services marketing one

8/17/2019 Services Marketing One

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Services Marketing

Definition

Services are activities, benefits or

satisfaction which are offered for sale or

provided in connection with sale ofgoods.

-by American marketing

Association


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Growth of services

Coverage of services

Traditional services

egal,edn,medical,

!rnasnaport,ins"rance,

Comm"nication,#$,

entertainment

Modern services

!ravel,%eal estate,

Advert,co"rier,

&ealth cl"b,

credit card

New generation

services

Cell,fa',email,net,

(ideoconferencing

Mgt traning)cons"lt


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Stages of Services Marketing

!he Crawling o"t stage *prior to +/

Sc"rrying abo"t Stage*+-0/

%ealised importance of applicationof modern marketing principles in

services organ, attention was paid.

1alking #rect Stage*+2 on wards&aving recogni3ed the difference

between prod"ct )services


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%easons for the growth of the

service sector

+.Demographic changes

4General increase in the pop"lation

)increased life e'pectancy.4Migration of r"ral to "rban lead to

new towns

4increased infrastr"ct"re )s"pportservices


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5.#conomic Changes

Globalisation b"siness the world

market has grown fast.

Airlines )Air cargo havepredominantly e'tended to foreign

ro"tes.

%evol"tion the 6! ind"stry


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7.Social Changes

6ncreased role of women in the work

place )s"pplement income to the

family.

Cons"mer need wide range of

services like legal) investment

co"nsel.

St"dents are making new demand on

learning instit"tions


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8.9olitical)egal Changes

#nactment on Cons"mer protection

)#nvironment protection.

#'pansion of global !rade.

:S are becoming increasing moreemployment opp"rt"nities


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0.!echnological Changes

Adoption of new technologies.

6nfl"ence in internet services on thetravel, banking, ed"cation, ins"rance

with advent of national or even globalelectronic delivery system.


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6mpact of social environment on the

growth of service marketing

#nvironmental

trend

+.Cons"merAffl"ence

5.More workingwomen

7.Greater life

e'pectancy

Service Market

&otel,!ravel,cl"b,

&ealthcare,banking

Domesticservices,fas

t food,marriage

co"nselling

personal care&ospitals,entertainm

ent,resorts


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Contin.

8.Comple'ity of life

0.;o"th

2.Corporate Crowd


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Significance of services marketing

Generation of employment

opport"nities.

=ptim"m >tlisation of %eso"rces.

Capital formation.

6ncreasing the Standard of living.

>se of environment ?friendlytechnology.


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Components of Service

Service

Delivery

Service

#nvironment

Service

prod"ct

9hysical

prod"ct


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Components of Service

1.The Physical Product.

9rod"ct marketed by a firm involvethe physical transfer of ownership.

#g@ !(,radio,Comp"ter All ho"se holdappliances etc.

2.Service product.

Service that one can offer to anotherwhich is essentially intangible innat"re.


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Contin.

3.Service Environment

!he physical back drop that s"rro"nds

the service. eg. providing hygienic

food in the hotel.

4. Service delivery

6t is great importance to the c"stomersoverall perception abo"t the "ality of

services


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#g@ for components of service

Bat"re of service - >niversitys

+.9hysical 9rod"ct - Degree

5.Service 9rod"ct -co"rses,placement

7.Service #nviron. -hall libraries, play

gro"nd,canteen.

8.Service Delivery - !eaching,

co"nselling


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Characteristics of services

6ntangibility

6nseparability

&eterogeneity

9erishability

Diffic"lty in "ality control.

Cannot be stored eg@ vacant roomhotel

Absence of "antitative meas"rement


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Classification of services

6ns"rance

$ankingShare,M:,

factoring

$s profess

egal,ac,

medical

%ecreation

Cl"b,hotel,

cinemaaw

#nforcing

9olice,m"nici

army

=thers

la"ndry,domestic,

wedding!rans)

Comm

9ost,air

tele>tilities

1ater,#$

service


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Comparison of Goods )Services

Dimensions Services Goods

Characteristic,

#ntity 6ntangible !angible

Storage Bot possible 9ossible

"ality varies Standard

abo"rintensity

&igh low

9rod"cerstat"s

inseparable separable

ife Stillborn longer


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$. Market planning

Demand fl"ct"ating Stabilised

S"pply Constrained :le'ible

Seasonality 9resent Goods specific

9ricing abo"r-based Material based

Channels Direct lengthy

%epair 6mpossible 9ossible:orecast Short r"n ong r"n

6mage corporate $rand


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Contin,

Competion 9ersonali3e !echnology

9hysicalmovement

=f theprovider

=f the goods

Costallocation

Diffic"lt #asy

%eplaceme

nt

%are Common

!itle Bo ownership possibility

Beedsatisfied

Moreemotional

More physical


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Contin, C. Market Strategy

=rientatin #'t)internal 6nternal

:oc"s C"stomer

e'pectation

C"stomer

need

Approach :oc"sed Canbe diff"sed

.!perations

C"stomerinvolvement

high ow orabsent

location Close to c"sto Bear s"pply

"ality

control

vary :i'ed


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Contin, . !perations

!ime std. oose !ight

1age !ime based >nit based

1orker skill 6nteraction !echnical

Sched"ling As perc"stomer int.

