marketing strategy for service firms

MARKETING STRATEGYFOR

SERVICE ORGANIZATION

PRESENTED BYSHILPA SAHOO

VISHVENDRA SINGHTANMAY NAYAK

KOTLER Every business is a service business. Does your service put a smile on the customer’s face?

WHAT IS SERVICE?A Service is any act or performance one party

can offer to another that is essentially intangible

It does not result in the ownership of anything

Its production may or may not be tied to a physical product

Service Industries are everywhereGovernment Sector courts hospitals loan agencies military services police and fire departments postal services school and colleges

Continue …Private nonprofit sector museum churches charities foundations Business sector airlines hotels insurance companies real state

Increasing importance of servicesIn 2009 the share of service sector in the

GDP of India was 52%1. Advancement in technology2. Increase in per capita income3. A trend towards outsourcing4. Increasing growth in retailing due to

increase in the propensity of the customer

Categories of service mixPure tangible good Tangible goods with accompanying

services Hybrid services Major services with minor goods Pure service

All Principal Of Marketing AlsoApply To Services

characteristics Of The Services

IntangibilityUnlike physical products services cannot be

seen,tested,felt,heared or smelled before they bought

EXAMPLE1. a person getting plastic surgery cannot see

the result before the purchase2. A person who goes to a bank to deposit

money in bank cannot know in advance how much time he will spend in bank

inseparabilityServices are produced and consumed

simultaneously Services cannot be separated from its

providers unlike physical goods are manufactured , put

into inventory , distributed through multiple resellers and consumed later

EXAMPLE A Barber cannot give haircut without being

present service –client interaction is the special

feature of service marketing

Continue….Several strategy exist for getting around the

limitation of inseparability1. The service provider should learn to work

with large group2. The service provider should work faster3. The service organization can train more

service providers and build up client confidence

variabilityQuality of service depends who provides

them ,when and where , and to whom , services are highly variable

EXAMPLE1. Some doctors have excellent bedside

manner others are less emphatic2. Some doctors are good in performing some

type of surgical operation others are not People are vary aware of this variability and

often talk to other people before selecting a service provider

Continue….Steps that a service organization can take to

increase quality control to mitigate variability-

1. Organization can invest in good hiring and training procedure

2. Standardize the service –performance process through out the organization

3. monitor customer satisfaction each time after rendering service

Continue…EXAMPLE1. General electric send out 700000 response

card a year asking households to rate its service performance

2. Citibank checks continuously on measures of ART (accuracy , responsiveness & timeliness)

perishabilityService cannot be stored for later usePerishability of services can be a problem if

demand fluctuateEXAMPLE Public transportation companies can own

much more vehicles because of rush demand hour

Continue…Several strategy can produce a better match

between demand & supply in a service organization

On the demand side-

1. Differential pricing will shift some demand from peak to off peak period

2. Nonpeak demand can be cultivated3. Complementary services can provide

alternative to waiting customers4. reservation system are a way to manage the

demand level

Continue…On the supply side-

1. Part- time employees can be hired to serve the peak demand

2. Peak time efficiency routines can allow employee to perform only essential task during peak period

3. Consumer participation can be encouraged4. Shared services can improve offerings5. future provisions can be a good investment

Marketing strategy for service firms to improve

service quality

Meeting customer expectationUnderstand what customer really want

through continuous learning about the expectation and perception of customer

consumer of service value not only the outcome of the service but also the experience he takes by becoming part of it

accessThe service firm keep it into account that

service provided to the customer at convenient location at convenient time with little waiting period in availing the service

reliabilityThe service organization must be able to

deliver promised service each time the customer decide to avail of it

Basic servicesService company must deliver basic and do

what they are supposed to do-1. Keep promises2. Keep customer informed3. Deliver value to the customer

Fair playService company must make special effort to

be fair For this what a service firm can do1. The service firm should describe the

service clearly & accurately2. The organization should provide physical

evidence to the customer which will ensure that they will be provide a good service

These things will ensure the credibility of customer

in firm

Employee researchMarketers should conduct research with

employees to reveal why service problem occur what organization can do to resolve the problem

demonstrationService company should try to demonstrate

their service quality through presentationEXAMPLE a hotel can develop a look and a style of

dealing with customers that shows its intended customer-value proposition its cleanliness , speed or some other benefit

AIRTEL SERVICES

THANK YOU