Professional Documents
Culture Documents
Services Marketing
Course Instructor
Sarif Mohammad Khan Assistant Professor Business Administration discipline Khulna University
Outline
Definition of service Example of service industries Categories of service mix Tangibility spectrum Service differentiation tools Why services marketing? Paradoxes of technological products Characteristics of services and its implications Service marketing mix
Definition of service
A service is any act or performance - one party can offer to another that is essentially intangible and does not result in the ownership of anything.
Its production may or may not tied to a physical product.
Tangibility spectrum
Salt Soft Drinks Detergents Automobiles Cosmetics Fast-food Outlets
Intangible Dominant
Tangible Dominant
Fast-food
Installation
operational)
Customer training Customer consulting (Data, information, advice ) Maintenance and repair Miscellaneous services
60 50
40
30 20 10 0
1929
1948
1969
Year
1977
1984
1996
Services
Source: Survey of Current Business, April 1998, Table B.8, July 1988, Table 6.6B, and July 1992, Table 6.4C; Eli Ginzberg and George J. Vojta, The Service Sector of the U.S. Economy, Scientific American, 244,3 (1981): 31-39.
% of US GDP by industry
70 Percent of GDP 60 50
40
30 20 10 0 1948 1959 1967 Year 1977 1987 1996
Services Manufacturing Mining & Agriculture
Source: Survey of Current Business, August 1996, Table 11, April 1998, Table B.3; Eli Ginzberg and George J. Vojta, The Service Sector of the U.S. Economy, Scientific American, 244,3 (1981): 31-39.
Services
Intangible Heterogeneous Simultaneous production and consumption Perishable
Heterogeneous: Result of human interaction May very day to day or even hour to hour Example: Banker
Implication of Intangibility
Services cannot be patented Services cannot be readily displayed or communicated Pricing is difficult (actual cost of a unit of services are hard to determine)
Implication of Heterogeneity
Service delivery and customer satisfaction depend on employee actions Service quality depends uncontrollable factors on many
There is no sure knowledge that the service delivered matches what was planned and promoted
Implication of Perishability
Services cannot be inventoried It is difficult to synchronize supply and demand with services
PLACE
Channel type
PROMOTION
Promotion blend
PRICE
Flexibility
PHYSICAL EVIDENCE
Facility design Equipment Signage Employee dress Other tangibles
PROCESS
Flow of activities Number of steps Level of customer involvement
People
All human actors who play a part in service delivery and thus influence the buyers perceptions: namely the firms personnel, the customer, and other customers in the service environment.
Customers
- Education - Training
Physical Evidence
The environment in which the service is delivered and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service. Factors to Consider Regarding Physical Evidence :
Facility Design. Equipment Signage Employee dress. Other tangibles Reports. Business cards. Statements. Guarantees.
Process
The actual procedures, mechanisms and flow of activities by which the service is delivered- the service delivery and operating systems.
Assign Reading
Southwest Airlines : Aligning People, Processes and Physical Evidence
concept:
and their
is
based
on
of and
development, that
implementation breadth
marketing programs, processes and activities recognizes interdependencies. It holds that everything