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UNIT 1 Foundation of Services Marketing
UNIT 1 Foundation of Services Marketing
IN
FINANCIAL
SERVICES
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UNIT 1 : FOUNDATIONS OF
SERVICE MARKETING
OBJECTIVES OF THIS UNIT:
1. Definition of Service
2.Characteristics of Service
3. Importance of services
4. Factors responsible for growth of service
5. Classification of services
6. Marketing and service marketing
7. Importance of service marketing
8. Retail, Insurance and institutional
financial services
9. Service encounters and managing
service encounters
Lets understand
Service…
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“ Any activity or benefit
that one party can
offer to another, which
is basically intangible
and does not result in
the ownership of
anything.
– Philip Kotler
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For
Healthcare, hospitality, banking and
insurance, entertainment, tourism,
education, telecommunication, legal,
Example: University or
college
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Inseparability
Service cannot be
separated from the
service provider
Example: Teacher
imparting knowledge
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Inconsistency/
Variability
Service cannot be the
same each time
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Perishability
Service cannot be stored
Example: a passenger
seat on an airplane
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Lack of
ownership
As service is inseparable,
it cannot be transferred,
so one can avail services
but cannot own it.
Example: a visit to a
tourist spot
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6. Simultaneity
▸ Services are
rendered and
consumed during the
same period of time
▸ Eg: Complaint
handling of a
customer
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Quality of measurement
▸ To determine the level
of satisfaction at which
the users are satisfied
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What is marketing
management…??
Marketing management is the art and
science of choosing target markets and
getting, keeping and growing customers
through creating, delivering and
communicating superior customer
value
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Service Marketing
American Marketing Association
defines Service Marketing as
“An organizational functions and a set
of processes for identifying or creating,
communicating and delivering value
to customer and for managing
customers relationship in a way that
benefit the organization and stake
holders”
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Importance of marketing of
Services
▸ A key differentiation
▸ Importance of relationships
▸ Customer retention
▸ Multiple touchpoints
▸ Services proliferate – MULTIPLE COMPETITORS
▸ Feedback improves services
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▸ Technology impacts
The Four I’s of service marketing
Intangibility
inconsistency
Inseparability
Inventory
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The 3 R’s of service quality
Reliability
Responsiveness
Respect
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Retail Financial Services
▸ Debit card
▸ Credit card
▸ Retail Loans
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Insurance services
▸ Fire insurance
▸ Motor insurance
▸ Medical Insurance
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Institutional Financial Services
FOR EXAMPLE
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SERVICE ENCOUNTER
Every service encounter is an
opportunity to build
satisfaction and quality
It is also called as
“Moment of Truth”
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Types of Service encounters
▸ Remote encounter
▸ Phone encounter
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Managing service encounters
▸ Customer should know how to contact
▸ Contacting should be easy
▸ Contact should be received by polite,
knowledgeable and empowered individuals
▸ Issues raised should not be recurring
▸ Information requested should be readily
available, easily understood and free of
jargon
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Thanks!
Any questions?
You can find me at:
bfm.coordinator@lsraheja.org
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