intro to svc mktg

7/25/2019 Intro to Svc Mktg

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Introduction to

Services Marketing

Services Marketing

BSBA SM 4A

Genita, Joyce Ann

Libre, Nina Joy

Maik, Marielle Anne


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What are Services?What are Services?

Put in a most simple term, services are deeds, processesand performance. The services are non tangible things that

can be touched, seen and felt but are rather intangible

deeds and performance.

All economic activities whose output is not a physical orconstruction, is generally consumed at the time it is

produced, and provides added value in forms that are

essentially intangible concerns of its first purchaser.


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Services Directed at Peoples !odies

Service in this category require the recipient to be

physically present within the service system.

Example !ou need to sit in the train, visit thedentist"s surgery, lie in the massage table in order

to receive the service.

#oveloc$%s &lassification of Service#oveloc$%s &lassification of Service


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Services Directed at Peoples Minds

Services in this category do not require the

customer to be present when the service is being

delivered, although they need to be present at thestart and end of the service.

Example #aundry and dry cleaning may

collect the clothes from the customer and the

customer may never seethe services premises

#oveloc$%s &lassification of#oveloc$%s &lassification of

ServiceService


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ServiceService

Services Directed at Peoples Minds

Services directed at people%s minds include

services such as education, the arts, professionaladvice, news and information.

Example 'nternet and any broadcasting

technologies.


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ServiceService

Services Directed at Peoples Intangi"le

Possessions

Service such as ban$ing, insurance andaccountancy can be delivered with very little

direct interaction between the customer and the

organi(ation.

Example 'nsurance


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Tangibility SpectrumTangibility Spectrum

The broad definition of services implies that

intangibility is a $ey determined of whether an

offering is a service. Although this is true, it is

also true that very few products are purelyintangible or totally tangible. 'nstead, services

tend to be more intangible than manufactured

products, and manufactured tend to be more

tangible than services.


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)ew *ays to +eliver Service)ew *ays to +eliver Service

'n addition to providing opportunities for new

service offerings, technologies is providing

vehicles for delivering existing service in more

accessible, convenience, product ways.Technology also facilitates transaction by

offerings direct vehicle for ma$ing purchases.

inally, specifically internet, provides an easy

way for customers to learn and research.


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Enabling -oth &ustomers andEnabling -oth &ustomers and

EmployeesEmployees

Technology enables both customers and

employees to be more effective in getting

and providing service. Through selfservice technologies, customers can serve

themselves more effectively.


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'nternet is a Service'nternet is a Service

An interesting way to loo$ at the influence of

technology is to reali(e that the internet is ust

/one big service0. All the business and

organi(ation that operates on the internet areessentially providing service 1 whether they are

giving information, performing basic customer

service function or facilitating transaction.


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The Paradoxes and +ar$ Side ofThe Paradoxes and +ar$ Side of

Technology and ServiceTechnology and Service

Although there is clearly great potential for

technology to support and enhance services,

there are potential negative outcomes as well.

&ustomer concerns about privacy andconfidentiality raise maor issues for firms as

they see$ to learned about interact directly with

customers through the internet.


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&haracteristics of Services 'mpacting on

2ar$eting Activities

#oods Service $esults I%plication

Tangible 'ntangible Service cannot be inventories

Service cannot be easily patented

Service cannot be readily displayed or communicated

Standardi(ed heterogeneous Service delivery and customers satisfaction depend onemployee and customers action

Service quality depends on many uncontrollable factors

There is no sure $nowledge that the service delivered matcheswhat was planned and promoted

Productionseparate from

consumption

'nseparatibility1 simultaneous

production andconsumption

3&ustomers participate in and affect the transaction3customers affect each other

3Employees affect the service outcome3+ecentrali(ation may be essential

32ass production is difficult

)on3perishable

Perishable 't is difficult to synchronies supply and demand with service

Services cannot be returned or resold


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4epresent a wide range intangible productofferings that customers value for pay in themar$et place.

S&$'I(& P$)D*(+ are sold by servicecompanies and by none service companies suchas manufacturers and technology companies .

Services as ProductsServices as Products


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The term /Experience Economy0 was first

described in an article published in5667 by pine

and 8ilmore . The article argued that service

companies would evolve from simply providinga service to creating memorable events for their

costumers , with the memory of the experience

becoming the product .

