SERVICES MARKETING

University of Central Punjab, Lahore

BY Prof. AMJAD HABIB MIRZA Business and Management Consultant auj 199@hotmail.com
0315-4259982

 LECTURE ^ 1
IN THE NAME OF ALLAH THE MOST BENEFICIENT, THE MOST MERCIFUL

Services are:
Deeds, Process and Performance. Services Marketing is usually confused. There are a variety of definitions covering product spectrum of activities. Included in services ambit, some services are intangible as such, whereas, some are tangible in nature. Timelines of services is intangible and repair and maintenance are to a large extent, tangible. There are services provided with the sale of the product like packing, delivery etc. MARKETING RESEARCH

 Then there are service providing

companies like repairs and maintenance of machines, electrical system etc. Let us, however, define it as:

 All economic activities, whose output is not a physical or construction is generally consumed at the time it is produced, and provides added value in forms (Such as convenience, usefulness, amusement, comfort or healthiness) that are essentially intangible concerns of its first purchases.

MARKETING
SOCIETICAL PROCESS, WHEREBY THE NEEDS AND DEMANDS OF AN INDIVIDUAL OR A GROUP ARE MET WITHAND IN THE PROCESS BRINGS SATISFACTION AND CONTENTMENT FROM WHAT IS BEING CONSUMED

 Categories of Services: Four Categories: A. Services Industries: These are those firms, whose core business is providing services. Transport services, Medical services, Janitorial services, Event management, Delivery services, Pathological services. B. Service with Product: There are services, which are made a package with the product and provided. For example, Installation of A/C in the house coupled with sale of A/C,

 C. Customer Services: Periodical change of product parts, oil, lubricant, health maintenance, Vaccination, fumigation. Lower perception comes from: Inexplicable services, Silence of services Too much complicated services Not deliver what customer wants Not commensurate with service design Not matching with promises Wrong or inappropriate Service Design etc

D. Derived Services: This category include such services, which are customer option. The customers can pay little to derive them, compared to others. e.g. Insurance, Banking, wedding arrangement, safety and security,

TRENDS IN SERVICE SECTOR

It is a continuously rising trend in almost all categories above. The ratio of services to product, are increasing manifold. For example, hotels, restaurants, airlines, ticketing, recreation, weddings, parties, festivals, matches, events, religious get togethers.etc

Services are Predominant in:

Automobile Industry I .T and Computers Electronic Food, Catering & Hotels Travel & Communication Advertising Transport Consulting Teaching Beverages Utilities

Some of world economies are Services industry:

Singapore Greece Australia Korea India UAE Italy Japan Taiwan China UK Others: France, Spain etc.GOODS MANUFACTURERS

Service Marketing is Different: CHARACTERISTICS: 1 Intangible: Services are usually not visible, but they help marketing. Our approach is to make services stay clean away from the tangibility of the product. They have direct impact on product and overall marketing, sales and distribution.

Heterogeneity: It is the performance, produced by human, no two services are the same. Our approach is to provide homogeneity in services. Set some standards, as per cost and input

Production and Services: Product sell on services provided. Our approach is to sell services first, then the product.

Perishability: Services cannot be stored, resold, returned or saved. It must be delivered and once delivered is final. Our approach is to deliver it perfect & error free.

 The Aims of Services Marketing is made Easy: - If we stay Focused on Customer. - Customer satisfaction - Want & Need Identification - Predominant Want - Customer Re-emphasized - Services are identified. - Value Added

END OF LECTURE 1
SEE YOU..

LECTURE- 2

The Customer Gap

Conti.
There is s difference between what you expect and what you have in your perception. Customer Gap is the difference between expectations and perception.

Customer Expectations are standards or reference points that customers brings into service experience. Whereas customers perceptions are subjective assessments of actual service experience, so we must review them from that point of view.

Expected Service I I I V Perceived Service

Customer Expectations come from what customers believe should happen. e.g. From a visit to a posh restaurant and to a fast food restaurant, we expect quick and prompt, with good hot and fresh food services. We want car park and safety & prompt handling.

