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SERVICES MARKETING
What is a Service? A service is any activity or benefit that one party can offer to 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.
Kotler and Amstrong (1997, p. 265)

What is service?

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Why branded services?

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Branded service.
Unleash the potential of brand It makes customer service distinct

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Personalize and reinforce brands through staff/customer interactions Supports brand from within by management behaviour.

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communicate internally to ensure brands resonate within organizations Process of service is standardized. Infrastructure is good

Standard Service
Provides more flexibility

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Service models are developed once the person arrives Service models are designed with peoples rather than for people. Such services are made to be negotiable in nature.

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Infrastructure is poor Process is not standardized

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Branded services are in multiple locations Variety of option comes with price Branded services go beyond the normal service experience

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What is a Brand? .. a name, term, sign, symbol or design, or a combination of them, which is intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of their competitors
American Marketing Association

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3 Rs of Service Branding
Reach - Reach the right audience
by picking the right targets

Recognition - Build brand recognition with direct

marketing. your value

Reputation - Enhance your reputation by demonstrating

Reality

4 th R

This approach assumes that, in reality, your company delivers a high quality service. If you don't deliver a high quality service, even the best marketing can't save you. Poor reputation trumps bad marketing every time.

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Challenges
Challenges in Services Branding
Intangibility Heterogeneity Inseparability Perishability

Goods Tangible

Services Intangible

Services Branding Implications Service brands cannot be patented Service brands cannot be inventoried Service brands cannot be readily displayed or communicated Pricing service brands is difficult Service brands face difficulties delivering on promises Service brand quality uncontrollable factors depends on many

Standardised

Heterogeneous

Inseparability

Simultaneous production

Non-perishable

Perishable

Customers participate in the service brand transaction Employees may affect the service brand outcome Customers may affect one another in the service brand transaction Satisfaction of service brand is influenced by expected and perceived behaviour of service provider and customer Mass production of service brands is difficult Service brands face challenges to build and sustain image and reputation to retain customers Fluctuating demand can cause problems for branding services

THE SERVICES MARKETING TRIANGLE

COMPANY

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INTERNAL MARKETING

EXTERNAL MARKETING

EMPLOYEES INTERACTIVE MARKETING

CUSTOMERS

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PERSON GIVING TESTIMONIALS

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Continued in Next ppt.