service mrt ppt
TRANSCRIPT
-
8/4/2019 Service Mrt Ppt
1/34
Introduction to
Services Marketing
-
8/4/2019 Service Mrt Ppt
2/34
There are no such thing as service
industries. There are only industrieswhose service components are greater or
less than those of other industries.Everybody is in service.
Theodore Levitt-
-
8/4/2019 Service Mrt Ppt
3/34
It is the part of the product or the full productfor which the customer is willing to see valueand pay for it.
The services sector has been growing at arate of 8% per annum in recent years
More than half of our GDP is accounted for
from the services sector This sector dominates with the best jobs, best
talent and best incomes
-
8/4/2019 Service Mrt Ppt
4/34
What is a Service
A Service is a type of a product.
a deed performed by one party for
another Discussions about the marketing of
goods apply to services as well.
Services have special characteristics that
make them different than products.
-
8/4/2019 Service Mrt Ppt
5/34
Importance of services
In all parts of the world, the service sector ison an all time boom.
It has a contribution of 54% in Indias GDP,
and this is excepted to grow in the future. All businesses today offer services bundled
with the marketing of goods to derive acompetitive edge in the market over similar
and competing products.
-
8/4/2019 Service Mrt Ppt
6/34
Phenomenal Growth attributes to
Rapid increase in per capita income
Double income families
Increase in leisure
Changed life style
Increased Life expectancy
Increased complexity in life Specialization in Profession & Business
-
8/4/2019 Service Mrt Ppt
7/34
Important features
Lack of Physical output or construction.
Benefit to the receiver from the service ratherthan the product offered.
The intangible nature of services.
The possible combination of services with theproduction of goods.
Marketing of an idea or a concept.
-
8/4/2019 Service Mrt Ppt
8/34
Contribution of Services to GDP
-- Generally contribution of Service to Gross Domestic Product of a
nation increases as its economy develops
Country Service contributesChina 40.0% of GDP
Brazil 54.0India 60.7
Canada 68.5Japan 73.1
U.K. 73.4U.S. 78.6
-
8/4/2019 Service Mrt Ppt
9/34
Tangible
touch
see taste
smell
Intangible
cant see
cant touch cant smell
cant taste
Tangible / Intangible Attributes
-
8/4/2019 Service Mrt Ppt
10/34
Goods and Services: Scale ofElemental Dominance
-
8/4/2019 Service Mrt Ppt
11/34
The goods and service continuum
Tangible Goods : Do not offer any amount ofservices. Toothpaste, salt, soaps etc are examples.Customers purchase these products on the merit ofthe advantages of the tangible parts.
Tangible goods with some services : In some cases,customers require some knowledge aboutinstallation, training about the use of products, aftersales service. The spread of the word of mouth
depend upon these attributes. Examples areconsumer durables, computers, cars etc.
-
8/4/2019 Service Mrt Ppt
12/34
Goods and services in near equal measures :People have different reasons for choosing abar or a restaurant. For some, the equality of
food and cocktails is the key, for some othersthe ambiance is the key. Here, to satisfy acustomer, a hotel should provide excellent
food (tangible ) and service ( atmosphere,hospitality ).
-
8/4/2019 Service Mrt Ppt
13/34
Service accompanied by minor goods:
Some industries provide services (airlines )accompanied by some amount of products
(food, soft drinks etc )
ISPs provide the service of internet. In
association they also give CD of games,
utilities etc.
-
8/4/2019 Service Mrt Ppt
14/34
Pure services, not accompanied by goods :Some companies deliver a pure service likeconsultation, gym etc. Here, there is no other
consideration by buyers but the purchasedepends purely on the service quality.
-
8/4/2019 Service Mrt Ppt
15/34
Service ClassificationsService
Equipment-based People-based
Automated
Monitored by
relatively
unskilled
operators
Operated by
skilled
operators
Skilled
laborUnskilled
laborProfessionals
Vending
machines
Automated
car washes
ATM
Motion
picture
theaters
Dry cleaning
Taxis
Electric
utilities
Airlines
Computer
network
installation
Lawn care
Security
guards
Janitorial
services
Appliance
repair
Plumbing
Catering
Lawyers
Managing
consultants
Accountants
-
8/4/2019 Service Mrt Ppt
16/34
Special Characteristics of Services
Intangibility
Inventory(Perishability)
InseparableSimultaneousProduction
andConsumption
Inconsistency
(Heterogeneous)
-
8/4/2019 Service Mrt Ppt
17/34
Difference between physical goods and
services
Physical goods Services
tangible intangible
homogeneous heterogeneous
Production and distribution are separated
from consumption
Production, distribution and consumption are
simultaneous processes
A thing An activity or process
Core value processed in factory Core value produced in the buyer-sellerinteraction
Customers do not participate in theproduction process
Customers participate in production
Can be kept in stock Cannot be kept in stock
Transfer of ownership No transfer of ownership
-
8/4/2019 Service Mrt Ppt
18/34
INTANGIBILITY
Pure services cannot be assessed by sight,feel, smell, taste etc.
