Services Marketing Services Marketing

E-Marketing E-Marketing

Services are those separately identifiable, essentially intangible

activities which provide want-satisfaction, and that are not
necessarily tied to the sale of a product or another service.

Firms provide value-added services to differentiate themselves.

Health Care -Hospital, medical practice, dentistry, eye care.

Professional Services - Accounting, legal, architectural.

Financial Services - Baning, investment advising, insurance.

Hospitality - !estaurant, hotel"motel, bed # breafast, Si

resort, rafting.

Travel - Airlines, travel agencies, theme par.

Services
Services

Services
Services

Services are deeds, processes # performance.

$t is intangible, but may have a tangible component.

%enerally produced # consumed at the same time.

&eed to distinguish between S'!($)' # )*S+,-'!

S'!($)'.

$n channel matters, services differ significantly from products.

$ts production may or may not be tied to a physical product.

Service sector growing rapidly # contributing more to any

&ation.s growth.

Services
Services

Services may be e/uipment-based or people-based.

Service )o.s can choose among different processes to

deliver their services.

Some services need the client.s presence.

Some services may need a personal need or a business

need.

Service providers differ in their ob0ectives # ownership.

)o.s demonstrate their service /uality through physical

evidence # presentation.

Services cannot be readily displayed or communicated

1ricing is difficult

A product without physical characteristics2
a bundle of performance and symbolic
attributes designed to produce consumer
want satisfaction.

Service Characteristics Service Characteristics
Intangibility Intangibility
Inseparability 3
$mmediacy
Inseparability 3
$mmediacy
Heterogeneity 3
(ariability
Heterogeneity 3
(ariability
Perishability Perishability

Intangibility
Intangibility

Services cannot be seen, tasted, heard, touched, smelled, or

felt before they are bought.

1recise standardi4ation is not possible - cannot be patented.

$ts production # consumption are inseparable. +here is no

ownership transfer.

+here are no inventories of the service

+he consumer is a part of the production process so the

delivery system must go to the maret or the customer must
come to the delivery system.

Tangibility Spectrum
Tangibility Spectrum

Intangibility Customer Evaluation
Intangibility Customer Evaluation

Inseparability !
Inseparability !
Immediacy
Immediacy

$nseparability of production # consumption - services are

produced # consumed concurrently 3 limits firm.s maret
opportunity geographically # /uantitatively.

$nseparability of the service from the person who

possesses the sill # performs the service 3 inseparable
from their providers.

)onsistency in service delivery may re/uire 3 automation,

# standardising service performance process step by step.

Heterogeneity -
Heterogeneity -
(ariability
(ariability

1roduced by humans and no two services will be precisely alie.

1eople may differ in their performance 3 services are people

intensive.

&o two customers are precisely alie2 each will have uni/ue
demands or e5perience the service in a uni/ue way.

$t is largely the result of human interaction 6between and among

employees # customers7 # all of the vagaries that accompany it.

$ts delivery # customer satisfaction depend on employee actions.

Service /uality depends on many uncontrollable factors.

+here is no sure nowledge that the service delivered matches

what was planned and promoted.

Perishability
Perishability

Services cannot be saved, stored, resold, or returned 3 no

inventories.

8hen you buy a product you become its owner. $n case of service,
you may pay for its use but you never own it. +he payment is not
for purchase, but only for the use or access to or for hire of items or
facilities.

As services often are produced and consumed at the same time,

mass production is difficult if not impossible. +he customer is
involved in and observes the production process and thus may
affect (positively or negatively) the outcome of the service
transaction.

+he /uality of service # customer satisfaction will be highly

dependent on what happens in 9real time,: including actions of
employees # the interactions between employees # customers.

Challenges for Services
Challenges for Services

;efining and improving /uality

)ommunicating and testing new services

)ommunicating and maintaining a consistent image

-otivating and sustaining employee commitment

)oordinating mareting, operations and H! efforts

Setting prices

Standardi4ation versus personali4ation

PE"P#E PH$SIC%# E&I'E(CE P)"CESS
'mployees Facility ;esign Flow of activities
)ustomers '/uipment &umber of Steps
)ommunicating )ulture #
(alues
Signage <evel of )ustomer
$nvolvement
'mployee !esearch 'mployee ;ress
,ther +angibles

People
People

All human actors, who play a part in service delivery.

Firm.s personnel, the customer, and other customers in the service

environment influence the buyer.s perceptions.

+heir dress, their personal appearance, their attitudes and behaviors

all influence the customer.s perceptions of service.

$n consulting, counseling, teaching, # other professional relationship-

based services, the-provider is the service.

)ustomers can influence the /uality of service received by others-

either enhancing or detracting from other customers. e5periences.

%iven the strong influence they can have on service /uality and
service delivery, employees, the customer himself, and other
customers are included within the people element of the services
mareting mi5.

Physical evi*ence
Physical evi*ence

$t is basically related with the environment in which the

service is delivered and where the firm # customer interact,
and any tangible components that facilitate performance or
communication of the service.

$nclude brochures, letterhead, business cards, report formats,

signage, e/uipment, # servicescape.

1hysical evidence cues provide e5cellent opportunities for

the firm to send consistent # strong messages regarding the
organi4ation.s purpose, the intended maret segments, # the
nature of the service.

Process
Process

$t is related to actual procedures, mechanisms, and flow of

activities by which the service is delivered-the service
delivery and operating systems.

+he actual delivery steps the customer e5periences, or the

operational flow of the service, will also provide customers
with evidence on which to 0udge the service.

;ifferent service providers follow different process models.

+ays to use ,Ps
+ays to use ,Ps
"verall Strategic %ssessment "verall Strategic %ssessment
How effective is the Firm.s
Services mareting mi5=
$s the mi5 well-aligned with
overall vision # strategy=
8hat are the strengths #
weanesses in terms of >1s=
"verall Strategic %ssessment "verall Strategic %ssessment
How effective is the Firm.s
Services mareting mi5=
$s the mi5 well-aligned with
overall vision # strategy=
8hat are the strengths #
weanesses in terms of >1s=
Specific Service Implementation Specific Service Implementation
8ho is the )ustomer # what is the
Service=
How effectively the service
mareting mi5 for a service
communicate its benefits # /uality=
8hat changes" improvements are
needed=
Specific Service Implementation Specific Service Implementation
8ho is the )ustomer # what is the
Service=
How effectively the service
mareting mi5 for a service
communicate its benefits # /uality=
8hat changes" improvements are
needed=