I MM Services Marketing

8/2/2019 I MM Services Marketing

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Definitions on Service Marketing

AMA defines services as

activities, benefits, or satisfaction whichare offered for sale, or provided inconnection with the sale of goods.


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Definitions on Service Marketing-continued

W.J.Regan in his article, The ServiceRevolution in Journal of Marketing

services represent either intangibles yielding

satisfactions directly ( transportation, housing),or intangible yielding satisfactions jointly whenpurchased either with commodities or otherservices (credit delivery).


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Modern services

Travel agency

Real estates

Advertising

Public relations Market research

Physical fitness, health clubs

Car rentals

Courier services

Credit cards


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Examples of services

Banking,

Transportation,

Tourism,

Hotel,

Personal care,

Education marketing, Hospital marketing,


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Examples of services

Courier services,

Entertainment services,

Electricity services, Telecommunication services,

Automobile services

Household services- baby sitters, maid servants,security guards, attenders, gardeners, plumbers, computer

service, secretaries


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Salient features of Marketing Services

1. Services are intangible

2. Services are heterogeneous

3. Services are inseparable

4. Services are Perishable

5. Services are susceptible to changing demand

6. Services are subject to special pricing tactics

7. Ownership cannot be transferred

8. Simultaneity


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Goods and Services: A comparative

analysis- continuedProducts services

1.Tangibility Versus

Tangible

Intangibility:

Intangible

2.Transferability V/S

Goods can betransferred from oneplace to anotherplace

Non transferability

It is not possible totransfer goods fromone place to another


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analysis- continuedProducts Services

3. Existence: Durable

goods bought remainin existence

Non existent in

nature

4. HeterogeneityVersus

Easy to measure thequality

Homogeneity

Cannot be

standardized. It isdifficult to measurethe quality of

services


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5. Re-selling:

Goods can be re-sold-there is legal right

We dont bear the

right of reselling. Ifwe book a seat inaircraft, a room in ahotel, a ticket in a

cinema hall6. Separable VsInseparability

Produced andconsumed at the sametime


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7.Customer participation Vs Non participation :

In manufacturing aphysical product, thecustomers do notparticipate in theproduction process.Consumes only after

they are produced.

Buyers and sellersare to participate inproduction activityundertaken by theservice-seller. Ex:student in a class ;

barber- customer


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8.Stocking Vs Non- stockingProducts can beproduced and stockedtill they are sold

Services cannot bestored. Supply isthere only whenthere is demand.


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9.Perishable or not Short lived. They cannotbe produced ahead oftime and stocked forpeak loads of demand

10.Susceptible tochanging demand

The market for serviceshas wider fluctuations.Ex: transportation-Morning and eveningmore load


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11.Pricing tactics

Standardized variable


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12.Tangibility Versus Intangibility

Products have adefiniteconfiguration andapparentcharacteristicfeatures which

can be easily seen,touched, smelt,heard or worn

Services areconsumed but notpossessed.


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FACTORS INFLUENCING THE FASTER GROWTH OFSERVICE MARKETS

1) More disposable income at customers command

2) Increased scope for industrial specialization

3) Growing fashion

4) Professionalism in education

5) Information explosion

6) Sophistication in market

7) Increasing Governmental activities

8) Ever increasing complexity and sophistication in thejobs needed

9) Change in the attitude of people towards life


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Significance of Services Marketing

Creation and expansion of jobopportunities

Optimal utilization of resources withoutconsuming natural resources

Paving way for the formation of capital

Increasing standard of living increasing

awareness on how to spend, where,how,

Environment friendly technology -


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Tourism marketing

In tourism our emphasis is on temporaryand short term movement of people

We consider tourism marketing aprocess of creating a product orproviding a service. It is a managerialprocess to promote the business of

tourism.


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Users of tourism services

Actual users

Potential users

Occasional usersHabitual users

Non users


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Salient features of Tourism marketing

Tourism product highly perishable

Tourism product is a service product

Intangibility complicates marketing Services are for pleasure

Users are supposed to visit the centre

Adequate infrastructural facilities arerequired

Users are a heterogeneous people


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Package tour

Tour operators

Tourist guides

Resort representatives

Tourism department

Festivals Goa festival

Investment in shares of Resorts


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Service marketing mix

A service has its own peculiarities and hence

there is need for additional Ps.

