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Service characteristic of hospitality and tourism marketing
This document discusses service characteristics that affect marketing in the hospitality and tourism industries. It identifies four key characteristics: intangibility, inseparability, variability, and perishability. It then explains several marketing strategies that are useful for service businesses, including managing differentiation, service quality, customer complaints, employee management, and balancing capacity and demand. The overall document provides an outline and overview of service characteristics and how they relate to marketing strategies in the hospitality and travel sectors.
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Service characteristic of hospitality and tourism marketing
- 1. Free Powerpoint Templates Page1 Free Powerpoint Templates Service characteristic of hospitality and tourism marketing kurniawangilang@yahoo .com
- 2. Free Powerpoint Templates Page2 OUTLINE • Describes service culture • Identify service characteristic that affect the marketing • Explain how marketing strategies are useful in the hospitality and travel industries.
- 3. Free Powerpoint Templates Page3 Service culture “The quality of the service is in a risky state – it is in the hands of the service workers who ‘produce’ and deliver it.” Karl Albrecht (German entrepreneur)
- 4. Free Powerpoint Templates Page4 Service culture • The service culture focuses on serving and satisfying the customer • Empowers employees to solve customer problems • For most non industrial country service industry contribute major GDP
- 5. Free Powerpoint Templates Page5 Service Characteristics Characteristic of service marketing 1. Intangibility 2. Inseparability 3. Variability 4. Perishability
- 6. Free Powerpoint Templates Page6 Service Characteristics Characteristic of service marketing 1. Intangibility 2. Inseparability 3. Variability 4. Perishability
- 7. Free Powerpoint Templates Page7 Service Characteristics Intangibility Inseparability Variability Perishability Can’t be seen, tasted, felt, heard, or smelled before purchase. Can’t be separated from service providers. Quality depends on who provides them and when, where and how. Can’t be stored for later sale or use.
- 8. Free Powerpoint Templates Page8 Service Characteristics • What is service? A service is a process consisting of a series of more or less intangible activities Interaction between the customer and service employees, physical resources or goods and/or systems Provided as solutions to customer problems
- 9. Free Powerpoint Templates Page9 Service Characteristics Intangible, associated with experience • Tangibilizing the intangible – Create strong organization image – Engage in post-purchase communication – Stimulate “Word of Mouth” & Publicity
- 10. Free Powerpoint Templates Page10 Service Characteristics Inseparability, the customer becomes part of the service production - Service encounter: ü Moment of truth ü Communication
- 11. Free Powerpoint Templates Page11 Service Characteristics Variability, associated with lack of consistency • The quality depends on who provides, when, and where they provides • Stressing on customization and Customer Relationship Management
- 12. Free Powerpoint Templates Page12 Service Characteristics Perishability, service can’t be stored • There is no inventory, thus it should be sold in same day • Managing demand and capacity
- 13. Free Powerpoint Templates Page13 Service Characteristics
- 14. Free Powerpoint Templates Page14 Three Types of Marketing in Service Industries
- 15. Free Powerpoint Templates Page15 Marketing strategies for service business 1. Managing differentiation 2. Managing service quality 3. Resolving customer complaint 4. Tangibilizing the products 5. Managing employee 6. Managing perceived risk 7. Managing capacity and demand
- 16. Free Powerpoint Templates Page16 Marketing strategies for service business 1. Managing differentiation Differentiate the product based on three ways: 1. people 2. physical evidence 3. process
- 17. Free Powerpoint Templates Page17 Marketing strategies for service business 2. Managing service quality Exceed the customer service-quality expectation “Promise only what you can deliver, deliver more than you promise” (American Express)
- 18. Free Powerpoint Templates Page18 Marketing strategies for service business 3. Resolving customer complaint “ talk less….do more….”
- 19. Free Powerpoint Templates Page19 Marketing strategies for service business 4. Tangibilizing the products Providing “evidence” of the service: – Promotional Material – Physical Environment – Employee appearance – Etc
- 20. Free Powerpoint Templates Page20 Marketing strategies for service business 6. Managing employee • Training and motivating • Reward and punishment • Human capital approach
- 21. Free Powerpoint Templates Page21 Marketing strategies for service business 7. Managing capacity and demand Change the capacity or change the demand? Customer complaints increase when service firms operate above 80% capacity Maximizing service capacity and quality during times of high and low demand
- 22. Free Powerpoint Templates Page22 THANK YOU