Services Marketing

Dr. Vinosh Peter K.V.

A service is any activity or benefit that one party can offer to another, which is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product- Kotler.

Examples: Defense, Postal, Education, health, Religious Services, Hospitals, Airlines, Hotels, Law Firms, Entertainment, etc

What is service?

Intangibility ( customer cannot see, touch or fell the service product)

Perishability (services cannot be stored for future sales)

Heterogeneity ( unique characteristics) Inseparability (Production & consumption

happen at the same place and cannot be separated)

Characteristics of Service Industry

Services Offered by Different Organizations

Private for profit business organizations

Private not profit business organizations

Governments

Hotels, Restaurants Museums Postal Services

Telecom Services Orphanage Universities

Airlines Religious Places Courts

Real Estate Companies Colleges Electricity

Courier Services Schools Transportation Facility

Patients Family membersReferral DoctorsSuppliersEmployees

Who is the key customer in the hospital?

Who are the customers in a hospital?

Good Medical Care Good Nursing

Care Less Waiting Time Excellent

Hospitality Personal

Attention Affordable

Charges

Cleanliness Good Coordination Cooperation

among the Staff Discipline Communication &

Information Transparency in

charges and procedures

Patient Expectations

Patient Satisfaction is “hospital services and its perception by the patient” minus ”patient expectations”

0 = Patient Satisfied- = Patient Dissatisfied+ = Patient Delighted

Patient satisfaction measures need to be developed from the patients perspective.

What is patient satisfaction?

On the basis of interaction between different entities, the success of the service firm lies in effective implementation of three types of marketing to create and deliver the services.

External Marketing ( company markets the goods to the customers)

Internal Marketing ( A firm should orient its employees to deliver the service in the best possible manner)

Interactive Marketing ( The interaction between service provider, employees and the customer)

Services Marketing Triangle

7ps of Marketing Product Price Place Promotion People – (employees, management and

consumers) Process (procedure and flow of activities) Physical Evidence –( Direct sensory

experience of a product or service)

Service Marketing Mix

ProductMc Donalds product portfolio primarily comprises of vegetarian and non-vegetarian burgers. The vegetarian burgers like Veg surprise, salad sandwich, Mc Aloo Tikki Burger, Mc veggie burger are offered to the customers. Non-vegetatarian burgers include Chicken Mc grill, Mc chicken burger, Fliet of fish and chicken maharaja burger. Along with these french-fries, veg pizza mc puff, wrap chicken Mexican, wrap paneer salsa, soft serve pineapple and choclate ice creams, Mc swirl soft drinks, coffee and Mc shakes are also offered to increase the variety in the product portfolio.

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THE 7 P's Of Mc DONALDS'

Price

Mc Donalds vegetarian burgers are priced between Rs 20 and Rs 48. Wrap paneer salsa is priced at Rs 45-50. The non vegetarian burgers are priced between Rs 30 and Rs 60. Wrap chicken Mexican is priced at Rs 55. Medium French fries are priced at Rs 28, potato wedges at Rs 20, soft serves at Rs 35, mc swirl at Rs 12, medium soft drinks at Rs 20 and medium shakes at Rs 45.

Promotion

At Mc Donalds the prime focus is on targeting children. In happy meals too which are targeted at children small toys are given along with the meal. Apart from this, various schemes for winning prices by way of lucky draws and also scratch cards are given when an order is placed on the various mean combos.

PLACE:

Mc Donald outlets are very evenly spread throughout the NCR region. Mc Donalds does not offer home delivery but its outlets are very readily accessible.

PEOPLE

The employees in Mc Donalds have a standard uniform and Mc Donalds specially focuses on friendly and prompt service to its customers from their employees

PROCESS

The food manufacturing process at Mc Donalds is completely transparent i.e. the whole process is visible to the customers. In fact, the fast food joint allows its customers to view and judge the hygienic standards at Mc Donalds by allowing them to enter the area where the process takes place. The customers are invited to check the ingredients used in food.

PHYSICALEVIDENCE

Mc Donalds focuses on clean and hygienic interiors of is outlets and at the same time the interiors are attractive.

WHAT IS SERVICE GAP? It is defined as the service difference between what the customer was expecting and what is being delivered

WHAT IS SERVICE QUALITY? The service QUALITY can be termed as "A set of quality requirements on the collective behavior of one or more attributes or dimensions".

SERVQUAL ( SERVICE QUALITY)

TANGIBLES - the appearance of physical facilities, equipment, personnel and information material

RELIABILITY - the ability to perform the service accurately.

RESPONSIVENESS - the willingness to help customers and provide a prompt service

Credibility - trustworthiness, believability and honesty of staff

Security - freedom from danger, risk or doubt EMPATHY - a combination of the following

DIMENSIONS OF SERVICE QUALITY