push and pull strategy
TRANSCRIPT
SERVICE SERVICE MARKETINGMARKETING
Nature, Importance and Nature, Importance and characteristicscharacteristics
GoodsGoods - things you can touch - “tangible”
ServicesServices - things you can’t touch - but you can see their effect “intangible”“… services are not physical, they are intangible…”
TangibleTangible• touchtouch• seesee• tastetaste• smell smell
IntangibleIntangible• can’t seecan’t see• can’t touchcan’t touch• can’t smellcan’t smell• can’t tastecan’t taste
Tangible / Intangible AttributesTangible / Intangible Attributes
Not in the text
A Service is a type of a product.
“… a deed performed by one party for another…”
Discussions about the marketing of goods apply to services as well.
Services have special characteristics that make them different than products.
Service
A product without physical characteristics;
a bundle of performance and symbolic attributes designed to produce consumer want satisfaction.
Service
What is Service Marketing?What is Service Marketing?
Examples:Examples: Defense, Postal, Education, Defense, Postal, Education, health, Religious Services, Hospitals, health, Religious Services, Hospitals, Airlines, Hotels, Law Firms, Entertainment, Airlines, Hotels, Law Firms, Entertainment, etc etc
Definition:Definition: Activity or benefit that one Activity or benefit that one party can offer to another that is party can offer to another that is essentially intangible and does not result essentially intangible and does not result in the ownership of anything. Its in the ownership of anything. Its production may or may not be tied to a production may or may not be tied to a physical product physical product
For Marketing purpose it is categorized in to two types:
• Services that are main purpose or object of transaction
• Service that support or facilitate the Service that support or facilitate the sale of good or any other service sale of good or any other service
Service
Nature and Importance of Service Nature and Importance of Service MarketingMarketing
Services are the major source of Services are the major source of employment (80% of labor force)employment (80% of labor force)
The services account for over one The services account for over one half of consumer expenditures half of consumer expenditures
Managers have found that calling on Managers have found that calling on specialized service providers is specialized service providers is effective and efficient (Outsourcing)effective and efficient (Outsourcing)
Scope of Service Marketing (Profit Scope of Service Marketing (Profit organization)organization)
Housing & other Housing & other structuresstructures
Household Household operationoperation
Recreation & Recreation & EntertainmentEntertainment
Personal care Personal care Medical & Health Medical & Health
care care
Private Education Private Education Professional Professional
business services business services Financial services Financial services
Scope of Service Marketing (Not for Scope of Service Marketing (Not for profit organization)profit organization)
EducationalEducational HealthcareHealthcare Professional & TradeProfessional & Trade Social concernsSocial concerns
Characteristics of Services
1.1. IntangibilityIntangibility
2.2. PerishabilityPerishability
3.3. InseparabilityInseparability
4.4. VariabilityVariability
Services Services Unique characteristic - 1Unique characteristic - 1
INTANGIBILITY INTANGIBILITY
Customer is unable to Customer is unable to experience the‘product’ prior experience the‘product’ prior
to ‘purchase’to ‘purchase’
1. Intangibility - “u can’t touch this”
• Services cannot be stored
• Services cannot be protected through patents
- therefore a really great travel package and service can be copied
a really great physical object can be patented, and NOT allowed to be copied
Characteristics of Services
1. Intangibility - “u can’t touch this”
• Hard to explain and display Services if you can’t see them
• Prices are difficult to set - depends on customers expectations
Characteristics of Services
Characteristics of Services
IntangibilityIntangibility
VisualizationVisualization AssociationAssociation DocumentationDocumentationPhysical RepresentationPhysical Representation
Past performancePast performance
Future capabilityFuture capability
Services Services Unique characteristic - 2Unique characteristic - 2
PERISHABILITYPERISHABILITY
Can’t be stored Can’t be stored
2. Perishability - cannot be put in inventory or stored for later use
i.e.. You can’t buy 2 haircuts
Demand fluctuates and changes, sometimes depending on the season, or weather
e.g.. Taxi in the rain, vacation in summer
Characteristics of Services
Services Services Unique characteristic - 3Unique characteristic - 3
INSEPERABILITY INSEPERABILITY
Production & consumption Production & consumption
happen at the same place and happen at the same place and cannot be separatedcannot be separated
3. Inseparability of Production (or performing the service) and Consumption (using the service) - happens at the same time
Characteristics of Services
• Many people involved in delivering a service
• mass production of services is hard to do
3. Inseparability of Production (or performing the service) and Consumption (using the service) - happens at the same time
Characteristics of Services
Marketing Strategies
• Emphasize how much you train your people - so their ability to give you good service will be high
• Have many locations so customers can get to you
• ie. Insurance sales come to your homeNot in the text
Services Services Unique characteristic - 4Unique characteristic - 4
VARIABILITYVARIABILITY
Difficulty in establishing Difficulty in establishing consistency in qualityconsistency in quality• across Providers or within providersacross Providers or within providers• across Timeacross Time• across Delivery Centersacross Delivery Centers
4. Heterogeneity - services are not always delivered the same way
It is very difficult to standardize services
e.g.. A machine can make ice cream cones a standard size 100% of the time
A person filling an ice cream cone with a scoop cannot do it the same amount each time, unless you use a machine to dispense the ice cream
Characteristics of Services
4. Variability - services are not always delivered the same way
It is very difficult to standardize services
e.g.. A Taxi driver cannot drive you to the office in exactly the same time each day because the traffic patterns change
e.g.. A travel agent can sell you a vacation package - but cannot guarantee you will like the trip exactly the same way another tourist did.
