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Marketing a service-base business is different from marketing a goods-base business. There are several major differences, including: 1. The buyer purchases are intangible 2. The service may be based on the reputation of a single person 3. It's more difficult to compare the quality of similar services 4. The buyer cannot return the service The major difference in the education of services marketing versus regular marketing is that instead of the traditional "4 P's," Product, Price, Place, Promotion, there are three additional "P's" consisting of People, Physical evidence, and Process. Service marketing also includes the servicescape referring to but not limited to the aesthetic appearance of the business from the outside, the inside, and the general appearance of the employees themselves. Service Marketing has been relatively gaining ground in the overall spectrum of educational marketing as developed economies move farther away from industrial importance to service oriented economies. What is marketing? Marketing is the flow of goods and services from the producer to consumer. It is based on relationship and value. In common parlance it is the distribution and sale of goods and services. Marketing can be differentiated as: • • Marketing of products Marketing of services.
Marketing includes the services of all those indulged may it be then the wholesaler retailer, Warehouse keeper, transport etc. In this modern age of competition marketing of a product or service plays a key role. It is estimated that almost 50% of the price paid for a commodity goes to the marketing of the product in US. Marketing is now said to be a term which has no particular definition as the definitions change everyday. "Managing the evidence" refers to the act of informing customers that the service encounter has been performed successfully. It is best done in subtle ways like providing examples or descriptions of good and poor service that can be used as a basis of comparison. The underlying rationale is that a customer might not appreciate the full worth of the service if they do not have a good benchmark for comparisons. However, it is worth remembering that many of the concepts, as well as many of the specific techniques, will work equally well whether they are directed at products or services. In particular, developing a marketing strategy is much the same for products and services, in that it involves selecting target markets and formulating a marketing mix. Thus, Theodore Levitt suggested that "instead of talking of 'goods' and of 'services', it is better to talk of 'tangibles' and 'intangibles'". Levitt also went on to suggest that marketing a physical product is often more concerned with intangible aspects (frequently the `product service' elements of the total package) than with its physical . sales after service is very imporatant in service sector. properties. Charles Revson made a famous comment regarding the business of Revlon Inc.: `In the factory we make cosmetics. In the store we sell hope.' Arguably, service industry marketing merely approaches the problems from the opposite end of the same spectrum
Characteristics of a Service
What exactly are the characteristics of a service? How are services different from a product? In fact many organisations do have service elements to the product they sell, for example McDonald’s sell physical products i.e. burgers but consumers are also concerned about the quality and speed of service, are staff cheerful and welcoming and do they serve with a smile on their face? There are five characteristics to a service which will be discussed below.
1. Lack of ownership.
You cannot own and store a service like you can a product. Services are used or hired for a period of time. For example when buying a ticket to the USA the service lasts maybe 9 hours each way , but consumers want and expect excellent service for that time. Because you can measure the duration of the service consumers become more demanding of it.
You cannot hold or touch a service unlike a product. In saying that although services are intangible the experience consumers obtain from the service has an impact on how they will perceive it. What do consumers perceive from customer service? the location, and the inner presentation of where they are purchasing the service?.
Services cannot be separated from the service providers. A product when produced can be taken away from the producer. However a service is produced at or near the point of purchase. Take visiting a restaurant, you order your meal, the waiting and delivery of the meal, the service provided by the waiter/ress is all apart of the service production process and is inseparable, the staff in a restaurant are as apart of the process as well as the quality of food provided.
Services last a specific time and cannot be stored like a product for later use. If travelling by train, coach or air the service will only last the duration of the journey. The service is developed and used almost simultaneously. Again because of this time constraint consumers demand more.
