Why Service Marketing?1. Service Based Economies-Developed in response to the tremendousgrowth of service industries, resultingin their increased importance to the U.S.and world economies.-In 2003 the service sector represented justover 80% of total employment.
Why Service Marketing? Cont..-Trade in service is growing worldwide.-American Express, McDonald’s, andMarriott Hotels, together with many smallservice companies, are exportinginformation, knowledge, creativity, andtechnology that the world badly needs.
Why Service Marketing? Cont..2. Service as a Business Imperative inManufacturing and IT-As banking, transportation, and healthcare industries evolve and become morecompetitive, the need for effective servicesmanagement and marketing strategiescontinues.
Why Service Marketing? Cont..-Manufacturing and technology industriessuch as automobiles, computers, andsoftware are also recognizing the need toprovide quality service and revenueproducing service in order to competeworld-wide.-Example: General Electric and IBM
Why Service Marketing? Cont..3. Deregulated Industries and ProfessionalService Needs-Specific demand for service marketingconcepts has come from the deregulatedindustries and professional services.-Large service industries, includingairlines, banking, telecommunications havebeen deregulated by the U.S. government.
Why Service Marketing? Cont..-Professionals like physicians, lawyers,accountants, engineers and architects havealso demanded new concepts andapproaches for their business as theseindustries have become increasinglycompetitive.
Why Service Marketing? Cont..4. Service Marketing is Different5. Service Equals Profits-Through the 1980s and early 1990s manyfirms jumped on the service bandwagon,investing in service initiatives andpromoting service quality as ways todifferentiate themselves and createcompetitive advantage.
Why Service Marketing? Cont..-Investments were based on faith andintuition by managers who believed inserving customers well and who believedin their hearts that quality service madegood business sense.
Why Service Marketing? Cont..-Marketing Science Institute suggest thatcorporate strategies focused on customersatisfaction, revenue generation, andservice quality may actually be moreprofitable than cost cutting strategies.