Characteristics of Services
Service ProvidersService Providersservice providers have product lines and service providers have product lines and
product mixes as wellproduct mixes as wellexamplesexamples
MasterCardMasterCard insuranceinsurance telephone servicestelephone services cable servicescable services ISPs - internet service providersISPs - internet service providers airlines, first class, economy classairlines, first class, economy class banksbanks
Not in the text
Customer Satisfaction Customer Satisfaction and Service Marketingand Service Marketing
Who are the customers in a Who are the customers in a hospital?hospital?
Patients Patients Family membersFamily membersReferral DoctorsReferral DoctorsSuppliersSuppliersEmployeesEmployees
Who is the key customer in the Who is the key customer in the hospital?hospital?
What is patient satisfaction?What is patient satisfaction? Patient Satisfaction is Patient Satisfaction is “hospital services
and its perception by the patient” minus minus ”patient expectations”
0 = Patient Satisfied- = Patient Dissatisfied+ = Patient Delighted
Patient satisfaction measures need to be Patient satisfaction measures need to be developed from the patients perspectivedeveloped from the patients perspective
Patients are becoming better informedPatients are becoming better informed Involve patients for making improvementsInvolve patients for making improvements Patient satisfaction is not Patient satisfaction is not Static but but
Dynamic
Patient ExpectationsPatient Expectations Good Medical CareGood Medical Care Good Nursing CareGood Nursing Care Less Waiting TimeLess Waiting Time Excellent Excellent
HospitalityHospitality Personal AttentionPersonal Attention Courteous Courteous
BehaviorBehavior Affordable Affordable
ChargesCharges
CleanlinessCleanliness Good Coordination Good Coordination Cooperation Cooperation
among the Staffamong the Staff DisciplineDiscipline Communication & Communication &
InformationInformation Transparency in Transparency in
charges and charges and proceduresprocedures
Why customer satisfaction?Why customer satisfaction?
Health care is generally becoming Health care is generally becoming competitivecompetitive
Providers must not only maintain Providers must not only maintain high clinical standards but also high clinical standards but also service that satisfies the patientsservice that satisfies the patients
To meet the dual challenge, To meet the dual challenge, providers must have an providers must have an understanding of what constitutes understanding of what constitutes both clinical excellence and both clinical excellence and customer satisfactioncustomer satisfaction
Challenges in Service MarketingChallenges in Service Marketing
Giving a feel for the “product”Giving a feel for the “product” Managing Demand FluctuationsManaging Demand Fluctuations Maintaining QualityMaintaining Quality Cost ContainmentCost Containment Attitudinal block in using proven Attitudinal block in using proven
marketing principles in service marketing principles in service marketingmarketing
Promotional MixPromotional Mix Strategies Strategies
Push versus Pull Push versus Pull and Moreand More
InfluencesInfluences
Push StrategyPush Strategy calls for using the calls for using the sales force and trade sales force and trade promotion.promotion.
Pull StrategyPull Strategy calls for spending on calls for spending on advertising and sales advertising and sales promotion to build promotion to build consumer demand.consumer demand.
Push Strategy:Push Strategy:
Persuade wholesalers and retailers to carry Persuade wholesalers and retailers to carry brands.brands.
Give a brand shelf space.Give a brand shelf space. Promote a brand in coop advertising.Promote a brand in coop advertising.
Producer Wholesaler Retailer Customer
Push Strategy:Push Strategy: Be careful of those big displays at the end of the Be careful of those big displays at the end of the
aisles. aisles. End Aisle Displays. End Caps.End Aisle Displays. End Caps. Look at the prices. Look at the prices. Only about 40% is Only about 40% is
actually on sale.actually on sale. Because they are so bright, big and visual, we Because they are so bright, big and visual, we
feel it’s on sale. feel it’s on sale.
Producer Wholesaler Retailer Customer
Pull Strategy:Pull Strategy:
Entice customers to try a new product.Entice customers to try a new product. Lure customers from competitive products.Lure customers from competitive products. Hold and reward loyal customers.Hold and reward loyal customers.
Producer Wholesaler Retailer Customer
Push & Pull in public relationsPush & Pull in public relations
““Public relations is doing good things & Public relations is doing good things & talking about it”talking about it”
PULL TACTICS - 'Client' PULL TACTICS - 'Client' CenteredCentered
Begin with a clear identification of the Begin with a clear identification of the niche market(s) you work with?niche market(s) you work with?
Lead with client problems and concerns? Lead with client problems and concerns? Use the two elements above to create a Use the two elements above to create a
picture that your target market can picture that your target market can identify with?identify with?
Provide useful ideas that your target Provide useful ideas that your target market can use and that demonstrates market can use and that demonstrates your expertise?your expertise?
PUSH TACTICS - 'You' centeredPUSH TACTICS - 'You' centered
Focus on you, your services and Focus on you, your services and staff? staff?
Focus on glowing testimonials and Focus on glowing testimonials and your client list?your client list?
Sales promotion budgets are usually Sales promotion budgets are usually divided into three categories: divided into three categories:
1. Consumer advertising1. Consumer advertising
2. Consumer promotion2. Consumer promotion
3. Trade promotion3. Trade promotion
Companies in same industry can put Companies in same industry can put emphasis on emphasis on Push or PullPush or Pull. .
Summary:Summary:
Push strategyPush strategy is appropriate with is appropriate with low brand awarenesslow brand awareness in a category in a category and brand choice is made in and brand choice is made in storestore. . Can be an impulse purchase and Can be an impulse purchase and product benefits are understood. product benefits are understood.
Pull strategyPull strategy works best with works best with high high brand awarenessbrand awareness and loyalty, or high and loyalty, or high involvement in category and involvement in category and customers customers look for product look for product differencesdifferences. .
Summary:Summary:
