This document discusses physical evidence and the servicescape in marketing services. It defines physical evidence as everything a company exhibits to customers, including the physical environment, facilities, and tangible items. The servicescape refers to the environment where the service is delivered and the seller and customer interact. Good physical evidence and servicescape can shape first impressions, build trust, facilitate service quality, change perceptions, and provide sensory stimulation. The document provides guidelines for developing an effective physical evidence strategy, such as identifying strategic needs, the required evidence, and opportunities to update the evidence over time.
Offering a unique service which was not not earlier offered into the market is called new service and the process of designing such new service is called New Service Development.
servicescape is the physical environment where customer and service provider interacts. the ambiance where service encounters takes place have a greater impact in creating a niche for the the service provider.
It defines the relations, promises and marketing efforts between the three key stakeholders in services marketing - companies, providers (employees), and customers. Internal marketing is done between company and providers, external marketing is performed between companies and customers, and interactive marketing takes place between customers and providers.Marketing service triangle plays a very important role in service industries.
Services Marketing
Chapter – 9
Pricing Of Services
Introduction
Pricing or Price is the key element in the traditional marketing mix (the 4Ps) and also the enhanced marketing mix (the 7 Ps). This is the element which earns revenue. This is highly critical because this is the strategy which can make or mar the business.
The firms must make it both ways –the price must
(1) get profits for the firm, and
(2) give value to its customers.
Names of Service Pricing
Pricing for goods is easy and straight forward, while for services it is complicated, may be controlled by several authorities, varies with time, place, people, etc.
For goods the price has a single name “PRICE”, but for services it has several names like :
Names of Service Prices
What Makes Service Pricing Different?
No Ownership of Services
Higher Ratio of Fixed Costs to Variable Costs
Variability of Both Inputs and Outputs.
Many Services Are Hard to Evaluate
this ppt contains strategies for the industries involved in the services business, by segmenting and targeting the markets according to the available resources, and how to change the own relations at the interface level
Offering a unique service which was not not earlier offered into the market is called new service and the process of designing such new service is called New Service Development.
servicescape is the physical environment where customer and service provider interacts. the ambiance where service encounters takes place have a greater impact in creating a niche for the the service provider.
It defines the relations, promises and marketing efforts between the three key stakeholders in services marketing - companies, providers (employees), and customers. Internal marketing is done between company and providers, external marketing is performed between companies and customers, and interactive marketing takes place between customers and providers.Marketing service triangle plays a very important role in service industries.
Services Marketing
Chapter – 9
Pricing Of Services
Introduction
Pricing or Price is the key element in the traditional marketing mix (the 4Ps) and also the enhanced marketing mix (the 7 Ps). This is the element which earns revenue. This is highly critical because this is the strategy which can make or mar the business.
The firms must make it both ways –the price must
(1) get profits for the firm, and
(2) give value to its customers.
Names of Service Pricing
Pricing for goods is easy and straight forward, while for services it is complicated, may be controlled by several authorities, varies with time, place, people, etc.
For goods the price has a single name “PRICE”, but for services it has several names like :
Names of Service Prices
What Makes Service Pricing Different?
No Ownership of Services
Higher Ratio of Fixed Costs to Variable Costs
Variability of Both Inputs and Outputs.
Many Services Are Hard to Evaluate
this ppt contains strategies for the industries involved in the services business, by segmenting and targeting the markets according to the available resources, and how to change the own relations at the interface level
This slideshow talks about service delivery, role of employees and customers in service delivery, service blueprint, physical evidence, pricing of services, methods of service promotion etc
An organization’s success is influenced by factors operating in its internal and external environment;
An organization can increase its success by adopting strategies that manipulate these factors to its advantage.
A successful organization will not only understand existing factors but also forecast change so that it can take advantage of change within the environments in which it operates. The marketing environment surrounds and impacts the organization. There are three key perspectives on the marketing environment, namely the 'macroenvironment,' the 'microenvironment' and the 'internal environment'.
Physical Evidence in Marketing
Introduction
definition
types
elements of physical evidence
servicescape
Model
Research evidence
Role of Physical evidence
NEW CONCEPT (7P'S MODEL OF SERVICE MARKETING MIX) & OLD CONCEPT (4P'S MODEL OF SERVICE MARKETING MIX) WHICH CAN BE CLEAR YOUR DOUBTS IN SERVICE MARKETING MIX
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2. INTRODUCTION
• In case of tangible goods, buyers can physically examine the product to assess the
quality and suitability; they may opt for a trial even to test the functioning of the
product. But, in the case of services, such a process is not possible.
• Services are intangible and also variable. Consumers cannot see, touch or try the
service before the purchase. Consumers have to depend upon search quality and
experience quality for the assessment of a service.
• E.g. when a salesman of a new service company goes for a door-to-door sales
campaign, his job is far tougher. Consumers may not find it possible to trust the
company or the seller sufficiently to get into an agreement.
• In the service sales deal, nothing is transferred physically and no ownership results.
Therefore, physical evidence plays a key role in creating confidence in the consumers
of the service. Service companies should use physical evidence as a strategic weapon
to convince the customer.
