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Service marketing1
This document provides an overview of services marketing. It begins by defining what services are and discusses the key service sectors. It then explains why services marketing is important given the growth of the service economy. The document outlines some of the key characteristics of services compared to goods, such as intangibility, inconsistency, perishability, and the simultaneous production and consumption of services. It also discusses the four factors known as the "4 Is" that distinguish services - intangibility, inconsistency, inventory, and inseparability. The document provides examples of different service industries and purchases. It examines the size and growth of various industry sectors. Finally, it discusses some of the challenges involved in services marketing and principles of service experience design.
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Service marketing1
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- 3. Introduction to Services Whatare services? What are the service sectors ? Why services marketing? Service and Technology Characteristics of Services Compared to Goods Services Marketing Mix Staying Focused on the Customer
- 4. What is Marketing??? Thinkabout organizations/companies (Google, Trader Joe’s, The San Jose Chamber of Commerce, World Wildlife Fund) as well as individuals (politicians, professional athletes) They all do marketing! How and why?
- 5. Marketing Definition Marketing consistsof activities designed to generate and facilitate exchanges intended to satisfy human or organizational needs or wants
- 6. Service Sectors Trade Hospitality Transport Food & beverage Communication Social & personal services Insurance Financial services
- 7. Services Purchases Usinga credit card Ridding a bus Withdrawing money from ATM Booking a cruise vacation Getting a financial advise Enrolling in a college Using a library Student accommodation Fitness club Security Counseling and career services Internet access Food counter Entertainment Getting a medical check up Watching a movie
- 8. Service sector inIndia & US
- 9. Which Industries Createdthe Most Jobs? Jobs created by industry, 2010-2013 Security 24175 Financial Services 1929 Travel & Hospitality 3416 Human Resources 13925 Consumer Products & Services 1890 Business Products & Services 2774 IT Services 5482 Energy 1822 Health 2600 Food & Beverage 4888 Media 1700 Manufacturing 2300 Retail 3969 Government Services 1250 Education 275 Logistics & Transportation 3742 Construction 1168 Environmental Services 236 Telecommunicatio ns 3500 Real Estate 1138 Computer Hardware 132 Engineering 477 Insurance 971 Advertising & Marketing 700 Software 850 .
- 10. How Big IsEach Industry Sector? Engineering$1.3B Education$1.2B Computer Hardware$1.2B Media$1.1B Environmental Services$785M Retail$8.4B Manufacturing$7.5B
- 11. How Big IsEach Industry Sector? Health$21.8B Business Products & Services$18.0B IT Services$19.3B Real Estate$8.9B Telecommunications$9.4B Security$3.3B Construction$10.3B Travel & Hospitality$3.6B Consumer Products & Services$10.7B Insurance$4.5B Logistics & Transportation$11.1B Software$6.4B Human Resources$12.3B Food & Beverage$6.5B Financial Services$17.2B Government Services$6.5B Energy$17.5B Advertising & Marketing$7.4B
- 12. Service sector inIndia Service sector comprises of almost 58 % of the total GDP ITES plays an important role in this increase with highly skilled & educated work force with low cost
- 13. Factors stimulating ServiceInd. Social Changes Government Policies Business Trends Globalization Advances in Information Technology
- 14. Definition of services Servicesare economic activities offered by one party to another , most commonly employing time-based performances to bring about desired results in the recipients themselves or in objects or other assets for which purchasers have responsibility.
- 15. Definition of services Services are deeds, processes & performances . Most authorities consider the service sector to include all economic activities whose output is not a physical product or construction ,is generally consumed at the same time it is produced and provides added value in forms (such as convenience ,amusement ,timeliness ,comfort or health)
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- 17. Why Service Marketing Services dominate Indian & worldwide economies Services are growing dramatically Service leads to customer retention and loyalty Service leads to profits Services help manufacturing companies differentiate themselves
- 18. Comparing Goods andServices
- 19. Why do firmsfocus on Services? Services can provide higher profit margins and growth potential than products Customer satisfaction and loyalty are driven by service excellence Services can be used as a differentiation strategy in competitive markets
- 20. Why study ServicesMarketing? Service-based economies Service as a business imperative in manufacturing and IT Deregulated industries and professional service needs Services marketing is different Service equals profits
- 21. What is Service?The Old View Service is a technical after-sale function that is provided by the service department. Old view of service = Customer Service center Old: Service =wrench time
- 22. The New View Service includes every interaction between any customer and anyone representing the company, including: Dealers Salespeople Receptionists and Schedulers Management and Executives Service Employees Billing and Accounting Personnel Web site and any e-channel Interaction
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- 26. Southwest Airlines: funand Wi fi
- 27. Service Can Meanall of These Service as a product Customer service Services as value add for goods Service embedded in a tangible product
- 28. Characteristics of Services Comparedto Goods Intangibility Heterogeneity Perish ability Simultaneous Production and Consumption
- 29. 4 Is OfService Marketing Intangibility Inconsistency Inventory Inseparability
- 30. Intangibility What thischaracteristic tells us is that once a service has been performed; there is nothing to take home. In essence, services aren’t physical so they can’t be owned. As services can’t be seen or touched, then assessing their value can be quite difficult. But there is a way around this. Here are a few thoughts to add the tangibility factor to your service business.
