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EducatSERVICE MARKETING AND ROLE OF CONSUMER IN SERVICE MARKETING

Introduction Services marketing is marketing based on relationship and value. It may be used to market a service or a product. Marketing a service-bases business is different from marketing a product-base business. Services marketing is a form of marketing which focuses on selling services. Services can be tricky to sell and the marketing approach for them is much different than the approach for products. Some companies offer both products and services and must use a mixture of styles; for example, a store which sells computers also tends to offer services such as helping people select computers and providing computer repair. Such a store must market both its products and the supporting services it offers to appeal to customers. When people market services, the goal is not to get customers to buy a product, but to get people to do business with a particular company, often in a specific location. For example, a restaurant offers a service: It provides food to customers, both on-site and in to-go form in many cases. When the restaurant markets itself, it must convince people that it is preferable to other restaurants and that its facility is worth the trip. As with the marketing of products, the marketing of services covers issues like what is being offered, what the price point is, how it compares to similar things, and why people should choose that particular iteration over other options. With services, which are often intangible in nature, consumers must also be convinced through services marketing that the service is something they need which will have some sort of benefit. There are different approaches which can be taken in services marketing, depending on how people want the position the company and what kind of messages they want people to take away from the marketing. A company might want to project itself as reliable and trustworthy if it offers a service like security, or fun loving and adventurous for services like travel planning. In all cases, people must be shown why it is that they would want to pay for services the company offers Marketing schools usually discuss various techniques which can be used in services marketing. People may also develop their own techniques as they practice marketing in the real world and learn more about what people look for, how they shop for services, and what makes a service appealing. Often, the goal is to establish a personal relationship with customers so that they will return for the company's services in the future, rather than taking their business elsewhere. The loyalty is often to the quality of the service, rather than to a specific brand or image, and this

But now with the advent of internet computerized interaction has taken place and communication between customer and service provider has reduced although there are very few service providers who provide individual services. a part of the work load of university faculty Civil service. product.´ So. volunteer service for the benefit of a community. services add more economic value than agriculture. This is my number one customer service secret. I was taught about Business to Customer Loyalty many. The hotel insisted that every one of us who had contact with their customers know the customer by his full name and. Acts of Services : y y y y y y y y y y Administrative service. Customer Service Secret Number Two . many years ago. Building relationships with customers has been the long goal of service marketers. when possible. before I started my own business. career employees of government Community service. promotion and place but service marketing includes 3 more P¶s i. In most countries. Customer Service Secret Number One . In today¶s market environment. when I still worked as a hotel detective in a ritzy down town Calgary hotel. a Japanese term referring to something which is specifically designed to entertain fans Military service. a country's armed forces Public services. physical evidence and process. services carried out with the aim of providing a public good Selfless service. price. in which it is the value of the product which is important. and is by far the most important one. or a punishment that may be imposed by a court Customer service.provide true customer service. employment in a residence Fan service. a service which is performed without any expectation of result or award. provision of assistance to customers or clients Table service Domestic service. people.Build Business to Customer Loyalty.e.makes services marketing somewhat different than product marketing. if . service has become a cliché and it seems like ³everyone¶s doing it. raw materials and manufacturing combined In developed economies. other personal or business information about him. Secrets of Service Marketing to Customers. employment is dominated by service jobs and most new job growth comes from services Jobs range from high-paid professionals and technicians to minimum-wage positions Service organizations can be any size²from huge global corporations to local small businesses Most activities by government agencies and nonprofit organizations involve services Marketing revolves around 4 P¶s viz.

personalized service to your customers than your competitors can? One size shoe does not fit all feet. A final bit of advice about customer service. be very serious about how you handle it.´ Print that advice out in large. so it is important to discuss all your options with a professional marketing consultant. pass that saving on to your customer. bold letters and past it above your cash register. The developing countries are technologically backward and so their problem are more complicated .educate your staff to be equally as concerned about your customers as you are. Let¶s say your advertised featured customer service is Home Delivery. Customer Service Secret Number Four . Nor is one type of customer service suitable for all your customers. in the future. why not jump ahead of the wolf pack by providing even more creative. Services Marketing Strategies y y Choosing the right global marketing strategy is vital for taking your business or organization worldwide.economic transformation and national income . you can kiss that customer goodbye . This will ingrain confidence in your customer so that. Customer Service Secret Number Five . It is also . Significance of service marketing1) Least possible defence on technology:. If your customer even suspects that you are trying to pull something over on him.permanently! Were you fortunate enough to purchase an item from a wholesaler at a discount price? Instead of being tempted to richly improve your bottom line.our dependence on sophisticated technology has increased . your customers will know where to come for REAL savings.be honest with your customers. Even if it is obvious that he¶s wrong. sometimes it¶s better for repeat business to take the loss and compensate the customer. The first customer may welcome this Home Delivery because it¶s difficult for him to get out and shop in person Customer Service Secret Number Three .everyone is doing it. 2) Raising the standard of living :. Is the customer upset and angry? First. calm him with words and action and show that you are serious about doing something to correct the problem. The easiest way to select the best firm is to issue a request for proposal (RFP) to selected firms. your competition will.³The Customer Is always Right.´ If a customer comes to you about a complaint.for increasing the standard living we should increase the rate of capital formation . Not every type of campaign or plan will work for every company.Developed countries are technologically advanced and so they do not face any problem while integrating the national development . ³If you aren¶t taking care of your customers. Interview and then hire a marketing firm that specializes in developing and implementing an international marketing strategy.