Expectations come from image, advert, reputation, references, sales promotion, word of mouth, etc.

Perception comes from real service experience which the customer faces or feels.

Now, how this gap does widen?

Expectations are raised Through 1- fake promises or 2 - rhetoric 3 - Inherent exaggeration in adverts 4 - High-profile Image 5 - Too much display

Lower perception comes from: Inexplicable services Silence of services Not highlighting the importance of services Too much complicated services gap Not deliver what customer wants Not commensurate with service design Not matching with promises

Wrong or inappropriate Service Design

Customer Wants are not known

This Creates Producers Gap Because of Poor and Inadequate marketing study or of customers Lack of upward communication. Means we do not convey to service designers Insufficient relationship exists between the provider and the customer

TPoor Service Design:

Poor work Absence of customerdriven standards Inappropriate physical standards and infrastructure & iNVESTMENT Poor Matching: Over promising Inefficient management in customer handling Lack of integrated services

LET US Refer to Islamic Principles

Show & explain your product well and fully Discuss salient points Tell Dos & Donts Tell safety requirements Tell defects / shortcomings as well, if any Give customer an opportunity to try, Test,, touch, feel, speak, hear, whatever is possible and whatever is the product

END OF LECT -02

SEE U NEXT TIME

LECT 03

Consumer Behavior in Services:

It is extremely important that we understand consumer behavior. His behavior can well be understood if we know his problems.

Consumer Problems:
Non availability of things Prices Late deliveries Lower quality Poor services Low standards Poor handling

Points the Most Serious ones are:

Time Deficiency
Consumers do not have time in fast life. Time is wasted in: Selection Shelfing Labels Similar sounds of names Check out Waiting It is called drudgery and boring

Solution
Make separate check out counters Make telling machines simple Make accessible counters Give enough space Do not overload shelfs Out sourcing

The idea behind this Service is:

Convenience Fastness & . Comfort Ease Easy info on Price, Quality, Brands

Customers fail to make comparisons

Give customers Search Qualities Product info Experience true references

Consumers Needs
Need Recognition Information to ease Search Evaluation of Alternatives Purchase

Need Recognition
Psychological Need Ego Need Real Need Social NeedIT IS AN UNPROVEN STATEMENT OR A PROPOSITION ABOUT A FACTOR THAT IS OF INTEREST TO THE RESEARCHERS

 Retailing must be recognized as science. Consumer Experience: Consumers learn from experience of trying purchase. Customer Service Transaction Self Help

 Services Marketing include giving Good experience. Bad experience makes more customers caste away. Post Experience Evaluation:
Word of--mouth communication Attribute of dissatisfaction Pre-set mind Loyalty New Products inflow

USUALLY
WE APPLY 5 Ws Who, when, where, what and why

END OF LECTURE-3
SEE YOU

LECTURE-4
Understand the Differences of Consumers

 So far, we have talked about Consumer Gap and Consumer Needs, the Consumer Perception and Reality. Let us go into discussing the difference of consumers on certain external factors.

Culture and it Role

Culture plays pivotal Role, * Ethnic and * National Culture. Culture represents common values, norms and behavior of a group. Culture varies from place to place, and from generation to generation. Culture determines the kind and nature and style of services, which we desire. Customers perceive differently across the board. Culture influences, how companies and their services package and employee interact with customers.

In Far East and Asia, culture demands more interaction with customers in purchases, while in the west, least interaction is desirable.

Cultural Manners and Customs

Ways of Behavior Treatment to Women Habits Form of Communication

Material Culture: Tangible Products and Features. Aesthetics: About Beauty and Good taste. Educational & Social:

 Education Literacy, Awareness, Social justice, Consumer rights etc are all defined in services. Legal Framework:

Organizational set up
There are more centralized orgs in Pakistan. Decisions are taken by one-man or one family, with or without justification, on whims and fancies of that person or persons.

Income Strata
A lot depends on where people live and their Incomes and source of their Incomes/ People live in rural and villages, people live in cities. People differ in their educational background

END OF LECTURE 4
SEE U NEXT in LECTURE 5.

