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    Services Marketing

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    Resume Buku 3 - Metode Penelitian Kuantitatif, Kualitatif D

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    1 rk etina CONCEPTS PRACTICES § RAMNEEK KAPOOR ea ye § BIPLAB HALDER SERVICES MARKETING Concepts & Practices Ramneek Kapoor Director Kothari Group of Institutions, Indore Justin Paul Associate Professor Indian Institute of Foreign Trade, New Delhi and Nagoya University of Commerce and Business, Japan Biplab Halder Director Omegan School of Business, Hyderabad IN| oe Tata McGraw Hill Education Private Limited NEW DELHI McGraw-Hill Offices New Delhi New York St.Louis San Francisco Auckland Bogota Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal San Juan Santiago Singapore Sydney Tokyo Toronto ti QA YZ4Y-LF2-Wi9N M Published by the Tata McGraw Hill Education Private Limited, 7 West Patel Nagar, New Dethi 110 008, Tata McGrawHill Services Marketing: Concepts & Practices Copyright © 2011, by Tata McGraw Hill Education Private Limited. No part ofthis publication may be reproduced or distributed in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise or stored in a database or retrieval system without the prior written permission of the publishers. The program listings (if any) may be entered, stored and executed in a computer system, but they may not be reproduced for publication. This edition can be exported from India only by the publishers, Tata McGraw Hill Education Private Limited ISBN-13: 978-0-07-070059-7 ISBN-10: 0-07-070069-9 Managing Director: Ajay Shukla Head—Higher Education Publishing and Marketing: Vibha Mahajan Publishing Manager—B&E/HSSL: Tapas K Maji Deputy Manager (Sponsoring): Surabhi Khare Development Editor: Shalini Negi Assistant Manager (Editorial Services): Anubha Srivastava Senior Copy Editor: Sneha Kumari Senior Production Manager: Manohar Lal Production Executive: Atul Gupta Deputy Marketing Manager: Vijay S Jagannathan Senior Product Specialist: Daisy Sachdeva General Manager—Production: Rajender P Ghansela Assistant General Manager—Production: B L Dogra Information contained in this work has been obtained by Tata McGraw-Hill, from sources believed to be reliable. However, neither Tata McGraw-Hill nor its authors guarantee the accuracy or completeness of any information published herein, and neither Tata McGraw-Hill nor its authors shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that Tata McGraw-Hill and its authors are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought. Lypeset at ‘The Composers. 260, C.A. Apt. Paschim Vihar, New Delhi 110 063 and printed at Anand Book Binding House, 1036, Reghubarpura No.1, Gandhi Nagar, Delhi - 110 031 Cover Design: K Anoop Cover Printer; Rashtriya Printers RAXLCRQZRBYYA ee Contents Preface vii Acknowledgements ix Part 1 Conceprs Chapter 1 Nature and Field of Services 3 Introduction 4 ‘The Emergence of the Services Sector 4 Emergence of Service Sector in International Trade 5 Historical Aspects of Services Evolution 6 Definition of Services Marketing _/0 Distinctive Nature of Services 17 Significance of Services Marketing for National Economy _/4 Better Employment Opportunities 15 Contributions to Gross Domestic Product /5 Contribution to Country's Exports 16 Contribution to Better Standards of Living 17 Contribution to Better Environment 17 Classification of Services 17 Emerging Commercial Services in Non-Financial and Financial Sectors 20 Chapter Review 22 Review Questions 22 Activities 23 References 23 Case Study: Adaptability is the Key to Success in Services Marketing 24 Application Exercise 26 ‘Key to Application Exercise 26 Suggested Further Readings 26 Chapter 2 Service Marketing Concept a7 Introduction 28 ‘The Concept of Services Marketing 28 Distinctive Features of Services Marketing 29 The Combination and Importance of Services Marketing Trilogy 33 Management of the Three Additional P’s of Services Marketing Mix 34 Strategic Issues in Marketing of Services 35 Innovations in Service Marketing 41 Chapter Review 41 xii Contents —_—_=> Review Questions 42 tee a References 42 Case Study: GROWWELL Pharmaceuticals Limited 43 Application Exercise 48 Key to Application Exercise 48 Suggested Further Readings 48 Chapter 3 Global Perspective of Services Marketing 49 Introduction 50 What is Globalisation? 50 Globalisation and its Impact on the Indian Services Market 51 Chapter Review 64 Review Questions 64 Activities 65 References 65 Case Study: Star-TV: Globalising Entertainment 66 Application Exercise 68 Key to Application Exercise 69 Suggested Further Readings 69 Chapter 4 Managing Services Marketing Mix 70 Introduction 7 The Services Product 73 The Price 78 The Place (Services Distribution) 80 Challenge to Services Distribution 80 The Promotion 80 Services Product Strategy and New Services Product Development _82 Conceptualisation of New Services Concept 82 The Dynamic Process of New Services’ Product Development 83 Challenge to New Services’ Product Introduction in the Market Place 84 ‘The Concept of Services’ Product Life Cycle 88 Chapter Review 91 Review Questions 91 re References 91 Case Study: The Mission of Making Excellent Customer Services a Life Time Experience HOTEL SAYAJI 92 Application Exercise 98 Key to Application Exercise _99 Suggested Further Readings 99 Chapter 5 Managerial Aspects of Service Sector—People, Process, and Physical Evidence 100 Introduction 101 People are the Key to Excellent Service Delivery 102 Classification of Service People (Based on Interaction or Contact with Customer) 103 image not available image not available xvi Contents Suggested Further Readings 242 Case Study: Promotion of Tourism by M.P. State Tourism Development Corporation: Promoting Culture to Attract Tourists in the State 242 Application Exercise 245 Key to Application Exercise 246 Chapter 12 Services Demand and Capacity Alignment 247 Understanding Service Demand Situations 249 Strategising Service Capacity 251 Balancing Service Demand Supply Gaps 252 Capacity Optimizing Strategies 255 Advantages of Yield Management 260 Chapter Review 260 Review Questions 261 Activities 261 References 261 Suggested Further Readings 261 Case Study: Golden Gym and Fitness Training Services Matching Demand and Capacity In A Specialised Gym And Fitness Training Centre 262 Application Exercise 263 Key to Application Exercise 264 Chapter 13 Customer Relationship Management 265 Introduction 266 Definition of Relationship Marketing 266 The Concept of Customer Relationship Management 267 Advantages of Relationship Marketing 267 Components of Customer Relationship Management 268 Advantages of Establishing Structural Relationship Strategies 272 Customised Relationship Strategies 272 Developing Customer Loyalty 273 ‘Advantages of the Customer Loyalty Program 274 Understanding Customer Needs and Behaviours 274 Features that Customers Look for in Services Relationships 276 Chapter Review 279 Review Questions 280 References 280 Application Exercise 281 Key to Application Exercise 281 Case Study: Jet Airways—Building Customer Relationships Through Frequent Fliers Program 282 Suggested Further Readings 285 Chapter 14 Differential Strategy of Services Marketing 286 Why Differentiate 287 Service Design and Positioning 287 Position Strategies 287 Strategy for Differentiation 290 Differentiation Strategies 290 image not available image not available image not available xx Contents Chapter 23 Media Services Marketing 395 Introdugtion to Media Services Marketing 395, Building a Conceptual Framework of Media Services 396 A Profile of Media Services Provider 396 A Profile of Media Services Consumer 397 Managing Marketing and Strategy Mix for Media Services. 397 Global Innovations and Challenges to Media Services Marketing 400 Chapter Summary 401 Review Questions 401 References 401 Suggested Further Readings 401 Case Study: Promoting A Television Program—Bharti Bhaskar On Sony Entertainment Television 402 Chapter 24 Education Services Marketing 404 Introduction 404 Emergence and Proliferation of Education Service 405 Understanding the Concept of Education Services Marketing 405 Education Services Characteristics 406 ‘Segmehting Education Services Marketing 407 ‘Managing Marketing and Strategy Mix for all Segments of Education Services Marketing 408 Strategising Price in Educational Services 409 Strategising Promotion in Educational Services 409 Strategising People in Educational Services 410 Strategising Process in Educational Services 410 Strategising Physical Evidence in Educational Services 410 Global Innovations and Challenges to Education Services Marketing 410 Chapter Summary 411 Review Questions 412 Suggested Further Readings 412 Case Study: A Case of Continuing Higher Education Along with the Working Career 412 Chapter 25 NGOs and Other Social Services Marketing 415 Introduction to Social Care ang Welfare Marketing 415 Emergence“and Proliferation of Non-govemmental Organisations and their Services 416 ‘Segmentising the NGOs Marketing Services 417 Managing Marketing and Strategy Mix for NGO Services in all Segments 417 Chapter Summary 420 Review Questions 420 Refetonces 421 Suggested Further Readings 421 Case Study: HelpAge India—Helping The Old And Aged Live A Life of Self-Respect 421 Chapter 26 Marketing BPO Services 423 Concept of BPO 423; ) Historical Framework 424 World's Best BPO Vendors 425 Services Marketed by BPO’s 425 image not available image not available image not available Bahan dengan hak cipta image not available image not available image not available 6 Services Marketing: Concepts & Practices —_——=> Figure 1.1 Contribution of the Services Sector to the Countries’ Overall employment of Working Age Groups ‘The services sector accounts for most of the variation in employment rates across OECD countries Share of the working-age populations employed in goods and services. '2002-percentages Services HLILILILILLUI OLEPPOLONWPEPELOPETIE Source: OECD, STAN database and labour force statistics, http://stts.oeed.org/Index.aspx?DatasetCode=SNA_TABLE, acessed 12.12.2009. eS 88SS8S88 The contribution of commercial services to the world trade had been to the tune of, USD 1440 in the year 2001 which has grown to USD 5605 in the year 2006. (http://www.wto.org/, accessed 12.12.2009) ‘That means services have been contributing a great deal more than the earlier times when economies depended