DS
Uploaded byDr SHAILAJA
PPTX, PDF127 views

MODULE 1 SERVICE MARKETING &CUSTOMER .pptx

The document outlines the characteristics, classification, and design of services marketing, emphasizing the unique nature of services compared to tangible products. It covers the components of service marketing, such as the service environment, delivery, and quality, as well as the marketing mix elements like product, price, promotion, place, people, process, and physical evidence. Additionally, it discusses strategies for managing demand and supply challenges specific to services.

Download to read offline
SERVICES MARKETING
SERVICES “Services are activities, benefits or which are offered for sale or provided in with sale of goods”. - The American Association satisfactio n connection Marketing identifiable “Services are those separately essentially intangible activities, which provid e want satisfaction when marketed to consumers necessarily service”. - and/or industrial uses and which are not tied to the sale of a product or another Stanton
COMPONENTS OF SERVICE Physica l Product
1. The Physical Product The various products marketed by a firm involve the physical transfer of ownership of those products. They are tangible and their quality is standardised. For Example, physical products include T.V., Radio, Refrigerators, Computers, Hair oil, Vacuum Cleaner, Washing Machine, etc.
2. Service Product A service is an activity or benefit that one party can offer to another which is essentially intangible in nature. Service involve some interaction with customers without effecting transfer of ownership. For example, people visiting exhibitions, trade fairs are allowed to inspect the consumer durables without being approached by sales representatives. Salesmen are trained in making proper approach to the customer visiting their showrooms.
3. Service Environment The potential customers form an impression about the service on the basis of service environment. The service environment represents the physical back drop that surrounds the service. For example, providing hygienic food is the core service in a hotel or restaurant. Customers expect the restaurants to be maintained clean, offer flexible dining hours prompt service, soft music, décor, exotic menu etc.
4. Service Delivery The Service delivery is one of the important components of service. Service delivery is of great importance to the customer’s overall perception about the quality of service. The service provider should give due consideration to the way service is rendered to customers. Services are created as they are consumed.
SERVICES
CHARACTERISTICS OF SERVICES 1. Intangibility 2. Inseparability 3. Heterogeneity (Individuality or Variability) 4. Perishability 5. Ownership 6. Absence of Quantitative measurement
CLASSIFICATION OF SERVICES 1. Classification of Services by Adrian Payne (a) Communications and information services (b) Public utilities, government and defence (c) Health care (d) Business, Professional and Personal Services (f) Recreational and hospitality services (g) Education; and (i) Other non-profit organisations
CLASSIFICATION OF SERVICES 2. Classification of Services by Christopher Lovelock  Nature of Service Act  Type of relationship that the serviceorganisation has with its customers  Scopefor Customisation and Judgement in DeliverySystem  Nature of demand and supply for the service (a) Methods of Service Delivery
CLASSIFICATION OF SERVICES 1. Consumer Service:  Food Services  Hotels and Motels  Personal care services  Car services firms  Entertainment services  Transport services  Communication Services  Insurance services  Financial services 2. Industrial Service:  Financial Services  Insurance services  Transport & warehousing  Engineering services and  Advertising promotion services  Office services,  Management consul tancy
CLASSIFICATION OF SERVICES – Philip Kotler 1. Pure Tangible Goods 2. Tangible Goods with accompanying services 3. Hybrid minor goods 4. Major service with accompanying and services 5. Pure service
SERVICES DESIGN A service involves creation and delivery of core benefits in order to satisfy an identified need of the customer. As a process, it refers as to how a service is provided or delivered to a customer. In a competitive market, the importance of the actual process in service delivery has been recognised.
Product Design Facilitie s Design Service Operati ons Process Design Custom er Service Process Design Service Encounter Environmen t Provider behaviour Customer Provider interactio n Service Requirements Service Performanc e Standards Customer Expectations Customer Experience With service Service Design Service Quality
Factors Influence Designing Service Process 1. The Service Itself 2. Customer Participation in the process 3. Location of Service Delivery 4. Level of Customer Contact 5. Degree of Standardisation 6. Complexity of the service
Mgt model for Service Design / Stages / Process Developin g design attributes Specifying design performance standards Generating & evaluating design concepts Developing design details Improving performance Assessing satisfaction Measuring performance Implementing the design
BLUEPRINTING A service blueprint is a flow chart of the service process. It conveys the service concept by showing all the elements or activities and their sequencing and interaction. It is pictorial description of the system showing the service at an overview service level. It functions in Blueprinting explains how each job or department relationship to the service as a whole. was developed by Shostak in 1987.
STAGES IN PREPARATION OF BLUEPRINTING 1. Put the service in the form of its molecular structure 2. Divide the process into logical steps 3. Recognise the variability in the process 4. Identify the backstage actions in the process
Technology & Service Productivity Service organisations can improve their productivity by introducing systems and technology in their operations. Under the systems approach to services marketing technology, engineering and management implemented into service industries. approach looks at the task as a whole. sciences are The systems The systems approach identifies the key operations performed, devises new ways of performing to be each operation, eliminates superfluous practices through new methods and improves the coordination of processes within the system.
Application of technology to service Activities Hard Technology Soft Technology Hybrid Technology
1. Hard Technology Hard technologies substitute machinery, tools and performance of service work. other engineering devices for labour The intensiv e followin g examples can be offered for the application of hard technologies in the service sector. Example: Automatic car washes, airport x-ray equipment, automatic car vending equipment, audio and bank computers, the consumer credit card balance checking machine.
2. Soft Technology Soft technology means substituting pre-planned systems for individual service operations. Though the systems involve some technology, the basic characteristic is the system itself. Example: Fast food restaurants such as MC Donald, Wendy, Pizza hut, Kentucky Fried Chicken follow rationale division of labour. Use of soft technologies in these organistions ensures the benefits in the forms of high quality, cost control, speed and efficiency, cleanliness and low prices.
3. Hybrid Technology hardwar e with Hybrid technologies combine carefully engineered systems to bring greater efficiency, order and speed to the service process. Example: The cost of energy can be substantially saved by careful programming for types and grades of roads, location of stops, congestion of roads, toll road costs and mixing point access.
Role of Technology in Service process 1. Easy accessibility of service 2. New ways to deliver service 3. Close link with customers 4. Higher level of service 5. Global reach of service 6. Cost Rationalisation
Building Service Aspirations The service generating organisations building service aspirations in the process of generating demand for the services. The aspirations may be generated in two ways, namely, generating aspirations to serve the users and generating aspirations to use the services. Service aspirations of organisation engaged in generating services focus on offering quality services. Quality is generally conceptualised as an attitude towards service.
Building Service Aspirations
Service Marketing Mix The traditional marketing mix is considered in the context of services. Since a different marketing mix is needed for services some have expanded the traditional four Ps. 1. Product 2. Pricing 3. Promotion 4. Place 5. People 6. Process 7. Physical evidence
Service Marketing Mix CUSTOMER Product Price Promotion Physical Evidenc
Service Marketing Mix - Definition “The marketing mix concept is a well established tool used as a structure by marketers. It consists of the various elements of a marketing programme which need to be considered in order to successfully implement the marketing strategy and positioning in the company’s market. It is important internal elements or ingredients that make up an organisation’s marketing programme”. – Adrian Payne
Product (Service Product) According to Adrian Payne, a product is an overall concept of objects or processes which provide some values to customers. Goods and services are sub- categories of product. The term produce is used in a broad sense to denote either a manufactured good or product and a service. Strictly speaking, customers are not buying goods or services but specific benefits and value from the total offering. This total offering to the customer is termed as “offer”.
Product (Service Product) Core Potential Augmente d Expected Total Product
1. The core or generic product The core product represents the basic services of a product. This product is at its basic level. For example, food served in a restaurant a bed in a hotel room for the night safety of deposits and loanable funds in a bank.
2. The expected product The expected product consists of the core product together with the minimal purchase conditions which addition to need to be met. For example in a restaurant in as cleanliness, basic food served, aspects such timely service polite and courteous service of bearer, availability of menu and background music are expected.
