Professional Documents
Culture Documents
AMA defines services as activities, benefits, or satisfaction which are offered for sale, or provided in connection with the sale of goods.
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W.J.Regan in his article, The Service Revolution in Journal of Marketing services represent either intangibles yielding satisfactions directly ( transportation, housing), or intangible yielding satisfactions jointly when purchased either with commodities or other services (credit delivery).
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Modern services
Travel agency Real estates Advertising Public relations Market research Physical fitness, health clubs Car rentals Courier services Credit cards
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Examples of services
Banking, Transportation, Tourism, Hotel, Personal care, Education marketing, Hospital marketing,
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Examples of services
Courier services, Entertainment services, Electricity services, Telecommunication services, Automobile services Household services- baby sitters, maid servants,
security guards, attenders, gardeners, plumbers, computer service, secretaries
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Services are intangible Services are heterogeneous Services are inseparable Services are Perishable Services are susceptible to changing demand Services are subject to special pricing tactics Ownership cannot be transferred Simultaneity
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Products
1.Tangibility Versus Tangible
services
Intangibility:
Intangible 2.Transferability V/S Non transferability Goods can be It is not possible to transferred from one transfer goods from place to another one place to another place
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Goods and Services: A comparative analysis- continued Products Services 3. Existence: Durable Non existent in goods bought remain nature in existence 4. Heterogeneity Homogeneity Versus Cannot be Easy to measure the standardized. It is quality difficult to measure the quality of services Anand Modi
6. Separable Vs Inseparability
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Services We dont bear the right of reselling. If we book a seat in aircraft, a room in a hotel, a ticket in a cinema hall Produced and consumed at the same time
In manufacturing a physical product, the customers do not participate in the production process. Consumes only after they are produced.
Buyers and sellers are to participate in production activity undertaken by the service-seller. Ex: student in a class ; barber- customer
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Products can be Services cannot be produced and stocked stored. Supply is till they are sold there only when there is demand.
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Services
Short lived. They cannot be produced ahead of time and stocked for peak loads of demand
The market for services has wider fluctuations. Ex: transportationMorning and evening more load
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Services
variable
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Products have a Services are definite consumed but not configuration and possessed. apparent characteristic features which can be easily seen, touched, smelt, heard or worn
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More disposable income at customers command Increased scope for industrial specialization Growing fashion Professionalism in education Information explosion Sophistication in market Increasing Governmental activities Ever increasing complexity and sophistication in the jobs needed Change in the attitude of people towards life
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opportunities Optimal utilization of resources without consuming natural resources Paving way for the formation of capital Increasing standard of living increasing awareness on how to spend, where, how, Environment friendly technology Anand Modi 16
Tourism marketing
In tourism our emphasis is on temporary
and short term movement of people We consider tourism marketing a process of creating a product or providing a service. It is a managerial process to promote the business of tourism.
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Actual users
Potential users Occasional users
Habitual users
Non users
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Package tour Tour operators Tourist guides Resort representatives Tourism department Festivals Goa festival Investment in shares of Resorts
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A service has its own peculiarities and hence there is need for additional Ps. Persons such as Judd, Magarth and Kotler thought of adding at least six more Ps
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Positioning People Physical evidence Physical facilities Process management Power and public relations
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1. Positioning
Implanting in customers mind a clear cut meaning of what a product is. It refers to the picture which is being projected in the minds of the customers Concerned with identifying target market, development of uniqueness and communicating the same.
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2) People
It is the employees of the organization who represent the organization to the customers It is the employees to be trained to face the customers Employees are Internal customers
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people
Intimate and long term relationship Confidence in a particular doctor A well mannered waiter of a hotel develops his own clientele
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3. Physical evidence
Physical evidences are the tangible components such as buildings, furniture, stationery, letterheads, note pads, etc Physical evidences or tangible components are classified as under: i) Essential and (ii) Peripheral
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Physical evidence
i)
Essential or main services constitutes a dominant part of the service e.g., Impressive premises for a hotel college
ii) Peripheral evidences are minor or auxiliary associated with service. e.g., stationery, brochures, Pass Book, Cheque book, Bus ticket, Insurance policy document Physical evidences create impact on customers perceptions
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Physical evidence
A peripheral evidence can be possessed as a part of service bought. Ex: Service is affected by the setting that is visible to him
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4) Physical facilities
Accessibility or availability
Place - It deals with
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Location of services
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middlemen in the distribution of personal services like beauty parlour, hair dressing, repairs ,consultancy Indirect marketing is possible for banking, financial services, insurance, security services, travel and tourism through agents, franchising
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5. Process management
Assuring service availability and consistency Process refers to the way in which the
consumers receive delivery of service It consists of activities by which a service is produced and delivered to the ultimate consumer Service organisations have two dimensions, viz, 1.Front stage 2. back stage
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Prof Christian Gronross says that the marketing activities of service organizations can be clubbed under three major heads as External Marketing ( traditional 4 Ps) Internal Marketing Interactive Marketing
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Internal marketing
EMPLOYEES
External marketing
CUSTOMERS
INTERACTIVE MARKETING
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to manage with traditional marketing approaches using four Ps In product business, products are standardized and appear on the shelves waiting for the customers In service, customer reacts with a service provider whose service quality is less certain and more variable
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Internal Marketing
Almost every one should practice
marketing Cos manpower should be ready Internal employees should be trained and motivated for customer contact They should work as a TEAM Develop motivated and customer conscious employees
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Interactive Marketing In case of service marketing, service quality depends on both service provider and service delivery Customer judges service quality on the basis of technical norms such as (i) rate of success of surgeons and (ii) whether the surgeon showed concern and inspired the patient
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quality
Promise only what you can deliver and
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consumer rupee Demand for services will go up as the businesses are becoming professionals Service providing machines vending machines
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