4584_1017_21_977_45_services mktg
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Services Marketing
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Services MarketingServices are highly intangibleBenefits are felt over a period of time
Creating confidence in the customers mind
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SERVICES MARKETING
Plant & Machinery
PureServices
Intangible
Tangible
Consumer Durables
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PurePureServiceService
Categories of Service Mix
TangibleTangibleGoodGood
w/w/
ServicesServices
Major Major ServiceService
w/ Goodsw/ GoodsHybridHybrid
PurePureTangibleTangible
GoodGood
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Services MarketingPassion for understanding customer expectations and perceptions
Linking them to product design & delivery, aswell as operational planning
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Classification of ServicesRestaurant /Health Care A
Transportation /Warehousing B
Education /
Management CConsultancy
Legal services /
Insurance D
Tangible
Intangible
People Objects/Products
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Classification of ServicesA : People processing servicesB : Product or possession processing services
C : Mental stimulus processing servicesD : Information processing services
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Paradigms in Services MarketingService as a process. Internal customer focus is asimportant as external customer orientation.
Having a mindset of doing it right the first time, asthere is no 99% quality in the service product and noquestion of reworking or repairing of bad service
product.
Speed & accuracy in responding to the customer holds the key.Keeping customers perspective always.
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ServicesServices
InseparabilityServices cannot
be separatedfrom their providers
InseparabilityServices cannot
be separatedfrom their providers
PerishabilityServices cannotbe stored for
later sale or use
PerishabilityServices cannot
be stored for later sale or use
IntangibilityServices cannotbe seen, tasted,
felt, heard, or smelled before
purchase
IntangibilityServices cannotbe seen, tasted,
felt, heard, or smelled before
purchase
VariabilityQuality of
services dependson who providesthem and when,where, and how
VariabilityQuality of
services dependson who providesthem and when,where, and how
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Characteristics of Service MarketingIntangibilityCustomers decision is dependent on understanding of serviceBelief in marketers promise of future performanceCustomer dissonanceComfort zonesCredible medium of communication
Negative ripple effectLow price sensitivity
Customers are willing to pay a higher price as long as they
Feel reassured that they are getting a 100% quality product.
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Characteristics of Service Marketing
No inventoryZero time gap between production & consumption.Profitability & viability are extremely critical.
Value Creation ProcessPeople/ Process/ Proof of Performance/ PaceValue service product is created through an integratedmarketing mix of 8 Ps
TangibilityProvided by service provider Communication & speedCreate an appropriate set of beliefs.
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ServicesServices
InseparabilityIncrease
productivity of providers
InseparabilityIncrease
productivity of providers
PerishabilityMatch supplyand demand
PerishabilityMatch supplyand demand
IntangibilityUse cues to
make it tangible
IntangibilityUse cues to
make it tangible
VariabilityStandardizeservice
production& delivery
VariabilityStandardize
serviceproduction& delivery
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Customer Expectation & Zone of TolerancePast experience & Reference Group
Desired Service
(ideal state)
Zone of Tolerance
Adequate Service
(threshold level)
Service Providers
Communications
Perceived ServiceAlternatives
Predicted Service
Personal needs
Ideal Service Image
Decision Criteria
Competition
Uniqueness of ServiceSituation
Situational Factors
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Customer Expectations & Zone of
ToleranceUnderstand customer expectations and integratethem with the service design & delivery.
Expectations are influenced by the experience of thecustomer & their immediate reference groups. Theseare also shaped by communications from and aboutthe service provider. Most customers have an ideal
image influenced by customers personal needs.However most customers understand realities-organizations have resource constraints andenvironmental factors impact organizational
performance.
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Customer Expectations & Zone of Tolerance
Minimum or Threshold level of service is termed as Adequate service.
The gap between desired and adequate service has been called Zone of ToleranceService below Threshold level > DissatisfactionService above Threshold level > Satisfaction
No gap between delivered and desired service >Delight
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Decision Criteria & Zone of toleranceMin
Zone of Tolerance
Max
Low High
Criticality of Decision Criteria
Zone of TolerancevariesinverselyacrossDecision
criteriadependingon criticalityof thecriteria
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Marketing Strategies for Service FirmsA Shifting Customer Relationship
A Customer Service Democracy to
MeritocracyHolistic Marketing for Services
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Three Types of Marketing
in Service Industries
Internalmarketing
CompanyCompany
CustomersCustomers
Externalmarketing
EmployeesEmployees Interactivemarketing
Cleaning/maintenance
services
Financial/bankingservices
Restaurantindustry
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Service Differentiation
Offer
Delivery
Image
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Factors leading to Consumer SwitchingBehavior
PricingInconvenience
Core Service FailureService Encounter FailuresResponse to Service Failure
CompetitionEthical ProblemsInvoluntary Switching
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Service-Quality Model
Expected service
Management perceptionsof consumer expectations
Marke ter
Marke ter
Consumer
Consu mer
Gap 1Service delivery (including
pre- and post-contacts)
Gap 3Translation of perceptions
to service-quality specifications
Gap 2
Gap 5 Perceived service
Externalcommuni-cations to
consumersGap 4
Personal needs Past experienceWord-of-mouthcommunications
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Determinants of Service Quality Reliability- The ability to perform the promised servicedependably & accurately.
Responsiveness - The willingness to help customers & to
provide prompt service. Assurance - The knowledge & courtesy of employees &their ability to convey trust & confidence.
Empathy - The provision of caring, individualized attentionto customers.Tangibles - The appearance of physical facilities,equipment, personnel & communication materials.
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2000 Prentice Hall
ServiceServiceExcellenceExcellence
ServiceServiceExcellenceExcellence
Strategic ConceptStrategic Concept Top-Management CommitmentTop-Management Commitment High StandardsHigh Standards Monitoring SystemsMonitoring Systems Satisfying Customer ComplaintsSatisfying Customer Complaints Satisfying Both Employees & CustomersSatisfying Both Employees & Customers Managing ProductivityManaging Productivity
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2000 Prentice Hall
A. Concentrate here B. Keep up the good work
D. Possible overkillC. Low priority
Importance-PerformanceImportance-PerformanceAnalysisAnalysis
Importance-PerformanceImportance-PerformanceAnalysisAnalysis
Extremely important
Slightly important
Excelle
ntp erfo rmance
Fairp erfor manc e
1 2
9
1113 12 14
34
5 678
10
# = At t r ibutes
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Complaint ResolutionComplaint ResolutionComplaint ResolutionComplaint Resolution
Hiring Criteria & Training for EmployeesHiring Criteria & Training for Employees Develop Guidelines for FairnessDevelop Guidelines for Fairness Remove Complaint BarriersRemove Complaint Barriers Analyze Types & Sources of ComplaintsAnalyze Types & Sources of Complaints
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