3. The augmented product benefit or services in Augmented product refers to offerings to hat (product customer s addition expect). This concept enables a product to be differentiated from another. For example, though IBM has not got technologically advanced core product they are praised for excellent customer service. This adds value to their core product in terms of reliability and responsiveness.
4. The Potential product product feasibl e refer s to to doing everything hold and attract the Potential potentially customers . The concept of potential product of a restaurant is viewed in terms of a pleasing flower arrangement, manager’s word of thanks, readiness to go out of the way to serve, etc.
PRICE Price plays a significant role in the marketing mix by attracting revenue to the marketer. Pricing decisions are important for determining the value of the service as perceived by the customer and building of an image for the service. Price serves as a basis for perception of quality. The pricing strategy should be in tune with the marketing strategy. Pricing strategy should gain competitive advantage for the firm.
PRICE Decisions - Reasons 1. Pricing decisions have an impact on marketing channels. Suppliers, sales people, distributors, competitors and customers all are affected by the pricing system. 2. Since services are intangible in nature, pricing of services is highly important. The price is indicative of the quality of service that customers receive. Customers, by going through the menu of a restaurant can perceive the quality of food and the restaurant’s service level.
PRICE Decisions - Reasons 3. Pricing gives information customers delivery and importance about the of immediacy of availability. Premium pricing the is followed during pricing maximum demand period and discounted when the demand for the service is low. 4. Pricing allows homogeneous services to be differentiated and facilitates the adoption of a premium pricing strategy.
PRICING Objective The price policies for service marketers should be on the lines of those used throughout the general field of marketing. The pricing policy to be followed should be based on pricing objectives. The important pricing objectives are survival, profit maximisation, sales maximisation, prestige and ROI. competition. In quoting prices, somefirms try to meet Where adverse market conditions prevail, marketers quote lower prices in order to ensure survival in the market, even foregoing profitability.
PROMOTION Promotion is an important part of the marketing mix for many marketers. The promotion element of the service marketing mix communicates the positioning tangibility and helps the customer evaluate serviceoffer.The promotion mix includes of the service to customers. Promotion adds the six elements, namely (a) Advertising (b) Personal Selling Word of (c) Sales Promotion (d) Public Relations (e) mouth and (f) Direct mail.
PROMOTION Persona l Selling PROMOTION
(a) Advertising for services Advertising is the impersonal communication used by service firms. Advertising in service marketing adds to the customer’s knowledge of the service, persuades the customer to buy and differentiates the service from other service offerings. Persistent advertising is, therefore, a must for the success of the marketing of the service.
(b) Personal Selling Personal Selling has assumed much importance in service firms owing to the following reasons. a) There is a personal interaction between the service provider and the customer b) The service is provided by a person not a of the service machine. c) “People” product. are becoming part
(c) Sales Promotion Those selling, marketing activities other advertising and publicity persona l stimulat e customers and dealers effectively than that such as display shows, exhibitions, demonstrations and various non- routine recurrent selling efforts not in the ordinary are the sales promotional measures.
(c) Sales Promotion TOOLS OF SALES PROMOTION Free Offers Contests Discount and Commission Fairs and Shows Coupons, Prizes Cash Refunds Warranties
(d) Publicity or Public Relations Publicity consists of non-personal stimulation of demand for a product or service by way of arranging appeared in the sponsor). mass media commercially significant news to have mass media free of cost (not paid for Publicity is a free news appearing in about a company and its products.
(e) Word of Mouth Promotion Customers who are already exposed to the delivery of a service, share their experiences with other potential customers. They offer advice on service providers and businesses who are established already. Personal recommendations through word constitut e information source. buying come from friends, associates collegues or experts.
4. PLACE Place mix of services marketing involves the location and channels which are the two key decision areas. The service provider should decide as to how to deliver the service to the customer and where this should take place. The service provider should ensure that the promised services reach the ultimate users without any distortion. With regard to location, a service firm decides where its operations and staff are situated.
5. PEOPLE In all the organisations, people play a decisive role. Employees working in the service organisations are the contact people with the customers. Employees working in a bank, hotel, hair-cutting saloon etc., are all frontline people. They are in the customers who visit their these frontline people decides service organisation. A service direct contact with services. The role of the success of the organisation can be only as good as its people. The strength and success of the service organisation lies in the quality of the service personnel working in the organisation.
6. PHYSICAL EVIDENCE Physical evidence is another important variable to be considered in the context of services marketing. Since a service is intangible, it is important for the client to search for evidences which enables him to the service. Physical evidences are those evaluat e tangible clues which customers may receive during the process of receiving the service. The customers evaluate the worthiness of the service with the physical evidences they receive.
7. PROCESSES The processes by which services are created and delivered to the customers are an important element of marketing mix. Customers perceive the delivery system as a part of the service itself. The decisions on process management are of great importance to the success of the marketing of the service. The processes involve the procedures, tasks, schedules, mechanisms, activities and routines by which a service is delivered to the customer.
Managing Demand & Supply challenges of marketers encounter supply and demand in Service matchin g a dynamic and consumption transported from one place to another transferred from one person to another. So, service firms are not able to build inventories during periods of slowdemand to uselater whenthe demand increases.
Managing Demand & Supply Outcome of lack of Inventory-Capability Excess Demand Demand exceeds optimum capacity Balanced demand & supply at the level of optimum capacity Excess Capacity
1. Excess demand Every service firm has a maximum capacity to serve customers. Maximum capacity represents the absolute limit of service availability. When demand for the service of a particular maximum capacity, it results firm exceeds its in undesirable consequences. First, the existing customers of the firm may cross over to the competitor, selling similar service. As a result, the service firm may lose considerable business. Second, in case of excess demand for services, the working hours of staff may be stretched.
2. Demand exceeds optimum capacity Both optimum and maximum capacity may not be the same. At optimum capacity level, resources are fully employed but not over-used. As a result, customers will receive quality service on time. But when demand exceeds optimum capacity, the staff and facilities are stretched, resulting in poor service.
the level of optimum capacity Optimum capacity refers to the efficient use of the capacity from the point of view of both the customers and the company. When demand and supply are balanced at the level of optimum capacity, staff and facilities are regarded to be occupied at an ideal level. No employee is over- stretched and facilities are maintained well. As a result, customers stand to benefit. Moreover, utilisation of optimum capacity gives a psychological satisfaction to customers too.
4. Excess capacity Excess capacity means the demand is below the be under- optimum capacity. Staff and facilities will utilised. Under-utilisation of facilities like equipment results in loss of profit to However, customers may prefer such a labour and the firm. situation as they can avail full facilities at will. On the other hand, customers may be disappointed by low demand too in the long run. They may even worry that they have chosen an inferior service provider.
Strategies for Managing Demand & Supply 1. Understanding capacity constraints 2. Understanding demand patterns 3. Capacity planning 4. Managing capacity to match demand 5. Managing demand to match capacity 6. Strategies to be used when demand and capacity cannot be matched.
1. Understanding capacity constraints a. Time b. Labour c. Equipment d. Infrastructure
2. Understanding demand patterns a. Charting Demand pattern b. Predicting cycles c. Identifying random demand pattern by fluctuations d. Disaggregating demand market segment
3. Capacity Planning Types of Capacity Planning: a. Long term capacity planning b. Short term capacity planning
4. Managing capacity to match demand The strategic approach to matching supply and demand focuses on adjusting capacity. So, the service firm should build into its capacity some degree of flexibility. The extent of flexibility depends upon the type of service offered, cost, labour availability and other factors.