Services as ExperiencesServices as Experiences


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's also critical aspect of what we mean by

/SE49'&E0 customer services is the service

provided in support of a company"s core

products.

&ustomer Service&ustomer Service


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's yet another way to loo$ what service means.

'n the article /:;


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;ver time, business people have realised that

mar$eting and managing services presents

issues and challenges not faced in the mar$eting

of products . A service businesses began to turnto mar$eting and decide to employ mar$eting

people , they naturally recruited from the best

mar$eters in the world.

3 Procter > 8amble ,8eneral oods and=oda$ .

Service 2ar$eting 's +ifferentService 2ar$eting 's +ifferent


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4esponded to these forces and began to

wor$ across disciplines and with

academics and business practitionersfrom around the world to develop and

document mar$eting practices .

Service 2ar$etersService 2ar$eters


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Suggests that corporate strategies focused

on customer satisfaction , revenue

generation , and services quality mayactually be more profitable than strategies

focused on cost3cutting or strategies that

attempt to do both simultaneously .

2ar$eting Science 'nstitute2ar$eting Science 'nstitute


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A case for the ?Service3profit chain@ lin$ing

internal service and employee satisfaction to

customer value and ultimately to profits .

I%portant ke to these success 3 is that the

right strategies are chosen and that these

strategies are implemented appropriately and

well.

4esearch rom The arvard4esearch rom The arvard

-usiness School -uild-usiness School -uild


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In-or%ation +echnolog

's currently shaping the field and profoundly

influencing the practice of service mar$eting.

Potential .or /e Service )--ering

ow dramatically different your word would be

without these basic technology services.

Service and TechnologyService and Technology


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Intangi"ilit

The most basic distinguishing characteristics of

services is intangibility . -ecause services are

performances or actions rather than obects , they

cannot be seen. elt , tasted or touched in the same

manner that you can sense tangible goods.

4esulting 2ar$eting4esulting 2ar$eting

'mplications'mplications


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Heterogeneit

Also results because no two customers are precisely

ali$e@ each will have unique demands or experience

the service in a unique way . Thus, the heterogeneityconnected with services is largely the result of human

interaction and all of the vagaries that accompany it.

-ecause services are heterogeneous across time,

organi(ations and people ensuring consistent servicequality is challenging. Buality actual depends on

many factors that cannot be fully controlled by the

service.

4esulting 2ar$eting 'mplications4esulting 2ar$eting 'mplications


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Insepara"ilit

Also means that customers will frequently

interact with each other during the serviceproduction process and thus may affect

each others% experiences.




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-ecause services are often produced andconsumed at the same time, mass

production is difficult. The quality of

service and customer satisfaction will behighly dependent on what happens in real

time including actions and employees and

the interactions between employees andcustomers.

4esulting mar$eting4esulting mar$eting

implicationimplication


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Perisha"ilit

4efers to the fact that services cannot be

saved, stored, resold or returned.A primary issue that mar$eters face in

relation to service perishability is the

inability to hold stoc$. +emand forecasting

and creative planning for capacity utili(ation

re therefore important and challenging

decisions areas.




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Services 2ar$eting TriangleServices 2ar$eting Triangle

Insert


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Services 2ar$eting 2ixServices 2ar$eting 2ix


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Expanded 2ix for ServicesExpanded 2ix for Services

People All human actors who play a part in service delivery

and thus influence the buyer%s perceptions namely,the firm%s personnel, the customer, and othercustomers in the service environment.

Phsical &vidence

The environment in which the service is delivered

and where the firm and customer interact, and any

tangible components that facilitate performance orcommunication of the service.


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Expanded 2ix for ServicesExpanded 2ix for ServicesProcess

The actual procedures, mechanisms, andflow of activities by which the service isdelivered 1 the service delivery andoperating systems.


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The ?Servuction% System 2odelThe ?Servuction% System 2odel

'nvisible ;rgani(ation and Systems

'nanimate

EnvironmentService Personnel

&ustomer

;ther

&ustomer


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Staying ocused on the &ustomerStaying ocused on the &ustomer

rom the firm%s point of view, all strategies are developed with an eye on the customer,

and all implementations are carried out with an understanding of their impact on the

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