2. Have you experienced it?
http://www.youtube.com/watch?v=OaZnCu1hc0I
http://www.youtube.com/watch?v=PyG2jtA_rd8
3. What are services?
In the simplest term services are deeds, processes and
performances
Services are a form of product that consist of
activities, benefits, or satisfactions offered for sale
that are essentially intangible and do not result in the
ownership of anything.
More elaborately services can be defined as, “ Service
include all economic activities whose output is not a
physical product or construction, is generally
consumed at the time it is produced, and provides
added value in forms (such as convenience,
amusement, timeliness, comfort, or health) that are
essentially intangible concerns of its first
4. CChhaalllleennggeess ffoorr SSeerrvviicceess
Defining and improving quality
Communicating and testing new services
Communicating and maintaining a consistent
image
Motivating and sustaining employee
commitment
Coordinating marketing, operations and
human resource efforts
Setting prices
Standardization versus personalization
5. Examples ooff SSeerrvviiccee IInndduussttrriieess
Health Care
hospital, medical practice, dentistry, eye care
Professional Services
accounting, legal, architectural
Financial Services
banking, investment advising, insurance
Hospitality
restaurant, hotel/motel, bed & breakfast,
ski resort, rafting
Travel
airlines, travel agencies, theme park
Others:
hair styling, pest control, plumbing, lawn maintenance,
counseling services, health club
10. Implications ooff IInnttaannggiibbiilliittyy
Services cannot be inventoried
Services cannot be patented
Services cannot be readily displayed
or communicated
Pricing is difficult
11. Implications ooff HHeetteerrooggeenneeiittyy
Service delivery and customer satisfaction depend on
employee actions
Service quality depends on many uncontrollable
factors
There is no sure knowledge that the service delivered
matches what was planned and promoted
12. Implications ooff SSiimmuullttaanneeoouuss PPrroodduuccttiioonn aanndd
CCoonnssuummppttiioonn
Customers participate in and affect the
transaction
Customers affect each other
Employees affect the service outcome
Decentralization may be essential
Mass production is difficult
14. SSeerrvviicceess aarree DDiiffffeerreenntt
Goods Services Resulting Implications
Tangible Intangible Services cannot be inventoried.
Services cannot be patented.
Services cannot be readily displayed or communicated.
Pricing is difficult.
Standardized Heterogeneous Service delivery and customer satisfaction depend on
employee actions.
Service quality depends on many uncontrollable factors.
There is no sure knowledge that the service delivered
matches what was planned and promoted.
Production
separate from
consumption
Simultaneous
production and
consumption
Customers participate in and affect the transaction.
Customers affect each other.
Employees affect the service outcome.
Decentralization may be essential.
Mass production is difficult.
Nonperishable Perishable It is difficult to synchronize supply and demand with
services.
Services cannot be returned or resold.
15. Internal
Marketing
Interactive Marketing
External
Marketing
Company
(Management)
“enabling the
promise”
Employees Customers
“delivering the promise”
“setting the
promise”
16. Services Marketing Triangle AApppplliiccaattiioonnss
EExxeerrcciissee
Focus on a service organization. In the context
you are focusing on, who occupies each of the
three points of the triangle?
How is each type of marketing being carried
out currently?
Are the three sides of the triangle well aligned?
Are there specific challenges or barriers in any
of the three areas?
17. WWaayyss ttoo UUssee tthhee
SSeerrvviicceess MMaarrkkeettiinngg TTrriiaannggllee
Overall Strategic
Assessment
• How is the service
organization doing
on all three sides of
the triangle?
• Where are the
weaknesses?
• What are the
strengths?
Specific Service
Implementation
• What is being promoted
and by whom?
• How will it be delivered
and by whom?
• Are the supporting
systems in place to
deliver the promised
service?
19. SSeerrvviicceess MMaarrkkeettiinngg MMiixx::
77 PPss ffoorr SSeerrvviicceess
Traditional Marketing Mix
Expanded Mix for Services: 7 Ps
Building Customer Relationships Through People,
Processes, and Physical Evidence
Ways to Use the 7 Ps
20. Traditional MMaarrkkeettiinngg MMiixx
All elements within the control of the firm
that communicate the firm’s capabilities and
image to customers or that influence customer
satisfaction with the firm’s product and services:
Product
Price
Place
Promotion
23. Expanded Marketing MMiixx ffoorr SSeerrvviicceess
((ccoonntt------))
PEOPLE PHYSICAL
EVIDENCE
PROCESS
Employees Facility design Flow of activities
Customers Equipment Number of steps
Communicating
culture and values
Signage Level of customer
involvement
Employee research Employee dress
Other tangibles
24. WWaayyss ttoo UUssee tthhee 77 PPss
Overall Strategic
Assessment
How effective is a firm’s
services marketing mix?
Is the mix well-aligned
with overall vision and
strategy?
What are the strengths
and weaknesses in terms
of the 7 Ps?
Specific Service
Implementation
Who is the customer?
What is the service?
How effectively does the
services marketing mix for
a service communicate its
benefits and quality?
What
changes/improvements
are needed?