where a waiter's service is intangible.The personal care services .It means our investment are termed to be productive. 3) Generation and expansion of job opportunities :. etc. The use of a service is inherently subjective. Although the train is a physical object.tourism . Services (compared with goods) can also be viewed as a spectrum.entertainment . hotel.Service sector provides opportunities to make optimum utilization of untapped resources.it is meant that we increase the contribution of services to gnp and motivate organization to participate 4) Optimum utilization of untapped resources :. 5) Paying avenues for capital formation:. one is not paying for the permanent ownership of the tangible components of the train. the use of the train is typically experienced concurrently with the purchase of the ticket.service sector creates and expands job opportunities . A service (as opposed to a good) is typically defined as follows: y y y The use of it is inseparable from its purchase (i. meaning that several persons experiencing a service would each experience it uniquely.e. it is essential that we activate our efforts for capital formation . heard.The contribution of capital formation to the process of socio-economic transformation is appreciable for transforming national economy.important mases are aware of living style and behavior. . a train ride can be deemed a service. tasted. If one buys a train ticket. For example. seen. Services marketing relates to the marketing of services. An example would be a restaurant. Service marketing concentrates its attention on all components and helps human resources. a service is used and consumed simultaneously) It does not possess material form. as opposed to tangible products. nor are all pure services. but the food is tangible. or smelled. Not all products are pure goods.. and thus cannot be touched.if not utilized is a national waste.

He is said to be non-existent in the manufacturing process. motivation and also honesty of a customer directly affect the performance of the service system. family.. The automobiles which are manufactured in factories are not concerned with eventual buyers as the buyers see the product for the first time in the showroom. and select between different alternatives (e. products. the service capacity varies directly with demand rather than being fixed size of the staff employed. This can be seen in the fast food restaurants.g. The popularity of super markets and discount stores is based on the fact that the customers are willing to appreciate the benefits of retailing process. 2.g. where self reliance is high valued. Therefore. Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome. The psychology of how the consumer is influenced by his or her environment (e. Accurate medical record of a patient can influence the effectiveness of attending physician in terms of diagnoses and prescribe appropriate drugs. Education of a student is largely determined by a students own efforts and commitments towards delivering good educations. the customer becomes a potential contributor to GDP. Here the customers cannot place orders directly from a menu but is expected to throw cups and plates in the dustbin. The behavior of consumers while shopping or making other marketing decisions. culture. brands. There are few personnel who require supervision. and retailers). 3. Here the customer expects a faster service and reasonable prices. media). signs.Role of Consumers in Service Process: The customer¶s presence in the service process is linked to the facility design. 2. reason. The service providers benefit in following ways: 1. 1. experience. The customer can play an active part in the process of providing service.. feel. Instead of being a passive buyer. Consumers Behavioral Role in Service Marketing: The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how y y y y The psychology of how consumers think. The customer provides labour when required. The given below examples show us the knowledge. Here the customers act like temporary employees. . This starategy is being receiving great acceptance in the educated society.

and dispose of products. experiences. secure. Product use is often of great interest to the marketer. y y y .. One "official" definition of consumer behavior is "The study of individuals. or aggressive marketing of easy credit. The impact of consumer behavior on society is also of relevance. it brings up some useful points: y Behavior occurs either for the individual. Consumer behavior involves the use and disposal of products as well as the study of how they are purchased." Although it is not necessary to memorize this definition. aggressive marketing of high fat foods. Consumer behavior involves services and ideas as well as tangible products. or in the context of a group (e. Since many environmental problems result from product disposal (e. may have serious repercussions for the national health and economy. or ideas to satisfy needs and the impacts that these processes have on the consumer and society. because this may influence how a product is best positioned or how we can encourage increased consumption. motor oil being sent into sewage systems to save the recycling fee.g. or organizations and the processes they use to select.. or garbage piling up at landfills) this is also an area of interest. friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use).y y How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer. groups. For example. services. and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. use.g.

