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ISSUES IN SERVICEMARKETING

Done by:

Afzal Shamsudeen MBA/7037/10Chandu Sathyan MBA/7027/10Mohammed Salih MBA/7025/10Mohsin Mohammed Ali MBA/7017/10


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OBJECTIVES: Issues in service marketing

After sale service

Benefits of after sale service Customer relationship management

Marketing Programmes


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ISSUES IN SERVICES

MARKETING2) Place

Since services are intangible, they cannot be stored, transported orinventoried. It cannot be separated from selling. It can be reducedto a great extent by involving intermediaries.

3) PromotionConsumer in the case of services prefer more personal information.

It is require to make the intangible aspects of the service tangiblethrough proper communication.

The objective of promotion with respect to services is the following:

Develop personal relationship with customer Make honest and sincere impression on the customer Make use of indirect selling


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ISSUES IN SERVICES

MARKETING4) People

Service cannot be separated from serviceproviders. If people do not meet customerexpectation, the service will also not meet.

So, it is better to invest in people quality inservices business. Attraction, development,motivation and retention of qualifiedemployee is mandatory.


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ISSUES IN SERVICES

MARKETING5) Physical Evidence

Physical evidence refers to physical environment, facilitiesand atmosphere of service providing point. goodphysical existence helps in increasing the perception

of customers.Physical evidence has three parts:

ambient factors: such as temperature, humidity,circulation etc.

design factors: architecture, color scheme, materials

used, shape and style of accessories. social factors: appearance, behavior and number of

service personnel & quality and quantity of othercustomers


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ISSUES IN SERVICES

MARKETING6)Process management

Process management issues are availabilityof services and their consistent quality. Itstarts from process planning and control tooperations planning, facilities design,scheduling, inventory planning and control,quality control, operation control and

forecasting and long-term planning.


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After sale serviceServices offered by the service provider to the customer

after the purchase which are accompanied with theusage of the service.

The service you provide to your customers is crucial to

your business success. For many customers, after-sales service is what makes one supplier stand outfrom another, often more than main service or price.

Good customer service can attract new business and cancreate a loyal customer base.

In case of some services, after sales service is mandatorycomponent. For others it becomes an optionalcomponent.


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How to excel in providing after

sales service?? Providing exceptional & customized

customer service

Go the extra mile for your customersby giving more than they expect.

Handling customer complaintsefficiently & satisfactorily.


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AFTER SALES SERVICE

STRATEGIES Strategy One: Maintain But Actively

Develop.

Strategy Two: Document the Good News

Strategy Three: Educate the Customer onNew Developments

Strategy Four: Generate Referrals

Strategy Five: Rethink the Understanding

of Customer Needs Strategy Six: Influence Future Decision

Criteria


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BENEFITS FOR CUSTOMERSIt is in the best interest of the organization to build and maintain aloyal customer base. But customers themselves also benefit fromlong term associations.

1)Confidence benefitsIt comprises of feelings of trust or confidence in the provider

along with the sense of reduced anxiety and comfort in knowingwhat to expect.

2)Social benefitsThe personal relationship developed between the customer and

service provider are important to the customers quality of life, which

are beyond the technical benefits of the service provider.

3)Special treatment benefitsThis includes getting the benefits of doubt, being given a special

price or getting preferential treatment.


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BENEFITS FOR FIRMS

1. Economic Benefitsincreased revenue over a period of timereduced marketing and administrative costability to maintain profit level without reducing price

increased purchases over timelower cost due to less marketing expenditure

2. Customer Behavior BenefitsAdvertising provided through word of mouth promotion by

satisfied customersCustomer voluntary performance (includes suggestions made

by customers to see the provider do well)Providing social benefits to the other customer in the form of

friendship or encouragement


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BENEFITS FOR FIRMS

3. HRM benefits

Customers help in co production of service byassisting in service delivery process

Employee retention. Employees like to work forcompanies who have a satisfied customer base,because it makes their works easier. They canspend most of the time in fostering relationshipwith existing customers. This leads to higherservice quality and reduced cost of employee turn

over.


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BUILDING CUSTOMER

RELATIONSH

IPS CRM Customer relationship

management

The overall process of building andmaintaining profitable customerrelationships by delivering superiorcustomer value and satisfaction. It

deals with all aspects of acquiring,keeping and growing customers.


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WHAT IS MARKETING- CRM

The process of building profitable

customer relationships by creatingvalue for customers and capturingvalue in return


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CAPTURING VALUE FROM

CUSTOMERS

CustomerLoyalty andRetention

Share of

Customer Customer

Equity

Customer delightleads to

emotionalrelationships andloyalty

CustomerLifetime Valueshows true worthof a customer

Key ConceptsKey Concepts


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CUSTOMERS


Share ofCustomer

CustomerEquity

Share ofcustomers

purchase in aproduct category.

Achieved throughoffering greatervariety, cross-selland up-sellstrategies.



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CUSTOMERS


Share ofCustomer

CustomerEquity

The combinedcustomer lifetimevalues of all currentand potentialcustomers.

Measures a firmsperformance, but in a

manner that looks tothe future.

Choosing the bestcustomers is key



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EMERGING MARKETING

PROGRAMMES

1. Frequency Marketing

2. Relationship Marketing3. After-Marketing

4. Service Guarantees

5. Minimizing the Risk of Payout

6. Effective Defection Management


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FREQUENCY MARKETING Marketing technique to make existing

customers keep purchasing from thesame provider.

Firms collect data on its bestcustomers and determine theirrelationship

These customers are contacted on apersonal level.


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RELATIONSH

IP MARKETING Based on developing long-term

relationship with customers.

Emphasizes more on the quality andprice ratio, which is vital forcustomer retention.

Most often used by industrialmarketers.


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AFTER-MARKETING Refers to marketing after sales is

been made.

It includes: Identifying customers and building a

customer database.

Measuring customer satisfaction andcontinuously making improvements on

their feedback. Establishing formal customer

communication programmes.


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SERVICE GUARANTEE According to Hart SG could be another

method of customer retention. It facilitates

Customer loyalty reinforcement

Building market share

Improving overall service quality

Types of guarantees:

1) Implicit2) Specific result

3) Unconditional


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MINIMIZING TH

E RISK OF PAYOUT Payout refers to the amount of money

spent by a service firm to fulfill an

invoked guarantee. Payout can be minimized by:

Understanding customer needs beforeservice delivery

Limiting the payout only to key activities. Specifying amount involved before

service delivery


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DEFECTION MANAGEMENT A process which actively attempts to retain customers

before they defect.

Service Firms move towards zero defection unlikezero defects in manufacturing sector.

Zero defects means no defect Zero defection means no customer defects to

competitors.

Types of Defectors

Price Defectors

Product Defectors

Service Defectors

Technological Defectors


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CONCLUSION

Success of every business lies onbuilding profitable customerrelationship by providing them withthe best services possible.


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References: SERVICES MARKETING

By R. Srinivasan

SERVICES MARKETING

By Ajay Pandit

INTERNET


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