MARKETING OF SERVICES

CONTENTS
 What is Service and Service Marketing?
 Characteristics of Service
 Service Marketing triangle
 Quality Service
SERVICE
 Is a deed, processs and performance
 It is an activity that is offered by one party to another
 It is intangible, and it does not result in any transfer of ownership
EXAMPLE OF SERVICES
Industry Services

Health Care Hospital, medical practice, dentistry, eye care

Professional Services Accounting, legal, architectural

Financial Services Banking, insurance

Hospitality Restaurant, hotel, resort

Travel Airlines, travel agencies, theme park

Others Hair styling, pest control, maintenance, health club

How can you sell something
that a consumer
will never own?
SERVICE MARKETING
 It is a broad category of marketing strategies focused on selling anything
that is not physical product.
 Importance
-Service dominate the economy in most nation
-New Jobs are generated by services
-Some manufactures include services or define themselves as service provider
-Service has a unique characteristics which need new marketing skills and
knowledge.
NATURE AND CHARACTERISTIC
OF SERVICES
NATURE AND CHARACTERISTIC OF A SERVICE

Intangibility Inseparability

Services

Variability Perishability
INTANGIBILITY
 Services cannot be seen, tasted, felt, heard or smelled them.

 Difficult for consumers to evaluate service offerings.

 “Signals or physical evidence” of quality that accompanies the service – place,

people, price, equipment and communications that they can see.
CEBU PACIFIC (AIRLINE)

Equipment Staff Price Advertising

VARIABILITY
 Quality of services depends on who provides them and when, where and how.

 Difficult to ensure that service quality levels are maintained. Customer may have
“bad” experiences.

 Firm provide training for staff and develop customer care programs.
DAVID SALON (HAIR SALON)

Before After
INSEPARABILITY
 Services cannot be separated from their providers.

Both provider and client affect quality of relationship. Market may be

limited by time constraints on provider.

Selection and training of service provider’s personnel is essential.

MEDICAL SERVICES
Doctors and patients
PERISHABILITY
 Services cannot be stored for later sale or use.

 If it is not delivered, it is lost or it does not exist.

 Manage demand and supply. Creates problem when demand fluctuate.

(periods of excess demand: periods of excess supply.
MRT / LRT (TRANSPORTATION)
#Trainaubusan
SERVICE MARKETING TRIANGLE
SERVICE MARKETING TRIANGLE
Company

 Service marketing triangle shows the key

actors involved in marketing business.
 It shows the key activities that occur
between those actors
 it underlines the relationship between the
various providers of services, and the
customers who consume these activities to
achieve customer satisfaction. Interactive marketing

Employees Customer
 company – refer to the
EXTERNAL MARKETING
 external marketing is any communication of company to customers, that happens
before service delivery starts. Communication of the service is important to build the
trust of customers and hence to convert the customers to be loyal to the company.
 example:
- advertising, personal selling, public relation
Aims of External marketing:
-Creating awareness about the services
-Setting expectations (price)
-Setting service expectations
-Informing customers of any necessary prerequisites
INTERNAL MARKETING
 communication between company and employees
 by satisfying its employees they will want to better serve customers
 key components of internal marketing:
-Motivating employees
-Teaching customer satisfaction technique
-Communicating company goals
-Training staff on how to use the company’s services
-Good pay and working conditions
INTERACTIVE MARKETING
 occurs when employees and customers interact
 it is here that promises are kept or broken or known as “ moment of truth’
 it is a strong way to influence customers. It is most commonly used to help customer
come to a decision with regards to their purchase decision.
 single customer can become dissatisfied with the way the employee treated him or
the customer can become loyal because the employee treated him or her like king or
queen.
 Once your employees starts treating the customer as if they are really king, the
whole service triangle gets completed, and you will get the best result.
SERVICE MARKETING TRIANGLE EXAMPLE
Example: a luxury resort

External marketing: advertising

Internal marketing:
Employees training how to handle request and
difficult guest, incentives
Internal marketing: customer make effort and
add value
SERVICE QUALITY MANAGEMENT
SERVICE QUALITY MANAGEMENT
Service quality is term which describes a comparison
of expectations with performance.

Service quality management is the process of

managing the quality of service delivered to a
customer according to his expectations.

It basically assesses how well a service has been

given, so as to improve its quality in the future,
identify problems and correct them to increase
customer satisfaction.
 Service quality is harder to define and judge than is product quality.

 Customer retention is perhaps the best measure of quality – a service firm’s

ability to hang onto its customer depends on how consistently it delivers value
to them.

 Service quality will always vary, depending on the interactions between

employees and customers.
DIMENSION OF SERVICE QUALITY
 Measuring service quality relies on the customer’s perception and this
could be different from the expected services.

 To determine the gap between services expected and perceived

service, several models are used like SERVQUAL model, RATER model
and E-SERVICE QUALITY.

 DIMENSIONS OF SERVICE QUALITY

- Reliability , responsiveness, assurance, empathy, tangibles
Dimension Criteria

Reliability Is the company dependable in This is the ability to perform the service dependably and
providing service as promised, over accurately, as promised. Performing services when promised
time? If the core service is not performed reliably, customers may assume
that the company is incompetent and may switch to another firm.
Responsiveness Are the firm’s employees helpful How quickly the services are rendered to the customer and the
and able to prompt service? promptness of service delivery. With respect to software services, it
would be the ability to respond to customer problems or give
solutions – handling urgent request, readiness to service
Empathy Does the service firm provide Caring and individual attention provided by employees to its
caring, personalized attention? customers. – Good communication, Giving personalized attention,
understanding the requirements and caring for the customers.
Assurance service employees knowledgeable, This is a measure of the ability to convey trust to the customers and
polite, competent and trustworthy? how well they extend the courtesy
Tangibles Do what service provider’s physical physical attributes like appearance, equipment, facilities etc.
facilities, web site, equipment,
personnel and communications look
like?
THANK YOU