Description
Services marketing is a sub field of marketing, which can be split into the two main areas of goods marketing (which includes the marketing of fast moving consumer goods (FMCG) and durables) and the marketing of services. Services marketing typically refers to both business to consumer (B2C) and business to business (B2B) services, and includes marketing of services like telecommunications services, financial services, all types of hospitality services, car rental services, air travel, health care services and professional services.
CORE PRODUCT/SERVICE OFFERING
• Safe transport from one city to another via aeroplane • Doctor’s proper diagnosis and treatment • lawyer’s sound legal advice • Hotel room with comfortable bed and clean
1
SUPPLEMENTAL SERVICES
• Movie or meal ob board the aeroplane • Doctor’s friendly beside manner
• Trust worthiness of lawyer
• Bath room amenities and minibar in the hotel
2
• While studying customer’s satisfaction across the range of service offerings, the marketer’s often find customers evaluating the service delivery on the basis supplementals/ perpherals. • These ‘little things how much they form the pay for complete offerings are to be understood in terms their significance and critically with respect to competitors offering.
3
WHY CUSTOMERS EVALUATE SERVICES ON SUPPLEMENTALS
• Customer always assume that service provider’s core offering shall be of high quality. undoubtly a poor core offering will cause customer dissatisfaction, but a good core extension alone is not sufficient for customer satisfaction.
4
• Within and across competitors, the core product offerings hardly have variations, e.g., the core offerings of the competing airlines are same, the planes do arrive safely. • Hotel rooms of the same classification do have decent beddings and baths etc.,
5
• For many customers/ consumers it is very difficult to judge the core offering .e.g., what variations you can find in legal advice given by lawyers, medical advice given by medical practitioners , seat provided by the airlines or rooms provided by the hotels of same classifications.
6
Seats provided by airlines of same classifications.
7
STRATEGIES FOR DEALING WITH INTANGIBILITY
INTRODUCTION services being intangible it is difficult for the prospective customers to evaluate it in advance as there are no features of services that demonstrate the existence of benefits . therefore the benefits of the services cannot be communicated or displayed directly. FOR EXAMPLE:
From the size and type of engine, the customer can infer the operating economy of the car but he/she cannot inspect the financial services offered by a bank.
8
the financial services offered by a bank.
9
• It has been found that the more difficult it is evaluate a service- the greater the role expectations play in determining the customer satisfaction. • Therefore , greater the degree of intangibility –more important is to build the strong positive expectations about the service quality.
•
10
TANGIBILISING THE INTANGIBLES
• As the services cannot be touched, tasted and sampled , generally the customer is to buy them on trust. • The intangible nature of services make consumers more concerned about their providers . • In order to create trust marketers have to provide tangible evidence. • This is known as tangibilising the intangibles.
11
• The intangibility of services means they often cannot be diaplayed , transported ,stored, packaged or inspected before buying i.e., this occurs for repair service and personal services • The service operator can only describe the benefit to be derived from the service experience.
12
For example
eople are getting concerned now about the service providers, their background, their qualification and this is why there is a need for license to practice.
13
visualization
• Visualization plays a great role in presenting the tangible element of a service.
14
For example: a hotel depicts the benefit of dining at its restaurants with its ads which show beautiful interiors , well laid facilities.
15
Association
• Associate the service with a tangible good, person , object or place.
• For example: Air India used in its advertising the maharaja to depict the friendly image of air India.
16
Physical representation
• Services when represented by some physical representation help in building trust of customer • For example: • Citi bank in its credit card services use colors- gold or platinumsymbolize wealth and status • Airlines, restaurants , hospitals , police and many other service firms dress the service providers in uniforms to emphasize visibility, reliability and cleanliness.
17
Documentation
• The documentation is used by service providers to tangibilise their intangibles. They cite facts and figures in their promotions to support the claim of their performance in terms of dependability, reliability and responsiveness. • For example: sahara airlines advertises its performance and use performance figures to tangibilise their offerings •
18
1. 2. 3. 4.
Tangibilising services through benefits Tangibilising services through Positioning Tangibilising services through Promotion Tangibilising services through Physical evidence
19
Tangibilising services through benefits
• The A&T , the Citi Bank and the Times Group are revolutionizing the credit card industry by offering tangible benefits to customers, discounts on long distance telephone calls, frequently flyer programmes. • For example: times card announced an exclusive tie up with pizza hut and provided lucrative benefits to its card members
20
Tangibilising services through Positioning
• The intangibility of services makes positioning decisions difficult. • Unlike goods positioning , which may stress attributes and consumer analysis ( such as touching , tasting and so on) prior to purchase the service positioning must rely on performance attributes ( such as how well a truck handles following a tune up) which can be measured only after a purchase .
