Professional Documents
Culture Documents
Module 1
Module 1
Customer Service
Marketing Challenges and Strategic Options in Customer Service
Service Marketing
Characteristics problems/Challenges Strategic Options
Service Marketing
Characteristics problems/Challenges Strategic Options
Service Marketing
Characteristics problems/Challenges
Strategic Options
•Customers are not •Effective external
controllable marketing
•Production quality also •Customer education and
depends upon customers training
knowledge and ability to •Effective interactive
Customer participate marketing
participation •Customers are evaluative •Management of
at every stage of service movements of truth
production •Effective internal
marketing
Marketing Challenges and Strategic Options in Customer Service
Service Marketing
Characteristics problems/Challenges Strategic Options
No Ownership
INDUSTRIES CLASSIFIED UNDER SERVICES SECTOR
1. Transportation and Public utilities
2. Communication
3. Electric, gas and sanitary services
4. Wholesale and retail trade
5. Finance, Insurance and Real Estates
6. Hotels and Lodging
7. Personal services
8. Business services
9. Repair and Maintenance contract services
10. Motion pictures
11. Amusement and recreation services
12. Health services
13. Legal services
14. Educational services
15. Social Organizations offering services
16. Other professional services and private household services
17. Government services – civilian cum military
18. Government enterprises
19. State and Local government services
20. Tourism services
Defining Services
• People Processing
• Possession Processing
• Mental Stimulus Processing
• Information Processing
People-Processing Services
• The Figure presents the organizing framework for this book, which is divided
into five parts:
(1) understanding service products, consumers, and markets;
(2) applying the 4 Ps of marketing to services;
(3) designing and managing the customer interface (i.e., the additional 3 Ps of
services marketing);
(4) developing customer relationships;
(5) striving for service excellence.
• Note that the arrows link the different boxes in the model: They stress the
interdependences between the different parts. Decisions made in one area must
be consistent with those taken in another, so that each strategic element will
mutually reinforce the rest.
Integrated Model of Services Marketing
Understanding Service Products, Consumers,
and Markets
Part -1
• Services and shows how we can create value without transfer of
ownership.
• Discusses consumer behavior in both high-and low-contact
services.
The three-stage model of service consumption is used to explore
how customers Search for and evaluate alternative services, make
purchase decisions, experience and respond to service encounters,
and evaluate service performance.
• Discusses how a service value proposition should be positioned
in a Way that creates competitive advantage for the firm. The
chapter shows how firms can segment a service market, position
their value proposition, and focus on attracting their target segment.
Understanding Service Products, Consumers,
and Markets
Part-ii
Applying the 4ps of marketing to services
• Product includes both the core and supplementary service elements.
The supplementary elements facilitate and enhance the core service
offering.
• Place and time elements refer to the delivery of the product elements to
the customers.
• Prices of services need to be set with reference to costs, competition
and value, and revenue management considerations.
• Promotion and education explains how firms should inform customers
about their services. In services marketing, much communication is
educational in nature to teach customers how to effectively move through
service processes.
Part -3
3 Ps that are unique to services marketing.
• Processes create and deliver the product elements. It begin with the design
of effective delivery processes, specifying how the operating and delivery
systems link together to deliver the value proposition. Very often,
customers are involved in these processes as co-producers, and well-
designed processes need to account for that.