Download - Services Marketing # 1
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 1/31
Services Marketing
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 2/31
The services sector has been growing at arate of 8% per annum in recent years
More than half of our GDP is accounted for
from the services sector This sector dominates with the best jobs,best talent and best incomes
The service sector
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 3/31
“There are no such thing asservice industries.There are
only industries whose service
components are greater or lessthan those of other industries.Everybody is in service.”
Theodore !evitt
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 4/31
What is services•"t is the part of the product or the fullproduct for which the customer is willing tosee value and pay for it#•
$ service is any act of performance thatone party can oer another that isessentially intangible and does not result inthe ownership of anything& its production
may or may not be tied to a physicalproduct#
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 5/31
"t is intangible# "t does not result in ownership# "t may or may not be attached with a
physical product
What is a service
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 6/31
'ealth (are◦ hospital, medical practice, dentistry, eye care
Professional )ervices◦ accounting, legal, architectural
*inancial )ervices◦ ban+ing, investment advising, insurance
'ospitality◦ restaurant, hotelmotel, bed - brea+fast◦ s+i resort, rafting
Travel◦ airline, travel agency, theme par+
.thers◦ hair styling, pest control, plumbing, lawn maintenance,
counseling services, health club, interior design
E!amples of Service"ndustries
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 7/31
erence e weenphysical goods and
servicesPhysical goods Services
tangible intangible
homogeneous heterogeneous
Production and distribution are
separated from consumption
Production, distribution and
consumption are simultaneous processes
A thing An activity or process
Core value processed in factory Core value produced in the buyer-sellerinteraction
Customers do not participate in the production process
Customers participate in production
Can be kept in stock Cannot be kept in stock
Transfer of ownership No transfer of ownership
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 8/31
%haracteristics of Services%ompared to &oods
"ntangibility
'erishabilitySimultaneous'roductionand%onsumptio
n
(eterogeneity
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 9/31
)ervices cannot be inventoried
)ervices cannot be easily patented
)ervices cannot be readily displayed orcommunicated
Pricing is di/cult
"mplications of"ntangibility
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 10/31
)ervice delivery and customer satisfactiondepend on employee and customer actions
)ervice 0uality depends on manyuncontrollable factors
There is no sure +nowledge that the service
delivered matches what was planned andpromoted
"mplications of(eterogeneity
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 11/31
(ustomers participate in and aect thetransaction
(ustomers aect each other
1mployees aect the service outcome
Decentrali2ation may be essential
Mass production is di/cult
"mplications of Simultaneous'roduction and %onsumption
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 12/31
"t is di/cult to synchroni2e supply anddemand with services
)ervices cannot be returned or resold
"mplications of'erishability
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 13/31
3%ustomer service is a series of activitiesdesigned to enhance the level of customersatisfaction 4 that is, the feeling that aproduct or service has met the customere5pectation#6
Service Marketing
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 14/31
People Processing )ervices 7alue addition services by ban+
ProductPossession Processing )ervices Pi22a delivery
Mental )timulus Processing 1ducation, 1ntertainment etc#
"nformation Processing )ervices $ccounting ,!egal, esearch, Medicine etc
%lassi)cation of Services
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 15/31
$ll elements within the control of the 9rmthat communicate the 9rm:s capabilities andimage to customers or that in;uencecustomer satisfaction with the 9rm:s productand services<◦ Product
◦ Price
◦ Place
◦ Promotion
Traditional Marketing Mi!
