1. Services Marketing Session 1st Dated: -07-03-2010
BY: -Neeraj Gupta

2. Definition of Service
“Service is an activity that has an element of intangibility associated with it and which involves the service provider’s interaction either with customers or with the property belonging to the customer”.
- Adrian Payne

3. What are services –Philip kotler
“Any activity of 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”.

4. Factors influencing growth of services as a Sector
Demographic changes
Social changes
Economic changes
Technological changes
Political & legal changes
Policy changes

5. Service Marketing Philosophy
Three main points of this philosophy are as follows: -
Create Customers
Keep/retain Customers
Profitable Customers

6. Evolution of service firms
All Advertisements, brochures etc. of southwest Airlines refer to the customer with a capital ‘C’ which indicates the company’s focus on the customer.
Differentiated services: Domino’s Pizza promises free Pizza if it is not offered at Customers’ door steps within 30 minutes

7. Definition – Services Marketing
Services marketing is marketing based on relationship and value. It may be used to market a service or a product. Marketing a service-base business is different from marketing a product-base business.

8. The Services Marketing Triangle
Company
Internal
Marketing
External
Marketing
Front-Line
Employees
Customers
Interactive
Marketing

9. The services marketing triangle
External marketing - interaction b/w co & customers
delivers quality service to customers
Information about products & services to external customers through communication-mix- Advertisements, sales promotion, personal selling, direct marketing and public relations

10. The services marketing triangle
Internal marketing - interaction b/w co & front-line employees
co enables its employees to deliver quality service to customers
Communicating information about the co’s products & services to employees of the organisation.

11. Newsletters Video shows Staff forums Presentations
Tools in internal marketing process
Newsletters
Video shows
Staff forums
Presentations

12. Interactive marketing – interaction b/w front-line employees & the customers
determines customer retention by service firms
physical or monetary exchange in the form of information
Improves value delivered to the customers in the form of a product or service

13. Characteristics of services
Intangibility
These are the ways in which intangibility can be overcome:
Visualization-Using visual aids
Association-Using personalities like endorsements by celebrities
Physical representation-Uniforms, Logos, mascots, colours etc
Documentation, facts and figures-
Perishability-
Over-marketing
Managing Demand
Managing Supply
Variability
Inseparability

14. Characteristics of services
Perishability-
Managing Demand
Rising Demand
Falling Demand
Zero Demand
Full Demand
Overfull Demand-Demand outstrips supply.
Negative Demand
Latent Demand
Seasonal or Irregular Demand
Unwholesome Demand-can be due to an unwanted change in the product or the service.

15. Characterstics of Services
Variability
Training of Internal Customers
Recruitment and Selection of Internal Customers
Training of External Customers
Automation
Inseparability
Training of internal customers
Adopting innovative methods of service-like group therapy etc.
Video conferencing
Robotics

16. Difference between physical goods and services
tangible
intangible
homogeneous
heterogeneous
Production and distribution are separated from consumption
Production, distribution and consumption are 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 process
Customers participate in production
Can be kept in stock
Cannot be kept in stock
Transfer of ownership
No transfer of ownership

17. Generic Differences Between Goods & Services
Nature of the product
Problems in quality control
Involvement of the customer in production and delivery
Absence of inventory
Structure and nature of distribution channels-Due to time gap difference in the production and distribution of products and services.

18. Generic Differences Between Goods & Services
Importance of prompt services
Difficulty in evaluating service quality

19. Generic differences b/w goods & Services
Nature of the product
Pure tangible good – pencil, cup or car battery
Tangible good supplemented by some services – fax machine with after-sale services
Services supplemented by a tangible good – books provided by DDE
Pure service – hair-cutting

20. Generic differences b/w goods & Services
Problems in quality control – perception
Hotel serves tasty food
Ambience is good
Waiters serve customers with a smile
*Fails to assist customer in finding a vacant table & *take orders quickly

21. Generic differences b/w goods & Services
Involvement of the customer in production & delivery
Customer walks into a coffee shop
like coffee Day or Brista
Ask for a customized drink with no sugar or with a chocolate flavor
If in a bad mood can shout on service assistant

22. Generic differences b/w goods & Services
Involvement of the customer in production & delivery
Replacing people with machines
Cashier replaced by ATMs
Telephone banking

23. Generic differences b/w goods & Services
Absence of inventories
opportunity if lost ---lost forever
Structure & nature of distribution channels
Absence of distribution channels- direct marketing
Importance of prompt service
Transport service

24. Generic differences b/w goods & Services
Difficulty in evaluating service quality
WOM

25. Thank You