21
• For instance a firm can: 1.Develop a tangible representation of its Services. For example: a library card , although not a library service itself but serves as a physical product with its image and benefits.
22
2.Associate an intangible service with a tangible object better understood by the customer. 3.Focus on the relationship between the company and its customers.
23
4. Establish unique product position such as 24 hours on service
24
Tangibilising services through Promotion
• Higher the intangibility in services compared to physical goods; higher is the factor of uncertainty for consumers and reassure them of their choice.
25
• A good example of tangibilising through promotion is in the tourism sector. • The main purpose of promotions is to make sure that the identity and the public image match. • When promoting a tourist site, identity includes location , lodging facilities, dining , destination appearances ,recreational activities and unique historical events.
26
• For example: When Mauritius was being promoted as a destination to Indian tourists , specific aspects were highlighted in the print ads. These included segas, dancing, food festivals and the island’s history of pirates.
27
Tangibilising services through Physical evidence
• Well designed and managed physical evidence is an important part of the service delivery process
28
3. Demand and supply are well balanced
• In this is scenario there is optimum capacity utilization. • Demand and supply are well balanced. • Staff and facilities are properly utilized within desired economic consequences. • There is ideal use rather overuse or under use of the staff and the facilities. Customers are experiencing the right RATER ( reliability, assurance, tangibility, empathy and responsiveness)
29
4.Excess capacity
• In the scenario, the demand is below the optimum capacity. • The productive resources made available to meet optimum capacity level (optimum human capital , equipment and utilities) are being underutilized. • In this case, a customer at individual level may receive the excellent quality. • But in some cases customer may find the experience disappointing or have doubts about the viability of service.
30
Strategies for managing demand
• Before devising the strategies of matching capacity and demand service marketers should understand possible demand pattern. • According to leading services marketing expert. • Lovelock, one should seek answers to the following questions: • 1. does the level of demand for the service follow a regular and predictable cycle. If so , is the duration of that cycle:
• • • • One day One week One month One year
31
2.What are the underlying causes of these cyclical demand variations. For instance,
• Employment schedules • Billing and tax payment • Seasonal changes in climate
3.If changes in the level of demand are largely random in nature and easily predicted, what are the underlying causes. Examples:
• Day-to-day changes in the weather affecting relative use of indoor and outdoor recreational or entertainment services. • Health events whose occurrence cannot be pinpointed exactly
32
4. Can demand for particular service over time be disaggregated by market segment to reflect such components as:
• Use patterns by a particular typed of customer or for a particular purpose?
33
Strategies for dealing with inconsistency
34
Strategies for dealing with inconsistency
• Introduction Inconsistency also known as heterogeneity is the characteristic of services that makes them less standardized and uniform than goods.
35
• By their very nature , several services are highly variable in their quality. • For example • It is very difficult for the hairdresser to dress hair exactly same every time and for marketing consultants to make sales forecasts for their clients that are always accurate.
36
Strategies for dealing with inconsistency
• For standardization of services generally two methods are used which are explained below:
1. Industrial services 2. Establish set rules and procedure
37
Industrialize services
• For standardization of service , organizations generally do industrialization of services delivery which lowers inefficiency and excessive variability through
Hard technologies Industrialization of services Soft technologies
Hybrid technologies
Industrialization of services
38
1.Hard technologies
• Hard technology means substituting machinery for people. • Hard technologies cannot be applied to service which are highly labor oriented and those which require personal skills and contract.
• For example: medical, legal, accountancy and hairstyling services .
39
medical -hard technologies
40
hair styling- hard technologies
41
For example
• You be in Tokyo or Moscow or New Delhi if you order a Big Mac know what are you going to get.
42
• Airport X-Ray surveillance equipment has replaced manual searching for baggage .
43
2. Soft technologies
• Soft technology is a way to industrialize services by substituting preplanned systems ( such as pre-packed vacation tours) for individual services.
44
For example
• Many travel firms sell prepackaged vacations tours.
45
Standard prepackaged offer from oberoi resorts-an example of consistency of offer
46
3. Hybrid technologies
• Hybrid technology is technique for industrializing services that combine both hard and soft technologies. • For example • Specialized low priced repair services.
47
Computerized truck routing
48
Specialized low priced repair services.