LECTURE NO. 5

Customer Expectation or Services

Customer expectations are belief about service delivery that serve as standards or reference points against which services are judged. Customer Expectations are most difficult to judge. We can ask the following questions;

Types of Expectations
Ideal Expectations or desires
Freshness, Correct weight, Taste, Color look Salt / sugar white, chocolate brown, car operates, fan revolves

Normative Expectations (should have)

Experience Expectations - References Acceptable Expectations - Soap, Ghee Minimum Expectations Must have

Sources if Customer Expectations

Sources of Desired Service Expectations
Personal need - social, health, economic Lasting needs services

Sources of Adequate (better)Service Expectations

Temporary service intensifiers(look others and feel it need for u) Perceived service alternatives(try) Situational factors

What to do if expectations are Unrealistic

Explain the Realistic picture of the services Interact with customer & explain Reduce exaggerationTAPPER OFF MISGIVINGS Offer what you can deliver

 Satisfaction Vs expectations psyche Resultant = Customer delight

CUSTOMERS PERCEPTION OF SERVICES

We all have different levels of understanding depending on our educational background, intelligence and vision. Perception of Reality is as WHATWE UNDERSTAND, not what it is. Customer perception is what they understand product and services. Hence, to give maximum satisfaction to customers, we must first correct Perception.

Satisfaction vs. Service Quality

Satisfaction is very Interchangeable and Controversial term. Hence, it is difficult to define Satisfaction. It is derivative and differs from time to time. It is situational. Whereas service quality is definable in terms of characteristics we use service quality as a tool to derive customer satisfaction, but its perception must be clear.

 Customer Satisfaction comes: Word of mouth Loyalty / promotion

What is Customer Satisfaction?

It is Consumer Fulfillment Response. It is the judgment that a product and its services provide a pleasurable level of consumption- related fulfillment.

What Determines Satisfaction?

Product features overall Consumer Emotions Perceptions level of Pleasure Fairness and equity Other influenced family, friends and experts

 Services are delivered by employees, hence it adds to the problem. Service Design must Incorporate the following:
Simplification Completeness Objectivity with material things Correct Communication & interoperated

 Types of New Services:

Major or Radical (fundamental/essentail) Innovation:

When we bring in new aspects to the existing services. Cellular phone services are the kind.
Startup Business:

When the market is already being catered and we bring startup services. TV, cable, internet etc.
Service Improvement: Newer Style of Services:

Types of Customer Defined Services:

Where services are pivotal customer requirement. Two sections Hard Customers defined standards Fedex is one example. Do it Right the first time standard. Reliability Strip to target Ontheline fixed Speed, correct, on time

Soft Customer defined standards Demands basic services without fail. Delivery Safety Confidentiality

End of lecture -5
See you

LECTURE--06
LECTURE O6 EMPLOYEES ROLE IN SERVICE DELIVERY: Culture formally defined as the way we manage things around us

Corporate Culture:
The pattern of shared values and beliefs that give the members of an organizational meaning, and provide them with the rules of behavior in the organization Experts now believe that the success of organizations depends upon incorporating service culture or customer oriented culture.

Let us look at Service Culture

Customers come First Emphasize Service over everything Make Services as Routine-task Train Employees regularly and periodically Put concerted Efforts on services Evaluate employee weight age to culture

Service Culture Leadership

Service culture begins from leadership by seniors in an organization. This will infuse values into the fabric of an organization. Culture infusion is not by command or rules or direction; it is by examples. Let employee belief that it is a part of job. Service culture does not come about overnight. It takes time; service culture is infused on day one. Many organizations even have printouts/ manuals on service culture or corporate culture.

upwards and downwards and horizontically. Corporate culture or service culture does not have gender or religions aspects. In fact, service culture merges all nationalities, castes, colors or Census every tenth year in a country is example of Survey creeds.the It best is almost one of its own types. It does respect all religions but has its own way

 Service culture is a part of every supervisor, and travels upwards and downwards and horizontically. Corporate culture or service culture does not have gender or religions aspects. In fact, service culture merges all nationalities, castes, colors or creeds. It is almost one of its own types. It does respect all religions but has its own way of doing it.

