MAM6Y SERVICES MARKETING Unit : I - V
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1 MAM6Y SERVICES MARKETING Unit : I - V
2 Unit I Syllabus: Marketing Services: Introduction growth of the service sector. The concept of service. Characteristics of service Classification of service, designing of the service, blueprinting using technology, developing human resources, building service aspirations. MAM6Y/SERVICE MARKETING 2
3 MEANING. Services marketing typically refers to both business to consumer (B2C) and business-to-business (B2B) services, and Includes marketing of services such as telecommunications services, financial services all types of hospitality, tourism leisure and entertainment services, car Rental services, health care services MAM6Y/SERVICE MARKETING
4 Marketing of services Financial services Healthcare Tourism Professional or consultancy services Telecommunication MAM6Y/SERVICE MARKETING 4
5 Financial Services - Banking Product letter of credit Promotion advertising, etc Price mix charge rates for overdrafts Place mix ATM People VRS MAM6Y/SERVICE MARKETING 5
6 Financial Services - Insurance Product policies Promotion advertising, etc Price mix premium charged against policies Place mix accessibility to branches People usage of updated technology e.g.: computer MAM6Y/SERVICE MARKETING 6
7 Health service Product emergency services, ambulance Promotion advertising, etc Price mix hospital charges and consultancy fee Place mix accessibility of the service People usage of updated technology Process joining phase the intensive consumption phase detachment phase feedback MAM6Y/SERVICE MARKETING 7
8 Tourism service Product accommodation Promotion advertising, etc Price mix transportation Place mix various channels of distribution People tour operators MAM6Y/SERVICE MARKETING 8
9 Professional service Product legal services Promotion advertising, etc Price mix consultancy fee Place mix various channels of distribution People professionals with great excellence MAM6Y/SERVICE MARKETING 9
10 Telecommunication service. Product local calls Promotion advertising, etc Price mix based on users Place mix easy accessibility People use of technology MAM6Y/SERVICE MARKETING 10
11 The service sector The services sector has been growing at a rate 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 MAM6Y/SERVICE MARKETING 11
12 Introduction It is the part of the product or the full product for which the customer is willing to see value and pay for it. Definition: Service is defined as an actions of organizations that maintains and improves the well being and functioning of people. Hasen field and Richard A. E. MAM6Y/SERVICE MARKETING
13 Features of Service. MAM6Y/SERVICE MARKETING 13
14 Evolution of Service sector The crawling out stage (prior to 1980) Scurrying about stage ( ) Walking erect stage 1986 onwards. MAM6Y/SERVICE MARKETING 14
15 Reasons for Growth Demographic changes Economical changes Social changes Political and legal changes Technological changes MAM6Y/SERVICE MARKETING 15
16 Concept of Services Services are activities, benefits or satisfaction which are offered for sale or provided in connection with sale of goods. - The American Market Association MAM6Y/SERVICE MARKETING 16
17 Difference between physical goods and services Physical goods Tangible Homogeneous Production and distribution are separated from consumption A thing Core value processed in factory Customers do not participate in the production process Can be kept in stock Transfer of ownership Services Intangible Heterogeneous Production, distribution and consumption are simultaneous processes An activity or process Core value produced in the buyer-seller interaction Customers participate in production Cannot be kept in stock No transfer of ownership MAM6Y/SERVICE MARKETING 17
18 Components of service MAM6Y/SERVICE MARKETING 18
19 Characteristics of services MAM6Y/SERVICE MARKETING 19
20 Classification of services By Adrian Payne By Christopher Lovelock By Philip Kotler MAM6Y/SERVICE MARKETING 20
21 Classification of services By Adrian Payne MAM6Y/SERVICE MARKETING 21
22 Classification of services - By Christopher Lovelock MAM6Y/SERVICE MARKETING 22
23 Classification of services Philip Kotler MAM6Y/SERVICE MARKETING 23
24 Service Design and management model MAM6Y/SERVICE MARKETING 24
25 Service Blueprint- Components -flow chart of service process Customer actions Line of interaction Onstage contact and Employee action Line of visibility Backstage contact and Employee actions Line of internal interaction Support process MAM6Y/SERVICE MARKETING 25
26 Technology and service productivity MAM6Y/SERVICE MARKETING 26
27 Service Mapping MAM6Y/SERVICE MARKETING 27
28 Syllabus : Unit : II Marketing Mix in Service Marketing: The seven Ps: product decision pricing strategies and tactics promotion of service and distribution methods for services. Additional dimension in services marketingpeople, physical evidence and process MAM6Y/SERVICE MARKETING 28
29 Marketing mix Services Marketing Mix refers to the combination of marketing activities an organization engages in to promote and sell intangible services, as opposed to tangible products. In addition to the four Ps of traditional product marketing--product, price, place and promotion--the services marketing mix includes the three Ps of service marketing--people, process and physical evidence. The Services Marketing Mix is also referred to as the Extended Marketing Mix. MAM6Y/SERVICE MARKETING 29
30 7 Ps of marketing mix MAM6Y/SERVICE MARKETING 30
31 Product MAM6Y/SERVICE MARKETING 31
32 Price Pricing decisions are important for determining the value of service as perceived by the customer and building image for the service MAM6Y/SERVICE MARKETING 32
33 Promotion Also Word of Mouth MAM6Y/SERVICE MARKETING 33
34 Place Direct distribution Through an agent / broker Two-level middlemen participation MAM6Y/SERVICE MARKETING 34
35 Contact personnel People High contact personnel Low contact personnel Skilled and professional Non-professionals Support personnel or non-contact employees Management support personnel Technical support personnel MAM6Y/SERVICE MARKETING 35
36 Physical evidence MAM6Y/SERVICE MARKETING 36
37 Elements of physical evidence Servicescape (physical facilty) Facility exterior Facility interior Other tangibles Videolink: MAM6Y/SERVICE MARKETING 37
38 Process MAM6Y/SERVICE MARKETING 38
39 Syllabus Unit III Effective Management of Service Marketing Marketing demand and supply through capacity planning and segmentation internal marketing of services external versus internal Orientation of service strategy MAM6Y/SERVICE MARKETING 39
40 MAM6Y/SERVICE MARKETING Management of service marketing
41 Strategies for managing demand and supply Understanding capacity constraints Time Labour Equipment Infrastructure MAM6Y/SERVICE MARKETING 41
42 Strategies for managing demand and supply Understanding demand patterns Charting demand patterns Predicting cycles Identifying random demand fluctuations Disaggregating demand pattern by market segment Capacity planning Managing capacity to match demand MAM6Y/SERVICE MARKETING 42
43 Strategies for managing demand and supply Managing demand to match capacity Strategies to follow when demand and capacity cannot be matched (waiting line strategies) MAM6Y/SERVICE MARKETING 43
44 Service triangle MAM6Y/SERVICE MARKETING 44
45 Internal marketing MAM6Y/SERVICE MARKETING 45
46 External marketing Involves traditional marketing efforts such as market research, personal selling, advertising, direct mail, sales promotion, pricing and public relations. MAM6Y/SERVICE MARKETING 46
47 Interactive marketing Otherwise known as real-time marketing; promises are kept by the firms employees, subcontractors or agents (service providers) MAM6Y/SERVICE MARKETING 47
48 Relationship marketing It seeks to build and maintain a base of committed customers who are profitable for the organisation. MAM6Y/SERVICE MARKETING 48
49 Goals MAM6Y/SERVICE MARKETING 49
50 Syllabus Unit IV Delivering Quality Service: Causes of service quality gaps. The customer expectations versus perceived service gap. Factors and techniques to resolve this gap. Customer relationship management. Gaps in services MAM6Y/SERVICE MARKETING 50
51 Syllabus Unit IV Quality standards, factors and solutions the service performance gap key factors and strategies for closing the gap. External communication to the customers- The promise versus delivery gap Developing appropriate and effective communication about service quality. MAM6Y/SERVICE MARKETING 51
52 Quality of service MAM6Y/SERVICE MARKETING 52