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 16/31
Product Price Place Promotion
'eople◦ $ll human actors who play a part in service delivery and thus
in;uence the buyer:s perceptions< namely, the 9rm:s personnel,the customer, and other customers in the service environment#
'hysical Evidence◦ The environment in which the service is delivered and where the
9rm and customer interact, and any tangible components that
facilitate performance or communication of the service# 'rocess
◦ The actual procedures, mechanisms, and ;ow of activities by whichthe service is delivered=the service delivery and operatingsystems#
E!panded Mi! for Services *The +'s
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 17/31
E!panded Marketing Mi! forServices
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 18/31
De9ning and improving 0uality 1nsuring the delivery of consistent 0uality Designing and testing new services (ommunicating and maintaining a consistent
image $ccommodating ;uctuating demand Motivating and sustaining employee commitment (oordinating mar+eting, operations, and human
resource eorts )etting prices *inding a balance between standardi2ation versus
customi2ation
%hallenges for Services
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 19/31
.ering *aster and better delivery "mage
#i$erentiation in services
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 20/31
$vailability >?@ hour $TMA (onvenience >)ite locationA Dependability >.ntime performanceA
Personali2ation >Bnow customer:s nameA Price >Cuality surrogateA Cuality >Perceptions importantA eputation >ordofmouthA
)afety >(ustomer wellbeingA )peed >$void e5cessive waitingA
%ustomer %riteria for Selecting a Service 'rovider
%ustomer %riteria for Selecting a Service 'rovider
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 21/31
%ustomer
relationshipmanagement ,%-M
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 22/31
(ustomer relationship management >(MAis a model for managing a company:sinteractions with current and futurecustomers# "t provides a EF degree view ofcustomer data# "t involves using technologyto organi2e, automate, and synchroni2esales, mar+eting, customer service, andtechnical support#
%-M
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 23/31
?E
%ustomer -elationshipManagement ,%-M
Traditional Marketing CRM
Goal: Expand customer base,increase market share bymass marketing
Goal: Establish a profitable,long-term, one-to-onerelationship with customers;
understanding their needs,preferences, expectations
roduct oriented !iew Customer oriented !iew
Mass marketing " massproduction
Mass customi#ation, one-to-onemarketing
$tandardi#ation of customerneeds
Customer-supplier relationship
Transactional relationship Relational approach
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 24/31
%hy CRM is a Customerand Competiti!e &ecessity
't typically costs (-)* times as much to ac+uire a new customeras it does to retain an existing one
$ome companies can boost profits by almost )**. byretaining /ust (. more of their customers0 1ar!ard 2usinessRe!iew 3Reicheld 4 $asser5
6 recent Mc7insey study showed that the a!erage newcustomer spends 89:(* at a gi!en web site in the first months as a shopper The a!erage repeat customer spends8(9(* e!ery months
Most companies lose (*. of their customers in ( years
31ar!ard <ni!ersity5 =*. of repeat purchases are made out of indifference to the
seller, &>T loyalty 3e?oyalty5 The web customer is @only ) click away from your competitionA
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 25/31
CRM $trategies
Customer 6c+uisition Bain the greatest number of new 2est0 customers as early in their
lifespan0 as possible
Customer Retention Retain and expand your business and relationships with your customers
through up-selling, cross-selling and ser!icing
Customer ?oyalty >ffer programs to ensure that your customers happily buy what you offer
only from you
Customer E!angelismEnable loyal customers to become a !olunteer sales force
Cost Reduction
Reduce costs related to marketing, sales, customer ser!ice and support'mpro!e roducti!ity
Enhance your e-business strategies
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 26/31
CRM eople
Customers0• $uspects, isitors, rospects, $ubscribers, atrons,
Members, Ticket 2uyers, <sers, Consumers, 's,olunteers, 6nnual " Ma/or Donors, 6d!isors, 6d!ocates,?egislators, $trategic artners, $ponsors
<sers• Management, Employees, isitors
$uppliers• $er!ices - Consultants CRM " Customer De!elopment Experts
• roducts - Technology $oftware, 1ardware, Connecti!ity
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 27/31
CRM rocesses " Mapping
Re-examine all of your customer managementbusiness processes
Re-"define where CRM pro!ides the greatest !alueto your best0 customers and your organi#ationDonAt repa!e the cow paths0
'ncrementally implement CRM to impro!e top targeted processesEx $ubscription Renewal processes
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 28/31
Phases and determinants of (M
$c0uire 1nhance etain
Trust 7alue
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 29/31
The customer 'yramid
7/18/2019 Services Marketing # 1
http://slidepdf.com/reader/full/services-marketing-1-5696ba7d61b08 30/31
%ustomer Satisfaction/0oyalty-elationship