SERVICE Employee Satisfaction, Customer Satisfaction:

It brings serenity peace and tranquility. It satisfies employees and that brings satisfied customers. Service Profit Chain: Employee retention Internal service culture satisfied employee External service Employee productivity Revenue growth Customer satisfaction customer loyalty Profitability

End of lecture 6
See you next..IN LECTURE 7

Delivering Service Quality thru People

Good service quality calls for good people. The organization should be strengthened with the best people. Who are best? Highly qualified people? Intelligent? Good looking? Smart? Strong references?

 Actually, good people are those who, by nature, have service built in their characteristics. For example, women are supposed to have this characteristic genetically. But only a few make good nurses, flight stewardess, good front-desk personnel, and good assistants.

Hire the Right People is the Asking

Delivery Services:
In person delivery of services and through intermediaries is a big case in the world. Even in direct channel, we have employees through which deliverance in done. Case of distance learning, on line learning and campus learning is the most debated area throughout the world.

Direct Delivery of Services

Services are intangibles Does no involvement of material thing Cannot be warehoused Involves people for delivery Hence, direct delivery means delivery of services means Involving employees Direct control

Delivery through Intermediaries

Through retailers _ by virtue of franchising Making model stores Through own agents/brokers Through employees Through outsourcing Difficulties through Intermediaries: Channel conflict over objectives, protectively & performance Quality & consistency Tension between centre & intermediaries Ambiguity in understanding by intermediaries

Strategies to Control:
Control & set standards Enforced conditions Partnering strategies Training and communication

END OF LECTURE-7
WE GO TO LECTURE 08

Price & Pricing:

Before we talk on price and pricing with context to services marketing, let us understand the concept of price as it is in marketing. Price in easy terms means Monetary expression or value of the product. Nothing in the world is free or valueless. We have to value, in terms of medium of exchange, for everything. Marketing involves and centers around exchange, hence it has a price. Pricing is considered so important in marketing that the experts call it as half marketing. For us the students of marketing, we must clearly understand this concept in order to fully comprehend the concept of marketing.

Improper handling of this aspect of price and pricing can lead to problems of unlimited proportion. On the contrary, proper handling of price and pricing can lead to success and growth in business. Many cases exist in the practical world, where prices lead to failure and success

Japanese economy grew on this formula. In the mid 70s, Japan evolved a new pricing formula visavis product. In decades of 70s and 80s, they captured the world markets and today, Japanese products are the world leaders, all over the globe.

Role of Price/ Pricing in Services Marketing:

1Two, customers and providers may have different outlook towards the services. Hence, the qualifiable aspect cannot be applied to services marketing pricing.

Three factors:

Customers knowledge of services and its pricing. The place and importance of non monetary cost input. Price signifies quality more in case of services, than intangible product.

CONT.

These three aspects make services marketing significantly different from the rest of the marketing. They need to be studied more in detail before we proceed further. In a way I may ass here that pricing of services is by for more difficult than pricing other products.

 In case of others products, the usual bench mark of pricing is, Direct material + Direct labor + Direct overhead expense + Profit margin = Price

 Whatever method of profit working is applied, the pricing is easier. In case of services marketing, the direct input of material and labor and overhead expenses is difficult to assess. Then, there are several non monetary aspects, such as time expertise, finance, delivery, and the techniques of people, extra, which are involved. It is most impossible to ascertain the value input of these aspects to work on mathematical formula of pricing

END OF LECTURE 8WE GO TO LECTURE 9

Customer knowledge of Services Prices

Customers knowledge of services prices is one of the crucial things. Services are required without which the product is not complete. E.g. A/c is bought but until it is installed and all proper preventive measures are not taken, it would not give utility but how much will it cost to install? Let us look at some of the difficulties that a customer faces.

Services Variability
Services can vary in its offering. Take the case of an A/c. some customer need just an installation, another just replacement, another need stabilizer too, another needs maintenance too, yet another monthly check up services. All these services costs money.