solely on the exports and imports of goods and commodities. Tourism, travel, transportation, telecommunication, information technology, and financial services have been earmarked by GATS as the services that are crucial for economic development of the nations. Given hereunder is the graph depicting in Table 1.2 the growth of commercial services in the world and in all continents for the last sixteen years, It is noticed that Asian countries have contributed largest to the growth of services. ‘The growth in international trade has been possible due to liberalisation of the economies. A study by the World Bank indicates that liberalisation of services in developed countries could provide additional income of USD 6 trillions to the developing countries in next fifteen years. HISTORICAL ASPECTS OF SERVICES EVOLUTION Economies of the world have a very strong relationship with the industrial waves that characterised the ‘commercial behaviour of the economic stages of development. Some of the developed countries have moved faster to the growth of services because they led the industrial revolution and the growth of technology. The historical perspective of the services can be classified and divided into three distinct historical periods to facilitate discussion of the growth of services for the benefit of mankind. image not available image not available image not available 10 Services Marketing: Concepts & Practices —<—> from human hands to machines. The commoners and their families now had enough spare time available to lead a life beyond the working hours. This kind of society became conscious of how to spend their spare time and money. The Twenty-first Century The arrival of the world wide web, internet, sophisticated models of computers, and mobile telephony instru- ments brought in the growth of knowledge economy. The dependence of the world economy on machinery and computers has led to a resultant decrease in the physical activity. Modem customer today has become more leisure prone. He is always searching for avenues to enjoy his status, money, and spare time earned through the acquisition of knowledge and hard work. He now wants the commercial companies and the governments to provide the amenities and facilities that are world class and par excellence. The western entrepreneurs and the businessmen of the developed countries gauged this changed mood of their customers many years ago and started developing services as a separate concept, a little different from the product marketing. It took a long time to develop services as an identifiable services market in the emerging and developing countries of the East. It is only after the opening of the economies and the glo- balisation of the firms that businesses of these countries have accepted marketing of services as an integral ppart of the economies. The services today contribute a major chunk of revenue to the earnings and to the gross national income of the emerging economies. Services have also become the major source of eaming foreign exchange for many emerging economies that we will see when we discuss the importance of services for international economies. In this chapter we will have a detailed discussion on the definition and concept of services marketing, its importance to the economic development of the countries, and the emergence of services as a main stay of foreign exchange eamers. Our discussion will also take us through the different classification of services in ‘the modem context. DEFINITION OF SERVICES MARKETING The word services to a common man denote the process of engaging the services of a personal valet, a chauffer, or getting the services of a restaurant or a hotel staff. provided by professionals. It could also mean the services rendered by other experts like, doctors, engineers, architects, civil engineers, and chartered ac- countants. However the concept of services has a much wider application and broader network as we will see from the analyses conducted on the definitions that follow. Services have been defined as ‘social efforts (which include even the government) to fight five giants evils for example, want, disease, ignorance squalor, and illness in society’. (Beveridge 1942) This definition includes only the efforts of NGOS and government agencies and does not include the paid form of services that have become the major revenue grosser for the economies. Somewhat closer to the modem concept is the definition given by Hassenfield Y and Richard A. E. that states, ‘services can be defined as action of organisations that maintain and improve the well being and functioning of the people’. (Hassenfield and Richard 1974) Again this statement takes into account only the social welfare aspect of the society. This social welfare has generally been taken care of by the government agencies while they provided the basic amenities for human living, These agencies may or may not have charged the price for the services rendered. ‘The commercial aspect of services marketing has been highlighted correctly by American Marketing Association while defining services as ‘the activities, benefits, or satisfactions which are offered for sale are provided in connection with the sale of goods’.