It is very difficult to make each service experience identical. If travelling by plane the service quality may differ from the first time you travelled by that airline to the second, because the airhostess is more or less experienced. A concert performed by a group on two nights may differ in slight ways because it is very difficult to standardise every dance move. Generally systems and procedures are put into place to make sure the service provided is consistent all the time, training in service organisations is essential for this, however in saying this there will always be subtle differences. Characteristics of a Service
Marketing a product focuses on getting the item to as many people as possible. You can sell and ship a product to any geographical area, as it allows for physical handling. Hence, broad marketing strategies designed to reach the largest possible audience like mass-market techniques, in-store promotions, and direct mail work perfectly for a product-based business. In a service business, you are marketing yourself - your expertise and capabilities, your reliability, and commitment to excellent service. Your service technically does not exist until the customer pays for it. Service is not a tangible good, so what you are selling is the promise to deliver what you set out to deliver. Your marketing efforts will have to focus on communicating that promise to your clientele. Mass marketing strategies do not work well with a service business. You are constrained by the amount of clients you can service well. To please your clients, you can focus only on a select number of accounts or customers to sustain your business. If you decide to get as much clients as possible, there is risk that you will spread yourself too thin that the quality of your work eventually suffers. A solo home-based web designer, for example, cannot mass market his services as he can only create a limited number of web pages in a day. A massage specialist can only massage a finite number of clients before her hands give up. A wedding consultant can coordinate a few clients at one time to ensure optimum service. The doctors and the dentists. too. Selling a service is more difficult than selling a tangible product. Consumers are much less certain when they are buying a service, since what they are buying is merely a promise that someone will do something for them in a way that will satisfy their expectations. Authors Jean Withers and Carol Vipperman in their book "Marketing Your Service Business," recommend the following promotional tools in marketing a service business:
1. Referrals. The recommendation of a satisfied client or a professional colleague is often the most
effective way of bringing in new clients. People tend to view recommendations from those who have previously used the service as highly credible, and are more inclined to use the recommended service. Referrals, however, do not always come easily. Most often, you have to ask for it. If one of your clients seem satisfied with your service, request him or her to refer your business to their friends or acquaintances who may benefit from your service. To reinforce your request, you may give them promotional materials such as business cards or brochures that they may share with others. Other entrepreneurs even make it a point to reward those who refer a client to them. It may not be money (some professions frown on the practice of giving money for referrals), but a simple note or a small act of thoughtfulness to show your clients that you appreciate their effort to spread the word about your business.
2. Client relations. The authors define client relations as "consistent courtesy + common sense +
professional dignity = effective client relations." Clients will patronize your service repeatedly - if they are satisfied. It is therefore important to cultivate your existing client base and bond with them. Your beauty salon may not have the latest hairstyling techniques, but if you treat your customers well, you'd have a greater chance of seeing them back to your shop again. More than a product-based business, you need to practice excellent customer service every second that you deal with a client. Your business depends on it.
3. Participation in organizations. Networking is the key promotional technique in marketing a
service business, and participating actively in organizations is the best way to network. Joining an organization allows you to network with potential clients and industry players, increase your exposure to your community and professional colleagues, and even get new business. You can choose from the more general organizations (e.g. small business groups) with members coming from all walks of life or industry specific organizations.
Your competitor, who belongs to the same organization as you, may be experiencing a surge in demand and direct some of his or her clients to you instead. Another member may refer your business to people they know who needs the kind of service you provide. Of course, you must make your participation in these organizations worthwhile by actively participating in the group's projects and activities. Networking has been made easier with Web 2.0 social networking sites. LinkedIn.com or Facebook.com facilitates the meeting of potential clients, partners and strategic alliances.
4. Direct mail. A good way to promote your business is to send letters or brochures to your target
market. The key to success in direct mail is to reach out to the right people. An accountant I know watches out for the listings of new businesses in the Washington D.C. area published by a local business journal. He then sends a letter to owners of these new businesses offering his services. The business he generates from his mailings more than compensate for the yearly subscription to the publication. You also need to regularly send out mail to your existing clients, if only to remind them of you and what you can do to help them. Mailing to previous customers is an absolute must, whether you are sending them a quarterly newsletter or an announcement of a new service or promotions such as discount off the regular price of a service, etc. Another important tool in marketing your service business is a web site. For the price of an advertisement in the yellow pages, you can have a Web site that can serve as a brochure, direct mail piece and newsletter all rolled into one. The Web is an avenue that should never be ignored. =====
A service is the action of doing something for someone or something. It is largely intangible (i.e. not material). A product is tangible (i.e. material) since you can touch it and own it. A service tends to be an experience that is consumed at the point where it is purchased, and cannot be owned since is quickly perishes. A person could go to a café one day and have excellent service, and then return the next day and have a poor experience. So often marketers talk about the nature of a service as: Inseparable - from the point where it is consumed, and from the provider of the service. For example, you cannot take a live theatre performance home to consume it (a DVD of the same performance would be a product, not a service).
