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    Sarode Kiran
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    The document provides an overview of services marketing. It defines services and discusses their key characteristics including intangibility, inseparability, and variability. It also outlines the challenges of services marketing and lists examples of major service industries. Additionally, it describes the components of the services marketing mix, known as the 7Ps (Product, Price, Place, Promotion, People, Physical Evidence, Process). Major trends in the services sector are also summarized such as the growth of franchising and the role of technology.

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    Service Mkg - 1

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    The document provides an overview of services marketing. It defines services and discusses their key characteristics including intangibility, inseparability, and variability. It also outlines the challenges of services marketing and lists examples of major service industries. Additionally, it describes the components of the services marketing mix, known as the 7Ps (Product, Price, Place, Promotion, People, Physical Evidence, Process). Major trends in the services sector are also summarized such as the growth of franchising and the role of technology.

    Copyright:

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    Download as PPT, PDF, TXT or read online from Scribd
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    129 views32 pages

    Service MKG - 1

    Uploaded by

    Sarode Kiran
    The document provides an overview of services marketing. It defines services and discusses their key characteristics including intangibility, inseparability, and variability. It also outlines the challenges of services marketing and lists examples of major service industries. Additionally, it describes the components of the services marketing mix, known as the 7Ps (Product, Price, Place, Promotion, People, Physical Evidence, Process). Major trends in the services sector are also summarized such as the growth of franchising and the role of technology.

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    of 32

    Chapter - 1

    Introduction to Services Marketing: Definition of services, Reasons for emergence of services marketing, Characteristic features of services marketing, Service marketing mix, Recent trends in services marketing. Sectoral view of service industry.

    Definition of services
    Activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.

    Challenges for Services


    Defining and improving quality Communicating and testing new services Communicating and maintaining a consistent image Motivating and supporting employee commitment Coordinating marketing, operations and human resource efforts Setting prices

    Service v/s Customer Service


    The term service include a wide range of industries like telecommunications, hotels, transportation, financial services etc. Customer Service is the service provided in support of a companys core products. Ex: Taking orders, handling complaints, repair works etc.

    Examples of Service Industries


    Health Care
    o hospital, medical practice, eye care

    Professional Services Financial Services Hospitality Travel

    accounting, legal, architectural banking, investment advising, insurance restaurant, hotel, bed & breakfast, airlines, travel agencies hair styling, lawn maintenance, counseling services, health club

    Others:

    The importance and growth of services Services have improved productivity Services have a job multiplier effect

    The scope of the service industry


    Some of the popular sectors that are included within the service industry are:

    1. Travel and Tourism 2. 3. 4. 5. 6. Hospitality Industry Hotels, Palaces Catering and Restaurant Industry IT-Enabled Services Consultancy Services Transportation Services
    Airlines Railways Bus Trucking Shipping

    (a) (b) (c) (d) (e)

    7. Couriers, Logistics, Inter-modal 8. Retailing 9. Banking

    10. Insurance 11. Healthcare and Hospital Management 12. Housing and Construction Industry 13. Communication and Entertainment Industry 14. Financial Services

    SERVICE MARKETING PHILOSOPHY


    There are three marketing philosophies or mantras, which should guide the service marketer: Create customers Keep customers Profitable customers

    DIFFERENT SERVICE MARKETING ACTIVITIES


    There are four activities in marketing. They are: Analysis Strategy Tactics Management

    Analysis
    The analysis activity in marketing consists of the following: Environment Analysis Buyer Analysis Marketing Research Analysis

    Strategy
    In service marketing, strategy takes the form of the following: Target Marketing: which consists of Market Segmentation Market Targeting Market Positioning

    Tactics
    Tactical tools expanded form: Service product Pricing Promotion Place People Physical evidence Process are the marketing-mix variables in an

    Management
    The process of management has many functions like planning, organizing, staffing, communicating, leading and controlling.