* Thus while a hotel will sell only a room for an overnight *tiup:/en. wikipedia.org/wiki/Marketing#Funher_definitions, accessed on 12.12.2009 image not available image not available image not available 14 Services Marketing: Concepts & Practices ~ (@) Banking services: With the increasing demand for improved services in banking sector followed by the entry of foreign players into India and the competition they posed, it did not take too long for the Indian banks to realise that they will have to upgrade their services level for their own survival. The services of the Indian banking sector has come of age. However the banking services sector in India has always been very strongly entrenched into all segments, the commercial and the rural more significantly. The public sector banks have started arming themselves with the latest technology in- novations to give world-class services to Indian customers. The manpower mindset is also gradually improving. That is precisely why Indian banking has withstood all kinds of onslaught on the world banking systems when the major interational banks started failing in the USA. We will study in detail the marketing of banking services in a separate chapter later in the book (b) Insurance services: In the insurance sector the inroads made by the private sector along with the foreign players have raised the services bar to a greater level for all companies. The customer expec- tation today includes in addition to the novelty of new insurance products, a very high and prompt level of service facilities. This sector had been primarily the domain of the public sector companies earlier and the resultant customers had been offered a very raw deal so far as the delivery of a good service was concerned. The services now with the inclusion of private and multinational players have started showing improvements. Yet there are many segments that are still neglected. The private and multinational players have yet to make inroads into the rural and small town markets where the -services levels are still determined by the public sector insurance companies like, the Life Insurance Corporation, General Insurance Corporation and its subsidiaries. Chapter Review Though the concept of services marketing has always been considered separate from the concept of product marketing yet no product can come without services to the customer. The chapter undertakes to review the development and emergence of services from the point of view of their contribution to the development and growth of economies of the world. The developed economies have moved from merely the goods and products production base for economic development. The growth in their citizens’ employability has come through the expansion and development of a healthy service sector. ‘The chapter attempts to define the services marketing concept in the light of specific services needs of the customer as separate from those of the product services marketing needs. In the process we have understood the history and development of services marketing concept from the days of the barter system to the modern days mega mall stores and e-marketing. We have delineated upon the distinctive nature of services in order to understand the classification, peculiar customer requirements, and processing aspects of services marketing. As we discussed how services can contribute to the national economy, we looked at the contributions of services marketing concept in providing employment opportunities and raising standards of living of a nation. The chapter reviews how services can be classified based on assorted dimensions of services marketing, classified commercialisation of various financial and non-financial services. Review Questions In order to understand the topics discussed in thi answer the following questions: QI. What do you mean by the term services? Trace the history of the development of the services concept highlighting different important milestones. chapter, you need to read further and check Web sites to image not available image not available image not available 26 Services Marketing: Concepts & Practices Be Application Exercise Assess your understanding of the key points discussed in this chapter by answering the following five questions: QL. Significance of services marketing for national economy refers to the contribution of services to (a) Employment opportunities in the country (b) Better standards of living (©) Increase in Gross Domestic Product (a) All of the above Services are different from goods because (a) Services are intangible (b) Services are perishable (c) Services are non transferable (a) Allof the above Q3. The intangibility of services means that services (a) Can not be touched (b) Can not be stored (c) Can not be transferred (d) All of the above QU. Services are for real-time distribution means (a) Services cannot be stored for future usage and consumption (b) Services are to be consumed simultaneously at the time of their generation (c) The user or the customers necessarily have to be present at the place of production (d) All of the above QS. Services are heterogeneous because they (a) Are inherent with cultural differences of the staff and the customer (b) Are