MANAGING SERVICES FOR BUSINESS MARKETS
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Rohan Mehra (2010184) Rohit deshmukh (2010185) Ronak kejriwal (2010189) Saket rathi (2010197) Shradha singhania (2010221) Hemank chauhan (2010289)
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INTRODUCTION
Services play critical role in marketing programs of
many B2B firms
Impossible to imagine any firm having surviving in
todays highly competitive market scenario
Eg: IBM
Services are often part of value package demanded by customers. Over half of IBMs revenues come from services
Most product manufacturers are now using integrated
product and service solutions as part of core marketing strategy.
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SERVICES IN THE B2B MARKET
Two distinct groups:
Products supported by services
The wide range of service elements that accompany the physical product are frequently as important as the technical solutions offered by the product itself. Those that are marketed in their own right without necessarily being associated with a physical product.
Pure services
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BUSINESS SERVICE MARKETING: SPECIAL CHALLENGES
Services are different:
Tangibility vs Intangibility Time lag between production and consumption Services cannot be stored Services highly variable, while products standardized
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BUSINESS PRODUCT SERVICE CLASSIFICATION ( BASED ON TANGIBILITY)
Very few offerings can be termed as Pure Product or
Pure Service
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FEW SERVICE CATEGORIES
Business services: Those market offerings that are intangible-dominant.
Few services are totally intangible--they often contain elements with tangible properties
Few types of service examples based on characteristics:
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SERVICE QUALITY
Quality standards ultimately defined by customer,
based on his experience.
Dimensions of Service Quality:
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CUSTOMER SATISFACTION & LOYALTY
Customer satisfaction measured by firms, as it leads
to loyalty and ultimately long term profitability. linking process affect customer satisfaction:
Four components of a firms offering & its customer
The basic elements of the product or service that customers expect all competitors to provide. Basic support services, such as technical assistance or training. A recovery process for quickly fixing product or service problems. Extraordinary services that so excel in solving customers unique problems or in meeting their needs that they make the product or service seem customized.
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SERVICE RECOVERY
Encompasses the procedures, policies, and
processes that a firm uses to resolve customer service problems promptly and effectively.
Service providers who satisfactorily resolve service
failures often see that their customers level of perceived service quality rises.
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ZERO DEFECTIONS
Defections: Customers who do not come back
Customer defections have a drastic effect on bottomline
As relation with customer strengthens, profits rise
Research has found that profits from a Fourth Year
customer is Triple that of a First Year customer
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MARKETING MIX FOR SERVICE FIRMS
Target segments must be selected, and then a marketin g mix must be tailored
Developme nt of service packages
Pricing
Promoti on
Distribut ion
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SEGMENTATION
First, service segments are often narrower.
Expectations
and routine
may not be met if service received is standardized
Second, service segmentation focuses on what they
business buyers expect as opposed to what they need.
Assessing
buyer expectations plays major role in selecting target market & developing appropriate service package
Third, segmenting service markets helps the firm to
adjust service capacity more effectively.
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SERVICE PACKAGES
Service Package:
Can be thought of as the product dimension of service Includes the range of services provided, and the quality and level of service.
Must also consider factors like the personnel who
perform the service, physical product that accompanies the service, & the process of providing the service
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CONCEPTUALIZING THE SERVICE PRODUCT
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DEVELOPING NEW SERVICES
Conventional process of developing new products:
Exploration, business analysis, development, testing, commercialization applies to services as well.
However, a major stumbling block to creating and launching
a new service is the difficulty in tangibilizing the service concept.
Traditional approaches, such as product prototyping, do not
work effectively with services because it is hard to prototype services that are often customized for individual buyers.
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NEW SERVICE PROJECTS THAT SUCCEED
The Customized, Expert Service: These new
services are relatively straightforward and inexpensive but are customized to fit the needs and operating systems of client firms.
The Planned, Pioneering Venture: These are
first-to-market services that are unique, complex, and expensive.
The Improved Service Experience:
Represented here are equipment-based 5/5/12
NEW SERVICE PROJECTS THAT FAIL
The Peripheral, Low Market Potential
Service: These new services tend to be peripheral to the firms core offerings, fail to provide added value to the customer, and enter a market with very limited potential.
The Poorly Planned Industrialized Clone:
These are complex new services that rely on hard technology for their production and delivery.
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THANK YOU
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