Services Marketing 9434

8/9/2019 Services Marketing 9434

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Services Marketing


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What is marketing?

According to Peter Druckker The aimof marketing is to know and understandthe customer so well that the productor service sells itself. Ideally marketingshould result in a buyer who is ready

and willing to buy .


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What is a service?

Exactly what is a service, and whyservices receive special treatment frommarketers?

Service may be defined as any actor performance that one party can

offer to another that is essentiallyintangible and does not result inthe ownership of anything


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Classification of services. 1- Education.

2- Health.

3- Telecommunications. 4- Hospitality.

5- Public utilities.

6- Transportation.

7- Entertainment.

8- Banks and finance companies.

9- Insurance.

10-Defence and police.


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Unique Characteristics of

services It can be said that the distinction between

goods and services is somewhat artificial,

since the success ofgoodsmanufacturers isvitally dependent on the services theyprovide. However there are 4 commonly citedcharacteristics of services marketing that

make it different from goods marketing. Intangibility, inseparability, variability&perishability.


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1- Intangibility.

Pure services such as baby sitting cannot be seen or touched. These areperformances that can be experiencedonly as they are delivered. Thus,intangibility may represent the most

critical difference between services andgoods, and its implications formarketing are great.


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Why Intangible services are

difficult to sell? Intangible services are difficult to sell because they cant be

produced and displayed ahead of time. They are thereforeharder to communicate to prospective customers.

We can quote t

he example of a patient suffering from a kneeailment that requires a surgical process. The patient cant see

the results of elective knee surgery beforehand. The patientmay be able to talk to other patients who have experienced thesame procedure, but their experiences dont necessarily reflectthe outcome of this particular surgery.

Selling a life insurance policy is even more challenging since the

marketer is selling just a promise. Their service is after all t

hemost intangible of services since the buyer will never know the

ultimate result of whathe or she has bought.


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How to convince?

Marketers of services can convince theirprospective clients by stressing on theirtangible cues that will conveyreassurance and quality to them. Thesetangible cues range from the firms

physical appearance and facilities to theappearance and demeanor of its staff,even to the letterhead and its logo.


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Developing visuals and logos In order to overcome the intangibility of their

services major companies have all developedstrong visual symbols for their firms.

Prudential insurance (the rock of Gibraltar). Allstate insurance (protective hands). Bank Alfalah (the caring bank) PIA (come & fly with us)

In advertising these are known as positioningstatements and help in creating a brandimage.


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Developing a corporate image Developing a strong corporate image is

a greathelp in overcoming customer

apprehensions. Similarly word of mouthinfluence carries an impact andcompanies must undertake activitiesthat will stimulate positive word of

mouth influence such as developingpost purchase follow up programs orsocial welfare activities.


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2- Inseparability The basic interpretation of this term is the

inseparability of customers from the service

delivery process. A patient getting his toothextracted must sit still throughout theprocedure. This aspect is totally unlike goods,which are often produced in a location farfrom the customer and totally in control of

the manufacturing firm. Service on the otherhand often requires the presence and attimes active participation of the customer.


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3-Variability. Services can vary greatly. The fact that

service quality is difficult to control and an

even more difficult task is to make sure thatthere is no variation in service quality sincethe most professional service provider canhave a very lean day.

Services are performances, often involvingthe cooperation and combined skills ofseveral individuals, and are therefore unlikelyto be the same every time.


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4-Perishability. The fourth characteristic distinguishing services from

goods is their time dependence. No one can maintainan inventory for services. They are performed in realtime. Periods of peak demand cant be prepared inadvance by producing and storing services.

A service opportunity occurs at a point in time andwhen its gone, its gone with the wind.

A survey of service firms revealed that the greatestoperational challenge was posed by the perishabilityof their products.


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FORD MOTORS. Henry Ford, the legendry founder ofFord

motors Company is rumored to have said ,My customers can have a car in anycolor they want as long as it is Black.

These egoistical remarks were passed byHenry Ford in the early 20th century whenFord Motors enjoyed a virtual monopoly. But

after the 2

nd

world war competition began toincrease in almost all business segments andfocus started to shift more and more towardsthe customer.


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PAN AMERICAN. It was noted in the post war era that manufacturing

or services companies that did not focus on customerneeds and wants did not survive long.

Even a giant sized airlines such as Pan Americanfailed because it neglected the basic principle ofpaying attention to customer needs. When thecompetition increased among airlines Pan Americanwere selling seats at cut-throat prices with poor

margins in order to survive. Eventually it took slightincrease in fuel prices to end their existence.


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The traditional view versus the

modern view. In a traditional organizational structure, the policies,

goods and services flow from the top management asper their desire to the customers. While in a modern

evolved structure understanding, anticipating andfulfilling the customer needs is given the top mostpriority.

That is why most customers find the services ofgovernment owned companies such as railways,electricity, police, government schools & hospitals

non- responsive and unsatisfactory. In contrast private companies providing services give

priority to customer facilitation and thathas helped intheir phenomenal growth over the years.


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Customer the central figure. For service organizations customer centricity

is very vital. In the case of products or goods

marketing, the customer does not come indirect contact with the producer or marketer.

However in services marketing the customerquite often is in direct contact with theorganization and usually receives the servicepersonally. The customer and organizationinteraction is an inevitable part of servicesmarketing.


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How to understand the

customer? Although customer is difficult to understand ever-

changing and fickle minded complex beast who doesnot behave according to engineering or mathematical

equations or in accordance withhistory and traditionall the time. To understand the customer needs and psychology is

not all that simple as it may sound. But when anorganization focus their activities towards theircustomers they are better equipped to understand

and anticipate customer needs, wants and demands. Service organizations can only prosper by becoming

totally customer oriented.


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The golden rules. Any service providing organization must always

remember the following words of a famous diplomat. 1- He (customer) is the mostimportant visitor on

our premises. 2- He is notdependent on us. We are dependent

on him. 3- He is not an interruption buthe is the purpose

of our work.

4- He is not an outsider buthe is part of us. 5- We are not doing a favor to him by serving him. 6- He is doing us a favor by giving us an

opportunity to serve.


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The core.

The central role of customersatisfaction and customer drivenquality standards are the magicalkeys that services marketers mustalways turn ON if they desire to

excel in their respective fields.

Documents

Services Marketing 9434