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A brief overview of services marketing norms.
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Marketing
of
ServicesBy
Syed Haider Raza
Defining a Service
Any benefit or activity that is essentially intangible and does not result in ownership of anything. It’s production may or may not be tied to a physical product. (Kotler)
Service clients pay for expertise, experience, advice, skills, knowledge and the benefits they bring. The benefits may last but service itself is of limited duration.
The Core Product
This is the core benefit the product brings.
Insurance/Security brings peace of mind.
Hairdresser’s core benefit is to enable people to look and feel good.
A good cricket team provides us with emotions and enjoyment.
A car mechanic enables us to enjoy safe, reliable motoring.
Characteristics of Services
Intangible: Lack of physical substance.
Inseparability: Cannot be separated from it’s provider. Does not exist until used. Production at the same time as delivery.
Heterogeneity: Variability is inevitable because each service is unique.
Perishability: Cannot be stored.
Inability to Own: No transfer of property.
Manufacturing v Service
Manufacturing Service
Output Tangible Intangible
Customer Contact Low High
Labour Content Low High
Uniformity of input High Low
Output Uniformity High LowProductivity Measurement
Easy Difficult
Opportunity to correct quality problems
High Low
Unique Aspects of MS
The Service usually cannot be demonstrated (it does not exist before actual purchase).
Direct Contact is necessary.
Selling is a crucial part of the service.
Many aspects of quality are difficult to measure.
Services cannot be automated.
Location, location & Location
Production, consumption & selling are spatially united.
Provider and product both are transportable. As a result site of service can be of huge importance.
The service cannot normally be exportable, but service delivery system can
Criteria for Services Quality Assesment
Services are dependant on human beings who in turn are not always consistent.Tangible Features: Physical facilities, the personnel delivering the service.
Reliability: The ability to perform dependably & accurately.
Responsiveness: Willingness to help.
Assurance: Knowledge, courtesy & confidence of the service providing staff.
Empathy: Caring, individualized attention.
Marketing Mix: the 7 P’sFor marketing services it is appropriate to refer to 7 P’s
Product/Service
Price
Promotion
Place
Process
People
Physical evidence
PeopleThe delivery of a service is reliant on people-so people are important part of marketing mix
Good customer relations are important.
The key qualities required are:
Capability Reliability
Efficiency Assurance
Availability Responsiveness
Effectiveness Empathy
Physical Evidence
It is the tangible element of a service.
Premises
Equipment
Peripheral products
Literature explaining the service
Evidence to support claims whatever they are.
ProcessThis refers to the way service is provided. In part we judge the service on following parameters:
Waiting time
The payment process/mode
Order processing & delivery
Service delivery at both ends
Achievement of agreed goals
Effective Marketing Service
Achieves preset objectives
Meets customer needs
Is balanced and consistent
Creates a competitive advantage
Matches corporate resources
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