49
doc_726483703.ppt
Services marketing is a sub field of marketing, which can be split into the two main areas of goods marketing (which includes the marketing of fast moving consumer goods (FMCG) and durables) and the marketing of services. Services marketing typically refers to both business to consumer (B2C) and business to business (B2B) services, and includes marketing of services like telecommunications services, financial services, all types of hospitality services, car rental services, air travel, health care services and professional services.
CORE PRODUCT/SERVICE OFFERING
• Safe transport from one city to another via aeroplane • Doctor’s proper diagnosis and treatment • lawyer’s sound legal advice • Hotel room with comfortable bed and clean
1
SUPPLEMENTAL SERVICES
• Movie or meal ob board the aeroplane • Doctor’s friendly beside manner
• Trust worthiness of lawyer
• Bath room amenities and minibar in the hotel
2
• While studying customer’s satisfaction across the range of service offerings, the marketer’s often find customers evaluating the service delivery on the basis supplementals/ perpherals. • These ‘little things how much they form the pay for complete offerings are to be understood in terms their significance and critically with respect to competitors offering.
3
WHY CUSTOMERS EVALUATE SERVICES ON SUPPLEMENTALS
• Customer always assume that service provider’s core offering shall be of high quality. undoubtly a poor core offering will cause customer dissatisfaction, but a good core extension alone is not sufficient for customer satisfaction.
4
• Within and across competitors, the core product offerings hardly have variations, e.g., the core offerings of the competing airlines are same, the planes do arrive safely. • Hotel rooms of the same classification do have decent beddings and baths etc.,
5
• For many customers/ consumers it is very difficult to judge the core offering .e.g., what variations you can find in legal advice given by lawyers, medical advice given by medical practitioners , seat provided by the airlines or rooms provided by the hotels of same classifications.
6
Seats provided by airlines of same classifications.
7
STRATEGIES FOR DEALING WITH INTANGIBILITY
INTRODUCTION services being intangible it is difficult for the prospective customers to evaluate it in advance as there are no features of services that demonstrate the existence of benefits . therefore the benefits of the services cannot be communicated or displayed directly. FOR EXAMPLE:
From the size and type of engine, the customer can infer the operating economy of the car but he/she cannot inspect the financial services offered by a bank.
8
the financial services offered by a bank.
9
• It has been found that the more difficult it is evaluate a service- the greater the role expectations play in determining the customer satisfaction. • Therefore , greater the degree of intangibility –more important is to build the strong positive expectations about the service quality.
•
10
TANGIBILISING THE INTANGIBLES
• As the services cannot be touched, tasted and sampled , generally the customer is to buy them on trust. • The intangible nature of services make consumers more concerned about their providers . • In order to create trust marketers have to provide tangible evidence. • This is known as tangibilising the intangibles.
11
• The intangibility of services means they often cannot be diaplayed , transported ,stored, packaged or inspected before buying i.e., this occurs for repair service and personal services • The service operator can only describe the benefit to be derived from the service experience.
12
For example
eople are getting concerned now about the service providers, their background, their qualification and this is why there is a need for license to practice.13
visualization
• Visualization plays a great role in presenting the tangible element of a service.
14
For example: a hotel depicts the benefit of dining at its restaurants with its ads which show beautiful interiors , well laid facilities.
15
Association
• Associate the service with a tangible good, person , object or place.
• For example: Air India used in its advertising the maharaja to depict the friendly image of air India.
16
Physical representation
• Services when represented by some physical representation help in building trust of customer • For example: • Citi bank in its credit card services use colors- gold or platinumsymbolize wealth and status • Airlines, restaurants , hospitals , police and many other service firms dress the service providers in uniforms to emphasize visibility, reliability and cleanliness.
17
Documentation
• The documentation is used by service providers to tangibilise their intangibles. They cite facts and figures in their promotions to support the claim of their performance in terms of dependability, reliability and responsiveness. • For example: sahara airlines advertises its performance and use performance figures to tangibilise their offerings •
18
1. 2. 3. 4.
Tangibilising services through benefits Tangibilising services through Positioning Tangibilising services through Promotion Tangibilising services through Physical evidence
19
Tangibilising services through benefits
• The A&T , the Citi Bank and the Times Group are revolutionizing the credit card industry by offering tangible benefits to customers, discounts on long distance telephone calls, frequently flyer programmes. • For example: times card announced an exclusive tie up with pizza hut and provided lucrative benefits to its card members
20
Tangibilising services through Positioning
• The intangibility of services makes positioning decisions difficult. • Unlike goods positioning , which may stress attributes and consumer analysis ( such as touching , tasting and so on) prior to purchase the service positioning must rely on performance attributes ( such as how well a truck handles following a tune up) which can be measured only after a purchase .