difficult to standardise (c) Are subject to personal experience (d) All of the above Key to Applica Q1@ Q.2) Q3(d) Q4@ Qas@ Suggested Further Readings | * Valerie A Zeithaml, Mary Jo Bitner, Dwayne D Gremler, Ajay Pandit, Services Marketing, 4th edition, Tata McGraw-Hill, New Dethi, 2008, Adrian Payne, Principles of Services Marketing, Third edition, McGraw-Hill, U.K., 2001 Woodruff E Helen, Services Marketing, Longman Group, U.K., 1992. Ravi Shanker, Services Marketing in Indian Perspective: Text and Readings, Excel Books, 2008. Rajindra Nargundkar, Services Marketing: Text and Cases, Second edition, Tata McGraw-Hill, New Delhi, 2006, image not available image not available image not available 30 Services Marketing: Concepts & Practices —_$—_<> booking and travelling facilities, banking and insurance, education, and consultancy. The companies sell- ing services have been very particular about the training and development of their front line employees in customer handling and customer relationship systems. People have thus more important role to play in the marketing and selling of the services. Services Marketing Need Special Skills Services marketing companies have to understand that the marketing of the services is different from the normal marketing activities needed for selling goods and products. ‘Traditional marketing mix is too restric tive and simplistic to be very useful in services’ (Gronroos 1990).” There is greater need to train the services marketing staff into the art of people handling. The staff deployed in the front office that comes in direct. contact with the customer will have to be trained into displaying patience in the face of all odds, to take good or bad without overtly exhibiting emotions about the same. Of course the technical aspects of delivering the services being more important each element whether in the front or at the back office that is a part of process need special skills, But itis the after sales part where the companies often fail to live up to the customer ex- pectations. What is more important is to train the staff in special skills to understand the customer expectation. The service manufacturer must deliver satisfaction the way his customer wants it. This should be followed by the post-service delivery act of keeping the customer dissonance away. It is very important to establish a good customer relationship as the organisation stands to gain permanent customers who will be making their repeat calls and purchases from the firms* service points. That is where the special skills are called for. Marketing is no longer simply about developing, selling, delivering products, and retaining the customers. It is progressively more concerned with the development and maintenance of mutually satisfying long term relationships. This kind of marketing has been termed as relationship marketing. Relationship marketing as per Gronroos is different from the transactional marketing. In his opinion the four P's propounded earlier perform a supportive role with more emphasis on interactive marketing (Gronroos 1990). Service Marketing Need Different Organisational Structure Product marketing is more of a transactional marketing as we have seen in the paragraph above. The empha- sis on the effective utilisation of the four P's, call for a pyramidal structure, The authority keeps narrowing as we move upward from the bottom of the pyramid. The organisation spread is wider at the bottom and narrower at the top of the ladder. This is so because in product marketing, the top management does not get into customer contact on regular basis. Marketing of services however calls for a closer interaction with the customer regularly. The necessity of physical evidence requires the customer to be present at the time and the place of delivery. This requirement of customer presence to receive the benefits of services reverses the pyramidal structure of the organisation. The service customer becomes the king here and all decisions need be taken keeping his convenience in mind. ‘The new organisational structure based on relationship marketing can be seen in the figure below. In this kind of marketing structure the customers actually come in direct contact with the people of the company. Lower-level delivery staffs are placed at the top because they will be in a position to interact regularly with the customer and understand his needed expectations. These expectations have to be understood in the true ‘manner and conveyed to the firm in order to ensure that lowest possible gaps remain between the customer expectation and the actual delivery of the service. Once the lower-level staff has understood the expectation of the customer it is important that the service decision should also be allowed to take place at his level only as otherwise the very exercise of satisfying customer's need based on his expectation gets defeated. Having understood the customer expectation and then not delivering is more damaging to the organisation, “Gronroos (1990), Services Management and Marketing: The Moments of Truth in Service Competition, Lexington Books, image not available image not available image not available 34 Services Marketing: Concepts & Practices