Persons such as Judd, Magarth and Kotler

thought of adding at least six more Ps


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Six more Ps of Service marketing

Positioning

People

Physical evidence

Physical facilities

Process management Power and public relations


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1. Positioning

Implanting in customers mind a clear cut

meaning of what a product is.

It refers to the picture which is being projected

in the minds of the customers

Concerned with identifying target market,

development of uniqueness and

communicating the same.


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2) People

It is the employees of the organizationwho represent the organization to the

customers It is the employees to be trained to

face the customers

Employees are Internal customers


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people

Intimate and long term relationship

Confidence in a particular doctor

A well mannered waiter of a hoteldevelops his own clientele


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3. Physical evidence

Physical evidences are the tangiblecomponents such as buildings,

furniture, stationery, letterheads, notepads, etc

Physical evidences or tangible

components are classified as under:i) Essential and (ii) Peripheral


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Physical evidence

i) Essential or main services constitutes adominant part of the service e.g., Impressivepremises for a hotel college

ii) Peripheral evidences are minor or auxiliaryassociated with service. e.g., stationery,brochures, Pass Book, Cheque book, Bus ticket,Insurance policy document

Physical evidences create impact on customersperceptions


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Physical evidence

A peripheral evidence can be possessedas a part of service bought.

Ex: Service is affected by the settingthat is visible to him


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4) Physical facilities

Accessibility or availability

Place - It deals with - Location of services -

- Selection of intermediaries

- cost effectiveness of distribution


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Location of services

Convenient banking hours

Personal visit to the customer (e.g.,

Pizza on phone, banking by homedelivery


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Intermediaries : There is absence ofmiddlemen in the distribution of personal

services like beauty parlour, hairdressing, repairs ,consultancy

Indirect marketing is possible forbanking, financial services, insurance,

security services, travel and tourism -through agents, franchising


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5. Process management

Assuring service availability and consistency

Process refers to the way in which the

consumers receive delivery of service

It consists of activities by which a service isproduced and delivered to the ultimateconsumer

Service organisations have two dimensions, viz,1.Front stage 2. back stage


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6. Power and public relations


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Service marketing model

Prof Christian Gronross says that themarketing activities of service

organizations can be clubbed underthree major heads as

External Marketing ( traditional 4 Ps)

Internal Marketing

Interactive Marketing


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Service marketing model- Prof Christian Gronross

COMPANY

Internal External

marketing marketing

EMPLOYEES CUSTOMERS

INTERACTIVE MARKETING


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Service Marketing model

Services business is much more difficultto manage with traditional marketing

approaches using four Ps In product business, products are

standardized and appear on the shelveswaiting for the customers

In service, customer reacts with aservice provider whose service quality isless certain and more variable


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Service marketing model- Prof Christian Gronross

External Marketing

Traditional 4Ps external as they are projected attarget customers. These include

Market planning- same almost

Channels of Distribution-intangibility andinseparability. Channels are short & direct

Advertising of services- WoM

Personal selling personal relationship &Professional orientation and public image


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Internal Marketing

Almost every one should practicemarketing

Cos manpower should be ready Internal employees should be trained

and motivated for customer contact

They should work as a TEAM

Develop motivated and customerconscious employees


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Service Marketing model

Interactive Marketing

In case of service marketing, service

quality depends on both service providerand service delivery

Customer judges service quality on thebasis of technical norms such as (i) rate

of success of surgeons and (ii) whetherthe surgeon showed concern andinspired the patient


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Service Marketing model - continued

Interactive marketing depends uponbuyer seller interaction

There is a need to increase competitivedifferentiation, service quality andproductivity


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Competitive differentiation : Ex: Roadpassenger service can introduce enroute

movies, lunch, advance booking

Ex: Catering service _ Birthday conecaps, free cake, balloon, etc


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Service quality: consistently servicequality

Promise only what you can deliver and

deliver more than you promise

Render zero-defect service


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Future of Service marketing

Service has a bright future

Bound to take increasing share of Indian

consumer rupeeDemand for services will go up as the

businesses are becoming professionals

Service providing machines

vending machines

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I MM Services Marketing

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