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1. service marketing introduction
Service can be defined as any act or performance that one party can offer to another that is essentially intangible and does not result in ownership. Services make up a large and growing portion of economic activity worldwide. There are four main categories of services: service industries and companies, services as products, customer service, and derived services. Service marketing faces unique challenges due to the intangible nature of services, inseparability of production and consumption, heterogeneity of services, and perishability. The 7 Ps of service marketing are price, place, product, promotion, physical evidence, process, and people.
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1. service marketing introduction
- 2. What is service? INTRODUCTION:- SERVICE IS ANY ACT OR PERFORMANCE THAT ONE PARTY CAN OFFER TO ANOTHER THAT IS ESSENTIALLY INTANGIBLE AND DOES NOT RESULT IN ANY OWNERSHIP -PHILIP KOTLER 2
- 3. In simple termsServices are the deeds, processes and performances. Contribution to india’s GDP and labour force by sector GDP% (2006-2007) labour (2003) Agriculture 18.5 60 Industry 26.6 12 Service 54.9 28
- 4. As we beginour discussions of service marketing and management, it is important to draw distinction between service industry and company, services as products, customer service and derived service. In normal circumstances whenever we talk about service we talk about consumer services only but services can be divided into four distinct categories.
- 5. Service industryand companies:- includes those companies and industries typically classified within the service sector whose core product is service. E.g. Taj palace hotels, indian airlines, fortis. Services as products:- represents a wide range of intangible product offerings that customers value and pay for in the market place. E.g. IBM provides information technology consulting services to market place.
- 6. Customer service:-customer service is the service provided in support of a company’s core product. Derived service:- the value derived from the service is really the service provided by good not the good itself. For example, pharmaceutical provides medical services, a razor provides barbering services.
- 7. Why service marketing Servicemarketing is very important now a days, as in most of the economies whether developed, under developed or developing the service sector is contributing a lot and it is shown by the data below United states: 78.6 Sweden 70.9 France : 77.2 Australia 70 Netherlands: 73.9 Germany 70 United kingdom: 73.4 Japan: 73.1
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- 9. 7 P’s OFSERVICE MARKETING PRICE PLACE PRODUCT PROMOTION PHYSICAL EVIDENCE PROCESS PEOPLE 9
- 10. People Physical evidence process Employees Facility design Flow of activities Recruiting Equipment Standardized Training Signage Customized Motivation Employee dress No. of steps Rewards Other tangibles Simplex Teamwork Reports Complex Customers Business cards Customer involvement Education Statements training Guarantees
- 11. Challenges and questionsfor service marketers How can service quality be defined and improved when the product is intangible and standardized? How can new services be designed and tested effectively when the service is essentially an intangible process? How can the firm be certain it is communicating a consistent and relevant image when so many elements of the marketing mix communicate to customers and some of these elements are the service providers themselves? How does the firm accommodate fluctuating demand when capacity is fixed and the service itself is perishable?
- 12. How can thefirm best motivate and select service employees who, because the service is delivered in real time, become a critical part of the product itself? How should prices be set when it is difficult to determine actual costs of production and prices may be inextricably intertwined with perceptions of quality? How should the firm be organized so that good strategic and tactical decisions are made when a decision in any of functional areas of marketing, operations, and human resources may have significant impact on the other two areas?
- 13. How can thebalance between standardization and personalization be determined to maximize both the efficiency of the organization and the satisfaction of its customers? How can the organization protect new service concepts from competitors when services processes cannot be readily patented? How does the firm communicate quality and value to consumers when the offering is intangible and cannot be readily tried or displayed?
- 14. How can theorganization ensure the delivery of consistent quality service when both the organization’s employees and the customers themselves can affect the service outcome?