SM PPT
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Transcript of SM PPT
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SERVICES MARKETINGSERVICES MARKETING
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TYPES OF SERVICESTYPES OF SERVICES
• TRANSPORT SERVICES
• PUBLIC UTILITY SERVICES
• COMMUNICATION
• TRADING SERVICES
• FINANCIAL & INSURANCE SERVICES
• REAL ESTATE SERVICES
• MARKETING RELATED SERVICES
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• GOVERNMENT PROVIDED SERVICES
• ENGINEERING SERVICES
• ENTERTAINMENT SERVICES
• BUSINESS & PROFESSIONAL SERVICES
• HOSPITALITY SERVICES
• HEALTH SERVICES
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GROWTH OF SERVICE SECTOR GROWTH OF SERVICE SECTOR ECONOMYECONOMY
REASONS FOR THE GROWTH:• CHANGING LIFESTYLE:• Increase in affluency-greater demand for
dry-cleaning, carpet cleaning• Increase in leisure time- greater demand
for entertainment, travel agencies• Women in working places- greater
demand for domestic help, daycare nurseries
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• CHANGING WORLD:– Increased complexity of life- greater demand for
accounting services, legal advisors– Increased life expectancy- greater demand for
nursing homes, gyms– Ecology & resource concerns- greater demand
for shared taxi service, environment consultants• CHANGING ECONOMIES:
– Globalization- greater demand for courier services, airways, waterways
– Privatization- greater demand for telecom services, internet
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• CHANGING TECHNOLOGY:– Range of new products- greater demand
for e-commerce, software programming– Product complexity- greater demand for
annual maintenance contracts, after sale service, skilled service
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CAUSE EFFECT GREATER DEMAND FOR
Technological advances
Higher complexity of products
Globalization Business internationalization
Deregulation policies
Privatization
Competition & higher productivity
Specialization & expert knowledge
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Cost effectiveness
Optimum utilization of resources & outsourcing
Computer explosion
Speed of work, availability of sound, picture & motion at affordable cost
Increase in affluency
Increased spending power & wish for comforts
Working women Work performed at home being done by others
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More leisure time Entertainment & pleasure seeking
Greater life expectancy
Desire to live long
Increased complexity of life
Need for specialized services
Scarcity of resources & concern for ecology
Need for services that can meet resource crunch
Demographic changes
Dual career couples
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Urbanization Fast, mechanical & self centred life
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SERVICE CHARACTERISTICS SERVICE CHARACTERISTICS
Intangibility
Inseparability
Inventory (Perish ability)
Inconsistency (Variability)
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INTANGIBILITYINTANGIBILITY
• Services are activities performed by the provider, unlike physical products they cannot be seen, tasted, felt, heard or smelt before they are consumed.
• unlike goods, services do not have features that appeal to the customers senses & its evaluation is not possible before actual purchase and consumption.
• services are not known to the customer before they take them.
• service provider has to follow certain things to improve the confidence of the client
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INSEPARABILITYINSEPARABILITY
• Services are typically produced and consumed simultaneously.
• services, cannot be separated from the service provider.
• Inseparability of production and consumption increases the importance of the quality in services
• service marketers not only need to develop task-related, technical competence of service personnel , but also , require a great input of skilled personnel to improve their marketing and inter personal skills.
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INVENTORY (PERISH ABILITY)INVENTORY (PERISH ABILITY)
• Services are deeds, performance or act whose consumption take place simultaneously
• services cannot be stored
• services go waste if they are not consumed simultaneously
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INCONSISTENCY (VARIABILITY)INCONSISTENCY (VARIABILITY)
• Services are highly variable, as they depend on the service provider, and where and when they are provided
• Service marketers face a problem in standardizing their service, as it varies with experienced hand, customer, time and firm
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SERVICE CLASSIFICATION SERVICE CLASSIFICATION
• BY MARKET SEGMENTATION:FINAL CONSUMER: life insurance, tutionORGANIZATIONAL CONSUMER:
accounting services, legal services
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• BY DEGREE OF TANGIBILITY: RENTAL GOODS: hotel room rental, book
rentalOWNED GOODS: mobile repair,
refrigerator repairNON GOODS: accountancy services,
legal services, education services
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• BY SKILLS OF SERVICE PROVIDERS:PROFESSIONALS: medical services,
management consultingNON PROFESSIONAL: shoe polishing,
washing
• BY GOALS OF THE PROVIDER:PROFIT: roadways, airways, insuranceNON PROFIT: postal services, unversities
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• BY DEGREE OF REGULATION:HIGHLY REGULATED: insurance,
hospitalsLIMITED REGULATED: fast food,
roadwaysNON REGULATED: painting, cloth
washing
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• BY DEGREE OF LABOUR INTENSIVENESS:EQUIPMENT BASED SERVICES: Automated: ATMs Operated by relatively unskilled operators: Taxis Operated by skilled operators: AirlinesPEOPLE BASED SERVICES: Unskilled labour: Carpet cleaning Skilled labour: Catering, Plumbing Professionals: Lawyers
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• BY DEGREE OF CUSTOMER CONTACT:
HIGH CONTACT: colleges, hotels
LOW CONTACT: car servicing
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• BY END USER:Consumer: leisure, hairdressing, personal
finance, package, holidays.Business to business: advertising
agencies, printing, accountancy, consultancy.
