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TYPES OF SERVICES
• • • • • • • TRANSPORT SERVICES PUBLIC UTILITY SERVICES COMMUNICATION TRADING SERVICES FINANCIAL & INSURANCE SERVICES REAL ESTATE SERVICES MARKETING RELATED SERVICES
• • • • • •
GOVERNMENT PROVIDED SERVICES ENGINEERING SERVICES ENTERTAINMENT SERVICES BUSINESS & PROFESSIONAL SERVICES HOSPITALITY SERVICES HEALTH SERVICES
GROWTH OF SERVICE SECTOR ECONOMY
REASONS FOR THE GROWTH: • CHANGING LIFESTYLE: • Increase in affluency-greater demand for dry-cleaning, carpet cleaning • Increase in leisure time- greater demand for entertainment, travel agencies • Women in working places- greater demand for domestic help, daycare nurseries
– – – Increased complexity of life- greater demand for accounting services, legal advisors Increased life expectancy- greater demand for nursing homes, gyms Ecology & resource concerns- greater demand for shared taxi service, environment consultants Globalization- greater demand for courier services, airways, waterways Privatization- greater demand for telecom services, internet
– Range of new products- greater demand for e-commerce, software programming – Product complexity- greater demand for annual maintenance contracts, after sale service, skilled service
CAUSE Technological advances Globalization
EFFECT Higher complexity of products Business internationalizat ion Privatization Specialization & expert knowledge
GREATER DEMAND FOR
Deregulation policies Competition & higher productivity
Cost effectiveness Computer explosion
Optimum utilization of resources & outsourcing Speed of work, availability of sound, picture & motion at affordable cost Increased spending power & wish for comforts
Increase in affluency
Working women Work performed at home being done by others
More leisure time Entertainment & pleasure seeking Greater life expectancy Increased complexity of life Scarcity of resources & concern for ecology Demographic changes Desire to live long
Need for specialized services Need for services that can meet resource crunch Dual career couples
Fast, mechanical & self centred life
Intangibility Inseparability Inventory (Perish ability) Inconsistency (Variability)
• Services are activities performed by the provider, unlike physical products they cannot be seen, tasted, felt, heard or smelt before they are consumed. • unlike goods, services do not have features that appeal to the customers senses & its evaluation is not possible before actual purchase and consumption. • services are not known to the customer before they take them. • service provider has to follow certain things to improve the confidence of the client
• Services are typically produced and consumed simultaneously. • services, cannot be separated from the service provider. • Inseparability of production and consumption increases the importance of the quality in services • service marketers not only need to develop taskrelated, technical competence of service personnel , but also , require a great input of skilled personnel to improve their marketing and inter personal skills.
INVENTORY (PERISH ABILITY)
• Services are deeds, performance or act whose consumption take place simultaneously • services cannot be stored • services go waste if they are not consumed simultaneously
• Services are highly variable, as they depend on the service provider, and where and when they are provided • Service marketers face a problem in standardizing their service, as it varies with experienced hand, customer, time and firm
• BY MARKET SEGMENTATION: FINAL CONSUMER: life insurance, tution ORGANIZATIONAL CONSUMER: accounting services, legal services
• BY DEGREE OF TANGIBILITY: RENTAL GOODS: hotel room rental, book rental OWNED GOODS: mobile repair, refrigerator repair NON GOODS: accountancy services, legal services, education services
• BY SKILLS OF SERVICE PROVIDERS: PROFESSIONALS: medical services, management consulting NON PROFESSIONAL: shoe polishing, washing • BY GOALS OF THE PROVIDER: PROFIT: roadways, airways, insurance NON PROFIT: postal services, unversities
• BY DEGREE OF REGULATION: HIGHLY REGULATED: insurance, hospitals LIMITED REGULATED: fast food, roadways NON REGULATED: painting, cloth washing
• BY DEGREE OF LABOUR INTENSIVENESS: EQUIPMENT BASED SERVICES: Automated: ATMs Operated by relatively unskilled operators: Taxis Operated by skilled operators: Airlines PEOPLE BASED SERVICES: Unskilled labour: Carpet cleaning Skilled labour: Catering, Plumbing Professionals: Lawyers
• BY DEGREE OF CUSTOMER CONTACT: HIGH CONTACT: colleges, hotels LOW CONTACT: car servicing
• BY END USER: Consumer: leisure, hairdressing, personal finance, package, holidays. Business to business: advertising agencies, printing, accountancy, consultancy. Industrial: plant maintenance and repair, work wear and hygiene, installation, project management.
