This document discusses key concepts in services marketing. It begins by noting the importance of the services sector in modern economies. It then defines services and categorizes them into four groups based on whether they involve people or possessions and tangible or intangible actions. The document outlines eight common features of services and discusses the 7Ps marketing mix framework for services. It introduces strategies for focusing a service offering and positioning attributes. A model of service quality with five dimensions is presented. The main part of the document explains the Gaps Model of service quality, which identifies six gaps between customer expectations and service provider perceptions and delivery. Strategies are provided to address each gap, such as improving market research, setting clear standards, ensuring delivery

1. Services Marketing
Understanding services, its customers, and its market
The gaps model of service quality

2. Why services?

3. YOUR expectations from
course, facilitator, and
classmates

4. Some backgrounds
Services dominate the
economy in most nations.
Most new jobs are
generated by services.
Offers a personal
competitive advantage.

5. Stimulating
factors
Government policies
Social changes
Business trends
Advances in information technology
Globalization

6. Services are economic activities offered by one party to
another. Often time-based, performances bring about
desired results to recipients, objects, or other assets for
which purchasers have responsibility.
Services are deeds, processes, and performances.

7. Four categories of services
People Possessions
Tangible actions
People-processing
(at people’s bodies)
Possessions-processing
(at physical possessions)
Intangible actions
Mental stimulus
processing
(at people’s mind)
Information
processing
(at intangible assets)

8. Examples of four
categories

9. Eight common features
Difference Implication
Most services cannot be inventoried Customers may be turned away or have to wait
Intangible elements dominate value creation Harder to evaluate and distinguish service
Difficult to visualize and understand Greater risk and uncertainty
Customers may be involved in co-production Interaction with provider’s equipment, facilities,
and system
People may be part of the service experience Service personnel and other customers can shape
the experience and affect satisfaction
Operational inputs and outputs tend to vary Harder to maintain consistency, reliability, and
service quality
The time factor often assumes great importance Customers spend time wisely
Distribution through non-physical channels
Information-based services through electronic
channels; but cannot for physical activities/goods

10. Seven Ps
PRODUCT
PRICE
PLACE
PROMOTION
PROCESS
PHYSICAL ENV
PEOPLE
PRODUCT
PRICE
PLACE
PROMOTION

11. Service focus strategies
Wide
service offering
Narrow
service offering
Few markets Market focused
Fully focused
(service and market
focused)
Many markets
Unfocused
(everything for everyone)
Service focused

12. Examples Strategies
Market focused
Fully focused
Unfocused
Service focused
Janitorial
Hobby stores
Some malls
Cafe

13. Attributes for positioning
Important attributes: important to the consumer, but that may
not be important for buying decisions.
Determinant attributes: significant differences between
competing alternatives.

14. Break

15. Service quality dimensions
Tangibles - appearance of physical
environment
Reliability - dependable and
accurate performance
Responsiveness - promptness and
helpfulness
Assurance - credibility, security,
competence, and courtesy
Empathy - easy access, good
communications, and customer
understanding

16. ServQual Dimensions for
Bank
Hotel
Hospital

17. The gaps model
Word of mouth Personal needs Past experience
Expected service
Perceived service
Service delivery
Perception
translation into
servqual specs
Management
perception of
expected service
External
communications
to consumers
CONSUMER
SERVICE FIRM
Gap 1
Gap 2
Gap 3
Gap 5
Gap 6
Gap 4

18. The gaps model
Gap 1: the knowledge - educate management about what customers expect
Gap 2: the policy - establish the right service processes and specify standards
Gap 3: the delivery - ensure that performance meets standards
Gap 4: the communications - ensure the communications promises are realistic and
correctly understood by customers
Gap 5: the perception - tangibilize and communicate the service quality delivered
Gap 6: the service quality - close gap 1 to 5 to consistently meet customer
expectation

19. Share your gap experience
as service consumers

20. Gap 1: The knowledge
Sharpen market research procedures
Implement an effective customer feedback system
Increase interactions between consumers and management
Facilitate and encourage communication between front-liner
and management

21. Gap 2: The policy
Get customer service process right
Develop tiered service products that meet customer
expectations
Set, communicate, and reinforce measurable customer-
oriented service standards for all work units

22. Gap 3: The delivery
Ensure that customer service teams are motivated and able to
meet service standards
Install the right technology, equipment, support processes,
and capacity
Manage customers for service quality

23. Gap 4: The communications
Educate managers responsible for sales and marketing
communications about operational capabilities
Ensure that communications content sets realistic customer
expectations
Be specific with promises and manage customers’
understanding of communication content

24. Gap 5: The perceptions
Make service quality tangible and communicate the service
quality delivered
Concern with service environment, physical evidence, and
information quality.

25. Gap 6: The service quality
Gap 6 is the accumulated outcome of all the preceding gaps.
It will be closed when Gaps 1 to 5 have been addressed.

26. Class conclusion and
questions

27. Class assignments
case and final presentation

31. Need your feedback
www.servicespmbs.weebly.c0m