Unit IV 2.service Marketing

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Designing and Designing and Managing Services Managing Services

What is a Service?
A service is any act of performance that one party can offer 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.

Service Sectors
Government Private nonprofit

Business Manufacturing

Retail

Categories of Service Mix


Pure tangible good Pure tangible good Good w/ accompanying services Good w/ accompanying services Hybrid Hybrid Service w/ accompanying goods Service w/ accompanying goods Pure service Pure service

Service Distinctions
Equipment-based or people-based Service processes Clients presence required or not Personal needs or business needs Objectives and ownership

Continuum of Evaluation for Different Types of Products

Distinctive Characteristics of Services 1. Intangibility

Strategies
Physical Evidence and Presentation
Place People Equipment Communication material Symbols Price

2. Inseparability 3. Variability
Strategies

Invest in good hiring and training procedures Standardize the serviceperformance process Monitor customer satisfaction

4.Pherishability
Matching Demand and Supply Demand side Differential pricing Nonpeak demand Complementary services Reservation systems Supply side Part-time employees Peak-time efficiency Increased consumer participation Shared services Facilities for future expansion

Strategies for service marketing


In Addition to the stategies that corresponds to different characteristics, marketers can adopt the holistic marketing strategy for service marketing (see the figure)

Three Types of Marketing in Service Industries

Service-Quality Model

Gaps That Cause Unsuccessful Service Delivery


1. Gap between consumer expectation and management perception 2. Gap between management perception and service-quality specifications 3. Gap between service-quality specifications and service delivery 4. Gap between service delivery and external communications 5. Gap between perceived service and expected service

Service Companies should identify these gaps and should try to remove or at least minimize the gaps to improve the quality of services.

Determinants of Service Quality


Reliability Responsiveness Assurance Empathy Tangibles

Best Practices
Strategic Concept Top-Management Commitment High Standards Self-Service Technologies Monitoring Systems Satisfying Customer Complaints Satisfying Employees

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