SERVICE MARKETING Definition Service are deeds, process and performances.

Service to “include all economic activities whose output is not a physical product or construction, is generally consumed at the time it is produced and provides added values in forms that are essentially intangible concerns of its first purchase”. WHAT IS MEANT BY SERVICE MARKETING Essentially are those separately identical, essentially intangible activities which provide want satisfaction and that are not necessarily led to sale the of a product or another service. To produce a service may or may not require the use of tangible goods. However, in such use is required. There is no transfer title to these tangible goods.--------ByW.J STANTON The term service means the business and professional service such as • Advertising • Marketing Research • Insurance/ banking • Legal/ Medical services etc., Many services are made available to consumers by many professionals. 1) UTILITY / \ / \ Electricity Water supply

LEGAL DEFENCE || ----------------------------------- ||----------------------------------------------------|| || || || || || || Judiciary Navy || Air force Army Police || Municipal Service 3) Transport -Railway SM 31-08-08 -Air Transport -Postal/ Telegram


-Broadcasting/ Telecasting 4) 5) 6) Distribution Banking Activities -Wholesale/ Retailing/ Agents etc -Private/ Public/ Stock/ Brokers. -Adg, Mkg Research, Consultancy Accountancy, legal, Medical. Educational, Maintenance, Repair -Theatre, cinema, clubs, hotels, Restaurants, videogames -Health club, beauty parlours, Domestic Help, dry cleaning Matrimonial service.

7) 8)

Entertainment Others

WHY SERVICE MARKETING IS NECESSARY 1. Growth of government activities. 2. Increase of professionalism 3. Higher growth of in the disposable income. 4. Growing specialization services. 5. New changes. 6. Growing communication. 7. New developments in the market. 8. New type of services. 9. Growing importance to “NEW VALUE ADDED” service 10.Global changes. 11.Science and Technology advancement. REASONS FOR GROWTH AND CURRENT STATUS 1. AFFLUENCE (increase per capita income). 2. LEISURE TIME (people do get some time to travel and holiday and therefore they spend on many items).

3. LIFE EXPECTANCY (In health program leads to programme on healthcare, old age etc).

4. WORKING WIVES 5. PRODUCT COMPLOXITY 6. LIFE’S COMPLEXITY 7. RESOURCE SCARCITY AND ECOLOGY 8. NEW PRODUCTS Features of services • A service cannot be touched • Accurate standardization is not possible • A service cannot be patented. • There is no ownership transfer • Production & Consumption are inseparable • There are no inventories of the services • Middlemen roles are different • Intangibility The most basic and universally cited difference between goods and services is intangibility. Services are performances or actions rather than objects, they cannot be seen, felt, tested or touched. • Inseparability Here simultaneous production and consumption are taken place • Perishability This refers to the fact that services cannot be saved, stored, resold or returned i.e. if the customer is unhappy with the service it cannot be replaced or exchanged. • Heterogeneity Services are performances, frequently produced by humans, no two services will be precisely alike. Heterogeneity also results because no two customers are precisely alike each will have unique demands or experience the service in a unique way. • No ownership

A service is purchased for the benefits it provides. CHALLENGES OF SERVICE MARKETING    How can service quality be defined and improved? How can new service be designed and tested effectively? How can the firm be certain it is communication a constant and relevant image? How does the form accommodate fluctuating demand? How can the firm best motivate and select service employees?   How should prices be set? How can the balance between standardization and personalization determined? How can org. protect new service concept from competitors?   service? WHY MARKETING OF SRVICES 1. Growing importance of specialization. 2. Higher growth in the disposable income. 3. Basic change in the lifestyles. 4. Increase professionalism. 5. Development in the communication. 6. Multi - Dimensional changes in the market. 7. Growing participation worldwide. How firm communicates quality and value to consumers? How firm ensures the delivery of consistent quality

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SERVICE MARKETING TRIANGLE 1) Company 2) providers 3) customers.

Company /\ / \ Internal / \ External Marketing / \ Marketing / \ Providers/ _________ \ customers 1) 2) Internal Marketing – enabling promises- providers should be trained well, rewarded for good service External Marketing – making promises- Companies make promises in addition to normal advertisement, sales promotion, price etc and also through employees, décor facilities, design etc Interactive marketing – Keeping promises- Sometimes promises are delivered through technology also.


Therefore all the three sides are equally essential to complete the marketing triangle to achieve success. SERIVCE MARKETING – CRITICAL SUCCESS FACTORS It relates to limited strategic areas where results insure a successful competitive performance. Certain variables prove to be determinants of organizations success. KEY FACTORS • Clear positioning strategy • Outline the elements of product package • Emphasis on Quality

• Customer Retention • Capturing and customer data • Close interaction among marketing operations and human resources • Soliciting feedback form customers and employees • Top management commitment SERVICE QUALITY Service quality can be referred as a higher standard pf service quality. Servqual – is a scale used frequently for measurement of service quality. It is a diagnostic tool and male’s use of a 44 item scale based fire service quality dimension which are 1) Tangibles dimension – refer to the service assessment of a firm’s ability to manage its tangibles 2) Reliability dimension – assessment of firm’s consistency and dependability service performance 3) Responsiveness dimension – assessment of a firm’s commitment to providing is service in timely manner 4) Assurance dimension – assessment of a firm’s competence, courtesy to in customer, and service of the operations 5) Empathy dimension – refer to assessment of firm’s ability to itself Gap Model of Service Quality This model tells about consumer’s quality perceptions are influenced by a series of fire distinct gaps occurring in organistion.These gaps which can impede delivery of services which consumers perceive to be of high quality.

MODEL OF SERVICE QUALITY To enhance knowledge of service quality and encourage investigation of the key issues a model has been developed Gap1 – This is overall gap between service provider and consumer. It states that many organizations do not understand what consumers expect in a service Gap2 – service organization often experience great difficulty in even meeting far less exceeding consumer expectations. Gap3 – even when formal standards or specifications for maintaining service quality are in existence, the delivery of quality service is bu no means certain. Gap4 – the danger is that promise made are not kept. Many service organizations use the brochure or prospectus of communication with potential customers. It should be a statement at what the customer will receive, not an attractive set of promises that cannot be delivered. Gap5 – this gap is the “key challenge”, to ensure good service quality the provider must meet or exceed customer expectations. FAILURE GAPS IN SERVICE QUALITY:Service gap refer to difference between customer expectation of service and his perception of the service actually delivered. Service provider should close the following gap 1) Knowledge gap – difference between customer expect/ what mgt perceives the consumer expect 2) Standards gap – difference between which mgt perceive consumer to expect and the quality specification set for service delivery

3) Delivery gap – the difference between quality standards set for service delivery and the actually quality of actual quality of service delivery 4) Communication gap – the difference between the actual quality of service delivered and the quality of service described is the firm’s external communications. Customer
Word of Mouth Communication Personal needs Past Experience

Expected Service

Perceived Service

Service Delivery

External Comm to Customers

Service Quality Specifications

Management perceptions of Customer expectations

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