 Permutations have to be worked out. Providers unable to estimate cost/price: It is difficult to ascertain the level and extent of services, hence pricing. Medical services, legal services, counseling services, image profiting services etc are of the . How long the litigation will go? How far the doctors services required? No one can know from symptoms. Hence difficult in pricing.

Individual Needs Differ

Services in case of fashion designers, hairstylists (men & women), education etc are such fields, where needs of customers largely varies and differs. Take the example of bridal dresses for ladies. Price with or without the fabric varies from 30,000 to almost one million (10, 00,000). Decorations of wedding halls vary from simple 50,000 to 800,000 in one wedding, I attended in PC Lahore, and the host had all flowers imported specially from Austria. It costed him over 1.3 million for three hours gathering of guests.

Understanding of Services Prices

Customers do not comprehend the price of services, due to its uniqueness. The crockery varies. In one banquet, the customers demanded Unison crockery and Stanley smith cutlery. The services for some 50 guests costed him over 2000 per head as compared to what it could have been Rs 300 Rs 400 per guest/ head.

Non Monetary Elements

In services pricing, elements of non monetary costs are predominant. Time cost, the particular day cost, the search cost, the psychological costs are to be considered. Services providers should mace efforts to reduce non monetary costs to reduce the impact of prices.

Price as Indicator of Quality:

The reputation and image of the provider also has its price. Take the case of hair cut in Lahore. One lady in cantt charges Rs 10,000 or a 30 minute haircut (Gents). She claims foreign diplomas for haircutting. She is so heavily booked that one cannot find space/time with her for weeks. She does only 8 10 hair cuts a day. The employees uniform, the dcor of the shop/place, the treatment, the handling makes it more image, hence hence exorbitant price. People pay just for the name. I had a student with a very rich father. He used to come to class and broad cast loudly that he went to Ayeshas to get his haircut. To tell you frankly, I could hardly see the work of scissors on his hair. On the contrary his hairs were more unruly than before.

Approaches to Pricing:
The most commonly used and applicable approach is to collect cost of:
Direct Material Direct labor Overhead Operating Expenses

We total them up: Add margin of profit and set price.

 We call it Cost based pricing approach. In services marketing, this is usually applied, although access to data of DM and DL and OEs are not easily available. Depending on the nature of services,, we normally keep cushion for the unknown. We normally refund if the unknown do not appear to that percentage.

Competitive based Pricing Approach

We keep a close touch with competitive activities. We judge then quality, make our best assessment and price our services.

ADVANTAGES
IT MAKES IT ALL EASY TO DIFFERENTIATE IT MAKES IT SENSIBLE AND MORE POLICY -ORIENTED

Based on Demand and Sensitivity:

where services are sensitive in nature. For example, legal services, medical services, even business consultancy services, they are extremely critical in nature and importance. Hence pricing is done as per gravity of issue for services. Other services too have image name reputation, conditions, situations and time of services.

End of lecture09 WE GO TO LECTURE 10

Financial & Economic Impacts of Services:

Services are an integral part of product marketing not with standing its importance, customer satisfaction cannot be attained until product is coupled with good and quality services. We need to improve services continuously. Services give rise to the following questions.

What return (additional) can we expect on service quality improvement? Services quality is an investment hence ROI (return on investment) must be known to us? All expenditures on quality efforts must be financially accountable and justified. We can go too far in services quality improvement; hence we must control. We must validate expenditure on service quality.

Before we answer these questions, we must understand one thing clearly and that is that services must go in package. This means we cannot neglect and aspect of services. For example in a restaurant we provide prompt and services in booking and delivering clients orders. The staff must be courteous and well dressed. The cutlery and the furniture of the restaurant must be good. The layout of tables, the air conditioning, and the seating arrangement must be equally good. The dcor of the restaurant, the color, the ambience, the hygiene etc must be looked after closely.

* The car parking, the security of vehicles, the proper facilities, the wallet may be provided. The wheel chair for old and disabled people, the fire fighting equipment and emergency medical supplies must be handy and called upon on requirement.

