services marketing hu-unit-1-part-2

Services MarketingBy Himanshu Upadhyay

MBA/BBA-Specialization

MBM3/BBM2

Why Service Marketing?1. Service Based Economies

-Developed in response to the tremendous growth of service industries, resulting in their increased importance to the U.S. and world economies.

-In 2003 the service sector represented just over 80% of total employment.

Why Service Marketing? Cont..-Trade in service is growing worldwide.

-American Express, McDonald’s, and Marriott Hotels, together with many small service companies, are exporting information, knowledge, creativity, and technology that the world badly needs.

Why Service Marketing? Cont..2. Service as a Business Imperative in

Manufacturing and IT

-As banking, transportation, and health care industries evolve and become more competitive, the need for effective services management and marketing strategies continues.

Why Service Marketing? Cont..-Manufacturing and technology industries such as automobiles, computers, and software are also recognizing the need to provide quality service and revenue producing service in order to compete world-wide.

-Example: General Electric and IBM

Why Service Marketing? Cont..3. Deregulated Industries and Professional

Service Needs

-Specific demand for service marketing concepts has come from the deregulated industries and professional services.

-Large service industries, including airlines, banking, telecommunications have been deregulated by the U.S. government.

Why Service Marketing? Cont..-Professionals like physicians, lawyers, accountants, engineers and architects have also demanded new concepts and approaches for their business as these industries have become increasingly competitive.

Why Service Marketing? Cont..4. Service Marketing is Different

5. Service Equals Profits

-Through the 1980s and early 1990s many firms jumped on the service bandwagon, investing in service initiatives and promoting service quality as ways to differentiate themselves and create competitive advantage.

Why Service Marketing? Cont..-Investments were based on faith and intuition by managers who believed in serving customers well and who believed in their hearts that quality service made good business sense.

Why Service Marketing? Cont..-Marketing Science Institute suggest that corporate strategies focused on customer satisfaction, revenue generation, and service quality may actually be more profitable than cost cutting strategies.