Description
Describes about 7ps of service marketing, paradigms of service marketing, Three Types of Marketing in Service Industries and Factors Leading to Customer Switching Behavior.
Service Marketing
• A service is any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product.
• 100 % intangible products that truly fall in service category. E.g., banking, healthcare, insurance, airlines, etc.
• Services in manufactured products differ from the service industry, as here the focus is to enable a plethora of services to the buyer, in order to augment the product and set new values for customers
7 P’s of Service marketing
• • • • • • •
Product Price Promotion Price People Performance Process
Dr.Patrick Low Kim Cheng recently suggested 3 more P’s Professionalism Productivity
Pro-activeness
Plant and Machinery
Consumer Durables Tangible
Services like entertainment, education, medical care Intangible
Significance of Service Marketing
27.2
Paradigms in Services Marketing
• Service as a process • Do it right the first time
• Speed! Speed!! Speed!!!
• Keeping customers perspective always!
Palace on Wheels provides the ultimate royal experience due to careful design and execution of various service elements
Characteristics
• Intangibility • Low price sensitivity
• No inventory
• Value creation process • Tangibility
Categories of Service Mix
Soap, toothpaste
Car, Computers
Hotels, Hospitals
Pure tangible good
Good w/ accompanying services Hybrid Service w/ accompanying goods Pure service
Airlines, Railways
Consultancy, Medical services
Three Types of Marketing in Service Industries
Organizational Issues in Service Quality
Developing service vision
Served Market
Positioning
Service Concept
Value/Cost Leveraging
Functional Strategies
Strategy-System/Technology Integration
=Core Elements
Services Delivery System
= Integrative
Elements
Planning for Service
Strategic Options a) Locating service points near the customer b) Making delivery points user friendly c) Reducing time gap between service sought and delivered d) Product design e) Unconditional guarantee f) Role clarity and empowering people g) Customer service and satisfaction is a result of team-work h) Performance measurement and reward systems i) Research k) Training of people
Understanding Customer Expectations and Zone of Tolerance
• Necessary to understand customer expectations and integrate them with the service design and delivery
Segmentation and Zone of Tolerance
PPersonal needs
Ideal image service Personal experience of customer and his reference group Service Providers Communications Communications about service providers Word of mouth publicity Decision Criteria Competition Uniqueness of Service Situation Adequate Service (Threshold level of Service) Situational factors Perceived service alternatives Zone of Tolerance
Desired Service (Ideal service)
Predicted Service
Forayed in India in 1996. Present in 159 outlets in 33 cities, 27% market share
Factors Leading to Customer Switching Behavior
• • • • • • • • Pricing Inconvenience Core Service Failure Service Encounter Failures Response to Service Failure Competition Ethical Problems Involuntary Switching
doc_542206549.pptx
Describes about 7ps of service marketing, paradigms of service marketing, Three Types of Marketing in Service Industries and Factors Leading to Customer Switching Behavior.
Service Marketing
• A service is any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product.
• 100 % intangible products that truly fall in service category. E.g., banking, healthcare, insurance, airlines, etc.
• Services in manufactured products differ from the service industry, as here the focus is to enable a plethora of services to the buyer, in order to augment the product and set new values for customers
7 P’s of Service marketing
• • • • • • •
Product Price Promotion Price People Performance Process
Dr.Patrick Low Kim Cheng recently suggested 3 more P’s Professionalism Productivity
Pro-activeness
Plant and Machinery
Consumer Durables Tangible
Services like entertainment, education, medical care Intangible
Significance of Service Marketing
27.2
Paradigms in Services Marketing
• Service as a process • Do it right the first time
• Speed! Speed!! Speed!!!
• Keeping customers perspective always!
Palace on Wheels provides the ultimate royal experience due to careful design and execution of various service elements
Characteristics
• Intangibility • Low price sensitivity
• No inventory
• Value creation process • Tangibility
Categories of Service Mix
Soap, toothpaste
Car, Computers
Hotels, Hospitals
Pure tangible good
Good w/ accompanying services Hybrid Service w/ accompanying goods Pure service
Airlines, Railways
Consultancy, Medical services
Three Types of Marketing in Service Industries
Organizational Issues in Service Quality
Developing service vision
Served Market
Positioning
Service Concept
Value/Cost Leveraging
Functional Strategies
Strategy-System/Technology Integration
=Core Elements
Services Delivery System
= Integrative
Elements
Planning for Service
Strategic Options a) Locating service points near the customer b) Making delivery points user friendly c) Reducing time gap between service sought and delivered d) Product design e) Unconditional guarantee f) Role clarity and empowering people g) Customer service and satisfaction is a result of team-work h) Performance measurement and reward systems i) Research k) Training of people
Understanding Customer Expectations and Zone of Tolerance
• Necessary to understand customer expectations and integrate them with the service design and delivery
Segmentation and Zone of Tolerance
PPersonal needs
Ideal image service Personal experience of customer and his reference group Service Providers Communications Communications about service providers Word of mouth publicity Decision Criteria Competition Uniqueness of Service Situation Adequate Service (Threshold level of Service) Situational factors Perceived service alternatives Zone of Tolerance
Desired Service (Ideal service)
Predicted Service
Forayed in India in 1996. Present in 159 outlets in 33 cities, 27% market share
Factors Leading to Customer Switching Behavior
• • • • • • • • Pricing Inconvenience Core Service Failure Service Encounter Failures Response to Service Failure Competition Ethical Problems Involuntary Switching
doc_542206549.pptx