5. Managing demand to match capacity This strategy involves shifting demand to match capacity when demand exceeds the organisation tries to shift capacity. Then, customers to periods of slow demand. This is just convincing the customers to use the service during periods of slow demand. So, people who cannot shift their demand represent lost business for the firm.
5. Managing demand to match capacity Shift Demand Demand too high Demand too low Use signage to communicate busy days and times. Offer incentives customers for usage to during non-peak times Take care of loyal or regular customers first. Advertise peak usage times and benefits of nonpeak use. Charge full price for the service – no discounts. Use sales and advertising to increase business from current market segments. Modify the service offering to appeal to new market segments. Offer discounts or price reductions.  Modify hours of operation Bring the service to the customer
6. Strategies to follow when demand & capacity cannot be matched Sometimes, it may not be possible for the service organisations to manage capacity to match demand or vice versa. For example, in a health clinic patients wait longer to be examined by the monsoon/inclement weather when doctor during morepeople catch ‘flu’. The demand is flexible but the service capacity is inflexible and it is not economical for health clinics to add additional facilities or physician to handle peaks in demands.
Internal Marketing - Definition “The means of applying marketing to people who the philosophyand serve the external customers so that: a) The best possible people can be employed and retained; and b) They do the best possible work”. - Berry
Internal Marketing - Definition “Treating with equal importance the needs of the internal market (the employees) and the external market (customers) through proactive programmes and planning to bring about organisational objective by delivering employee and customer satisfaction”. -Helen Woodruffe
Objectives of Internal Marketing Objectives of Internal Marketing Strategic level objectives Supportive methods  Personnel Policy Tactical level objectives  Sale of Services  Supporting Services  Campaigns Single Marketing efforts Overall objective s mgt Internal Policy Planning Procedure Tradin g & Control
Role of Internal Marketing 1. Internal marketing motivates the personnel to work better and satisfy customers. 2.Every employee needs information for his effective functioning in an organisation. Internal marketing builds a good communication network provides information to all employees which thereb y supporting the service environment. 3.Internal marketing enables the service organisation to gain additional market share. 4. It signifies the role of every employee and reduces conflict between the functional areas of business.
Role of Internal Marketing 5.Customer service gets a high priority and the entire organisation focuses on a customer-oriented approach. 6.Internal marketing helps to develop committed personnel who can provide best possible service to customers. 7.Internal marketing equips people with technical skill and knowledge required for their effective functioning. 8. It builds the corporate image by creating awareness and appreciation of the company’s aims and strength.
Components of Internal Marketing 1. Latest methods of training 2. Continuous interaction with the management 3. Internal Communication 4. Marketing research 5. Other human resource management activities
Steps in developing Internal Marketing 1. Market Definition 2. Market Research 3. Market Segmentation 4. Selection of Techniques 5. Marketing Communication 6. Marketing Orientation
External Marketing External marketing is directed at those individuals and groups that buy goods and services organization. External marketing traditional marketing efforts such as from an involves market research, personal selling, advertising, direct mail, sales promotion, pricing and public relations. The organization makes promises which correspond with the personal needs and wishes
Internal & External Marketing External Marketing Internal Marketing 1. There is interaction between the organization and customers There is interaction between the organization and its employees. 2. Customers influence the operations of the organization. Management plays a crucial role in finalising tasks and directingemployees. 3. Organisation makes promises to its customers. Internal marketing enables the employees to fulfil the promises made during external marketing 4. Customers derive benefits from the service offering. Employees compensation company. derive plan benefits adopted by from the 5. External Marketing aims at achieving customer satisfaction Internal marketing increases job satisfaction among employees. 6. Market research is conducted on customer trends, competitors’ strategy etc., in the market. Feedback is obtained from employees. Training and appraisal of employees are suitably adopted.
Quality of Service The quality of service (QOS) is crucial both to the customer and to the service firm. Service firms maintain competitive edge by rendering quality service. The concept of quality seems to refer to several diverse areas, namely, quality of the output, quality of the process, quality of the delivery system and quality as a general philosophy of the organization.
Quality of Service The following are some important ways of judging quality of service: a. Fitness for purpose. b.The totality of features of service that meet the customer needs. c.The difference between customer expectations and performance delivery. d. Meeting or exceeding the customer expectations.
Dimensions of Quality of Service Dimensions of Service Quality Reliability Responsiveness Assurance Empathy Tangibles
Gap Analysis There is always bound to be a gap between the QOS which is expected and the QOS that is rendered. Customer service is based on perceptions. While one customer appreciates, the other may narrate it as harrowing experience. Parasuram and quality model Berry have to indicate consumer developed a service quality perceptions. Viewing services in a structured, integrated way is called the gap model of QOS.
Gap model of Service Quality Expected Service Perceived Service Service Delivery Company perceptions of consumer External communication to customers Custome r Custome r Company Gap 1 Gap 3 Customer driven service design & standards Gap 2 Gap 4
Key factors leading to the customer gap Gap 1: Not knowing what customers expect Gap 2: Not selecting the right service designs and standards Gap 3: Not delivering to service standards Gap 4: Not matching performance to promises Customer Expectations Customer Perceptions
1. Provider Gap 1: Not knowing what customers expect Inadequate marketing research orientation Insufficient marketing research Research not focused on service quality Inadequate use of marketing research Lack of upward communication Lack of interaction between management and customers Insufficient communication between contact employees and managers Too many layers between contact personnel and top management Insufficient relationship focus Lack of market segmentation Focus on transactions rather than relationships Focus on new customers rather than relationship customers Inadequate service recovery Customer Expectations Company perceptions of customer expectations
2. Provider gap 2: Not selecting the right service quality designs and standards Poor Service design Unsystematic new service development process Vague, undefined service designs Failure to connect service design to service positioning Absence of customer defined standards Lack of customer-defined standards Absence of process management to focus on customer requirements Absence of formal process for setting goals Inappropriate physical evidence and scope for services Customer driven service designs and standards Company perceptions of customer expectations
3. Provider gap 3: Not delivering to service standard s Deficiencies in human resource policies Ineffective recruitment Role ambiguity and role conflict Poor employee-technology job fit Inappropriate evaluation and compensation systems Lack of empowerment, perceived control and team work Failure to match supply and demand Failure to align peaks and valleys of demand Inappropriate customer mix Over reliance on price to smoothen demand Customer’s unfulfilling roles Customer ignorance of roles and responsibilities Customer negatively affecting each other Problems with service intermediaries Channel conflict over objectives and performance Channel conflict over costs and rewards Difficulty in controlling quality and consistency Tension between empowerment and control Service delivery Customer-driven service designs and standards
4. Provider gap 4: When promises do not match performance Lack of integrated services marketing communication Tendency to view each external communication as being independent Not including interactive marketing in communication plans Absence of strong internal marketing programme Ineffective management of customer expectations Not managing customer expectations through all forms of communication Not adequate educating customers Overpromising Over-promising in adversting Over-promising in personal selling Over-promising through physical evidence cues Inadequate horizontal communication Insufficient communication between advertising and operations Differences in policies and procedures across branches or units Service de livery External communication to customers
Marketing of Services Financial Services Healthcare Touris m Professional or Consultancy Services Telecommunication Banking Insurance
Financial Services - Banking The financial services such as banking and insurance are an inevitable part of an economy. This is the area which really needs to be strengthened. Financial services like banking and insurance require a focus on efficiency and costs. and performance through The financial system has improving operations improved in terms of number of financial instruments and the number of active participants in the market.
Characteristics of Financial Service Financial Services Intangibility Inseparability Variability Perishability High involvement and long-time purchase B r a n d

