SERVICE MARKETING

What is Service? The Old View

Service is a technical after-sale function that is provided by the service department.

Old:

Service =
Old view of service =
wrench time
Customer Service Center
 Service - The New View

Service includes every interaction between any customer and anyone representing the company,

including:

Salespeople

Customer
What are Services ?

SERVICES IS AN ACT OR PERFORMANCE THAT ONE PARTY CAN OFFER TO

ANOTHER THAT IS ESSENTIALLY INTANGIBLE AND DOES NOT RESULT IN

ANY OWNERSHIP.
What are Services

Services are deeds, processes and performance.

It is intangible.

Does not result in ownership.

It may or may not be attached with a physical product.

Cannot be generally separated from their production.

 Service Defined

Services are usually intangible.

It is not a physical good; rather , it is the performance

ofan act or a deed.

Requires consumer to be present during the production

ordelivery of the service.

The service industry are actually selling an experience.

 GOVERNMENT
Courts

Employment Exchanges

Hospitals

Municipal services

Post offices

Schools, colleges.

SERVICE

BUSINESS
MANUFACTURERS
Airlines
Computer operators
Banks
Legal staff
Insurance
Accountants
Lawyers
Administrative staff
Doctors
Security staff
 Examples of Service Industries

Health Care
Hospital, Medical practice, Dentistry, Eye care

Professional Services
Accounting, Legal, Architectural

Financial Services
Banking, Investment advising, Insurance
Examples of Service Industries
Hospitality
Restaurant, Hotel/Motel

Travel
Airlines, Travel agencies

Others:
Hair styling, Pest control, Plumbing, Lawn maintenance, Counseling services, Health club
The Goods-Services Continuum

Canned Ready- Auto- Draperies, Rest- Repairs: Air Insurance,

foods made mobiles Carpets aurant auto, house, travel Consulting,

clothes meals landscaping Teaching

MOSTLY GOODS MOSTLY SERVICES

12 -10
 Goods Vs Services
Physical goods Services

Tangible Intangible

Homogeneous Heterogeneous

Production and distribution are separated from Production, distribution and consumption are
consumption simultaneous processes

A thing An activity or process

Core value processed in factory Core value produced in the buyer-seller interaction

Customers do not participate in the production Customers participate in production

process

Can be kept in stock Cannot be kept in stock

Transfer of ownership No transfer of ownership

 Characteristics of Services

Intangibility Heterogeneity

Simultaneous
Production
Perishability
and
Consumption
 Classification of service
A. End User
Consumer: Hairdressing, Personal finance, Packaged
holiday
Business to Business: Advertising agencies, Printing,
consultancy
Industrial: Plant maintenance & repair,Installation

B. Service Tangibility

Highly Tangible: Vending machine, Telecommunications

Service Linked with Tangible Goods: Car service,

Domestic appliancerepair

Highly Intangible: Legal services, Consultancy

 Classification ofservice cont .

C. Contact

High contact(People Based):Education, Dental care,Restaurants, Medical services

Low Contact(Equipment Based) : Automatic car wash,Cinema, Vendingmachine

D. Expertise

Professional :Medical Service, Legal Service, Tutoring

Non- professional :Baby Sitting, Care-taking, casuallabour

E. Profit Oriented

Not-for-profit: NGOs, Charities

Commercial :Banks, Airlines, Hotels

The Services Marketing Triangle

Company
(Management)

Internal Marketing External Marketing

enabling the
setting the
promise
promise

Employees Customers
InteractiveMarketing
delivering the promise
 Traditional Marketing Mix

All elements within the control of the firm that communicate the firms capabilities and image to
customers or that influence customer satisfaction with the firms product and services:

Product
Price
Place
Promotion
 Expanded Mix for Services -- the 7 Ps

Product

Price

Place

Promotion

People

Process

Physical Evidence
People

All human actors who play a part in service delivery and thus influence the buyers perceptions: namely, the firms

personnel, the customer, and other customers in the service environment.

Physical Evidence

The environment in which the service is delivered and where the firm and customer interact, and any tangible

components that facilitate performance or communication of the service.

Process

The actual procedures, mechanisms, and flow of activities by which the service is deliveredthe service delivery and

operating systems.
 Expanded Marketing Mix for Services

Product Place Promotion Price

Physical good featured Channel Type Promotion blend Flexibility

Quality level Exposure Sales People Price Level

Accessories Intermediaries Number Terms

Packaging Outlet locations Selection Differentiation

Warranties Transportation Training Discounts

Product line Storage Incentives Allowances

Branding Managing Advertising

channels Targets

Media Type

Type of ads

Sales Promotion

Publicity
Expanded Marketing Mix for Services

People Physical Evidence Process

EmployeesFacilitydesign Flow of activities

RecruitingEquipmentStandardized

Training Signage Customized

Motivation Employee dress Number of Steps

Rewards Other Tangibles Simple

Teamwork Reports Complex

Customers Business Cards Customer

Education Statements Involvement

Training Guarantees