3. CONCEPT
Physical evidence is everything that a company physically exhibits to the customer. It
includes:
• the physical environment of the service outlet,
• the exterior,
• the interior,
• all tangibles such as machinery, furniture, vehicles, stationery, signboards,
communication materials, certificates, receipts, service personnel and so on.
• Physical evidence provides tangible cues to customers to develop service quality
expectations.
Meaning: “Physical evidence is often referred to as the environment that facilitates
the performance and the communication of the service.”
4. • It is a fact that service consumers cannot see a service but they can
visualize various tangibles associated with the service, that provide a clue
about the service quality.
• Example: Individuals’ perceptions of a hotel lobby tend to be based on
not only the front desk, but also many other elements such as the
employees and customers, the lighting, floors, furniture, artwork, and
colour of the walls. The lobby is also assessed on the basis of sensory
inputs such as music and fragrance. All these elements contribute to the
formation of customers’ image of the lobby. Both the exterior and
interior of the hotel reflect the style and image of its physical
environment and influence customers’ evaluations.
5. SERVICE SCAPE
• The concept of a servicescape was first developed by B. Booms and M. J.
Bitner. They defined servicescape as “the environment in which the service
is assembled and in which seller and consumer interact, combined with
tangible commodities that facilitate performance or communication of
the service”. “
• The physical environment of a service unit is popularly called servicescape.”
• The servicescape is the outward appearance of the organization and thus
can be critical in forming initial impressions or setting up customer
expectations—it is a visual metaphor for the intangible service.
6. • The exterior and interior design of the service outlet, the ambience which includes
temperature, tangibles, noise, odour and the signage used for communication are
parts of the servicescape.
The design of servicescape basically should take into consideration two important
aspects:
• spatial layout and functionality, and
• aesthetic appeal.
Spatial layout and functionality refer to the ways in which seats, equipment,
furnishings and entrances and exits are designed and arranged.
Aesthetic appeal refers to factors such as the surrounding external environment,
architectural specialties, cleanliness and upkeep of facilities, signage, etc., that influence
customers’ perception and evaluation.
7. TYPE OF SERVICE SCAPE
Service companies design servicescapes based on the nature of interactions required
for the service production and delivery.
• Self-service: In a self-service environment, the customer performs most of the
activities, and very few employees are involved. E.g. ATMs, fast-food centers and
movie theatres. If the service firm is focussing on a self-service environment, it has to
attract the right market segment and offer easy-to-use facilities.
• Interpersonal Services: In this type of servicescape, both employees and customers
are given adequate importance. E.g. hospitals, educational institutions and banks, the
servicescape must be planned to attract, satisfy and facilitate both employees and
customers simultaneously.
• Remote Service: In this, customer’s physical involvement in the servicescape may be
very little or even absent. E.g. Mail order services, consultancy services,
telecommunications etc.
The goal of the servicescape is to keep employees motivated and to facilitate
productivity, team work and operational efficiency.
8. ROLE OF EVIDENCE IN SERVICES MARKETING
A. Parasuraman and L. L. Berry identified six specific roles of
evidence :
• Shaping First Impressions: Consumers form initial impressions once they are exposed to the
exterior and interior of a service outlet.
• Managing Trust: The positive clues will clarify the doubts and suspicions of the consumers and
build trust. The consistency in quality of the physical settings will help in managing theconsumer trust.
• Facilitating Quality of Service: A good servicescape facilitates employee–customer participation in
the service production, delivery and consumption process.
• Changing the Image: The up-scaling of facilities and structures like conversion of non-A/C to A/C,
additional moving space to customers, new decors, new lighting systems, new dress code to contact
employees, new systems, new way of reception, new machines, etc., contributes for the change of the
image of the service provider.
• Providing Sensory Stimuli: The aesthetics of the service environment hasthe potential to stimulate
the senses.
• Socializing Employees: Many services need employee–employee cooper- ation and coordination in
creating quality experiences to the customers.
9. GUIDELINES FOR DEVELOPING APHYSICAL EVIDENCE
STRATEGY
The following guidelines help service providers in developing a physical evidence strategy:
• Identify the Strategic Requirement of Physical Evidence: The evidence strategy must be
linked clearly with the organization’s overall goals and vision. The goals of the organization should
be clearly understood so as to determine the kind of support that can be built through evidence
strategy.
• Decide the Kind of Physical Evidence Required: Prior to designing the servicescape, Service
blueprinting should be carried out to have absolute clarity over organizational service process,
placement of equipment, furniture and other support material, people and other environmental
features.
• Clarify Roles of Employees and Customers in the Servicescape: The identification and
definition of the roles to be played by employees and customers, machines and other elements in
the servicescape aid in identifying opportunities and deciding who needs to be consulted in making
decisions.
10. • Identify and Assess Physical Evidence Opportunities: All service firms need
to look for possibilities of introducing changes and improvements in the forms of
evidence and the roles of the servicescape. What are the perceptions of the
customers and employees on the physical evidence? What are missed opportunities?
What are the defects in the present evidence strategy? Such questions need to be
answered periodically to identify the opportunities that can be exploited.
• Update and Modernize Evidence: Some aspects of evidence require frequent or
periodic updating and modernizing. Service firms should be prepared to introduce
changes as per the requirements of the mar- ket. The orientation to change makes
the service firm innovative and capable of influencing the perceptions of the
customers much better than its competitors.