Services Marketing
SERVICE IS ANY ACT OR
PERFORMANCE THAT ONE PARTY
CAN OFFER TO ANOTHER THAT IS
ESSENTIALLY INTANGIBLE AND DOES
NOT RESULT IN ANY OWNERSHIP
-PHILIP KOTLER
2
Types of services-
[Link] service firms may serve both- business
market , the private individuals.
Characteristics-
Advisory and problem solving, provided by a qualified
professionals known for their specialty, include an
assignment requested by the client, provided by a
professional who is independent and not connected
with other suppliers, supervised by professional
associations, to lay down requirements of competence,
to control the practice of profession and to enforce a
code of ethics.
Examples:- financial advice, advertising, business and
management consultancy, architectural and interior design
legal and medical services, estate agents
2. Business to business market or consumer oriented firms (non-
professional)
Example:- office catering services, cleaning services,
Holiday tour companies, fast food outlets, entertainment
industries
Intangibility
Heterogeneity
Inseparability
Perishability
Ownership
5
Intangibility:-
Marketers can develop two strategies to
communicate the benefits
[Link] services more tangible
[Link] on the service provider
Airline- competent pilots and flight
attendants
Life insurance-agents
hospitals-doctors, medical care
Heterogeneity:-
Service marketer can follow two strategies
[Link] control over the service
[Link] from people to machines
[Link] perceived risk-
e.g.:- by offering money back guarantee,
positive word of mouth
Inseparability:-
The simultaneous production and consumption
of services means
[Link] of distribution
2. Importance of many locations
3. Image of the service provider
Perishability:-
The service marketer can try to overcome the problems of
perish ability by trying to match supply and demand by
[Link] supply in accordance with demand (service
supply management)
[Link] supply fairly constant but trying to smooth out
demand to avoid excess capacity (service demand
management)
Classification of services
Direct recipient of service
PEOPLE THINGS
Nature of service
Services directed at people’s Services directed at goods and
Act
bodies other physical possessions
TANGIBLE [Link] [Link] and dry-cleaning
ACTIONS [Link] transportation [Link] and maintenance
[Link] saloons [Link]
[Link]
[Link]
Services directed at people’s Services directed at intangible
INTANGIBLE mind assets
ACTIONS
[Link] [Link]
[Link] services [Link] services
[Link] [Link]
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[Link] of relationship that the service
organisation has with its customers-
By Knowing personal details about the
customers, it becomes easy to contact them
& tailor special offers for them.
Type of relationship between organisation and customers
Membership No formal relationship
Nature of service relationship
delivery
Continuous delivery Insurance Radio stations
of service College enrollment Police protection
Banking Lighthouse
Trade associations Public Highway
Discrete transaction
Long distance phone calls Car rental
Tickets or passes Movie theater
Public transportation
Restaurants
[Link] for customisation & Judgement in Service
Delivery--
Extent to which service characteristics are customised
High Low
Extent to which
amount of judgment Professional services Education (large classes)
exercised by Surgery College food service
customer contact Taxi services Preventive health programs
staff Beautician
Plumber
High
Telephone service Public Transportation
Low Hotel service Movie theater
Routine appliance repair
Fast food Restaurant
[Link] of Demand and supply for
the service
Extent of demand
Wide Narrow
Extent to which
supply is Electricity Insurance
Constrained Telephone Legal services
Natural gas Banking
Peak demand can Police &fire emergencies Laundry and dry cleaning
usually be met
without a major
delay
Accounting &tax preparation Services similar to those above
Peak demand Hotels but with insufficient capacity
regularly exceeds Restaurants for their base level of business
capacity Theaters
[Link] of service delivery
Questions-
[Link] the service be delivered at a single site or
through multiple outlets
[Link] is the most convenient type of transaction
for customers
3. If the type of interaction is changed,would the
service
Availability of service outlets
Nature of
interaction Single site Multiple site
between
customer & Bus service
service Theater Fast- food chain
organisation Barbershop
Customer
goes to service
organisation
Lawn care service Mail delivery
Pest control service Emergency repairs
Service Taxi
organisation
comes to
customer
Component tasks in service Marketing
Product-
Understanding the nature of service
Understanding the customer and his expectation
of the service
Giving a shape to the service (developing the
service product)
Organizing delivery system (Place):-
[Link] decision
[Link] channels/intermediaries
Pricing strategy:-
People:-
Selection of personal
Motivation
Training
Team development
Physical evidence:-
Process:-
Promotion (achieving differentiation):-
[Link] the offer
a. on the basis of speed
[Link] the actual performance of
the service on the basis of:-
a. People providing the service
b. Physical evidence involved
c. Process involved in the service
[Link] the image
Managing Service quality
Gap between management perceptions and consumer
expectations
Gap between management perceptions and service
quality specifications
Gap between service quality specifications and service
delivery
Gap between service delivery and promises made to the
customers through communication
Gap between expected service and perceived service
Determinants of service quality-(SERVQUAL Model)
Reliability – delivering on promises
Responsiveness – willing to help
Assurance – inspiring trust and confidence
Empathy – individualising customers
Tangibles- physical representation