This document outlines the marketing management process for services, emphasizing customer orientation and competitive strategy formulation through target market identification and marketing mix development. It discusses the importance of market planning, analysis of marketing opportunities, and the selection of target markets, as well as the implementation of the marketing mix. Additionally, the document highlights the interdependence of marketing, operations, and human resources within service management.

1. CHAPTER - 3
SERVICES MARKETING
MANAGEMENT
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2. Introduction
Marketing management process for
services
Organizing marketing planning
Analyzing marketing opportunities
Selecting target market
Developing the service marketing mix
Managing & controlling marketing
effort
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3. INTRODUCTION
Service marketing management
represents marketing concept in action.
The service firm must be customer
oriented & must develop a competitive
marketing strategy, that strategy
formulation consists of two steps:
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4. * Identifying target markets and
their needs
* Developing a marketing mix that
satisfies the unique needs of
these target markets
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5. MARKETIN MANAGEMET PROCESS FOR
SERVICES ( Fig. 3.1)
ORGANIZING MARKETING PLANNING
ANALYSING MARKETING OPPORTUNITIES
SELECTION OF TARGET MARKET
DEVELOPING MARKETING MIX
MANAGING MARKETING EFFORT
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6. ORGANIZING MARKETING PLANNING
Developing a marketing strategy requires
market planning and market planning is
usually preceded by market analysis.
Before making any strategic plan the
manager has to go through some self
questioning. The answers of these critical
questions are the beginning of the
development of strategic plan.
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7. The questions may be:
What is the specific type of service
business?
Who are customers, how can they be
identified, & what benefits are they
seeking?
How can the business be defended
from competitors?
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8. How can competitive advantage and
more cost efficient operations be
achieved?
What efforts must be used to develop
and test new product service
offerings?
What role can be assigned to
planning and research?
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9. The marketing information for
planning purposes can be gathered
through marketing research and
marketing intelligence. Market
research is more structured and
quantifiable while marketing
intelligence gathering concentrates on
intangible ideas and trends.
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10. ANALYZING MARKETING
OPPORTUNITIES
Analyzing market opportunity is to
identify target markets and
determine the changing needs of
customers and their bases for
choosing among the many
alternatives offered.
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11. Marketing orientation requires
organizations to monitor their
environment to adjust their
offering so that customer needs
are fulfilled. There are some other
imp. Factors to be considered to
analyzing the marketing
opportunities, they are:
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12. The internal environment
The immediate external environment
The uncontrollable external
environment:
Economic Factors
Social Factors
Political and legal factors
Technical factors
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13. SELECTING TARGET MARKET
The process of identifying and
evaluating marketing opportunities
gives rise to many new ideas, each of
these opportunities must be studied
relevance to the company’s
resources. This steps involves:
Segmenting & Targeting
Positioning
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14. Services marketing can not be
separated from market
segmentation. There are some
segmentation methods which are
used by service organization:
Demographic variant
Psychographic variant
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15. After this process market
targeting is focused, deciding on
which of the market segment to
target is a challenging one & after
this process the service provider
decides upon the number of
segments to serve such as :
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16. Undifferentiated marketing –
e.g. Mass banking
Differentiated marketing –
e.g. bank products for products for
corporate clients and individual clients
Concentrated marketing – e.g. special
agricultural banks or industrial credit
banks.
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17. DEVELOPING THE SERVICE
MARKETING MIX
The marketing mix which is the
essence of every marketing strategy
& includes tangible dominant
products, they are:
Service Product
Place
People
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18. Price
- Demand oriented method
- Cost oriented method
- Competitor based pricing
Process
Physical Evidence
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19. MANAGING AND CONTROLLING
MARKETING EFFORT
The service firm must mobilize its
people and resources e.g. money
equipment, physical facilities within
the organization to put the strategic
plan to work. Another key issue that
relates to the implementation
programme is the organizational
framework.
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20. Heskett lays out a link of activities
that emphasizes on the
interrelation of various activities
of the organization. This
interdependence between
marketing, operations, & human
resources is termed as service
management trinity.
20

21. The service Management
Trinity (Fig. 3.2)
Operations Marketing
management Management
Human Resource Management
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22. There are some strategies to control
service performance:
Establishing customer service
divisions
Performance Control
Profitability Control
Strategic Control
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23. SUMMARY
The application of the management
process involves following steps.
Organizing the marketing
opportunities
Analyzing the marketing
opportunities
Selecting the target market
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24. Developing the marketing mix
Managing the marketing effort
Thus, this chapter very briefly
explains the marketing management
process, the foundation on which
corporate and functional strategy is
built.
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