Intangible - and cannot have a real, physical presence as does a product. For example, motor insurance may have a certificate, but the financial service itself cannot be touched i.e. it is intangible. Perishable - in that once it has occurred it cannot be repeated in exactly the same way. For example, once a 100 metres Olympic final has been run, there will be not other for 4 more years, and even then it will be staged in a different place with many different finalists.
Variability- since the human involvement of service provision means that no two services will be completely identical. For example, returning to the same garage time and time again for a service on your car might see different levels of customer satisfaction, or speediness of work. Right of ownership - is not taken to the service, since you merely experience it. For example, an engineer may service your air-conditioning, but you do not own the service, the engineer or his equipment. You cannot sell it on once it has been consumed, and do not take ownership of it.
Western economies have seen deterioration in their traditional manufacturing industries, and a growth in their service economies. Therefore the marketing mix has seen an extension and adaptation into the extended marketing mix for services, also known as the 7P's - physical evidence, process and people.
Hotel Sales and Marketing Services
Planning & Establishing Hotel Revenue Goals
A good marketing plan is like a trusty road map. It tells us where we're going, how to get there and, most importantly, lets us know we're there when we're there. Long-range thinking is more than just going through the motions. A hotel sales department requires a vehicle that will enable it to fulfill its overall business objectives. The Annual Market Plan is the sales department's strategy to achieve the desired results, including hotel revenue management. This report includes a market segment analysis that constitutes the hotel's business objectives . . . a means of deciding the direction of the hotel and sales department within the framework of the objectives of the franchise company and Jackson Hospitality Services.
JHS Marketing Plan Process A strategic Sales and Marketing Plan is created each year for each JHS property. The tactical initiatives of this plan (Sales Action Plan) are reviewed monthly to ensure property compliance. The plan is also reviewed each month between the Director of Operations and the General Manager to determine any new approaches that could better market the hotel. JHS monitors coordination between property and franchiser marketing (i.e Choice, Hilton, Hampton, Sheraton), ensuring that properties capitalize on all marketing opportunities and support provided by their franchiser. Hotel Internet Marketing Strategies
Wingate By Wyndham Tampa
Holiday Inn Express Tampa Business generated from the Internet is rapidly on the increase. In 2004 16% of all revenues in hospitality will be generated from the Internet (14% in 2003). By 2006, the Internet will contribute over 24% of all hotel bookings (CSFB). This year 54% of all Internet bookings in hospitality will be direct-to-consumer (i.e. via hotel-owned web sites). Some major brands (e.g. Marriott, Hilton) and proactive hotels and resorts already enjoy Direct vs. Indirect online distribution ratios of 75:25. Direct online distribution cuts costs (such as brochures), attracts affluent customers and lessens the dependency on online discounters and more traditional and expensive channels. Whether you are an independent or branded hotel, a major hotel chain or hotel management company, you can stay ahead of your competitors and capture new market share with an effective Direct Online Distribution Strategy. The center-point of this strategy is the development of the hotel's own web site, in addition to their franchise web-presence (if any). As part of your comprehensive Total Online Distribution Strategy, JHS can assist in:
Evaluating the overall use of the Internet as a hotel marketing tool. Development and deployment of the hotel web site. Perform a web site Optimization Strategy to make your existing hotel web site user-friendly, search engine-friendly and travel booker-friendly. Perform a robust Search Engine Strategy designed to improve your web site positioning on search engines in order to boost direct consumer bookings.
85% of Internet users rely on search engines to locate information on the Web and that search patterns for accommodations are strictly destination-focused. Types of service marketing
different types of service orgnisations:
1.transport service organisation 2.education service organisation 3.hospital service organisation
4.tourist service organisation 5.public & private service organisation 6.IT service organisation 7.product service organisations etc..... 8. hotel service like PITZZ HUT,
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