a External marketing: The trilogy of services marketing is completed when the firm also conveys externally to the service customer about the arrangements that have been made to deliver the service to him as per his expectations. This is conveyed by way of information broachers’, advertising, other communication means and also by the front office employees directly when dispensing the services of the firm. External marketing is also a means by which the firm can assess and evaluate customers’ response and overall perception towards the services offer of the firm. MANAGEMENT OF THE THREE ADDITIONAL P’S OF SERVICES MAR- KETING MIX Marketing of services need a special arrangement of an additional mix of people, processes, and physical evidence due to the special features inherent in the marketing of services—intangibility, inseparability, per- ishability, and heterogeneity. A customer as we understand from these features has to personally be present to savour the services at a place where the service processing takes place before it is delivered to him and confirm whether it has been delivered as per his expectations either overtly or by implied post-purchase behaviour. That means marketing of services conceptually will have a combination of the four traditional components and three additional elements known as people, process, and physical evidence. People: There are three levels where people are involved in marketing of services. At the first level we have the sales and service staff and the other front office people who come in direct contact with the customer and are the interface of the firm administering series to the customers. These people are the back bone of the services marketing firm as the customer is either happy because of the interaction or he may not come back if there was any mishandling. The firm has to provide skills for handling customer relationship and communication. We shall be doing a separate chapter on this. The next level comprises of the siaff in the back office. These people are the processing staff and need special technical skills in understanding the need and expectation of the customer to create the right service product and ambience. Lastly at the top most level we have the customer himself. He is totally in- volved in the marketing of services as he has to manage the inseparable part of the service delivery by being present at the service delivery point. Services marketing firms today have woken up to the fact that they have to get the services marketing particularly front office staff that comes in direct touch with the customer. He has to be fully trained in various aspects of human soft skills in addition to the hardcore requirements of marketing and selling. That is why companies are picking up their staff young from the schools and colleges and getting them trained from professional institutes. The exhibits below indicate how companies are sending them to training schools before deploying them for services duties in retail mega malls and others. "> Exner 2.1 A Brier Report on RETAIL Services TRAINING Errorts BY SERVICE Firm A Brief Report On Retail Services Training Efforts THE retail sector's hunt for manpower is leading players to hitherto uncharted territory. Now, school students (Class X and Xil pass outs) are being roped in to help the sector satisy its insatiable appetite for skilled workforce, So, companies such as Reliance Retail, Pantaloon and Godrej Agrovet are going to schools to scout for talent. Reliance Retail, which plans to recruit around 5 lakh employees for its venture over the next five years, expects to hire around 60-70% of its front-end staff from government schools. ‘These Class XII pass outs then undergo a six month training programme before getting on to the shop floor. Similarly, Pantaloon Retail hires as many as 300 school pass outs from both government and private image not available image not available image not available 38 Services Marketing: Concepts & Practices —=> Service Packaging ‘A warm pizza delivered by Domino’s in a hot case within the stipulated time lag of a few minutes all over the world fetch them orders for the pizzas repeatedly because of the packaging involved in their home delivery service. Packaging does not include only the container used; it is also the way this container has been used, An environment friendly packaging material, information supportive covers and envelopes, and smartly dressed staff all form part of the packaging. Service Personnel The frontline employees will be coming directly in touch with the service customers regularly. However at the service delivery centre many employees may have to deal with the service customers through voice interactive systems, telephones, internet, and other modern gadgets of communication. The service person- nel are the symbol and ambassadors of the service providing firm. A service customer will appreciate and participate in the services much later but in the beginning he comes in contact with the front staff and makes up his mind and perception about the services firm. In order to gain a positive perceptive acceptance from the customer, the service providing establishments have to undertake a complete grooming