 The sanctity of purdah-nashin women, the families, the children, the play area etc must be well maintained.

 In short, the entire package of services must be uniformed and good quality. The standard must be well maintained and fully addressed at all times. We sometimes have the tendency to ignore certain aspects and

 erroneously neglect the same. For example, in P.I.A aircrafts domestic and international flights there is no area for prayers. In all Islamic airlines, it is provided except PIA. Even on Hajj flights, it is woefully neglected. The reason, of course, is to add more seats for the passengers. But in view of additional 8 10 seats revenue, a basic service provision is ignored. This makes passengers awfully sad and neglected. The services must come in a package, as a whole. No aspect must be neglected at any cost or reasons.

End of lecture 10
Lecture 11 starts

 Now let us see what services are and how do we composed its composition to turn it into profits for the organization.

 In Services, we have already studied before what bring its quality. Services People Their empowerment Their training & enrichment Conducive environment Package Commitment Each of the above factors brings customer satisfaction.

This leads to Customer Retention Customer loyalty/ longevity Assured volumes Revenue growth Reduced costs

Business Indicators of Result:

Lower operating cost Higher and increasing volumes Higher and increasing revenues Assured & loyal customers Satisfied & motivated staff Price premium Word of publicity

Negative and Worrying Factors

Fall in revenue more than recession or depressed market/ economy Slippery customers Customers complaints Disgruntled employee Overall gloom Increase in expenses / costs Spread of bad words.

Service Improvement
CORPORATE IMAGE Services are one factor which singlehandedly does the maximum benefit, and reversely, the maximum damage to the Corporate Image. This better corporate image creates better names & better reputation. It brings competitive advantage through better recall. This leads to:

Selection of Staff
The right people to handle enhanced image for better quality of service. New Hiring is done, in-house education, training takes place on more regular basis. The employee is motivated through increased salary and promotion. The employee satisfaction is attained. Management becomes easier and convenient. Support services are built up. Coordination becomes easier.

It works like a Chain Reaction

Employee empowerment and accountability becomes possible employee use the words US and Ours to clients. The chain reaction and results in customer satisfaction

Support for Customers is BuiltUp.

Japan has 81% of the world orders in 2001/2002. . Ship-building Timeliness of delivery is made. Quality improves and so the profitability. It may all sound very idealistic.This is what happens always. In practical life, it has been observed that the goodness in business has come about. Very rarely do we find that such goodness comes from certain policies and systems.

 Xerox machine (photocopiers) became no.1 in the world through prompt after sale service and attention. Japan became world economic leaders through timely delivery of orders. British shipbuilding industry has been 400 years old. . The minimum delay in delivering orders has been 100 days. The average delay in 2001 was 163 days. Japan ship-building industry came up with removing this delay. The average delay in Japan ship-building industry in delivering orders has been recorded as 4 days as against 163 days average in British shipbuilding. The result is industry has laid off 50,000 staff in 2004/2005.

End of lecture 11
Lecture 12

Chain Process of Services Marketing Profitability

The ultimate objective of every business is profit. In fact, it is the sustained profit means continuous profitability achievement over a period of time. Situation and environment keeps changing, technology changes, and market changes demographically and geographically. But these changes should have least affect on our business layout and profitability. That is sustained profit. Let us learn the technique of using improved services marketing as a tool to achieving business profit and sustain it over a period of time. Let us start with basic:

Better Image
* The business must have a better image. Means it should have cultural acceptance and within the rule of law and ethics of business. All societies have their own ethics and we wont argue the righteousness of ethics. Business must be ethical, as per then ethics. For example, a sauna bath club is quite ethical in western society, but it may not have a good image in Pakistan, being an Islamic state.

 The name of the business should be easy and localized. Slang language should be totally avoided in naming the business. The business name should be easy and neat and clean and sober. This gives a straightaway edge over competition. The position becomes firm and solid from the start. The name should be easy to recall. The name should reflect humanity, decency, sobriety and culture. Competitiveness is straightaway in born.

