foundation of service marketing

8/2/2019 Foundation of Service Marketing

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ASSIGNMENT OF SERVICEMARKETING.

SUBMITTED TO: SUBMITTED BY:

MR. YOGESH BHARDWAJ GARIMA

BHANU PRATAP

HONEY JAINDEEPIKA

RANJEET

-OF BBA(CAM)

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FOUNDATION OF SERVICE

MARKETING2


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WHATIS SERVICE? THE OLD VIEW

Service is a technical after-sale function that isprovided by the service department.

Old view of service =Customer Service Center

Old:Service =wrench time

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WHATIS SERVICE? THE NEW VIEWORCONCEPTOFSERVICE.

Service includes every interaction between anycustomer and anyone representing the company.

It is the part of the product or the full product forwhich the customer is willing to see value and payfor it.

It is intangible.

It does not result in ownership.

It may or may not be attached with a physicalproduct.

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EXAMPLESOF SERVICE INDUSTRIES

Professional Services accounting, legal, architectural

Financial Services banking, investment advising, insurance

Hospitality restaurant, hotel/motel, bed & breakfast ski resort, rafting

Travel airline, travel agency, theme park

Others

hair styling, pest control, plumbing, lawn maintenance, counselingservices, health club, interior design

Health Care hospital, medical practice, dentistry, eye care

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TANGIBILITY SPECTRUM

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WHY SERVICES MATTERServices dominate U.S. and worldwide economies.

Services are growing dramatically

Service leads to customer retention and loyalty

Service leads to profits

Services help manufacturing companiesdifferentiate themselves

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WHYDOFIRMSFOCUSON SERVICES?

Services can provide higher profit margins andgrowth potential than products

Customer satisfaction and loyalty are driven byservice excellence

Services can be used as a differentiation strategy incompetitive markets

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WHYSTUDY SERVICES MARKETING?

Service-based economies

Service as a business imperative in manufacturingand IT

Deregulated industries and professional serviceneeds

Services marketing is different

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CONCEPT OF GOODS AND

SERVICES10


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DIFFERENTIATING GOODSFROM SERVICES

PURE TANGIBLE GOODS:

These are the commodities that are identical and

homogenous. Consumers do not attach anyspecific value to a little associated service.Agricultural and unbranded goods fall under thiscategory.

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TANGIBLE GOODS WITH ACCOMPANYINGSERVICES:

The role of services under this category is tosupport the tangible product. Services are identicaland valued only in association with tangible goods.

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HYBRID:

This is a typical marketing offer where tangible

goods and services may be given equal importanceby customers. For example, people patronizerestaurants for both food and service.

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SERVICES WITH ACCOMPANYING TANGIBLEGOODS:

This is a marketing offer in which the intangiblepart is dominant. For example people buy mobilityservices from a transport organization.

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PURE SERVICE:

Pure service is a marketing offer where consumers

confine themselves to valuing only the service theyreceive and nothing else. For example services liketeaching, consultancy, idea selling etc.

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DIFFERENCEBETWEENPHYSICALGOODSANDSERVICES

Physical goods Services

tangible intangible

homogeneous heterogeneous

Production and distribution areseparated from consumption

Production, distribution andconsumption are simultaneous

processes

A thing An activity or process

Core value processed in factory Core value produced in the buyer-seller

interaction

Customers do not participate in the

production process

Customers participate in production

Can be kept in stock Cannot be kept in stock

Transfer of ownership No transfer of ownership 16


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EXAMPLE OF GOODS

When people buy the food, they are purchasing goods.

When people buy their groceries, they are purchasinggoods.

When people buy the cakes and breads, they arepurchasing goods.

When the children eat their lunches, they are eatinggoods.

The food that people order from menus are goods. foodserver.

When people buy the wool to make clothing, they are

purchasing goods. The clothes that people purchase are goods.

The gallons of gasoline that people purchase are calledgoods.

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EXAMPLE OF SERVICES

When farmers grow and harvest food, they are providingservices.

When grocery cashiers and baggers handle money and foodfor shoppers, they are providing services.

When bakers make cakes and breads, they are providing

services. When parents make their childrens lunches, they are

providing services.

When restaurant servers bring food to the table, they areproviding services.

When sheep farmers sheer the wool off of sheep, they are

providing services. When sales people help shoppers to buy clothes, they are

providing services.

When gas station attendants pump gasoline for customers,they are providing services. 18


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SERVICE MARKETINGENVIRONMENT19


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THE MARKETING ENVIRONMENT

The actors and forces outside marketing thataffect marketing managements ability tobuild and maintain successful relationships

with target customers.

The marketing environment is made up of

micro-environment (The Company, Suppliers,Marketing Intermediaries, Customers Markets,

Competitors, And Publics),and

macro-environment (Demographic, Economic,Natural, Technological, Political, And Culture Forces).

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MICRO-ENVIRONMENT

The actors close to the company that affect its ability to serve

its customer the company, suppliers, marketingintermediaries, customers markets, competitors, andpublics.