More Related Content

PDF
U1 U2 U3.pdf
byfaisal405244
 
PDF
T5MM1servicesmarketing (1).pdf
byRaselMahmud84
 
PPT
Services Mktg.ppt
bySushmitaSarnaik1
 
PPTX
7 Ps of Service & service design
byRajlaxmi Bhosale
 
DOCX
Marketing 8 services marketing (reviewer)
byAndrei John Cantilleps
 
PPT
Services marketing
byPradeep Giri
 
PPTX
SM UNIT 1 2020 SESSION.pptx
bybharathi46334
 
PPTX
Unit 1
byDeborah Sharon
 
U1 U2 U3.pdf
byfaisal405244
 
T5MM1servicesmarketing (1).pdf
byRaselMahmud84
 
Services Mktg.ppt
bySushmitaSarnaik1
 
7 Ps of Service & service design
byRajlaxmi Bhosale
 
Marketing 8 services marketing (reviewer)
byAndrei John Cantilleps
 
Services marketing
byPradeep Giri
 
SM UNIT 1 2020 SESSION.pptx
bybharathi46334
 
Unit 1
byDeborah Sharon
 

Similar to MODULE 1 SERVICE MARKETING &CUSTOMER .pptx

PPTX
Service marketing1
bySwarit Yadav
 
PPT
Lovelock ppt chapter_01
bywickedkhan
 
DOC
Marketing of services
byKriti Dogra
 
PPTX
Introduction to The service marketing mix
byDrReenuMohan
 
PPT
FOUNDATIONS-FOR-SERVICES-MARKETINGgg.ppt
byandrian660732
 
PPTX
1. serv mark introduction
bySuzana Vaidya
 
PDF
Service marketing
byrenukamahadane
 
PPT
Marketing services
bykutejyoti
 
PPT
Marketing services
bykutejyoti
 
PPTX
Marketing of services an introduction and facts
byVipin Kumar
 
PPTX
Classification and Characteristics of a service
bySanchit
 
PPTX
1. service marketing introduction
byAkash Bakshi
 
PDF
INTRODUCTION TO SERVICES
byparu04
 
PPT
Introduction to services
byRbk Asr
 
PPT
intro to service marketing
byrockinglucky87
 
PPTX
Sm ppt
byManas Pandey
 
PPTX
chap001.pptx
byAnoopGupta983997
 
PPT
Services marketing 1
byiipmff2
 
PPT
Lovelock01
bykhurram shahzad Niazi
 
PPTX
Introduction to service marketing
byRajThakuri
 
Service marketing1
bySwarit Yadav
 
Lovelock ppt chapter_01
bywickedkhan
 
Marketing of services
byKriti Dogra
 
Introduction to The service marketing mix
byDrReenuMohan
 
FOUNDATIONS-FOR-SERVICES-MARKETINGgg.ppt
byandrian660732
 
1. serv mark introduction
bySuzana Vaidya
 
Service marketing
byrenukamahadane
 
Marketing services
bykutejyoti
 
Marketing services
bykutejyoti
 
Marketing of services an introduction and facts
byVipin Kumar
 
Classification and Characteristics of a service
bySanchit
 
1. service marketing introduction
byAkash Bakshi
 
INTRODUCTION TO SERVICES
byparu04
 
Introduction to services
byRbk Asr
 
intro to service marketing
byrockinglucky87
 
Sm ppt
byManas Pandey
 
chap001.pptx
byAnoopGupta983997
 
Services marketing 1
byiipmff2
 
Lovelock01
bykhurram shahzad Niazi
 
Introduction to service marketing
byRajThakuri
 

More from Dr SHAILAJA

PPTX
ROLE OF COMPUTERS IN RESEARCH. pptx notes for all researchers
byDr SHAILAJA
 
PPTX
s RESEARCH METHODOLOGY COMPLETE PPTs.pptx
byDr SHAILAJA
 
PPTX
notes on Business Processing Re-engineering.pptx
byDr SHAILAJA
 
PPTX
IMPORTANCE OF GOOD AND BAD NEWS IN WRITTEN AND ORAL COMMUNICATION.pptx
byDr SHAILAJA
 
PPTX
FORMAT FOR WRITING BUSINESS LETTERS.pptx
byDr SHAILAJA
 
PPTX
ONE FORM OF COMMUNICATION: WRITTEN COMMUNICATION.pptx
byDr SHAILAJA
 
PPTX
SUPPLY CHAIN MANAGEMENT BULLWHIP EFFECT. pptx
byDr SHAILAJA
 
PPTX
External and Internal Context of Business Ethics.pptx
byDr SHAILAJA
 
PPTX
AN OVERVIEW ETHICS IN FUNCTIONAL AREAS.pptx
byDr SHAILAJA
 
PPTX
INTRODUCTION TO CORPORATE GOVERNANCE.pptx
byDr SHAILAJA
 
PPTX
Business Corporate Governance Subjectivism in Ethics.pptx
byDr SHAILAJA
 
PPTX
MARUTHI BACK IN BUSINESS REOPENING OF COMPANIES.pptx
byDr SHAILAJA
 
PPTX
INTRODUCTION TO MORAL DEVELOPMENT IN OPERSONALITY.pptx
byDr SHAILAJA
 
PPT
Time Management (planning,prioritize task).ppt
byDr SHAILAJA
 
PPT
stress management (meaning, definition).ppt
byDr SHAILAJA
 
PPTX
SELF DEVELOPMENT ( personal skills, qualities, and capabilities).pptx
byDr SHAILAJA
 
