Marketing of Services

Markets being hourglass shaped.

Middle-market consumers are migrating toward both discount and premium products. Companies that miss out on this new market risk being trapped in the middle and seeing their market share steadily decline.

Case Background Group awakening ( 5 minutes )

1. 2. 3. 4. 5. 6. 7. 8.

9.
10. 11.

Case Background Indian DTH Industry About Tata Sky The Marketing Mix Product & Services Price Distribution Promotion Tata Skys Interactive Services Channel Packages Subscription Fee for Different Channel Packages The Road Ahead

Continuum of Evaluation for Different Types of Products

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Service

essentially intangible does not result in the ownership of anything. Its production may or may not be tied to a physical product.

Describe the characteristics of Tata Sky.

Characteristics of services
Intangibility Inseparability
Of production from consumption

Service characteristics

Variability
heterogeneity

Perishability
No inventories can be stored

D Jobber, Principles and Practice of Marketing, 1998 McGraw-Hill

Characteristics of services
Intangibility
a deed, performance or effort difficulty in evaluation use tangible cues benefits on nonownership

Inseparability

Service characteristics

Variability

Perishability

D Jobber, Principles and Practice of Marketing, 1998 McGraw-Hill

Characteristics of services
Inseparability
Intangibility simultaneous production and consumption importance of service provider selection, training and rewarding of staff avoid inter-customer conflict

Service characteristics

Variability

Perishability

D Jobber, Principles and Practice of Marketing, 1998 McGraw-Hill

Characteristics of services
Intangibility Inseparability

Service characteristics

Variability
standardization difficult selection, training and rewarding of staff evaluation systems use of reliable equipment

Perishability

D Jobber, Principles and Practice of Marketing, 1998 McGraw-Hill

Characteristics of services
Intangibility Inseparability

Perishability
Service characteristics match supply and demand

consumption cannot be stored

Variability

use of part-time staff multi-skilling participation by consumers differential pricing stimulation of off-peak demand comfortable waiting area reservation system
6

D Jobber, Principles and Practice of Marketing, 1998 McGraw-Hill

Three Types of Marketing in Service Industries

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Figure 13.3 A Blueprint for Overnight Hotel Stay

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Figure 13.4 Root Causes of Customer Failure

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Figure 13.7 Importance-Performance Analysis

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Table 13.3 Customer Importance and Performance Ratings for an Auto Dealership

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Word of Mouth Communications

Personal Needs

Past Experience

Expected Service

Gap 5
Perceived Service

Consumer Marketer Gap 1 Gap 3

Service Delivery (Pre & Post) Service Quality specifications Management Perceptions Of consumer expectations

Gap 4

External Communications To consumers

Gap 2 (performance standards) The Parasuraman, Zeithaml and Berry model..

SERVQUAL model

Figure 13.6 Service-Quality Model

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Positioning for service

Target customer needs

Target segment

Positioning Differential advantage

Services marketing mix

D Jobber, Principles and Practice of Marketing, 1998 McGraw-Hill

Target customer needs accessibility reliability credibility security responsiveness courtesy competence confidence wide selection value prestige guarantees credit comfort privacy technical advice speed

Positioning for service

Target segment

Positioning Differential advantage

Services marketing mix

D Jobber, Principles and Practice of Marketing, 1998 McGraw-Hill

Positioning for service

Services marketing mix price promotion place product people physical evidence process

Target customer needs

Target segment

Positioning Differential advantage

D Jobber, Principles and Practice of Marketing, 1998 McGraw-Hill

10

Physical Evidence and Presentation

Place People Equipment Communication material

Symbols
Price
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Case Activity - 1

Each group to highlight marketing strategies for : product, price, place, promotion, process, people, physical evidence.

A/C Single Rs 2250/A/C Double Rs 2500/Non A/C Single occupancy Rs 1750/Non A/C Double occupancy Rs 2000/Tariff Non A/C Pent house Rs 5000/Extra bed Rs 750/
22 sea-facing rooms with round the clock hot/cold water. (Plans are afoot for air conditioning a few rooms) All rooms have plenty of natural light and fresh air. Daily linen changing and room cleaning. Prompt room service. Both indoor and open air restaurants. Indian, Chinese and Continental cuisine. Ethnic food on request.