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Course Introduction

Course Code: MKT 6404Course Title: Service Marketing

Course Teacher:

S.M. Monirul IslamLecturer in Marketing

Phone: (041) 813844 (Office)E-mail: [email protected]
mailto:[email protected]:[email protected]


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Course Definition

Service marketing is the

advance level course for

marketing professional whichmake the marketing practices

different from goods marketing

and focus on how to design theservice marketing mix.


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Course Objectives

1. Make understanding the differences between

goods and services.

2. Realize how marketing task of services

create more challenges than goods marketing

3.Acheive skill to develop the marketing mix

strategies for service product.

4.Know the service gap recovery system and

manage service customer.


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Instruction Methodology

Interactive lectures on recommended

topics

Multimedia visualization

Group work, presentation,

Assignment/project.


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asis of Continues

assessment

Class attendance

Class test

Assignment/project

Class performance & Presentation


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Text & Reference

Essentials of Service Marketing

-- Hoffman & Bateson

Ref: The marketing of ServicesCowell, D.

Service Marketing --- Lovelock, C. & Wirtz, J.


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Defining Service

work done by one person or group thatbenefits another

Service is deeds, efforts, performance of humanwhich satisfy the demands of another. It is

invisible and untouchable which make it differentfrom physical goods.

A service is the non-material equivalent of agood. A service provision is an economicactivity that does not result in ownership,and this is what differentiates it fromproviding physical goods.


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The Molecular model

A conceptual model of the relationship

between tangible and intangible

components of a firmsoperation.


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The servuction Model

A model used to illustrate the factors thatinfluence the service experience, including those

are visible to the consumer and those are not.

Customer A

Customer B

Bundle of service

benefits received by

customer A

Invisible Visible

Organizational

system

Inanimate environment

Contact Personnel

Service Provider


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Inanimate environment:

All the nonliving features that present during

the service encounter, like furniture, interior

design, music, wall hangings etc.

Contact personnel:

Employees other than the primary serviceproviders who briefly interact with the

customers.

Service provider:Who provides the core services to the

customers with direct interaction with them.


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Customer A:

The recipient of the bundle of servicebenefits provided by the marketer.

Customer B:

Other customers whose serviceexperience influence the customer A.

Organizational system:

The rules, regulations, processes on which theorganization is based.


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Differences BetweenGoods and Services

Intangibility:

A distinguishing characteristics of services

that makes them unable to be touched orsensed as like goods.

Inseparability:

It reflects the interconnection among theservice provider, service receiver and other

customer during delivering the service.


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Heterogeneity:The variation in consistency from one service

transaction to the next.

Perishability:Service is perishable over the passage of

time. It cannot be saved, stored or inventoried

the unused capacity.


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Marketing problem causedby intangibility

Lack of ability to be stored

Lack of protection by patent

Difficulty in Displaying or communicating

Difficulty in pricing

Possible Solutions

Use of tangible clues

Use of personal sources of information

Creation of strong organizational image


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Marketing problemcaused by Inseparability

Physical connection of service provider

to the service

Involvement of the customer in theproduction process

Involvement of other customer in the

production processSpecial challenges in mass production


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Possible solutions:

Emphasize on selection and training the

contact personnel and service providers

Consumer managementUse of multisite location


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Marketing problem causedby Heterogeneity

Difficult to standardize and quality

control

Possible Solutions: Customization

Standardization


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Marketing problemcaused by Perishability

Higher demand than Maximum available

supply level

Higher demand than optimal supplylevel

Lower demand than optimal supply level


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Possible solutions:

1. Demand strategy:

Creative pricing

Reservation system Development of complementary

services

Development of nonpeak demand


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2. Supply strategy

Part-time employment

Capacity sharing

Advance preparation for expansion

Utilization of third parties

Increase customer participation

Possible solutions:

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