    Major Trends in Service Sector


    Government Policies (e.g., regulations, trade agreements) Social Changes (e.g., Poverty, lack of time) Business Trends Manufacturers offer service Growth of chains and franchising Pressures to improve productivity and quality More strategic alliances Innovative hiring practices Advances in IT (e.g., speed, wireless, Internet) Internationalization (travel, transnational companies)

    Characteristic features of services marketing


    Intangibility: not soft, unable to be touched
    - Customer is unable to experience the product
    earlier to purchase

    Perishability :Having a short life and cant be store for future - Services cannot be stored or cant
    for record for future. - If not used when available, they go to waste.

    Variability: changeable, each time different

    Service quality be likely to differ significantly. Difficulty in establishing consistency in quality - across Suppliers or within suppliers - across Time - across Delivery Centers

    Inseparability: cannot be separated


    - Outlet accessibility cant limit the area covered by the service. - Image is important: Image affects the observation of the service. - Consumer is present when service is produced.
    - Hard to separate the service provider and the service

    Service marketing mix


    Services Marketing Mix: 7 Ps for Services

    Traditional Marketing Mix Expanded Mix for Services: 7 Ps Building Customer Relationships Through People, Processes, and Physical Evidence

    Traditional Marketing Mix


    All elements within the control of the firm that communicate the firms capabilities and image to customers or that influence customer satisfaction with the firms product and services: Product Price Place Promotion

    Expanded Mix for Services -the 7 Ps


    Product Price Place Promotion

    People Process Physical Evidence

    The 7Ps: (1) Product Elements


    All Aspects of Service Performance that Create Value Core product featuresboth tangible and intangible elements Performance levels relative to competition Benefits delivered to customers (customers dont buy a hotel room, they buy a good nights sleep)

    The 7Ps: (2) Place and Time


    Delivery Decisions: Where, When, and How Geographic locations served Service schedules Channel partners/ mediators

    The 7Ps: (3) Promotion and Education


    Informing, Educating, convince, and Reminding Customers Marketing communication tools media elements (print, broadcast, outdoor, retail, Internet, etc.) personal selling, customer service sales promotion publicity/PR Imagery and recognition branding corporate design Content information, advice believable messages customer education/training

    The 7Ps: (4) Price and Other User Outlays


    Marketers Must Recognize that Customer Outlays Involve More than the Price Paid to Seller Traditional Pricing Tasks Selling price, discounts, premiums Credit terms Identify and Minimize Other Costs Incurred by Users Additional monetary costs associated with service usage (e.g., travel to service location, parking, phone, babysitting,etc.) Time expenditures Unwanted mental and physical effort

    The 7Ps: (5) Physical Environment


    Designing the Service scope and providing tangible evidence of service performances Create and maintaining physical appearances Select tangible descriptions for use in marketing communications

    The 7Ps:(6) Process


    Method and Sequence in Service Creation and Delivery Design of activity flows Number and sequence of actions for customers Providers of value chain components Nature of customer involvement Role of contact personnel Role of technology, degree of automation

    The 7Ps: (7) People


    Managing the Human Side(employee) of the Enterprise The right customer-contact employees performing tasks well job design recruiting/selection training motivation evaluation/rewards empowerment/teamwork The right customers for the firms mission fit well with product/processes/corporate goals appreciate benefits and value offered possess (or can be educated to have) needed skills (coproduction) firm is able to manage customer behavior

    Major Trends in Service Sector


    Government Policies (e.g., regulations, trade agreements) Social Changes (e.g., affluence, lack of time, desire for experiences) Advances in IT (e.g., speed, digitization, wireless, Internet) Internationalization (travel, transnational companies) Business Trends: Manufacturers offer service Growth of chains and franchising

    Service innovation process and the development of industrial services should be customer focused. That is why it is important to involve sales and marketing closely in service development processes.

    Sectoral view of service industry


    Service Innovation and Development:
    Innovative developments in service industries seem to be difficult to explain in terms of traditional innovation theories and typologies Three main categories of innovation in services literature The innovation process or the new product development process in a service firm The role of information and communication technology in services The third category focuses on the various forms of innovation, especially organisational and technological innovations

    Reasons for the Growth in Service Sector


    Affluence Leisure Time Life expectancy Product Complexity Lifes complexity Resource Scarcity and Ecology Innovation of new products

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