Description
Services Marketing
Services Marketing
SERVICE (Defn) :
“It is an activity which has some element of intangibility associated with it, which involves some interaction with customer and / or with property in their possession and does not result in transfer of ownership”
MARKETING :
“A process of matching an organizations resources to the needs of the market”
SERVICES MARKETING
Growth of Service Sector
1.Demographic Changes
• Life expectancy risen and hence increase in retired population ; the sector has created new demands • Development of rural area ; need for infrastructure and support services
2.Economic Changes
• Globalization • Specialist services providers are looked at
SERVICES MARKETING
Growth of Service Sector
3.Social Changes
• Increase in working women ; child care, fast food and other personal services are need of an hour • Husband - Wife working ; more income, more / better customer service needed • more disposable income to spend on services like club membership, holiday home, personal finance • Communication & travel have increased aspirations
4.Political & Legal Changes
• Government is growing in size • New demands on legal & other professional services
SERVICES MARKETING
Types of Products
Four Types of Products
– Pure tangible good (e.g. Salt) – Tangible good accompanying service (e.g. computer with service back-up) – Major service with accompanying minor goods (e.g. Airline sector) – Pure service (e.g. baby sitting)
SERVICES MARKETING
Characteristics of Services
Characteristics of most commonly ascribed services are :
– Intangibility (cannot be seen, only be felt) – Heterogeneity (non - standard & highly variable) – Inseparability (produced & consumed at the same time with customer participation in process) – Perishability (cannot be stored)
SERVICES MARKETING
Classification of Services
Various factors are :
1. 2. 3. 4. 5. 6. Type of service Type of seller Type of purchaser Demand characteristics Rented v/s owned services Degree of intangibility
SERVICES MARKETING
Classification of Services
Various factors (cont.)
7. Buying Motives 8. Equipment based v/s people based 9. Amount of customer contact 10.Services delivery requirement 11. Degree of customisation 12. Degree of labour intensity
SERVICES MARKETING
Services Marketing
• Three Key Components :
1. The Marketing Mix - important internal elements 2. Market Forces - external opportunities or threats 3. A Matching Process - strategic and managerial process which ensure marketing mix is appropriate to market forces
SERVICES MARKETING
Services Marketing
• Market Forces :
1. Customer • • • • • Buying behaviour Buying habits Environment Size of market Buying power
SERVICES MARKETING
Services Marketing
• Market Forces (cont.): 2. Industry behaviour • Motivations • Practice & attitude of retailers • Intermediaries & other members of supply chain
3. Competitors 4. Government & regulatory bodies
SERVICES MARKETING
Services Marketing
• Marketing Mix (Expanded)
– Product – Price – Place – Promotion
– People – Processes
SERVICES MARKETING
Relationship Marketing
• Defn : “It involves creating, maintaining and enhancing strong customer relationship” • Relationship marketing involves all the company’s departments work together with marketing as a team to serve the customer. • It involves building relations at many levels social, economical, technical, legal etc resulting in high customer loyalty.
SERVICES MARKETING
Relationship Marketing
Five Levels of Relationship
(a) Basic - e.g. Salesman sells product (b) Reactive - Basic + responsive to customer call for a problem (c) Accountable - Salesman calls customer to check the product performance (d) Proactive - Salesman keeps in touch with customer about improvement in product (e) Partnership - Company works with customer/s to discover ways to deliver better
SERVICES MARKETING
Relationship Marketing
No. of Customers
Many Medium Few
Accountable Reactive Basic Proactive Accountable Basic Partnership Accountable Reactive
High Medium Low
Profit Margin
Services Marketing
Services Marketing
SERVICE (Defn) :
“It is an activity which has some element of intangibility associated with it, which involves some interaction with customer and / or with property in their possession and does not result in transfer of ownership”
MARKETING :
“A process of matching an organizations resources to the needs of the market”
SERVICES MARKETING
Growth of Service Sector
1.Demographic Changes
• Life expectancy risen and hence increase in retired population ; the sector has created new demands • Development of rural area ; need for infrastructure and support services
2.Economic Changes
• Globalization • Specialist services providers are looked at
SERVICES MARKETING
Growth of Service Sector
3.Social Changes
• Increase in working women ; child care, fast food and other personal services are need of an hour • Husband - Wife working ; more income, more / better customer service needed • more disposable income to spend on services like club membership, holiday home, personal finance • Communication & travel have increased aspirations
4.Political & Legal Changes
• Government is growing in size • New demands on legal & other professional services
SERVICES MARKETING
Types of Products
Four Types of Products
– Pure tangible good (e.g. Salt) – Tangible good accompanying service (e.g. computer with service back-up) – Major service with accompanying minor goods (e.g. Airline sector) – Pure service (e.g. baby sitting)
SERVICES MARKETING
Characteristics of Services
Characteristics of most commonly ascribed services are :
– Intangibility (cannot be seen, only be felt) – Heterogeneity (non - standard & highly variable) – Inseparability (produced & consumed at the same time with customer participation in process) – Perishability (cannot be stored)
SERVICES MARKETING
Classification of Services
Various factors are :
1. 2. 3. 4. 5. 6. Type of service Type of seller Type of purchaser Demand characteristics Rented v/s owned services Degree of intangibility
SERVICES MARKETING
Classification of Services
Various factors (cont.)
7. Buying Motives 8. Equipment based v/s people based 9. Amount of customer contact 10.Services delivery requirement 11. Degree of customisation 12. Degree of labour intensity
SERVICES MARKETING
Services Marketing
• Three Key Components :
1. The Marketing Mix - important internal elements 2. Market Forces - external opportunities or threats 3. A Matching Process - strategic and managerial process which ensure marketing mix is appropriate to market forces
SERVICES MARKETING
Services Marketing
• Market Forces :
1. Customer • • • • • Buying behaviour Buying habits Environment Size of market Buying power
SERVICES MARKETING
Services Marketing
• Market Forces (cont.): 2. Industry behaviour • Motivations • Practice & attitude of retailers • Intermediaries & other members of supply chain
3. Competitors 4. Government & regulatory bodies
SERVICES MARKETING
Services Marketing
• Marketing Mix (Expanded)
– Product – Price – Place – Promotion
– People – Processes
SERVICES MARKETING
Relationship Marketing
• Defn : “It involves creating, maintaining and enhancing strong customer relationship” • Relationship marketing involves all the company’s departments work together with marketing as a team to serve the customer. • It involves building relations at many levels social, economical, technical, legal etc resulting in high customer loyalty.
SERVICES MARKETING
Relationship Marketing
Five Levels of Relationship
(a) Basic - e.g. Salesman sells product (b) Reactive - Basic + responsive to customer call for a problem (c) Accountable - Salesman calls customer to check the product performance (d) Proactive - Salesman keeps in touch with customer about improvement in product (e) Partnership - Company works with customer/s to discover ways to deliver better
SERVICES MARKETING
Relationship Marketing
No. of Customers
Many Medium Few
Accountable Reactive Basic Proactive Accountable Basic Partnership Accountable Reactive
High Medium Low
Profit Margin