world class. They have also done this to make optimum utilization of different sectors to diversify their development and raise the level of income. Developments in the field of banking services in the west testify that developed countries have initial application of marketing strategies in the service sector. It is natural that acceleration of growth of the service sector results in deceleration in the growth of primary and secondry sectors. They create new concepts and new ideas and so they have enough that they can sell. etc. Service Marketing in the Developing Countries: y Development strategies adopted by the developed countries simplify the task of policy making for the developing countries.. Undoubtedly these countries have succeeded in achieving their desired goals and have changed the way and style of living of the whole society while utilizing the sector. The entrepreneurs find it convenient to initiate qualitative and quantitative improvement by applying marketing practices. they have applied marketing strategies. To make the services productive it is not only necessary that we increase the shares but also important that marketing strategies are followed in the right direction. standard system of education multi pronged medical facilities made available by hospitals. It requires transformation in the approach of the entrepreneurs. customer oriented banking services. Services sectors in the Indian economy have been rising. This has done by them to conserve the natural resources for the coming generations. The major contribution made by American economy today is the services because ultimately it is the value added which is the service part. The incoming technological sophistication has made possible an expansion in the area of service marketing. It share has increased upto 40% in 1980s. The transformation of potential buyers into actual consumers is a difficult task. justify that service sector of the US economy are exceptionally advanced. The experiences of the last decades indicate that the developed countries have been accorded overriding to the service sector. This advancement has raised the contribution of services sector to the GNP and the national economy. Developing countries have to make efforts for alignment of services with innovative marketing approach keeping in view the socio economic developments. Developed countries are found to be innovative. It accounted for 28% GDP in 1960-61 at constant prices. The credibility of the modest contribution to the process of development goes to the service marketing.y y y y y Service Marketing in the Developed Countries: Almost all the developed countries have made significant contribution in the development of service sector. consultancy services. y y . The sophistication in the field of communication.

and failed. Service production happens with the customer present. but often the client is asking 'should we engage this service at all' and 'if so. than the service offerings and their value proposition. This creates special challenges in service quality management that product companies do not even consider. professional. and set price. creating a very different and challenging dynamic. They market and sell continuously. traditional product techniques. and profiting with both product and service businesses are challenging tasks. Passion is necessary. Marketing and sales lose momentum. If a product has quality problems while in production. is agonizingly elusive. regardless of the revenue levels they generate. or technology service businesses that don't necessary apply to product businesses. Yet institutionalizing passion. service intangibility can make services difficult to promote. For services. y Clients can't see or touch services before they purchase them. marketing. Trust is necessary. Most product companies have dedicated marketers and sellers. and management staff. Listed below are some of the most common and difficult challenges of growing and managing consulting. Sure. Products are tested before they go out the door. Proactive lead generation is difficult. y y y y y y y y . the company can fix them and customers are none the wiser. Implemented correctly. This makes services difficult to conceptualize and evaluate from the client perspective. Many service companies have tried. And internal brand management and communications can be equally as vital to marketing success as are external communications. while necessary. and desire your staff brings to the organization every day. Brand in service businesses is about who you are as much as what you say about yourself. But the challenges are different from one to the other. and revenue and work drought. the more revenue and success you will have. Services are often produced and consumed simultaneously.Challenges to service marketing : Managing. sometimes more important. In many services companies the marketers and sellers also must manage and deliver. at using lead generation tactics that work wonders for product companies. hustle. creating increased uncertainty and perception of risk. Brand extends beyond marketing. the selling is often split between sales. such as direct marketing and selling. but the special dynamics of how clients buy services must be carefully woven into your strategy. This can often lead to the Services Revenue Rollercoaster-wide swings between revenue and work overflow. sometimes you find yourself in a competitive shootout (some firms more than others). Competition for service companies are often the clients themselves. Many product companies have dedicated sales forces. The more passion. can work for services. Competition for product companies are other product companies. Service deliverers often do the selling. spirit. professional. The correlation between staff passion and financial success is direct and measurable (as is the correlation between lack-of-passion and organizational failure). Competition is often not who you think. From the firm's perspective. Some level of trust in the service organization and its people must be established before clients will engage services. yet elusive. This is as important. growing. should we just do it in-house'. control quality.

INTERNAL MARKETING 3. External Marketing : "Setting the Promise" All organizations operate within environments. motivates and empowers employees at all management levels to deliver a satisfying customer experience. EXTERNAL MARKETING 2. promotional activities. 2. all profit-making and not-forprofit organizations are surrounded by. Managers cannot govern the nature of these environmental forces. and arouse interest in the service. and employer brand . INTERACTIVE MARKETING 1. Over recent years internal marketing has increasingly been integrated with employer branding. and must contend with. · Marketing to END-USERS. That is. These uncontrollable influences affect consumers¶ behaviour and organizations¶ development of effective marketing mixes. · Performed to capture the attention of the market. Internal Marketing : "Enabling the Promise" Internal marketing (IM) is a process that occurs within a company or organization whereby the functional process aligns.Service Marketing Triangle Service marketing involves 3 types of marketing: 1. · Involves pricing strategy. and all communication with customers. external forces.

Interactive Marketing : (Moment of Truth. which strives to build stronger links between the employee brand experience and customer brand experience · Marketing to EMPLOYEES. delivery of service. Service Encounter) Interactive Marketing refers to the evolving trend in marketing whereby marketing has moved from a transaction-based effort to a conversation. Interactive marketing is not synonymous with online marketing. · This step is of utmost importance.management. all prior efforts made towards establishing a relationship with the customer. motivational. would be wasted. because if the employee falters at this level. . and keep up the promise made to the customer. and teamwork programs. 3.e. · Performed to enable employees to perform the service effectively. although interactive marketing processes are facilitated by internet technology. and all communication with employees. · Involves training. i. · This refers to the decisive moment of interaction between the front-office employees and customers.