers and hence to convert the customers to
be loyal to the company.

19. Company to employees
• Another important relationship in the service
triangle is that between the company and the
employees.
• Imagine an Airline where the flight attendants
themselves are frustrated with the company.
• You, as a customer, will land up with the poorest
services.
• Hence, training employees, building value and
trust, and empowering employees are some of
the ways that the company can make their
employees a positive influencing force for the
customers.

20. Company to systems
• To keep customers happy, efficient and productive
systems need to be developed.
• Imagine your bank in the 1960’s where everything was
done by paper.
• If you wanted to transfer money, you will have to fill
many forms, and the recipient had to fill many forms.
Ultimately it was a tedious process.
• However, due to advanced systems, nowadays you can
not only transfer money to others sitting at home, you
can practically do 80% of the banking work sitting at
home from your laptop.
• That’s the importance of systems in a service marketing
triangle.

21. Customers to systems
• Although building systems are important, these
systems should be most useful to customers.
• Taking the same example of banking systems above, it
is surprising that even today when you go to a bank,
there is a queue.
• Look at retail stores. There’s always a big line to check
out.
• The interaction between customer and system is
critical to build the service brand.
• Taking the example of E-commerce systems, when the
customer is promised various service advantages, and
when he fails to return a product due to system errors
or logistics errors, he becomes dissatisfied with the
service..

22. Employees to system
• Not only do systems leave customers frustrated,
they also leave the employees frustrated.
• Imagine a McDonald’s where orders taken at the
front desk are not reaching the kitchen.
• Or imagine a service center, where although you
have entered a grievance, the employee is not
getting your complaint and hence not calling you.
• Ultimately it is the employee on whom you are
going to get angry!!

23. The most important relationship in
the service triangle –
Employee to Customers
• The employee to customer interaction is also
known as the “moment of truth” or “critical
incidents”.
• A single customer can become dissatisfied with
the way the employee treated him.
• Or that single customer can buy a lot of material
from the same store, because the employee
treated him or her like a king or queen.

24. Once your employees starts treating the
customer as if they are really king, the whole
service triangle gets completed, and you will
get the best results from all processes
employed.

26. • There are 3 types of marketing which
happen within the service marketing triangle
• Internal marketing – Marketing from
the company to the employees
• External marketing – Marketing from
the company to the customers
• Interactive marketing – Marketing
between the customers and the
employees

27. Internal marketing in the service
triangle
• Holistic marketing is most used when internal marketing is
in effect.
• An advertising firm always tries to keep its own employees
motivated.
• They are given a hell lot of parties and outings just so that
they are in a jovial mood. And they need to be in a jovial
mood because the rest of the times they are using their
creative brains very hard to give the ultimate service to
their customers.
• Furthermore, these same advertising companies empower
their employees to take the right decisions in front of
customers.
• This empowerment goes a long way in building motivation
and confidence.

28. External Marketing
• Marketing from the company to the customers.
• This is the most common type of marketing which
we, as customers, encounter in the market.
• The various types of service marketing can be
advertising, sales promotions, public
relations, direct marketing, or more prominently,
internet marketing in today’s age.

29. Interactive marketing
• The marketing which happens on a retail store, in
a restaurant, in a mall, in a bank, or in any format
where the customer comes in touch with the
employee, is known as interactive marketing.
• This marketing within the service triangle
happens between the customers and the
employees.
• Interactive marketing is also a strong way to
influence customers.
• It is most commonly used to help customers
come to a decision with regards to their purchase
decision.

30. • In essence, there are two main differences
between the services sector and the
manufacturing sector.
• One is that the services sector needs to be more
flexible for their customers.
• And second is, that this flexibility brings stress,
and a services guy should be able to deal with
stress.
• The service marketing triangle is an excellent
representation of all the interactions which
happen within a services sector, and accordingly
how different forms of marketing can be used
based on the interactions happening.

31. Purchase Process for Services
Need Arousal
Recognition of the Need
The Level of Involvement
Search for Information and Identification of Alternatives
Evaluation of Alternatives
Decision
Purchase Action and Other Decisions
Post-purchase Behaviour and Feelings