Emphasis on processes rather than
outcomes
Can only assess a service after it has beenconsumed
Services purchases may be perceived asmore risky than goods
-
8/4/2019 Service Mrt Ppt
19/34
Implications of Intangibility
Services cannot be inventoried
Services cannot be patented
Services cannot be readily displayed orcommunicated
Pricing is difficult
-
8/4/2019 Service Mrt Ppt
20/34
VARIABILITY ( Inconsistent )
Each producer-consumer encounter may beunique
May be little opportunity for quality control to
maintain consistency
It is often easy to adapt services to thespecific needs of individual consumers
-
8/4/2019 Service Mrt Ppt
21/34
Implications of Heterogeneity
Service delivery and customer satisfactiondepend on employee actions
Service quality depends on many
uncontrollable factors
There is no sure knowledge that the servicedelivered matches what was planned and
promoted
-
8/4/2019 Service Mrt Ppt
22/34
INSEPARABILITY
Production of a service cannot be separatedfrom its consumption
Consumers are co-producers of a service
Makes quality control more difficult
Has implications for accessibility to services
-
8/4/2019 Service Mrt Ppt
23/34
Implications of Simultaneous Production and
Consumption
Customers participate in and affect thetransaction
Employees affect the service outcome
Decentralization may be essential
Mass production is difficult
-
8/4/2019 Service Mrt Ppt
24/34
PERISHABILITY
Services cannot be stored
If capacity is not used, the opportunity to sellit is lost forever
Supply and demand must be carefullymatched
Mismatch between supply and demand can
impact directly on consumers
-
8/4/2019 Service Mrt Ppt
25/34
Implications of Perishability
It is difficult to synchronize supply anddemand with services
Services cannot be returned or resold
-
8/4/2019 Service Mrt Ppt
26/34
Service Marketing Triangle
-- Service marketing is all about promisespromises made
and promises kept to satisfaction of customers.
-- So framework of service may be split into three arms viz.
* making the promise
* enabling the promise &
* delivering the promise
Internal Marketing
(enabling the promise)
External Marketing
( making the promise)
Interactive Marketing
(delivering the promise)
Management
CustomersContact employee
-
8/4/2019 Service Mrt Ppt
27/34
External Marketing of Services
Comprises of activities through which company makes
promises to customers about service likeAdvertising, Sales
Promotion, Pricing, Availability etc.
In addition, promises are made by
Contact employees during interactions
Proper design and dcor of service area (ambience) Development of service process ( blueprint)
Effective external marketing involves consistent and
realistic promises which the company can keep.
And not overpromises that raise customers expectationthereby leads to dissatisfaction and poor customer
relationship.
-
8/4/2019 Service Mrt Ppt
28/34
Internal Marketing
Company has to develop a service blueprint depicting step
by step progress of service process.
Company should impart on- and off-the-job training to
contact employees who will actually deliver the service.
Company should equip contact employees with suitabletools, requisite knowledge and skills so as to provide
service satisfactorily.
Company should ensure proper motivation and control of
contact employees so that they remain in ship-shape toprovide satisfactory service.
-
8/4/2019 Service Mrt Ppt
29/34
Interactive Marketing
It is unique of Service Marketing that the customer interacts with
contact employee (i.e. service provider) in delivering the promisedservice, unlike products where customers only consume or use the
product without interacting during its manufacture.
Hence it is essential that contact employee is equipped with skills,
knowledge, tools and motivated to do his best in service delivery.
For same reasons Ambience i.e. arena where service is delivered
should be congenial for both players.
Technology is fast emerging as the fourth apex of Service Triangle
for customer satisfaction, giving it the shape of a Pyramid.
-
8/4/2019 Service Mrt Ppt
30/34
Strategy for Customer Satisfaction through Quality
Service Delivery
Key aspect of this strategy is that the contact employeesshould be willing and also able to deliver quality service.
So successful service-providing companies endeavor to build
teams of customer-oriented, service-minded contactemployees in Internal Marketing process through :
* hiring right persons
* developing them to deliver quality service
* provide them with needed tangibles including motivation &
* retaining best people.
-
8/4/2019 Service Mrt Ppt
31/34
Extended Marketing Mix
Marketing mix are elements that marketer uses tosatisfy or communicate with customers.
Traditionally, marketing mix composes of 4 Ps viz.
Product, Price, Place(distribution) and Promotion.
These elements are interrelated and collectivelyhelp in delivering satisfaction to customers inselected segments at profit to organization.
Services are intangible, quite often, customers usethe ambience i.e. building, lawns or accompanyingtangibles - equipments in operation theatre ofhospital to gauge the level of service experience.
-
8/4/2019 Service Mrt Ppt
32/34
Extended Marketing Mix
Realizing importance of these additional variables inservice marketing , marketers have taken threeadditionalelements as Service Marketing Mixelements viz.:
People Human actors who play role in service delivery
to influence customers service experience andperception like employees, customers etc.
Physical EvidenceEnvironmentwhere service isdelivered or service-provider and customer interact, theambience, facility design, equipments, employee -dress,
logo, business card and other tangibles. Process Actual procedures, mechanism, flow of
activities and equipments by which service is delivered.
-
8/4/2019 Service Mrt Ppt
33/34
Major Challenges in Service Marketing
1. Delivery of service consistently at same level of quality
-- Becauseservices produced by providers are not consistent
-- And services cannot be mass-produced
-- So delivery of high quality service becomes costlier.
2. Wide fluctuation in demand of service--Demand for hotel accommodation, tables at restaurant, public
transport etc vary greatly with time.
3. Designing of new services is a challenge to marketers
--Identifying precisely what is wanted by customers iscomplex so requires intensive market research.
-
8/4/2019 Service Mrt Ppt
34/34
4. Role of Service-providers
-- Most of services are producedand deliveredwhen in closeproximity of
customerso right selection, training and motivation of service-providers
is essential.
5. Wider Competition
-- Todays employee / franchisee may become tomorrows competitor. --
Attrition rate is high in service industry particularly among skilled
service-providers.