Session 9 MAP

8/13/2019 Session 9 MAP

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Service MarketingSession: 9 & 10

Prof: Yasmin S



What is services?

• Service is any act or performance that one

can offer to another that is essentially intanand does not result in any ownership of any

Its production may or may not be tied to ph

products..Philip Kotler

• Services marketing is marketing based on

relationship and value.



What is a service?

•

It is intangible.• It does not result in ownership.

• It may or may not be attached with a p

product



Characteristics of Service Se

•

Intangibility• Perish ability

• Inseparability

• Heterogeneity

• Ownership

• Quality measurement

• Nature of demand



INCREASING IMPORTANCE O

SERVICES•

Advances in technology

• Growth in per capita income

• A trend towards outsourcing

• Deregulation

• Increasing growth in retailing



6

Generic Differences Between

& Services

Nature of the product

Problems in quality control

Involvement of the customer in production

delivery Absence of inventory

Structure and nature of distribution channels



NATURE OF SERVICES

•

Intangibility• Inseparability

• Presence of other consumers

• Variability

• Perish ability



Classification of Serv



Degree of Involvement of th

customer•

People Processing• Possession Processing

• Mental Stimulus Processing

• Information Processing



Classification based on Servic

Intangibility•

Highly Tangible• Service linked to tangible goods

• Tangible goods linked to services

• Highly intangible



Classification based on skills a

expertise required•

Professional service• Non Professional service



Classification based on Busine

Orientation of Service Provid

• Non Profit organization

• Commercial organization



Classification based on type of

User•

Consumer Service• Business to Business Services

• Industrial Services



ALL PRINCIPLES OF MARKAPPLY TO SERVICES



• Services impact customers more directly tproducts do

• Service provider has to carefully audit hisresources and competencies

• Positioning must be razor sharp

• Services more intractable than products

• Same service can be delivered in various w



• Service provider must define service very prec

also design the appropriate service-product m

• Promotion more challenging due to intangible of services

• Same basic service can be provided in vastly diservice facilities providing different levels of amand luxuries

• Marketing mix conveys the positioning of a ser



THE SERVICES MARKETIN



The Service (Product)

• Pure services are intangible

• Higher perceived risk in decision makinprocess

• People, physical evidence and processe

provide cues about the quality of the se

• Brand name affects perceptions of serv

• Provide service trials wherever possible



Promotion

• Intangible elements of service may be difcommunicate

• Sales people should develop lists of satisficustomers to be used in reference selling

• Word of mouth is critical to success• Acknowledge the dominant role of person

influence in the choice process and stimulword of mouth communication



Promotion

• Persuade satisfied customers to inform others

satisfaction

• Develop materials that customers can pass on

• Target opinion leaders in its advertising campa

•

Encourage potential customers to talk to currecustomers

• Communication should also be targeted at em



Price

•

An indicator of perceived quality• Important in matching demand and su

• Price sensitivity key segmentation varia



Place

•

Distribution channels for services are mdirect

• Production and consumption is simulta

•

New technologies permit service compto provide services without customers c

to their facility



People

• Service quality is inseparable from qualityservice providers

• Set standards to improve quality of servicprovided by employees and monitor their

performance• Training of employees crucial

• Adopt a customer-first attitude than putticonvenience first



People

• Employees of service organizations havadept in multiple roles

• Have empathy to judge the servicerequirement and mood of the custome

• Examine the role played by customers iservice environment

• Seek to eliminate harmful interactions



Physical Evidence

• The environment in which the service isdelivered

• Includes any tangible goods that facilitaperformance and communication of th

service• Strengthen cues that customers search

judge the quality of services



Process

• Procedures, mechanisms and flow of activ

which a service is delivered to customers• Control variations in services by targeting

segment of customers

• Process and its visibility are both importacustomers

• Process should be employed only when it required to provide a service and not becacustomers have come to expect it

Process



Process • Refers to the systems used to assist the orga

delivering the service.

•Imagine you walk into McDonald and you ordand you get it delivered within 2 minutes. Whprocess that allowed you to obtain an efficiedelivery?

• Banks that send out Credit Cards automatic

their customers old one has expired again refficient process to identify expiry dates and re

• An efficient service that replaces old credit foster consumer loyalty and confidence in the



Service MarketingTriangle



Service Marketing Triangle

SSM An Indian Perspective C. Bhattacharjee

f h (



Moment of Truth (MOT

• Service encounter is known as MOT

• “Any episode in which the customer co

contact with the organization and gets

impression of the quality of its service

• Eg. A rude employees behavior makes

customer conclude that he is dealing

rude company.



SERVICE ENCOUNTE



• A terrible ending usually dominates a pers

recollection of an experience

• Customers who are mentally engaged in anot notice how long it takes

• Finish strong

• Get the bad experience out of the way ea



SERVICE RECOVE



Dealing with service failur



• Well-intentioned, prompt, and apt reco

can assuage angry customers

• Everyone in the organization must haveskill, motivation, and authority to make

service recovery an integral part of servoperations



• Solve customers’ problems fast because s

problems quickly escalate

• Train frontline employees and empower t

• Give employees the authority, responsibil

incentives to help customers in unique wa

• Let customers know about corrective meataken and the improvement achieved



MANAGING SERVIC



• Managing service quality

– Companies rated higher on service quality

perform better in terms of market share gro

– Big gap exists between the expectations of th

customers and the level of the service they gebarriers while matching expected and perceiv

service levels of customers

•



• Does not understand customer requireme

– Misconception barriers arise when companiemisunderstand customer expectations

• No resources: A company may understandcustomer expectations but is unwilling to resources to meet them

• Bad delivery: The company is not able to dthe expected service



• Management’s will: A management ea

improve quality is able to do it

• Exaggerated expectations: Exaggerated

promises may become a problem

Session 9 MAP

Documents

Transcript of Session 9 MAP