Principle of Marketing Topic Service Marketing Lecture No By: Salman Shahid

What is Service Marketing? Examples: Defense, Postal, Education, health, Religious Services, Hospitals, Airlines, Hotels, Law Firms, Entertainment, etc Examples: Defense, Postal, Education, health, Religious Services, Hospitals, Airlines, Hotels, Law Firms, Entertainment, etc Definition: Activity or 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 Definition: Activity or 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

Designing a services marketing program Fundamental Characteristics of a Service : Fundamental Characteristics of a Service : What exactly are the characteristics of a service? How are services different from a product? In fact many organizations do have service elements to the product they sell, for example McDonald’s sell physical products i.e. burgers but consumers are also concerned about the quality and speed of service, are staff cheerful and welcoming and do they serve with a smile on their face? What exactly are the characteristics of a service? How are services different from a product? In fact many organizations do have service elements to the product they sell, for example McDonald’s sell physical products i.e. burgers but consumers are also concerned about the quality and speed of service, are staff cheerful and welcoming and do they serve with a smile on their face?

1. Lack of ownership. 1. Lack of ownership. You cannot own and store a service like you can a product. Services are used or hired for a period of time. You cannot own and store a service like you can a product. Services are used or hired for a period of time. For example when buying a ticket to the USA the service lasts maybe 9 hours each way, but consumers want and expect excellent service for that time. For example when buying a ticket to the USA the service lasts maybe 9 hours each way, but consumers want and expect excellent service for that time.

Intangibility: You cannot hold or touch a service You cannot hold or touch a serviceInseparability: Services cannot be separated from the service providers. Services cannot be separated from the service providers. Perishability: is used in marketing to describe the way in which service capacity cannot be stored for sale in the future. It is a key concept of services marketing.

Heterogeneity. It is very difficult to make each service experience identical. If travelling by plane the service quality may differ from the first time you travelled by that airline to the second, because the airhostess is more or less experienced. It is very difficult to make each service experience identical. If travelling by plane the service quality may differ from the first time you travelled by that airline to the second, because the airhostess is more or less experienced.

Designing a services marketing program The services customer The services customer Selecting target marketing Selecting target marketing Product planning( service offering) Product planning( service offering) Product mix strategy Product mix strategy Pricing structure Pricing structure Pricing strategy Pricing strategy Distribution system Distribution system Promotional program Promotional program

Service Marketing Mix/Extended Marketing Mix Product Price Place Promotion People Process Physical evidence. Product Price Place Promotion People Process Physical evidence.

Lets now look at the remaining 3 p’s: People: An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Staff should have the appropriate interpersonal skills, attitude, and service knowledge to provide the service that consumers are paying for. People: An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Staff should have the appropriate interpersonal skills, attitude, and service knowledge to provide the service that consumers are paying for.

Process Refers to the systems used to assist the organization in delivering the service. Imagine you walk into Burger King and you order a Whopper Meal and you get it delivered within 2 minutes. What was the process that allowed you to obtain an efficient service delivery? Refers to the systems used to assist the organization in delivering the service. Imagine you walk into Burger King and you order a Whopper Meal and you get it delivered within 2 minutes. What was the process that allowed you to obtain an efficient service delivery?

Physical Evidence Where is the service being delivered? Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organization. For Example:- If you walk into a restaurant your expectations are of a clean, friendly environment. On an aircraft if you travel first class you expect enough room to be able to lay down! Physical evidence is an essential ingredient of the service mix, consumers will make perceptions based on their sight of the service provision which will have an impact on the organizations perceptual plan of the service. Where is the service being delivered? Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organization. For Example:- If you walk into a restaurant your expectations are of a clean, friendly environment. On an aircraft if you travel first class you expect enough room to be able to lay down! Physical evidence is an essential ingredient of the service mix, consumers will make perceptions based on their sight of the service provision which will have an impact on the organizations perceptual plan of the service.

Scope of services Housing and other structures; Housing and other structures; Household operations: Household operations: Recreation and entertainment: Recreation and entertainment: Personal care Personal care Medical and health care Medical and health care Private education: Private education: Professional business services: Professional business services: Financial services: Financial services: Transportation Transportation Communications Communications

N.F.P services organizations Education Education Cultural Cultural Religious Religious Social concerns Social concerns Heath care Heath care Political Political And many more………….

Thank you