Services Marketing Introduction Challenges Importance of Services Session

Services Marketing Introduction, Challenges & Importance of Services Session: 1 OER Submission-201 x by RC-1080_005 is licensed under a Creative Commons Attribution-Non Commercial 4. 0 International License. You are free to use, distribute and modify it, including for commercial purposes, provided you acknowledge the source and share-alike. To view a copy of this license, visit http: //creativecommons. org/licenses/by-sa/4. 0/

Importance of Service Sector • Growth in the service sector employment – GDP • Economic Impact - The majority of industries do not produce, they perform Fast growing services in this decade Health services Business & Consulting services Finance, insurance, real estate Residential care Computer & data processing Child day-care Social services Transportation services https: //www. ibef. org/industry/services. aspx

Extended Marketing Mix in 1981 by Booms & Bitner Although each of these factors are important individually, it is the way in which they are mixed which is crucial to an organisation’s success. • People – All companies are reliant on the people who run them front line Sales staff to the Managing Director. Having the right people is essential because they are as much a part of your business offering as the products/services you are offering. • Processes –The delivery of your service is usually done with the customer present so how the service is delivered is once again part of what the consumer is paying for. • Physical Evidence – Almost all services include some physical elements even if the bulk of what the consumer is paying for is intangible. For example, a hair salon would provide their client with a completed hairdo and an insurance company would give their customers some form of printed material. Even if the material is not physically printed (in the case of PDFs) they are still receiving a “physical product” by this definition.

Marketing-Mix for Services: Extended 7 Ps Activity Product Place Promotion Price Physical Evidence Physical good features Channel Type Promo Blend Quality level Exposure Salespeople Price Level Accessories Intermediar Advertising ies Terms Communica Signage ting culture & Values Packaging Outlet Location Differentiat ion Emp. Research Warranties Transportat Publicity ion Product Lines Storage Branding Sales Promo Flexibility People Allowances Process Employees Facility Design Customers Equipment Number of steps Emp. Dress Other Tangibles Flow of activities Level of customer involvement

What is a Service? Services: deeds, efforts, or performances Goods: objects, devices, or things

Nature and Characteristic of a Service

Implications of Service Chr. - Intangibility

Implications of Service Chr. - Inseparability

Implications of Service Chr. - Variablility

Implications of Service Chr. - Perishability

What are Goods and Services? Service: intangible task that satisfies consumer or business user needs Goods-services continuum: device that helps marketers to visualize the differences and similarities between goods and services

What are Goods and Services? Service: intangible task that satisfies consumer or business user needs Goods-services continuum: device that helps marketers to visualize the differences and similarities between goods and services

Scale of Market Entities Physical Elements High Low Intangible Elements High

Difference Between Physical goods and Services Physical Goods Services Tangible Intangible Homogeneous Heterogeneous Production & distribution are separated from consumption Production, distribution & consumption are simultaneous processes A thing An activity or process Core value produced in the factory Core value produced in buyerseller interactions Customers do not participate in the production process Customers participate in the production Can be kept in stock Cannot be kept in stock Transfer of ownership No transfer of ownership

Linking Services Marketing, Operations & HR Servuction System

The Services Triangle Company & Mgt Technology Employees & system Customer

The Services Triangle