- 31. How to addthe tangibility to your service? Ask for Reviews – Reviews or testimonials give great social proof to the ability of your services. It shows that a. other people have used your service and b. their problem was solved by using your services. There is nothing quite like a testimonial to add substance to your offering. Encourage reviews and ask for testimonials from your clients. Give Actions – If you provide education or training, make sure that all students have a format whereby they can take action on your learnings. Through implementing what you taught or explained to them, they get a sense of achievement. This leads to a feeling of accomplishment and when someone accomplishes something, they feel good about themselves. They start to see that anything is possible. So you’re adding feelings and sight to your intangible service.
- 32. Inconsistency What thischaracteristic informs is that everyone is different. While you may get the same product every time you buy it, chances are that it tastes the same, looks the same or feels the same. It’s not quite the same with services. Every employee is not the same as the next person. And even though you may get the same great person all the time, there is a 1% chance that they may not be great. It’s human nature; most services’ businesses are people-based and personal performance can vary by workload, the time of day and just life in general.
- 33. How to bemore consistent when delivering your service Look out for signs of tiredness – Don’t wait for complaints. If you see an employee is tired, then step in. This is particularly relevant in a restaurant, hotel or service based business. Customer care training – It is essential to do regularly and not just at the induction of an employee. Make sure that all staff are trained on the lifetime value of a customer and to meet and exceed expectations. Do refresher courses every month or quarter.Undertake mystery shopper assessments so that weaknesses can be identified and improved upon.
- 34. Inseparability This characteristicexplains that it is impossible to distinguish between the service and the server. The production of the service can’t be separated from its consumption. A good example is a hair dresser. You can’t really separate the hair dresser from the cut/colour/blowdry. Similarly with a lecture, you can’t separate the lecture from the lecturer.
- 35. How to helpseparate your service from the server Use copywriting – Describe in as much emotional detail what your customer will get or how they will benefit from using your service. That way, the benefit of using your service becomes the primary motivator. Highlight the individuality of each employee, and what they bring to the service. This again emphasizes the benefit of or the result of using your service.
- 36. Inventory This characteristic explainsthe last difference between products and services; that services can not be stored. Unlike warehouses full of products, service providers can’t store services for future uses.
- 37. How to havestock to meet the de mand of your service Be strict with your time – Learn to say no. If you trade hours or seats or haircuts or medical appointments, then you need to learn the fine art of saying no. If you’re under- pressure, then by not saying no, you lend yourself to being inconsistent (over worked and over stretched), thus leading to giving a bad experience. Monitor demand – When demand fluctuates, it can be a real challenge to keep your standards up. As a service provider, you can’t order more of what you provide. Monitor demand fluctuations in your business, perhaps, they are seasonal, so take on staff or outsource as necessary.
- 38. Challenges for Services Defining and improving quality Ensuring the delivery of consistent quality Designing and testing new services Communicating and maintaining a consistent image Accommodating fluctuating demand Motivating and sustaining employee commitment Coordinating marketing, operations, and human resource efforts Setting prices Finding a balance between standardization versus customization
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- 46. Stages Of EconomicDevelopment Preindustrial Society Industrial Society Post Industrial Society
- 47. The four Realmsof an experience Entertainment (Movie) Education (language) Estheticism (Tourist) Escapism (Scuba diving ) Passive Active Absorption Immersion Environmental Relationship Customer Participation
- 48. Sources Of ServiceGrowth • Push theory of innovation(3M post it notes ) • Pull theory of innovation(Cash mgmt ac/ by Merrill Lynch ) Innovation • Nuclear families • Two income families • Eating out ,day care ,time saving services, recreational activities Social Trends
- 49. Five principles ofService Experience Design Theme Mix in memor- abilia Eliminate Negative cues Engage all five senses Positive cues
- 50. O-Hare Chicago Parking Hereare several parking options at O'Hare International Airport ranging from valet service adjacent to the domestic terminals to long- term/economy parking. As you approach the airport, signs on the area roadways will guide you to the parking lots. Each floor is painted with distintive colour and plays a distinctive music like rock ,classical etc. Impressions with Positive Cues
- 51. O-Hare Chicago Parking Short-TermParking The Main Parking Lot at O'Hare International Airport is recommended for parking of short duration (less than three hours) or daily parking when close access to the terminals is preferred.
- 52. Valet Parking Would youlike your car to be waiting for you? Valet parking is available in the main parking garage.
- 53. Economy Lots-Long-Term Parking LongTerm Parking (Economy) Economy Lots E, F and G are recommended for long- term parking. These lots offer the least expensive parking rates and provide free transportation to the terminals.
- 54. International Lot International ParkingLot D Use the International Parking Lot D for all passengers arriving from or departing to many international destinations.
- 55. Forum Shops –LasVegas Theme the experience
- 56. Cinemark Theatre EliminateNegative cues You would find talking trash container which say “Thank you when you throw the trash!!
- 57. Club Med. Mix inMemorabilia
- 58. Rainforest Café Engage allfive senses
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- 60. Assignment-1 Form groups of5 each Take any one service industry and explain the Service experience design of it. Be innovative……That’s the way to be business….
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