of its employees and personnel involved in the delivery process of services at all points. The grooming includes the use of identifiable corporate uniforms, the normal dressing etiquettes, knowledge about the products, services. policy and plans of the firm. The normal civilised attitude towards strangers, use of polite manners and language, and an attitude to be always helpful to the customers g0 a long way in differentiating one service from the other. We have mentioned earlier that services market- ing is relationship marketing. Relationships will be built only when people involved in the delivery are of acceptable and amiable nature. But learning the mannerisms and cultural traits of one’s own country may not be sufficient. The services today have to meet the expectations of global customers and have to compete with the global level of excellence. The services firm will have to get its people trained in mannerisms of different ethnicity and traditions of the cultures of the world. Intemational airlines, multinational hotel chains, multinational service firms employ personnel from all kinds of nationalities to make sure their people do not lag behind in any manner when it comes to attending to foreigners and clients from other countries. Exniprr 2.2 Airuines ComPANiEs IN INDIA Go FoR GLOBAL OUTLOOK FOR FLvING STAFF With domestic airlines adding more and more international routes to their network, the looks and the uniform of in-flight staff, specifically airhostesses, have occupied prime importance in the image makeover plans of carriers. Airlines like Kingfisher, which is hoping to fly to international destinations by 2008, pre- dominantly sports red outfit, the skirt finishing above the knee with the jacket cuts styled internationally. Also, the airline does not have a maximum age limit for airhostesses. “Air-hostesses should be pretty with even prettier outfits,” a Kingfisher official said. Be it Jet Airways competing with Hong Kong based Cathay Pacific on several South East Asian destinations amongst others or national carrier Air India whose competition with gulf based airlines and US sectors has intensified recently, repositioning of their brand also includes new designer uniforms to cater to the global market. According to Italian designer Robert Capucci, who has been hired by Jet Airways for designing uni- forms for their staff, “The uniform of Jet's cabin crew has a distinctive international look capturing the spirit of Corporate India. The newly-designed attire will take to runways at airports around the world.” Jet Airways is investing millions of dollars on overall expansion plans, including new uniforms for in-flight attendants to serve premium-class travelers, on routes like Johannesburg, Toronto via Brussels, Kuala Lumpur and Singapore." The look and uniforms of the staff should be compatible to handle premier-seg- ment travelers, which are on the increase, with more and more corporate honchos travelling abroad like never before,” a Jet Airways official said. Source: hetp://www.financialexpress.com/news dated 4th January, 2010 and |!th January 2010. image not available image not available image not available 42. Services Marketing: Concepts & Practices —_— > The difference can also be achieved by introducing better quality management systems and by bringing in timely and efficient relief to the customer in case of failure of men and machinery in delivering service as. per the expectation of the customer. The chapter attempts to define the services marketing concept in the light of the nature of services in order to understand the special marketing concepts, peculiar customer re- quirements, and processing aspects of services marketing. We discussed how new innovations have changed the face of services. The opening of the economies and the globalisation of the international trade opens up new avenues and markets for the producers of services. The chapter reviews as to how services can adopt the new innovations in information and telecommunication technology to serve the global customers. Review Questions In order to understand the topics discussed in this chapter, you need to read further and check Web sites 10 answer the following questions: QI. What do you mean by the term concept of services marketing? Explain how the concept of services marketing is different from the product marketing. QZ. What is the significance of differentiation in services marketing? Explain how a provider of services can differentiate his service from the other service providers. Q3. Explain the concept of physical evidence in services marketing. Q4. What role does a customer play in managing the quality of services? Explain with the help of ex- amples. Qs. Wat is the meaning of inseparability of services? Explain with examples why it is compulsory for a customer to be present at the time of delivery of service. Activities Experience it: in order to understand the concept of services marketing you should: 1, Visit one branch each of a nationalised bank and a private bank to understand how ambience affects the attitude and perception of the service customers’ towards the service provider. 2. Identify new innovations that have revolutionised the banking operations in the recent years. 