PPT
INTRODUCTION AND nature of strategic management.ppt
byDr SHAILAJA
 
PPTX
MATERIAL MANAGEMENT Job Shop Scheduling.pptx
byDr SHAILAJA
 
PPTX
PRODUCTION OPERATIONS MANAGEMENT SCHEDULING.pptx
byDr SHAILAJA
 
PPTX
Statistical Analysis: FUNDAMENTAL TO STATISTICS.pptx
byDr SHAILAJA
 
ROLE OF COMPUTERS IN RESEARCH. pptx notes for all researchers
byDr SHAILAJA
 
s RESEARCH METHODOLOGY COMPLETE PPTs.pptx
byDr SHAILAJA
 
notes on Business Processing Re-engineering.pptx
byDr SHAILAJA
 
IMPORTANCE OF GOOD AND BAD NEWS IN WRITTEN AND ORAL COMMUNICATION.pptx
byDr SHAILAJA
 
FORMAT FOR WRITING BUSINESS LETTERS.pptx
byDr SHAILAJA
 
ONE FORM OF COMMUNICATION: WRITTEN COMMUNICATION.pptx
byDr SHAILAJA
 
SUPPLY CHAIN MANAGEMENT BULLWHIP EFFECT. pptx
byDr SHAILAJA
 
External and Internal Context of Business Ethics.pptx
byDr SHAILAJA
 
AN OVERVIEW ETHICS IN FUNCTIONAL AREAS.pptx
byDr SHAILAJA
 
INTRODUCTION TO CORPORATE GOVERNANCE.pptx
byDr SHAILAJA
 
Business Corporate Governance Subjectivism in Ethics.pptx
byDr SHAILAJA
 
MARUTHI BACK IN BUSINESS REOPENING OF COMPANIES.pptx
byDr SHAILAJA
 
INTRODUCTION TO MORAL DEVELOPMENT IN OPERSONALITY.pptx
byDr SHAILAJA
 
Time Management (planning,prioritize task).ppt
byDr SHAILAJA
 
stress management (meaning, definition).ppt
byDr SHAILAJA
 
SELF DEVELOPMENT ( personal skills, qualities, and capabilities).pptx
byDr SHAILAJA
 
INTRODUCTION AND nature of strategic management.ppt
byDr SHAILAJA
 
MATERIAL MANAGEMENT Job Shop Scheduling.pptx
byDr SHAILAJA
 
PRODUCTION OPERATIONS MANAGEMENT SCHEDULING.pptx
byDr SHAILAJA
 
Statistical Analysis: FUNDAMENTAL TO STATISTICS.pptx
byDr SHAILAJA
 

Recently uploaded

PPTX
Strategic Branding ( Brand Resosnance and Value Chain)
byalmohammad102030
 
PDF
Global Micro-LED Display Market Set to Revolutionize Next-Generation Display ...
byMayraLee1
 
PDF
Best 10 Sites to Buy Verified Paypal Account_ Best 2025 Picks.pdf
byGetpvait
 
PDF
Rochester Homes Product Guide October 2025
byJimWilliams206540
 
PDF
11 Place To Buy, Verified Remitly. Accounts in 2025-26.pdf
bygfuhfhj506
 
PDF
Learn Real Skills via Social Media Training
bylearndigital marketingpro
 
PDF
Emang Benar Branding Cuma Mengenai Estetik saja?
byAldridge Christian Seubelan
 
PDF
Michelle_Pellettier_B2B Digital and Content Marketer
byMichelle Pellettier
 
PDF
Google Business Profile Post Scheduler​: Turrboo
byTurrboo
 
PDF
Yordan Dimitrov - Forget SEO vs AI. Build a brand people trust or get left be...
byYordan Dimitrov
 
PDF
Vietnam Digital Economy - Ecommerce Landscape - Rewind - 2024
byPerry Cao
 
PPTX
digital_marketing_luxvisage_company_20251016_110145_0000_1.pptx
byabdirashidovzaynulla
 
PPTX
SEJxCallRail_10-22_Webinar_Slide-Deck.pptx
bySearch Engine Journal
 
PDF
From 50,000 GSC Keywords to 247 Actionable Tasks: The Architecture Most SEO T...
byChristopher Helm
 
PPTX
The AI Content Advantage; SM Strategies for Now
byJoseph Skibbie
 
PDF
Narrative Alchemy: Transforming Tales into Power
bySumon maitra
 
PDF
Your Brand Ought to be Visible to Everyone
byMedian Connect India Pvt Ltd
 
PPTX
Best digital marketing course in davanagere
bydlajjaiah
 
PDF
Freelance Digital Marketing: Unlocking Growth With The Best Digital Marketer ...
bybhabhabha2255
 
PPTX
WHY farmers Producers organization is required
bydganie
 
Strategic Branding ( Brand Resosnance and Value Chain)
byalmohammad102030
 
Global Micro-LED Display Market Set to Revolutionize Next-Generation Display ...
byMayraLee1
 
Best 10 Sites to Buy Verified Paypal Account_ Best 2025 Picks.pdf
byGetpvait
 
Rochester Homes Product Guide October 2025
byJimWilliams206540
 
11 Place To Buy, Verified Remitly. Accounts in 2025-26.pdf
bygfuhfhj506
 
Learn Real Skills via Social Media Training
bylearndigital marketingpro
 
Emang Benar Branding Cuma Mengenai Estetik saja?
byAldridge Christian Seubelan
 
Michelle_Pellettier_B2B Digital and Content Marketer
byMichelle Pellettier
 
Google Business Profile Post Scheduler​: Turrboo
byTurrboo
 
Yordan Dimitrov - Forget SEO vs AI. Build a brand people trust or get left be...
byYordan Dimitrov
 
Vietnam Digital Economy - Ecommerce Landscape - Rewind - 2024
byPerry Cao
 
digital_marketing_luxvisage_company_20251016_110145_0000_1.pptx
byabdirashidovzaynulla
 
SEJxCallRail_10-22_Webinar_Slide-Deck.pptx
bySearch Engine Journal
 
From 50,000 GSC Keywords to 247 Actionable Tasks: The Architecture Most SEO T...
byChristopher Helm
 
The AI Content Advantage; SM Strategies for Now
byJoseph Skibbie
 
Narrative Alchemy: Transforming Tales into Power
bySumon maitra
 
Your Brand Ought to be Visible to Everyone
byMedian Connect India Pvt Ltd
 
Best digital marketing course in davanagere
bydlajjaiah
 
Freelance Digital Marketing: Unlocking Growth With The Best Digital Marketer ...
bybhabhabha2255
 