21
• For instance a firm can: 1.Develop a tangible representation of its Services. For example: a library card , although not a library service itself but serves as a physical product with its image and benefits.
22
2.Associate an intangible service with a tangible object better understood by the customer. 3.Focus on the relationship between the company and its customers.
23
4. Establish unique product position such as 24 hours on service
24
Tangibilising services through Promotion
• Higher the intangibility in services compared to physical goods; higher is the factor of uncertainty for consumers and reassure them of their choice.
25
• A good example of tangibilising through promotion is in the tourism sector. • The main purpose of promotions is to make sure that the identity and the public image match. • When promoting a tourist site, identity includes location , lodging facilities, dining , destination appearances ,recreational activities and unique historical events.
26
• For example: When Mauritius was being promoted as a destination to Indian tourists , specific aspects were highlighted in the print ads. These included segas, dancing, food festivals and the island’s history of pirates.
27
Tangibilising services through Physical evidence
• Well designed and managed physical evidence is an important part of the service delivery process
28
3. Demand and supply are well balanced
• In this is scenario there is optimum capacity utilization. • Demand and supply are well balanced. • Staff and facilities are properly utilized within desired economic consequences. • There is ideal use rather overuse or under use of the staff and the facilities. Customers are experiencing the right RATER ( reliability, assurance, tangibility, empathy and responsiveness)
29
4.Excess capacity
• In the scenario, the demand is below the optimum capacity. • The productive resources made available to meet optimum capacity level (optimum human capital , equipment and utilities) are being underutilized. • In this case, a customer at individual level may receive the excellent quality. • But in some cases customer may find the experience disappointing or have doubts about the viability of service.
30
Strategies for managing demand
• Before devising the strategies of matching capacity and demand service marketers should understand possible demand pattern. • According to leading services marketing expert. • Lovelock, one should seek answers to the following questions: • 1. does the level of demand for the service follow a regular and predictable cycle. If so , is the duration of that cycle:
• • • • One day One week One month One year
31
2.What are the underlying causes of these cyclical demand variations. For instance,
• Employment schedules • Billing and tax payment • Seasonal changes in climate
3.If changes in the level of demand are largely random in nature and easily predicted, what are the underlying causes. Examples:
• Day-to-day changes in the weather affecting relative use of indoor and outdoor recreational or entertainment services. • Health events whose occurrence cannot be pinpointed exactly
32
4. Can demand for particular service over time be disaggregated by market segment to reflect such components as:
• Use patterns by a particular typed of customer or for a particular purpose?
33
Strategies for dealing with inconsistency
34
Strategies for dealing with inconsistency
• Introduction Inconsistency also known as heterogeneity is the characteristic of services that makes them less standardized and uniform than goods.
35
• By their very nature , several services are highly variable in their quality. • For example • It is very difficult for the hairdresser to dress hair exactly same every time and for marketing consultants to make sales forecasts for their clients that are always accurate.
36
Strategies for dealing with inconsistency
• For standardization of services generally two methods are used which are explained below:
1. Industrial services 2. Establish set rules and procedure
37
Industrialize services
• For standardization of service , organizations generally do industrialization of services delivery which lowers inefficiency and excessive variability through
Hard technologies Industrialization of services Soft technologies
Hybrid technologies
Industrialization of services
38
1.Hard technologies
• Hard technology means substituting machinery for people. • Hard technologies cannot be applied to service which are highly labor oriented and those which require personal skills and contract.
• For example: medical, legal, accountancy and hairstyling services .
39
medical -hard technologies
40
hair styling- hard technologies
41
For example
• You be in Tokyo or Moscow or New Delhi if you order a Big Mac know what are you going to get.
42
• Airport X-Ray surveillance equipment has replaced manual searching for baggage .
43
2. Soft technologies
• Soft technology is a way to industrialize services by substituting preplanned systems ( such as pre-packed vacation tours) for individual services.
44
For example
• Many travel firms sell prepackaged vacations tours.
45
Standard prepackaged offer from oberoi resorts-an example of consistency of offer
46
3. Hybrid technologies
• Hybrid technology is technique for industrializing services that combine both hard and soft technologies. • For example • Specialized low priced repair services.
47
Computerized truck routing
48
Specialized low priced repair services.
49
doc_726483703.ppt