3. Assess the impact of internet and web spread on banking services for a commercial customer. References 1. Gronroos, C (1990a). ‘Services Management and Marketing, The Moments of Truth in Service Com- petition’, Lexington Books. 2. ‘Relationship Approach to Marketing in Services Context. The Marketing and Organizational Behavior Interface’, Journal of Business Research, vol. 20, pp. 3-11. 3. Albrecht, Karl and Ron Zemke (1985). Service America. Homewood, Hlinois: Dow Jones-Irwin, pp. 96. 4, Schmidt Warren H. and Jerome P. Finnigan (1992). The Race without a Finish Line, San Francisco: Jossey Bass Publishers, pp. 315-321. 5. Jacka, J. Mike (1994). ‘The Upside-Down Pyramid - Role of Internal Auditors in Customer Relations Management’, Internal Auditor, June 6. http://www.indiasite.com/facilities/accommodation html. 7. hitp:/fetailindiaty.blgspot.com/2007_02_25_archive.html, accessed on 16.12.2009 image not available image not available image not available 46 Services Marketing: Concepts & Practices aD This meant that it sets the price level that competitors will follow or will undercut. GROWWELL now needed to regularly review prices should their competitor enter the market at the “market growth’ point of the product life eycle to ensure that the pricing remains competitive The pricing strategy for GROWWELL Herbal Facial Acne and Wrinkle Removing Cream is not the same as that of the retailers. It sells the products to retailers at one price. However, retailers have the freedom to use other strategies for sales promotion. These take account of the competitive nature of their individual markets. They may use various tools @ Loss leader: ‘The retailer sells for less than it cost to attract large volume of sales, for example supermarkets may offer the products on huge discounts to get the benefit of volume sales. © Discounting: Alongside other special offers, such as “Buy one, get one free’ or “Get two for the price of one” @ Introductory offers: They may offer a special price for a short period and later withdraw such scheme, 7 Place Place refers to ‘© where a product is sold ‘© how does the product arrives at this place © what are the intermediaries involved in bringing to this product at this place This means a business must think about what disiribution channels and strategies the company should use. This includes the storage and carrying points between the factory and the retailer after the product has attained its finished, commercial saleable shape, and finally reacbes the customers. This includes: ‘© wholesale outlets like the stockists and distributors ‘© retail outlets like grosser, chemists, beauty salons, supermarkets or street and colony shops ‘© it also includes other ways in which the company can makes its products directly available to its target market; for example, through own sales points, through direct mail or the Internet GROWWELL Herbal Facial Acne nels as possible to ensure the widest reach of its products to its target market. The main channels for the product are retail outlets where consumers expect to find skin care ranges. Around 75% of the company’s earlier GROWWELL, Hair Care Products are through large retailers and drug stores, super stores, and shopping malls. The balance 25% of sales is done through the grocery stores, colony shops, and beauty parlours. Direct channels like the intemet and Wed site sales are not being used so far as the cost of small orders will be too high to handle for direct distribution. Market research shows that around 20% of this aze group buys products for themselves in the grocery stores of their colony when shopping with family. Research also shows that the majority of parchases are actually made by women themselves when buying other items for their families. They are also likely to buy such products from supermarkets whilst doing their grocery shopping. GROWWELL distributes its OTC range of products through a variety of outlets that are cost effective but that also reach the highest number of consumers. It uses a central distribution point in different regions. Products arrive from their production plants to these central distribution points of the regions, thereafter these are distributed to reta using contract vehicles for efficiency for onward delivery to retail stores. ind Wrinkle Removing Cream aimed to use as many relevant distribution chan- Promotion Promotion is how the business tells customers that products are available and persuades them to buy. GROWWEEL hhas a large team of medical and sales representatives and other marketing statf who handle personal selling to trade channels Promotion is either above-the-line or below-ihe-line, Above-the-line promotions are directly paid for, for example TV or newspaper advertising ‘Below the-line is where the business uses other promotional methods to get the product message across Events or trade fairs help to launch a product to a wide audience ‘© Events may be business to consumer (B2C) like, sponsoring a musical night or organising a cricket match, image not available image not available image not available 50 Services Marketing: Concepts & Practices

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