Service Marketing( INTRODUCTION, CLASSIFICATION, CONSUMER BEHAVIOR ETC……. )

Presented to:-Vivek Sir

Presented by:-Mohit PatodiyaMba 3rd sem

What is Service Marketing?

Activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product

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

Health Care

hospital, medical practice, dentistry, eye care

Professional Services

accounting, legal, architectural

Financial Services

banking, investment advising, insurance

Hospitality

restaurant, hotel/motel, bed & breakfast ski resort, rafting

Travel

airline, travel agency, theme park

Others

hair styling, pest control, plumbing, lawn maintenance, counseling services, health club, interior design

Examples :-

Tangibility Spectrum

What is Service? The Old View

Service is a technical after-sale function that is provided by the service department.

Old:

Service = wrench time

Old view of service = Customer Service

Center

What is Service? The New View

Service includes every interaction between any customer and anyone representing the company, including:

Dealers

Sales people

Receptionists and Schedulers

Management and Executives

Service Employees

Billing and Accounting Personnel

Web site and any e-channel Interaction

Nature of Service Marketing

1. INTANGIBILITY

Services are intangible we cannot touch them as they are not physical objects.

A consumer feels that he has the right and opportunity to see, touch, hear, smell or taste the goods before they buy them but his is not applicable to services.

The services are not known to the customer before they take them.

EXAMPLE

Mobile network providers like Vodafone , Airtel , Reliance , etc

2. PERISHABILITY

Value of service exists at the point when it is required.

Services perish as soon as they are used.

Services last for a specific time and cannot be stored like a product for later use.

EXAMPLE

3. INSEPARABILITY

Services cannot be separated from the service provider.

Thus, the service provider would become a part of a service.

Production and consumption of services go hand in hand.

EXAMPLE

Taxi operator drives taxi, and the passenger uses it.

The presence of taxi driver is essential to provide the service.

4. HETEROGENEITY

The quality of services cannot be standardized.

Systems and procedures are put into place to make sure the service provided is consistent.

The service firms should make an effort to deliver high and consistent quality by selecting good and qualified personnel for rendering the service

EXAMPLE

Live concerts like singing , dancing and comedy shows , movies , etc.

Pure services : Activities performed that do not include a tangible product.

Non-good services - Personal/professional service for a fee.

Example: tax preparation.

Owned-good services - Activities that alter, improve, or repair products already owned.

Example: dry cleaning, appliance repair service.

Rented good services - Provide a product to use for a brief period for a fee. Example: carpet

cleaners, movie rental.

Consumer services

Classification of service

People processing

Level of involvement can vary.

Managers must think about processes / outputs in terms of what happens to customers or what benefits are created.

Identify non-financial costs, time, mental and physical effort, fear, and pain etc.

Example : healthcare, beauty saloon, dentist, spa, tourism, transportation, restaurant, lodging

Classification on the basis of involvement of customer

Possession processing

Working to tight deadlines to restore customer’s possessions to good working order.

People are less physically involved and usually, no real need for them to enter the service; often limited to requesting the service; explaining the problem or paying the bill only.

Eg : post office /currier, laundry, ATM, warehousing, landscaping, gardening, office cleaning, repair and maintenance, freight transportation

Classification on the basis of requirement of skill and expertise

Professional servicesRequires a set of qualificaion skills adequate training etc.eg lawyer, pilot

Non professional servicesDo not require any set of skills training.Eg house keeping, babysitting etc

Classification on the basis of end user

Consumer services: beauty case hair case

Business to business services: market research and consultancy

Industrial services: maachine installations

Consumer behavior in service marketing …. ?

Consumer behavior is the study of how people make decisions about what they buy, want, need, or act in regards to a product, service, or company. It is critical to understand consumer behavior to know how potential customers will respond to a new product or service. It also helps companies identify opportunities that are not currently met.

The Three Factors

Psychological Factors

In daily life, consumers are being affected by many issues that are unique to their thought process. Psychological factors can include perception of a need or situation, the person's ability to learn or understand information, and an individual's attitude. Each person will respond to a marketing message based on their perceptions and attitudes. Therefore, marketers must take these psychological factors into account when creating campaigns, ensuring that their campaign will appeal to their target audience.

Personal Factors

Personal factors are characteristics that are specific to a person and may not relate to other people within the same group. These characteristics may include how a person makes decisions, their unique habits and interests, and opinions. When considering personal factors, decisions are also influenced by age, gender, background, culture, and other personal issues.

For example, an older person will likely exhibit different consumer behaviors than a younger person, meaning they will choose products differently and spent their money on items that may not interest a younger generation.

Social Factors

The third factor that has a significant impact on consumer behavior is social characteristics. Social influencers are quite diverse and can include a person's family, social interaction, work or school communities, or any group of people a person affiliates with. It can also include a person's social class, which involves income, living conditions, and education level. The social factors are very diverse and can be difficult to analyze when developing marketing plans.

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