WHY farmers Producers organization is required
bydganie
 

MODULE 1 SERVICE MARKETING &CUSTOMER .pptx

  • 1.
  • 2.
    SERVICES “Services are activities,benefits or which are offered for sale or provided in with sale of goods”. - The American Association satisfactio n connection Marketing identifiable “Services are those separately essentially intangible activities, which provid e want satisfaction when marketed to consumers necessarily service”. - and/or industrial uses and which are not tied to the sale of a product or another Stanton
  • 3.
  • 4.
    1. The PhysicalProduct The various products marketed by a firm involve the physical transfer of ownership of those products. They are tangible and their quality is standardised. For Example, physical products include T.V., Radio, Refrigerators, Computers, Hair oil, Vacuum Cleaner, Washing Machine, etc.
  • 5.
    2. Service Product Aservice is an activity or benefit that one party can offer to another which is essentially intangible in nature. Service involve some interaction with customers without effecting transfer of ownership. For example, people visiting exhibitions, trade fairs are allowed to inspect the consumer durables without being approached by sales representatives. Salesmen are trained in making proper approach to the customer visiting their showrooms.
  • 6.
    3. Service Environment Thepotential customers form an impression about the service on the basis of service environment. The service environment represents the physical back drop that surrounds the service. For example, providing hygienic food is the core service in a hotel or restaurant. Customers expect the restaurants to be maintained clean, offer flexible dining hours prompt service, soft music, décor, exotic menu etc.
  • 7.
    4. Service Delivery The Servicedelivery is one of the important components of service. Service delivery is of great importance to the customer’s overall perception about the quality of service. The service provider should give due consideration to the way service is rendered to customers. Services are created as they are consumed.
  • 8.
  • 9.
    CHARACTERISTICS OF SERVICES 1.Intangibility 2. Inseparability 3. Heterogeneity (Individuality or Variability) 4. Perishability 5. Ownership 6. Absence of Quantitative measurement
  • 10.
    CLASSIFICATION OF SERVICES 1.Classification of Services by Adrian Payne (a) Communications and information services (b) Public utilities, government and defence (c) Health care (d) Business, Professional and Personal Services (f) Recreational and hospitality services (g) Education; and (i) Other non-profit organisations
  • 11.
    CLASSIFICATION OF SERVICES 2.Classification of Services by Christopher Lovelock  Nature of Service Act  Type of relationship that the serviceorganisation has with its customers  Scopefor Customisation and Judgement in DeliverySystem  Nature of demand and supply for the service (a) Methods of Service Delivery
  • 12.
    CLASSIFICATION OF SERVICES 1.Consumer Service:  Food Services  Hotels and Motels  Personal care services  Car services firms  Entertainment services  Transport services  Communication Services  Insurance services  Financial services 2. Industrial Service:  Financial Services  Insurance services  Transport & warehousing  Engineering services and  Advertising promotion services  Office services,  Management consul tancy
  • 13.
    CLASSIFICATION OF SERVICES– Philip Kotler 1. Pure Tangible Goods 2. Tangible Goods with accompanying services 3. Hybrid minor goods 4. Major service with accompanying and services 5. Pure service
  • 14.
    SERVICES DESIGN A serviceinvolves creation and delivery of core benefits in order to satisfy an identified need of the customer. As a process, it refers as to how a service is provided or delivered to a customer. In a competitive market, the importance of the actual process in service delivery has been recognised.
  • 15.
  • 16.
    Factors Influence DesigningService Process 1. The Service Itself 2. Customer Participation in the process 3. Location of Service Delivery 4. Level of Customer Contact 5. Degree of Standardisation 6. Complexity of the service
  • 17.
    Mgt model forService Design / Stages / Process Developin g design attributes Specifying design performance standards Generating & evaluating design concepts Developing design details Improving performance Assessing satisfaction Measuring performance Implementing the design
  • 18.
    BLUEPRINTING A service blueprintis a flow chart of the service process. It conveys the service concept by showing all the elements or activities and their sequencing and interaction. It is pictorial description of the system showing the service at an overview service level. It functions in Blueprinting explains how each job or department relationship to the service as a whole. was developed by Shostak in 1987.
  • 19.
    STAGES IN PREPARATIONOF BLUEPRINTING 1. Put the service in the form of its molecular structure 2. Divide the process into logical steps 3. Recognise the variability in the process 4. Identify the backstage actions in the process
  • 20.
    Technology & ServiceProductivity Service organisations can improve their productivity by introducing systems and technology in their operations. Under the systems approach to services marketing technology, engineering and management implemented into service industries. approach looks at the task as a whole. sciences are The systems The systems approach identifies the key operations performed, devises new ways of performing to be each operation, eliminates superfluous practices through new methods and improves the coordination of processes within the system.
  • 21.
    Application of technologyto service Activities Hard Technology Soft Technology Hybrid Technology
  • 22.
    1. Hard Technology Hardtechnologies substitute machinery, tools and performance of service work. other engineering devices for labour The intensiv e followin g examples can be offered for the application of hard technologies in the service sector. Example: Automatic car washes, airport x-ray equipment, automatic car vending equipment, audio and bank computers, the consumer credit card balance checking machine.
  • 23.
    2. Soft Technology Softtechnology means substituting pre-planned systems for individual service operations. Though the systems involve some technology, the basic characteristic is the system itself. Example: Fast food restaurants such as MC Donald, Wendy, Pizza hut, Kentucky Fried Chicken follow rationale division of labour. Use of soft technologies in these organistions ensures the benefits in the forms of high quality, cost control, speed and efficiency, cleanliness and low prices.
  • 24.
    3. Hybrid Technology hardwar e with Hybridtechnologies combine carefully engineered systems to bring greater efficiency, order and speed to the service process. Example: The cost of energy can be substantially saved by careful programming for types and grades of roads, location of stops, congestion of roads, toll road costs and mixing point access.
  • 25.
    Role of Technologyin Service process 1. Easy accessibility of service 2. New ways to deliver service 3. Close link with customers 4. Higher level of service 5. Global reach of service 6. Cost Rationalisation
  • 26.
    Building Service Aspirations Theservice generating organisations building service aspirations in the process of generating demand for the services. The aspirations may be generated in two ways, namely, generating aspirations to serve the users and generating aspirations to use the services. Service aspirations of organisation engaged in generating services focus on offering quality services. Quality is generally conceptualised as an attitude towards service.
  • 27.
  • 28.
    Service Marketing Mix Thetraditional marketing mix is considered in the context of services. Since a different marketing mix is needed for services some have expanded the traditional four Ps. 1. Product 2. Pricing 3. Promotion 4. Place 5. People 6. Process 7. Physical evidence
  • 29.
  • 30.
    Service Marketing Mix- Definition “The marketing mix concept is a well established tool used as a structure by marketers. It consists of the various elements of a marketing programme which need to be considered in order to successfully implement the marketing strategy and positioning in the company’s market. It is important internal elements or ingredients that make up an organisation’s marketing programme”. – Adrian Payne
  • 31.
    Product (Service Product) Accordingto Adrian Payne, a product is an overall concept of objects or processes which provide some values to customers. Goods and services are sub- categories of product. The term produce is used in a broad sense to denote either a manufactured good or product and a service. Strictly speaking, customers are not buying goods or services but specific benefits and value from the total offering. This total offering to the customer is termed as “offer”.
  • 32.
  • 33.
    1. The coreor generic product The core product represents the basic services of a product. This product is at its basic level. For example, food served in a restaurant a bed in a hotel room for the night safety of deposits and loanable funds in a bank.
  • 34.
    2. The expectedproduct The expected product consists of the core product together with the minimal purchase conditions which addition to need to be met. For example in a restaurant in as cleanliness, basic food served, aspects such timely service polite and courteous service of bearer, availability of menu and background music are expected.
  • 35.
    3. The augmentedproduct benefit or services in Augmented product refers to offerings to hat (product customer s addition expect). This concept enables a product to be differentiated from another. For example, though IBM has not got technologically advanced core product they are praised for excellent customer service. This adds value to their core product in terms of reliability and responsiveness.
  • 36.