• BY SERVICE TANGIBILITY: Highly tangible: car rental, vending machines, telecommunications. Service linked to tangible goods: domestic appliance repair, car service. Highly intangible: psychotherapy, consultancy, legal services.
• BY LABOUR INTENSIVENESS: People-based services - high contact: education, dental care, restaurants, medical services. Equipment-based -low contact automatic car wash, launderette, vending machine, cinema.
• BY EXPERTISE: Professional: medical services, legal services, accountancy, tutoring. Non-professional: babysitting, care taking, casual labour.
• BY PROFIT ORIENTATION: • Not-for-profit: The Scouts Association, charities, public sector leisure facilities. • Commercial: banks, airlines, tour operators, hotel and catering services.
SERVICES MARKETING TRIANGLE
• The Services Marketing Triangle model focuses upon making and keeping promises to customers and suggest three structural relationships as the mode by which this occurs.
Internal Marketing :“Enabling the promise” service environment
SERVICES MARKETING TRIANGLE
Interactive Marketing :“Delivering the promise” service delivery
External Marketing : “setting the promise” the service product
The Model Company Management Employees Customers
University/Registry Directorate Registry/ management team All registry staff Students,University staff, External bodies
External Marketing “Setting the promise” the service product
Consultation with Customers to identify needs and obtain feedback on performance: Course Organisers Forum Student Union Liaison meetings Student Services Committee Undergraduate Student Questionnaire Enrolment review Service Statements/Plans: Service Provision Statement Departmental Plan
Culture & philosophy Internal Marketing “Enabling the promise” Staff recruitment the service environment Staff development/ training Motivation and involvement in planning Team meetings/briefings Technical resources
Interactive Marketing The serviscape and “Delivering the promise” service encounter: Delivery of service service delivery Physical environment Meetings Telephone Post E-mail
SERVICE MARKETING MIX
• The Marketing mix is generally accepted as the use and specification of the four p's describing the strategic position of a product in the marketplace. • In case of services additional 3 p’s are also included in these 4 p’s.
SERVICE MARKETING MIX
• • • • • • • • Service marketing mix comprises off the 7’p’s : Product Price Place Promotion People Process Physical evidence
• It must provide value to a customer but does not have to be tangible at the same time • it involves introducing new products or improvising the existing products • Its study includes: service product, quality level, range, features/benefits, guarantees, brand names
• RATER: Reliability, Assurance, Tangibles, Empathy, Responsiveness
• Pricing must be competitive and must entail profit • Pricing strategy can comprise discounts, offers and the like
• It refers to the place where the customers can buy the service/product and how the service/product reaches out to that place • This is done through different channels, like Internet, wholesalers and retailers • Issues involved: location, accessibility, channels of distribution, distribution facilities, service inventory, managing channels
• It includes the various ways of communicating to the customers of what the company has to offer • It is about communicating about the benefits of using a particular product or service rather than just talking about its features • What should be the channels of promotion: advertising, personal selling, sales promotion, word of mouth, tele-marketing, e-marketing etc
• • An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage Consumers make judgments and deliver perceptions of the service based on the employees they interact with Staff should have the appropriate interpersonal skills, aptititude, and service knowledge to provide the service that consumers are paying for Service encounter
• Employees: recruitment, training, motivation, team work • Customers: education, training • Communication: about culture, values
• Refers to the systems used to assist the organization in delivering the service • Imagine you walk into Burger King and you order a Whopper Meal and you get it delivered within 2 minutes • What was the process that allowed you to obtain an efficient service delivery?
• Where is the service being delivered? • Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organization • If you walk into a restaurant your expectations are of a clean, friendly environment • Consumers will make perceptions based on their sight of the service provision which will have an impact on the organizations perceptual plan of the service