53 Dimensions of service quality MAM6Y/SERVICE MARKETING 53
54 Dimensions of service quality MAM6Y/SERVICE MARKETING 54
55 Gap analysis MAM6Y/SERVICE MARKETING 55
56 Gap analysis MAM6Y/SERVICE MARKETING 56
57 Gaps in the model and strategies to overcome Gap 1: Customer Expectations Management Perceptions Gap Gap 2: Management Perceptions - Service Quality Specifications Gap Gap 3: Service Quality Specifications - Service Delivery Gap Gap 4: Service Delivery - External Communications Gap Gap 5: Expected Service - Perceived Service Gap (or the Service Performance Gap) MAM6Y/SERVICE MARKETING 57
58 Customer Expectations - Management Perceptions Gap Collect data on customer expectations Relate customer data to overall service strategy Increase management contact with customers Increase internal communications Track performance on satisfaction MAM6Y/SERVICE MARKETING 58
59 The Service-Performance Gap Provide data on performance, on definition of standards for excellent service Provide opportunity to change and to grow Provide training - educate employees about customers Harmonise roles - define in customer service terms Develop team environment - work together MAM6Y/SERVICE MARKETING 59
60 The Service-Performance Gap Empower people to solve problems Provide support to employees to create high performance service MAM6Y/SERVICE MARKETING 60
61 The Promise-Delivery Gap Break down barriers between departments Communicate freely Understand and mentor internal customers Standardise and communicate policies and procedures Communicate standards, policies and procedures to customers Emphasize primary characteristics Manage customer expectations MAM6Y/SERVICE MARKETING 61
62 Expected Service - Perceived Service Gap This gap is the result of the other gaps & the gap the customer notices Feedback on this gap (complaints) is diagnostic of the other gaps Here is where we obtain information that provides the imperative for improvement. Proactively seeking feedback here is essential for improvement MAM6Y/SERVICE MARKETING 62
63 CRM - Objectives Turning prospects into advocates Minimising defections Having a large proportion of loyal advocates Having a profitable relationship Using cross selling opportunities MAM6Y/SERVICE MARKETING 63
64 Benefits of customer retention Benefits for customers Befits for organisation tudy.com/academy/lesson/service-quality-definition-dimensions.html MAM6Y/SERVICE MARKETING 64
65 Syllabus - V Marketing of Service With Special Reference To: 1.Financial services, 2.Health services, 3.Hospitality services including travel, hotels and tourism, 4.Professional service, 5.Public utility service, 6.Educational services. MAM6Y/SERVICE MARKETING 65
66 Marketing of services with special reference hat-is-a-market-reference-pointdefinition-examples-quiz.html MAM6Y/SERVICE MARKETING 66
67 Marketing of services Financial services Healthcare Tourism Professional or consultancy services Telecommunication MAM6Y/SERVICE MARKETING 67
68 Financial Services - banking Product letter of credit Promotion advertising, etc Price mix charge rates for overdrafts Place mix ATM People VRS MAM6Y/SERVICE MARKETING 68
69 Financial Services - Insurance Product policies Promotion advertising, etc Price mix premium charged against policies Place mix accessibility to branches People usage of updated technology e.g.: computer MAM6Y/SERVICE MARKETING 69
70 Health service Product emergency services, ambulance Promotion advertising, etc Price mix hospital charges and consultancy fee Place mix accessibility of the service People usage of updated technology Process joining phase the intensive consumption phase detachment phase feedback MAM6Y/SERVICE MARKETING 70
71 Tourism service Product accommodation Promotion advertising, etc Price mix transportation Place mix various channels of distribution People tour operators MAM6Y/SERVICE MARKETING 71
72 Professional service Product legal services Promotion advertising, etc Price mix consultancy fee Place mix various channels of distribution People professionals with great excellence MAM6Y/SERVICE MARKETING 72
73 Telecommunication service Product local calls Promotion advertising, etc Price mix based on users Place mix easy accessibility People use of technology MAM6Y/SERVICE MARKETING 73
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