adbms services marketing .ppt

7/29/2019 adbms services marketing .ppt

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Copyright 2001 McGraw-Hill Ryerson Limited 12 - 1

Services

Marketing


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The Nature of Services

regardless of the product, there is aservices component to the offerings of allfirms

in some cases, a service is the principalpurpose of the transaction, as in the rentalof a car, a haircut, or legal services -- werefer to this as the core service

in others, service is performed in supportof the sale of a tangible product -- these arereferred to as supplementary services


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Copyright 2001 McGraw-Hill Ryerson Limited

Characteristics of servicesIntangibility

InseparabilityPerishability

VariabilityClient Relationship


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Characteristics ofServices

intangibility: difficult to sample andto evaluate

inseparability: difficult to separate

services from the service provider;mainly direct sales; staff are essentialto the delivery of quality services


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heterogeneity: virtually everyservice is different; very difficult tostandardize quality

perishability: those not sold can notbe stored

fluctuating demand: demand for

some services fluctuates by season,or even by time of day


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Strategic ServicesManagement

intangibility generally makes themarketing of services achallenge

understanding how people buyservices and the segments that

exist is just as important


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knowing more about the valueof customer segments isimportant -- some are morevaluable than others

knowing what they value so that

service levels can be tailored isalso important


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Pricing Services

The characteristics of perishability,inability to store, and fluctuating

demand for services create pricing

challenges. Pricing Strategies include:

Discount strategies: Cheaper by

the week. A variable pricing strategy: Kids

eat free, movies cheaper on

Tuesdays.


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Distribution of Services

because most services are tied directly to aspecific service provider, most have beendistributed directly to customers

with advancing technology, many firms arenow delivering services through machines

channels of distribution are necessarilyshort; some firms use one agent

intermediary, such as insurance, real estate,and travel agents

some firms use franchisesto distributeservices


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Promotion of Services

customer contact personnel represent themain channel of customer communication

service providers must ensure that each

service encounteris a positive one ifcustomers are to develop a positive image

many professional service firms are nowpermitted to advertise

other elements of the promotional mix areused, including publicity and communityaffairs


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The three additional Ps of

Service MarketingPeople

Physical evidenceProcess


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Managing Service quality

Gap between managementperceptions and consumerexpectations

Gap between service qualityspecifications and service delivery

Gap between service delivery and

external communication Gap between expected service and

perceived service


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In services, the lastexperience remains

uppermost in your mind.Therefore, it is not

enough to be good, youhave to be consistently

good

adbms services marketing .ppt

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