Selection of Staff
One next priority is establishing, a step forward to profitability, is selection, recruitment and induction of proper manpower. In other words, enriching human resource. Selection of staff is done through professional bodies and through screening. We must spend considerable time, efforts and money in choosing the rightest person for the job. Age, gender, educational requirement, health, attitude and habits etc must be compatible with the job requirement.

 Over qualified hiring of people can be harmful perhaps more, than under qualification. Training and orientation of staff is important. Enhancement of skills should be a continuous effort. This keeps manpower fully abreast with changes that are occurring. It also helps in inducting technology and modern electronic gadgets. What good are the computers, if the staff do not know how to use them. I have seen people uneasy with computers and then application in bank, and therefore not able to provide services. ATM is also a failure in banks for lack of reloading and maintenance.

Employee Satisfaction:
This brings employee satisfaction and contentment. Satisfied employees is perhaps much difficult to attain and perhaps for more important to achieve, before anything.

 Satisfied employee give satisfactory output and much better services than the disgruntled and agitated employees. The human resource policies should be fair and transparent. Injustice should not be done under any circumstances. Supervision of staff becomes easy and simple. The organization has no ripples or turbulence. Employee relation is good and judicious. They become supportive and maximize their performance.

Employee Empowerment:
Employee satisfaction brings employee empowerment. It adds to the value output of employees. Employees output, performance and delivery of service multiples manifold. The classical example is that of Japan. Japanese employees perform much more than the average employee in US or UK any other country. The Japanese employee is multi-directional and finishes the job very well.

 Employee empowerment reduces routine supervision and direction. It leads to smooth operation of organization. Customers directly get affected by better performance.

Customer Satisfaction:
Employee satisfaction, better performance and efficient output finally leads to customer satisfaction is a very broad term. However, three things affect customers. These three things either lead to customer happiness or customer annoyance.

 1. Timeliness of Delivery: All customers want timely delivery. A client in a restaurant wants timely service wants timely service. A contractor of road or canal wants timely delivery of machinery or cement. Ladies want timely delivery of stitched clothes. All want, big or small, timely delivery of product.

 2. Quality of goods: Customer pays for product so he wants quality (A specific quality) in return. He wants value for his payment. He wants to accomplish his planned objective from the product. If quality is not delivered, the customer feels very unhappy. Quality also means after sale service, back up maintenance and in-time follow up and calls. In case of technical products, the availability of spare parts.

 3. Shopping experience: Shopping experience is the interaction, which customers have while procuring and using the product. It includes counter services to delivery, packing etc. if customers are well treated on the counter, their experience is good, no matter the kind or nature of the product. Therefore customer satisfaction can be attained, apart from other things, from decent, friendly and professional experience during his interaction. Hence, services at this juncture must be fully catered.

Customer buying behavior: Once customer satisfaction is attained, it is reflected in three ways.
Repetitiveness of customers Retention and loyalty Referrals

These three things can be visibly seen and felt and even calculated in statistics. Customers remain loyal no matter what.

Customer buying behavior: Once customer satisfaction is attained, it is reflected in three ways.
Repetitiveness of customers Retention and loyalty Referrals

These three things can be visibly seen and felt and even calculated in statistics. Customers remain loyal no matter what.

All these Factors Coupled with: Higher and consistent turnover Increased revenue in sales Better margins lower cost of goods sold All these in return bring: INCREASED PROFITS The story does not end here. Better profits: Bring increased share prices Better reputation Increased taxes

End of lecture 12
Lecture 13 starts

 We have studied Services Marketing as a tool to bringing profit and sustained profit to the firm. Services are a sure-short tool to profitability. Services are a culture: It needs to be adopted as an integral part of business. Services are and can be marketed just any tangible product.

 The need deficiency of services is acute. Hence, it must be fulfilled. Services entail human efforts and skills. Human touch is prominent. Services are like handicraft. Services have the Sustainability of Economic Upheaval. Economic shocks are minimal in services. Services depend upon, habits, style, values, customs and traditions. Hence services can be made part of life, the style of life and woven into business circle.