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MarketingThe company

suppliers

Marketingintermediaries

customers

competitors

publics


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MICROENVIRONMENT

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Marketing must considerother parts of theorganization including

finance, R&D,purchasing, operationsand accounting

Marketing decisionsmust relate to broadercompany goals andstrategies

Actors

1 The company

2 Suppliers

3 Marketing intermediaries

4 Customers

5 Competitors

6 Publics


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MICROENVIRONMENT

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Marketers must watchsupply availability andpricing

Effective partnershiprelationshipmanagement withsuppliers is essential

Actors

1 The company

2 Suppliers


4 Customers

5 Competitors

6 Publics


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MICROENVIRONMENT

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Help to promote, sell anddistribute goods to finalbuyers

Include resellers,

physical distribution firms,

marketing services agencies,and

financial intermediaries

Effective partnerrelationship managementis essential

Actors

1 The company

2 Suppliers


4 Customers

5 Competitors

6 Publics


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MICROENVIRONMENT

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The five types ofcustomer markets Consumer

Business

Reseller

Government

International

Actors

1 The company

2 Suppliers


4 Customers

5 Competitors

6 Publics


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MICROENVIRONMENT

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Conductingcompetitor analysis

is critical for successof the firm

A marketer must

monitor itscompetitorsofferings to createstrategic advantage

Actors

1 The company

2 Suppliers


4 Customers

5 Competitors

6 Publics


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MICROENVIRONMENT

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A group that has anactual or potentialinterest in or impact on

an organization

Seven publics include: Financial

Media

Government Citizen-action

Local

General

Internal

Actors

1 The company

2 Suppliers


4 Customers

5 Competitors

6 Publics


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MACRO-ENVIRONMENTThe larger social forces that affect the micro-environment

demographic, economic, natural, technological, political,and culture forces.

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MarketingDemographicforces

Economic forces

Technological

forces

Political forces

Cultural forces


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MACRO-ENVIRONMENT

Demographic environment

The study of human populations in terms of size, density, location, age, gender,race, occupation and other statistics

Age structure of the population

0-14 years: 32.6% (male 13,172,641; female 12,548,346)

15-64 years: 62.9% (male 25,102,754; female 24,519,698)

65 years and over: 4.5% (male 1,510,280; female 2,033,288)

(2006 est.)

Geographic shifts in population

people move to the cities in search of employment and a higher standard of living

Education (a better-educated, more whit-collar, more professional population)

Changing in marital states (more single people)

The changing Egyptian family

Sub-cultures

Egyptians 94%, Nubians, Berbers, Bedouin Arabs 4%, Other 2%29

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MACRO-ENVIRONMENT

Economic environment

Factors that affect consumer buying power and spending patterns Value Marketing has become the watchword for many marketers. They are looking for

ways to offer todays more financially cautious buyers greater value.

Marketers should pay attention to income distribution as well as average income.

Upper-class consumers, whose spending patterns are not affected by current economic

events.

The middle class is somewhat careful about its spending, but can still afford the good lifesome of the time.

The working class must stick close to the basics of food, clothing, and shelter.

The underclass must count their pennies when making even the most basic purchases.

Consumers at different income levels have different spending patterns.

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MACRO-ENVIRONMENT

Technological environmentForces that create new technologies, creating new

products and market opportunities

The most dramatic force shaping our destiny

New technologies create new markets andopportunities. However, every new technology

replaces on older technology.

Marketers should watch the technologicalenvironment closely. 31


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MACRO-ENVIRONMENT Political environment

Consists of laws, government agencies and pressuregroups that influence or limit various organizations andindividuals in a given society

Legislation affecting businesses worldwide has increased

Laws protect companies, consumers and the interests of society

Increased emphasis on socially responsible actions

Cause-Related Marketing

Marketers create link between brand and charitable organization and worthwhile

cause.

Demonstrates social responsibility

Helps build positive brand image

Cause-related marketing has become a primary form of corporate giving. It letscompanies do well by doing good

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MACRO-ENVIRONMENT

Cultural EnvironmentMade up of institutions and other forces that affect a

societys basic values, perceptions, preferencesand behaviors.

Core beliefs

values are passed on from parents to children and arereinforced by schools, religion, business, and

government.

Secondary beliefs

are more open to change.(Example: marriage) 33


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MACRO-ENVIRONMENT

Cultural Environment Includes peoples views of

Themselves

Identify with brands for self-expression

Others

Recent shift from me to we society

Organizations

Trend of decline in trust and loyalty to companies

Society

Patriotism on the rise

Nature

lifestyles of health and sustainability

Universe

Includes religion and spirituality

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RESPONDINGTOTHE MARKETINGENVIRONMENT

Many companies view the marketing environmentas an uncontrollable element in which they mustreact and adapt. They passively accept themarketing environment and do not try to change it.

Other companies take a proactive stance towardthe marketing environment. (Example: Cathay

Pacific Airlines)

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foundation of service marketing

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