WEEK 13 INTERNATIONAL SERVICE MARKETING

Transcription

1 WEEK 13 INTERNATIONAL SERVICE MARKETING

2 Learning Objectives Brief the meaning of international service marketing Understand the issues related to international service marketing Understand the characteristics of service marketing

3 Service A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of any thing. Its production may or may not be tied to a physical product.

4 Service A product without physical characteristics; a bundle of performance and symbolic attributes designed to produce consumer want satisfaction.

5 Tangible / Intangible Attributes Tangible touch see taste smell Intangible can t touch can t see can t taste can t smell

6 Characteristics of Service 1. Intangibility 2. Inseparability 3. Heterogeneity 4. Perishability

7 Characteristics of Service 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

8 Characteristics of Service 1. Intangibility - You 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 Marketing Strategies use personal information, sources, references use word-of-mouth contact customers after they buy to stimulate continued enthusiasm and hope they talk it up

9 Characteristics of Service 2. Inseparability of Production (or performing the service) and Consumption (using the service) - happens at the same time Marketing Strategies Emphasise 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 home

10 Characteristics of Service 3. Heterogeneity - services are not always delivered the same way It is very difficult to standardize services eg. A machine can make ice cream cones a standard size 100% of the time

11 Characteristics of Service 3. Heterogeneity - services are not always delivered the same way It is very difficult to standardize services eg. A Taxi driver cannot drive you to the office in exactly the same time each day because the traffic patterns change eg. A travel agent can sell you a vacation package - but cannot guarantee you will like the trip exactly the same way another tourist did.

12 Characteristics of Service 4. Perishability - cannot be put in inventory or stored for later use example: You can t buy 2 haircuts Demand fluctuates and changes, sometimes depending on the season, or weather

13 Standardisation of Services Standardisation of service design and delivery Economies of scale Reduction of costs

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15 Service Quality Model

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17 Developing Non-profit Marketing Strategies Developing a Marketing Mix Define what it is the organization is providing Make distribution decisions about how ideas and services will be made to clients Develop a distribution channel to control the flow of nonprofit products to clients Make promotional decisions as to how to communicate with clients and the public Determine whether fixed or variable pricing for services is appropriate Count opportunity costs of volunteers as contributions

18 The Marketing Mix for Service 3 extra elements in the marketing mix for services include: People service providers, customer customers or other customers Physical evidence the tangible cues e.g. facilities, the infrastructure, staff uniforms, company vehicles Processes systems & procedures from ordering to production to service delivery

19 People In service sector people are the business Everyone is a marketer Standards have to be specified Internal marketing is concerned with recruiting, training, motivating & rewarding personnel People impact in three ways: people are the most important element of the service offering customers can be co-producers, known as interactive marketing other customers can affect the service experience

20 Physical Evidence Services cannot be evaluated before they are experienced, risk level is reduced by offering tangible evidence. Tangible evidence may include: Brochures Staff appearance Buildings

21 Processes Processes are highly visible in services Systems & procedures must be smooth, efficient and customer friendly to prevent delay Customers may be part of production process Some services relieve customers of production process responsibilities

22 Summary Service is a bundle of performance and symbolic attributes designed to produce consumer want satisfaction Characteristics of service- Intangibility Inseparability Heterogeneity Perishability Marketing mix for service- People Physical evidence Processes

23 Books for Further Reference Dana-Nicoleta Lascu, International marketing 2nd ed, 2006 Terpstra, V. "International Marketing", 4th ed. The Dryden Press, 1987 Keegan, W.J. "Global Marketing Management", 4th ed. Prentice Hall International Edition, Kotler, P." Marketing Management, Analysis, Planning, Implementation and Control", 6th Edition. Prentice Hall International Edition, Carter, S. "Multinational and International Marketing in Constraint Economies." The Quarterly Review of Marketing, Summer 1988, Smith, P. "International Marketing." University of Hull, MBA Notes, 1990.