Completiondate

inventory 9ersonal %aw material

Delivery Along withprod"ction

Separate fromprod"ction

9rod.design #nvironment =nly prod"ct


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e. =rganaisation

Str"ct"re :latter !aller

%ole of

higher level

S"pportive Demanding

Comm"nication

Cross Mainly vertical

Desireddesign

organic %ational


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"lueprinting

A service bl"eprint is a flow chart of

the service process.

6t conveys the service concept by

showing all elements or activities and

their se"encing and interaction.

6t is pictorial description of the service

at an overview level


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Stages in the preparation of bl"e

print

+-9"t the services in the form of itsmolec"lar str"ct"re. *tangibleintangible/

5-Divide the process into logicalsteps.

7-%ecognise the variations in the

process.8-6dentify the backstage action in theprocess.


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Stage+-Molec"lar Str"ct"re

#g@ of hair dresser

&air c"tting

skills

MenEs hair care

9rod"cts,

Cream.saloon

#"ipment

Scissors,

ra3or

trimmer

&airstyling

skills

Ambience


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Stage 66 Divide the process into

logical steps

Eg. #ospital service.

FC"stomer arrives.

Fgiving order by seeing men".

Fserving ) Cons"mption.

FC"stomer take dessert or coffee.

F!able cleaning.

F9resenting the bills.


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Stage- 666 %ecognise the variations

in the process.

9lanned

#g.asking

different style

>nplanned

#g.Bo idea

abo"t style

(ariability

process


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>ses of service bl"eprint

!o improve the design for an e'isting

service or new service.

G"ide for implementing the service

plan by showing the se"ence of

steps needed to deliver a service .

6t helps in decision making

6t helps in marketing )comm"nication

people.


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Contin.

&r managers "se for preparation of ob

descript, specification ,eval"ation.

%einforces a c"stomer- oriented foc"s

among employees.

6dentify the week links in the chain.

6t provides a concrete basis for

identifying )assessing cost, reven"e)

capital invested in each element.


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Contin.

6t ill"minates the elements )

connections between service

personnel )c"stomers.

6t s"pports both e'ternal )internal

marketing .

6t enable managers to identify,

channel ) s"pport "ality

improvement efforts.


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!echnology ) service prod"ctivity

6t enables the service organaisation

handle large vol"me of services.

6t deliver lowest cost o"tp"t)

ma'imi3ation of c"stomi3ation.

#mployees become more capable)

working faster and smarter.


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Appli. of tech. to service activities

&ard

tech

Soft

!ech

&ybrid

!ech

!ech)

Service


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Appli. of tech. to service activities

a. #ard Tech$

6t s"bstit"te machinery,tools)other engineering devices for

labo"r intensive performance ofservice work.

#g. a"tomatic car parking, comp"ter,

a"tomatic vending e"ipment, creditcard


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%. So&t Tech$

6t means s"bstit"ting pre-planned

system for individ"al service

operations.

eg. :ast food, pre-packaged

vacation to"rs


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C.&ybrid technology

6t is combined hardware with caref"lly

engineered system to bring greater

efficiency.

#g. 6t is commonly fo"nd in banking,

retailing, ins"rance, railways, pre-

order shipment, comp"teri3ed repair

facilities, constr"ction ind"stries.


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%ole of tech .in service process

#asy accessibility of services.

Bew ways to deliver service.

Close link with c"stomer.&igher level of service .

Global reach of service.

Cost rationalisation.


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%ole of service marketing in &%

#ffective ness of service depends

"pon employees performance in t"rn

depends "pon &% policies.

#mployees constit"te important role

in the service.


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6nterfacebetween

MM,&%M)=M

!perations Mgt

Mar'eting Mgt#(M

)nternal

mar'eting

inter&ace

9ersonnel

mobilisation

interface

6np"t )o"tp"t

interface


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6mportance of personnel to the

service marketing

&%M) its relationship in themarketing

Motivation.

Moral involvement

!he fle'ible firm.

%ecr"itment.

!raining )development.

%ewarding the staff.


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$"ilding Service Aspirations

!he service generating organi3ation

b"ild service aspirations in the

process of generating demand for the

services.

=rgani3ation b"ild "p $SA in s"ch

way that promised services are made

) available to the c"stomers.


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$"ilding Service Aspirations

$SA

Generating

Aspiration to

Serve the "sers

Generating

Aspiration to

the "se theservices

services marketing one

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