Date post: | 06-May-2015 |
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Week 9Services Marketing
How are goods & servicesdifferent?
Most services contain some element of goods.
Goods are the object,a service is the effort, performance or deed
A product can be either a good or a service
Purchasing a service is often more personal than purchasing
A product.
Bad service sticks in people’s minds!
Any examples of bad service?
Good service?
All retailers are classified as being in the services sector.
Service retailers in Australia aregrowing faster than product retailers
Services have four uniquecharacteristics:
Intangibility
Inseparability
Heterogeneity
Perishability
Intangibility
When a consumer buys a service, or a tangible product that has a service
element, they are buying an experience
Inseparability
The connection between the service provider, the customer’s
involvement in the service, and theinvolvement of other customers.
Heterogeneity
This is the lack of ability to control the quality and consistency
of a service before it reaches a customer.
Perishability
Services can’t be stored, andif they are not sold one daythey cant be kept to be sold
later.
Services are usually a high involvementpurchase.
This is because there is usually a high level of personalisation.
For this reason, many service organisations
put great emphasis on employee training, evaluation and motivation
Although a service is intangible,the P of ‘place’ still plays a major
tole in marketing.
Where should the servicebe in order to effectivelyreach the target market?
And to strengthen the brand?
Guidelines for advertising services
There are common guidelines for
advertising services, which relate back to the four unique
characteristics
Develop a word of mouthnetwork
Consumers of services oftenlook to personal sources for information
Use testimonials
Use promotions that award therecruitment of friends
Promise what is possible
Customers prepare expectationsto actual service delivery
Don’t overpromise!
Tangibilise the intangible
Make the service more concretethrough use of tangible symbols,
recommendations, years ofestablishment etc
Feature the relationship
A key element of services isthe relationship between provider &
customer
Illustrate the inseparability
Reduce fears about inconsistency
Use of testimonials, word of mouth, years of service
Focus on relevant factors
What do people want from your service?
Make that a focal point of your communications
Show the service as a series of events
Consumers often view servicesas a series of events
Look at marketing from a seriesof events perspective
The ‘halo’ effect
In services, first impressions areeverything
This can include phone contact,signage, store layout etc
In service situations, the atmospherecreated is important.
Use sight appeals (furniture, colour) sound appeals (to set mood, Inform)
touch appeals or scent appeals
The People Problem
People make up the most of the product of every service firm
And they involve customers as co-producers
Both can cause problems.
Like what?
How do you fix the employee problem?
Training
Empowerment
Enfranchisement (empowerment plus performance
based compensation)
How do you fix the customer problem?
Do you think customers are becoming too demanding?
So how do you manage customers?
Occupy waiting times
Communicate with customers
Understand customer habits
Empower staff to deal with customer complaints
Respond to complaints quickly
Examples?
Good or bad service experiencesin fashion retail?