Industrial: plant maintenance and repair, work wear and hygiene, installation, project management.
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• BY SERVICE TANGIBILITY:Highly tangible: car rental, vending
machines, telecommunications.Service linked to tangible goods: domestic
appliance repair, car service.Highly intangible: psychotherapy,
consultancy, legal services.
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• BY LABOUR INTENSIVENESS:People-based services - high contact:
education, dental care, restaurants, medical services.
Equipment-based -low contact automatic car wash, launderette, vending machine, cinema.
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• BY EXPERTISE:Professional: medical services, legal
services, accountancy, tutoring.Non-professional: babysitting, care taking,
casual labour.
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• BY PROFIT ORIENTATION:
• Not-for-profit: The Scouts Association, charities, public sector leisure facilities.
• Commercial: banks, airlines, tour operators, hotel and catering services.
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SERVICES MARKETING SERVICES MARKETING TRIANGLETRIANGLE
• The Services Marketing Triangle model focuses upon making and keeping promises to customers and suggest three structural relationships as the mode by which this occurs.
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SERVICES MARKETING TRIANGLE
Company Management
Employees Customers
Internal Marketing :“Enabling the promise”
service environment
External Marketing : “setting the promise”
the service product
Interactive Marketing :“Delivering the promise”service delivery
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The Model University/Registry
Company Management Directorate Registry/ management team
Employees All registry staff
Customers Students,University staff,
External bodies
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External Marketing
“Setting the promise”
the service product
Consultation with Customers to identify needs and obtain feedback on performance:Course Organisers ForumStudent Union Liaison meetingsStudent Services CommitteeUndergraduate Student QuestionnaireEnrolment review
Service Statements/Plans:Service Provision StatementDepartmental Plan
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Internal Marketing
“Enabling the promise”
the service environment
Culture & philosophyStaff recruitmentStaff development/ trainingMotivation and involvement in planningTeam meetings/briefingsTechnical resources
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Interactive Marketing
“Delivering the promise”
service delivery
The serviscape and service encounter:Delivery of servicePhysical environmentMeetingsTelephonePostE-mail
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SERVICE MARKETING MIXSERVICE MARKETING MIX
• The Marketing mix is generally accepted as the use and specification of the four p's describing the strategic position of a product in the marketplace.
• In case of services additional 3 p’s are also included in these 4 p’s.
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SERVICE MARKETING MIXSERVICE MARKETING MIX
• Service marketing mix comprises off the 7’p’s :
1. Product
2. Price
3. Place
4. Promotion
5. People
6. Process
7. Physical evidence
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ProductProduct
• It must provide value to a customer but does not have to be tangible at the same time
• it involves introducing new products or improvising the existing products
• Its study includes: service product, quality level, range, features/benefits, guarantees, brand names
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• RATER: Reliability, Assurance, Tangibles, Empathy, Responsiveness
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PricePrice
• Pricing must be competitive and must entail profit
• Pricing strategy can comprise discounts, offers and the like
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PlacePlace
• It refers to the place where the customers can buy the service/product and how the service/product reaches out to that place
• This is done through different channels, like Internet, wholesalers and retailers
• Issues involved: location, accessibility, channels of distribution, distribution facilities, service inventory, managing channels
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PromotionPromotion
• It includes the various ways of communicating to the customers of what the company has to offer
• It is about communicating about the benefits of using a particular product or service rather than just talking about its features
• What should be the channels of promotion: advertising, personal selling, sales promotion, word of mouth, tele-marketing, e-marketing etc
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PeoplePeople
• An essential ingredient to any service provision is the use of appropriate staff and people.
• Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage
• Consumers make judgments and deliver perceptions of the service based on the employees they interact with
• Staff should have the appropriate interpersonal skills, aptititude, and service knowledge to provide the service that consumers are paying for
• Service encounter
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• Employees: recruitment, training, motivation, team work
• Customers: education, training
• Communication: about culture, values
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ProcessProcess
• Refers to the systems used to assist the organization in delivering the service
• Imagine you walk into Burger King and you order a Whopper Meal and you get it delivered within 2 minutes
• What was the process that allowed you to obtain an efficient service delivery?
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Physical EvidencePhysical Evidence
• Where is the service being delivered?
• Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organization
• If you walk into a restaurant your expectations are of a clean, friendly environment
• Consumers will make perceptions based on their sight of
the service provision which will have an impact on the organizations perceptual plan of the service