    4. The Potentialproduct product feasibl e refer s to to doing everything hold and attract the Potential potentially customers . The concept of potential product of a restaurant is viewed in terms of a pleasing flower arrangement, manager’s word of thanks, readiness to go out of the way to serve, etc.
  • 37.
    PRICE Price plays asignificant role in the marketing mix by attracting revenue to the marketer. Pricing decisions are important for determining the value of the service as perceived by the customer and building of an image for the service. Price serves as a basis for perception of quality. The pricing strategy should be in tune with the marketing strategy. Pricing strategy should gain competitive advantage for the firm.
  • 38.
    PRICE Decisions -Reasons 1. Pricing decisions have an impact on marketing channels. Suppliers, sales people, distributors, competitors and customers all are affected by the pricing system. 2. Since services are intangible in nature, pricing of services is highly important. The price is indicative of the quality of service that customers receive. Customers, by going through the menu of a restaurant can perceive the quality of food and the restaurant’s service level.
  • 39.
    PRICE Decisions -Reasons 3. Pricing gives information customers delivery and importance about the of immediacy of availability. Premium pricing the is followed during pricing maximum demand period and discounted when the demand for the service is low. 4. Pricing allows homogeneous services to be differentiated and facilitates the adoption of a premium pricing strategy.
  • 40.
    PRICING Objective The pricepolicies for service marketers should be on the lines of those used throughout the general field of marketing. The pricing policy to be followed should be based on pricing objectives. The important pricing objectives are survival, profit maximisation, sales maximisation, prestige and ROI. competition. In quoting prices, somefirms try to meet Where adverse market conditions prevail, marketers quote lower prices in order to ensure survival in the market, even foregoing profitability.
  • 41.
    PROMOTION Promotion is animportant part of the marketing mix for many marketers. The promotion element of the service marketing mix communicates the positioning tangibility and helps the customer evaluate serviceoffer.The promotion mix includes of the service to customers. Promotion adds the six elements, namely (a) Advertising (b) Personal Selling Word of (c) Sales Promotion (d) Public Relations (e) mouth and (f) Direct mail.
  • 42.
  • 43.
    (a) Advertising forservices Advertising is the impersonal communication used by service firms. Advertising in service marketing adds to the customer’s knowledge of the service, persuades the customer to buy and differentiates the service from other service offerings. Persistent advertising is, therefore, a must for the success of the marketing of the service.
  • 44.
    (b) Personal Selling PersonalSelling has assumed much importance in service firms owing to the following reasons. a) There is a personal interaction between the service provider and the customer b) The service is provided by a person not a of the service machine. c) “People” product. are becoming part
  • 45.
    (c) Sales Promotion Those selling, marketingactivities other advertising and publicity persona l stimulat e customers and dealers effectively than that such as display shows, exhibitions, demonstrations and various non- routine recurrent selling efforts not in the ordinary are the sales promotional measures.
  • 46.
    (c) Sales Promotion TOOLSOF SALES PROMOTION Free Offers Contests Discount and Commission Fairs and Shows Coupons, Prizes Cash Refunds Warranties
  • 47.
    (d) Publicity orPublic Relations Publicity consists of non-personal stimulation of demand for a product or service by way of arranging appeared in the sponsor). mass media commercially significant news to have mass media free of cost (not paid for Publicity is a free news appearing in about a company and its products.
  • 48.
    (e) Word ofMouth Promotion Customers who are already exposed to the delivery of a service, share their experiences with other potential customers. They offer advice on service providers and businesses who are established already. Personal recommendations through word constitut e information source. buying come from friends, associates collegues or experts.
  • 49.
    4. PLACE Place mixof services marketing involves the location and channels which are the two key decision areas. The service provider should decide as to how to deliver the service to the customer and where this should take place. The service provider should ensure that the promised services reach the ultimate users without any distortion. With regard to location, a service firm decides where its operations and staff are situated.
  • 50.
    5. PEOPLE In allthe organisations, people play a decisive role. Employees working in the service organisations are the contact people with the customers. Employees working in a bank, hotel, hair-cutting saloon etc., are all frontline people. They are in the customers who visit their these frontline people decides service organisation. A service direct contact with services. The role of the success of the organisation can be only as good as its people. The strength and success of the service organisation lies in the quality of the service personnel working in the organisation.
  • 51.
    6. PHYSICAL EVIDENCE Physicalevidence is another important variable to be considered in the context of services marketing. Since a service is intangible, it is important for the client to search for evidences which enables him to the service. Physical evidences are those evaluat e tangible clues which customers may receive during the process of receiving the service. The customers evaluate the worthiness of the service with the physical evidences they receive.
  • 52.
    7. PROCESSES The processesby which services are created and delivered to the customers are an important element of marketing mix. Customers perceive the delivery system as a part of the service itself. The decisions on process management are of great importance to the success of the marketing of the service. The processes involve the procedures, tasks, schedules, mechanisms, activities and routines by which a service is delivered to the customer.
  • 53.
    Managing Demand &Supply challenges of marketers encounter supply and demand in Service matchin g a dynamic and consumption transported from one place to another transferred from one person to another. So, service firms are not able to build inventories during periods of slowdemand to uselater whenthe demand increases.
  • 54.
    Managing Demand &Supply Outcome of lack of Inventory-Capability Excess Demand Demand exceeds optimum capacity Balanced demand & supply at the level of optimum capacity Excess Capacity
  • 55.
    1. Excess demand Everyservice firm has a maximum capacity to serve customers. Maximum capacity represents the absolute limit of service availability. When demand for the service of a particular maximum capacity, it results firm exceeds its in undesirable consequences. First, the existing customers of the firm may cross over to the competitor, selling similar service. As a result, the service firm may lose considerable business. Second, in case of excess demand for services, the working hours of staff may be stretched.
  • 56.
    2. Demand exceedsoptimum capacity Both optimum and maximum capacity may not be the same. At optimum capacity level, resources are fully employed but not over-used. As a result, customers will receive quality service on time. But when demand exceeds optimum capacity, the staff and facilities are stretched, resulting in poor service.
  • 57.
    the level ofoptimum capacity Optimum capacity refers to the efficient use of the capacity from the point of view of both the customers and the company. When demand and supply are balanced at the level of optimum capacity, staff and facilities are regarded to be occupied at an ideal level. No employee is over- stretched and facilities are maintained well. As a result, customers stand to benefit. Moreover, utilisation of optimum capacity gives a psychological satisfaction to customers too.
  • 58.
    4. Excess capacity Excesscapacity means the demand is below the be under- optimum capacity. Staff and facilities will utilised. Under-utilisation of facilities like equipment results in loss of profit to However, customers may prefer such a labour and the firm. situation as they can avail full facilities at will. On the other hand, customers may be disappointed by low demand too in the long run. They may even worry that they have chosen an inferior service provider.
  • 59.
    Strategies for ManagingDemand & Supply 1. Understanding capacity constraints 2. Understanding demand patterns 3. Capacity planning 4. Managing capacity to match demand 5. Managing demand to match capacity 6. Strategies to be used when demand and capacity cannot be matched.
  • 60.
    1. Understanding capacityconstraints a. Time b. Labour c. Equipment d. Infrastructure
  • 61.
    2. Understanding demandpatterns a. Charting Demand pattern b. Predicting cycles c. Identifying random demand pattern by fluctuations d. Disaggregating demand market segment
  • 62.
    3. Capacity Planning Typesof Capacity Planning: a. Long term capacity planning b. Short term capacity planning
  • 63.
    4. Managing capacityto match demand The strategic approach to matching supply and demand focuses on adjusting capacity. So, the service firm should build into its capacity some degree of flexibility. The extent of flexibility depends upon the type of service offered, cost, labour availability and other factors.
  • 64.
    5. Managing demandto match capacity This strategy involves shifting demand to match capacity when demand exceeds the organisation tries to shift capacity. Then, customers to periods of slow demand. This is just convincing the customers to use the service during periods of slow demand. So, people who cannot shift their demand represent lost business for the firm.
  • 65.
    5. Managing demandto match capacity Shift Demand Demand too high Demand too low Use signage to communicate busy days and times. Offer incentives customers for usage to during non-peak times Take care of loyal or regular customers first. Advertise peak usage times and benefits of nonpeak use. Charge full price for the service – no discounts. Use sales and advertising to increase business from current market segments. Modify the service offering to appeal to new market segments. Offer discounts or price reductions.  Modify hours of operation Bring the service to the customer
  • 66.
    6. Strategies tofollow when demand & capacity cannot be matched Sometimes, it may not be possible for the service organisations to manage capacity to match demand or vice versa. For example, in a health clinic patients wait longer to be examined by the monsoon/inclement weather when doctor during morepeople catch ‘flu’. The demand is flexible but the service capacity is inflexible and it is not economical for health clinics to add additional facilities or physician to handle peaks in demands.
  • 67.
    Internal Marketing -Definition “The means of applying marketing to people who the philosophyand serve the external customers so that: a) The best possible people can be employed and retained; and b) They do the best possible work”. - Berry
  • 68.
    Internal Marketing -Definition “Treating with equal importance the needs of the internal market (the employees) and the external market (customers) through proactive programmes and planning to bring about organisational objective by delivering employee and customer satisfaction”. -Helen Woodruffe
  • 69.
    Objectives of InternalMarketing Objectives of Internal Marketing Strategic level objectives Supportive methods  Personnel Policy Tactical level objectives  Sale of Services  Supporting Services  Campaigns Single Marketing efforts Overall objective s mgt Internal Policy Planning Procedure Tradin g & Control
  • 70.
    Role of InternalMarketing 1. Internal marketing motivates the personnel to work better and satisfy customers. 2.Every employee needs information for his effective functioning in an organisation. Internal marketing builds a good communication network provides information to all employees which thereb y supporting the service environment. 3.Internal marketing enables the service organisation to gain additional market share. 4. It signifies the role of every employee and reduces conflict between the functional areas of business.
  • 71.
    Role of InternalMarketing 5.Customer service gets a high priority and the entire organisation focuses on a customer-oriented approach. 6.Internal marketing helps to develop committed personnel who can provide best possible service to customers. 7.Internal marketing equips people with technical skill and knowledge required for their effective functioning. 8. It builds the corporate image by creating awareness and appreciation of the company’s aims and strength.
  • 72.
    Components of InternalMarketing 1. Latest methods of training 2. Continuous interaction with the management 3. Internal Communication 4. Marketing research 5. Other human resource management activities
  • 73.
    Steps in developingInternal Marketing 1. Market Definition 2. Market Research 3. Market Segmentation 4. Selection of Techniques 5. Marketing Communication 6. Marketing Orientation
  • 74.
    External Marketing External marketingis directed at those individuals and groups that buy goods and services organization. External marketing traditional marketing efforts such as from an involves market research, personal selling, advertising, direct mail, sales promotion, pricing and public relations. The organization makes promises which correspond with the personal needs and wishes
  • 75.
    Internal & ExternalMarketing External Marketing Internal Marketing 1. There is interaction between the organization and customers There is interaction between the organization and its employees. 2. Customers influence the operations of the organization. Management plays a crucial role in finalising tasks and directingemployees. 3. Organisation makes promises to its customers. Internal marketing enables the employees to fulfil the promises made during external marketing 4. Customers derive benefits from the service offering. Employees compensation company. derive plan benefits adopted by from the 5. External Marketing aims at achieving customer satisfaction Internal marketing increases job satisfaction among employees. 6. Market research is conducted on customer trends, competitors’ strategy etc., in the market. Feedback is obtained from employees. Training and appraisal of employees are suitably adopted.
  • 76.
    Quality of Service The qualityof service (QOS) is crucial both to the customer and to the service firm. Service firms maintain competitive edge by rendering quality service. The concept of quality seems to refer to several diverse areas, namely, quality of the output, quality of the process, quality of the delivery system and quality as a general philosophy of the organization.
  • 77.
    Quality of Service The followingare some important ways of judging quality of service: a. Fitness for purpose. b.The totality of features of service that meet the customer needs. c.The difference between customer expectations and performance delivery. d. Meeting or exceeding the customer expectations.
  • 78.
    Dimensions of Qualityof Service Dimensions of Service Quality Reliability Responsiveness Assurance Empathy Tangibles
  • 79.
    Gap Analysis There isalways bound to be a gap between the QOS which is expected and the QOS that is rendered. Customer service is based on perceptions. While one customer appreciates, the other may narrate it as harrowing experience. Parasuram and quality model Berry have to indicate consumer developed a service quality perceptions. Viewing services in a structured, integrated way is called the gap model of QOS.
  • 80.
    Gap model ofService Quality Expected Service Perceived Service Service Delivery Company perceptions of consumer External communication to customers Custome r Custome r Company Gap 1 Gap 3 Customer driven service design & standards Gap 2 Gap 4
  • 81.
    Key factors leadingto the customer gap Gap 1: Not knowing what customers expect Gap 2: Not selecting the right service designs and standards Gap 3: Not delivering to service standards Gap 4: Not matching performance to promises Customer Expectations Customer Perceptions
  • 82.
    1. Provider Gap1: Not knowing what customers expect Inadequate marketing research orientation Insufficient marketing research Research not focused on service quality Inadequate use of marketing research Lack of upward communication Lack of interaction between management and customers Insufficient communication between contact employees and managers Too many layers between contact personnel and top management Insufficient relationship focus Lack of market segmentation Focus on transactions rather than relationships Focus on new customers rather than relationship customers Inadequate service recovery Customer Expectations Company perceptions of customer expectations
  • 83.
    2. Provider gap2: Not selecting the right service quality designs and standards Poor Service design Unsystematic new service development process Vague, undefined service designs Failure to connect service design to service positioning Absence of customer defined standards Lack of customer-defined standards Absence of process management to focus on customer requirements Absence of formal process for setting goals Inappropriate physical evidence and scope for services Customer driven service designs and standards Company perceptions of customer expectations
  • 84.
    3. Provider gap3: Not delivering to service standard s Deficiencies in human resource policies Ineffective recruitment Role ambiguity and role conflict Poor employee-technology job fit Inappropriate evaluation and compensation systems Lack of empowerment, perceived control and team work Failure to match supply and demand Failure to align peaks and valleys of demand Inappropriate customer mix Over reliance on price to smoothen demand Customer’s unfulfilling roles Customer ignorance of roles and responsibilities Customer negatively affecting each other Problems with service intermediaries Channel conflict over objectives and performance Channel conflict over costs and rewards Difficulty in controlling quality and consistency Tension between empowerment and control Service delivery Customer-driven service designs and standards
  • 85.
    4. Provider gap4: When promises do not match performance Lack of integrated services marketing communication Tendency to view each external communication as being independent Not including interactive marketing in communication plans Absence of strong internal marketing programme Ineffective management of customer expectations Not managing customer expectations through all forms of communication Not adequate educating customers Overpromising Over-promising in adversting Over-promising in personal selling Over-promising through physical evidence cues Inadequate horizontal communication Insufficient communication between advertising and operations Differences in policies and procedures across branches or units Service de livery External communication to customers
  • 86.
    Marketing of Services Financial ServicesHealthcare Touris m Professional or Consultancy Services Telecommunication Banking Insurance
  • 87.
    Financial Services - Banking Thefinancial services such as banking and insurance are an inevitable part of an economy. This is the area which really needs to be strengthened. Financial services like banking and insurance require a focus on efficiency and costs. and performance through The financial system has improving operations improved in terms of number of financial instruments and the number of active participants in the market.
  • 88.
    Characteristics of FinancialService Financial Services Intangibility Inseparability Variability Perishability High involvement and long-time purchase B r a n d