MARKETING MANAGEMENT MARKETING OF SERVICES What is services marketing? A service is the action of doing something for someone or something.

It is largely intangible (i.e. not material). A product is tangible (i.e. material) since you can touch it and own it. A service tends to be an experience that is consumed at the point where it is purchased, and cannot be owned since it quickly perishes. A person could go to a caf one day and have excellent service, and then return the next day and have a poor experience. !o often marketers talk about the nature of a service as" Insepara !e" from the point where it is consumed, and from the provider of the service. #or example, you cannot take a live theatre performance home to consume it (a $%$ of the same performance would be a product, not a service). Inseparability of production and consumption of the service is being produced at the same time that the client is receiving it (e.g. during an online search, or a legal consultation). Intangi !e" and cannot have a real, physical presence as does a product. #or example, motor insurance may have a certificate, but the financial service itself cannot be touched i.e. it is intangible. &ith intangibility the service cannot be touched or viewed, so it is difficult for clients to tell in advance what they will be getting. "erisha !e" Is that once it has occurred it cannot be repeated in exactly the same way. #or example, once a '(( metres )lympic final has been run, there will be not other for * more years, and even then it will be staged in a different place with many different finalists. &ith perishability unused capacity cannot be stored for future use. #or example, spare seats on one aero plane cannot be transferred to the next flight, and query+free times at the reference desk cannot be saved up until there is a busy period. Varia i!it# $%eter&geneit#'" ,he human involvement of service provision means that no two services will be completely identical. #or example, returning to the same garage time and time again for a service on your car might see different levels of customer satisfaction, or speediness of work. !ervices involve people, and people are all different. ,here is a strong possibility that the same enquiry would be answered slightly differently by different people (or even by the same person at different times). It is important to minimi-e the differences in performance (through training, standard+setting and quality assurance). ()* MARKETING OF SERVICES ' S+ ,MS - SEM III - ACA.EMIC +EAR /0(0-/0(( - MMK CO11EGE .ompiled by #aculty" /. A. $0.osta 12' 23'24 55667 dcosta.l.a8gmail.com !ource of .ompilation" &eb

MARKETING MANAGEMENT Right &2 &3nership + is not taken to the service, since you merely experience it. #or example, an engineer may service your air+conditioning, but you do not own the service, the engineer or his equipment. 9ou cannot sell it on once it has been consumed, and do not take ownership of it. :eople often try to overcome some of these difficulties by ensuring that the physical manifestations of the service (the people running it, the library building, printed search results, web pages, etc.) indicate the quality of the service. ,he people running the service are more likely to inspire confidence in the service if they are responsive, reliable, courteous, and competent. If the information centre looks shabby and disorgani-ed, or if the website is difficult to navigate with broken links, then users may assume that the services provided by the centre are slapdash. )bviously, if a ramshackle library is providing a consistently good service then its users will become convinced of its quality + but it may take longer to convince them. ,he problem of perishability is sometimes overcome by pricing strategies or other incentives to use the service at ;unpopular; times (e.g. cheap rate phone calls, or guarantees of faster service at certain times of day). &estern economies have seen deterioration in their traditional manufacturing industries, and a growth in their service economies. ,herefore the marketing mix has seen an extension and adaptation into the extended marketing mix for services, also known as the 5:;s + physical evidence, process and people. What is marketing mi4? Marketing mi4 is probably the most famous marketing term. Its elements are the basic, tactical components of a marketing plan. Also known as the F&5r "s, the marketing mix elements are price6 p!ace, pr&75ct6 and pr&m&ti&n* ,he concept is simple. ,hink about another common mix + a cake mix. All cakes contain eggs, milk, flour, and sugar. <owever, you can alter the final cake by altering the amounts of mix elements contained in it. !o for a sweet cake add more sugar=

()* MARKETING OF SERVICES S+ ,MS - SEM III - ACA.EMIC +EAR /0(0-/0(( - MMK CO11EGE .ompiled by #aculty" /. A. $0.osta 12' 23'24 55667 dcosta.l.a8gmail.com !ource of .ompilation" &eb

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MARKETING MANAGEMENT It is the same with marketing mix. ,he offer you make to you customer can be altered by varying the mix elements. !o for a high profile brand, increase the focus on promotion and desensiti-e the weight given to price. Another way to think about the marketing mix is to use the image of an artist;s palette. ,he marketer mixes the prime colours (mix elements) in different quantities to deliver a particular final colour. ?very hand painted picture is original in some way, as is every marketing mix. !ome commentators will increase the marketing mix to the Five "8s, to include people. )thers will increase the mix to Seven "8s, to include physical evidence (such as uniforms, facilities, or livery) and process (i.e. the whole customer experience e.g. a visit the $isney &orld). ,he term was coined by @eil <. Aorden in his article ,he .oncept of the Barketing Mix in '276. "rice ,here are many ways to price a product. "remi5m "ricing Cse a high price where there is uniqueness about the product or service. ,his approach is used where a substantial competitive advantage exists. !uch high prices are charged for luxuries such as .unard .ruises, !avoy <otel rooms, and .oncorde flights. "enetrati&n "ricing ,he price charged for products and services is set artificially low in order to gain market share. )nce this is achieved, the price is increased. ,his approach was used by #rance ,elecom and !ky ,%. Ec&n&m# "ricing ,his is a no frills low price. ,he cost of marketing and manufacture are kept at a minimum. !upermarkets often have economy brands for soups, spaghetti, etc. "rice Skimming .harge a high price because you have a substantial competitive advantage. <owever, the advantage is not sustainable. ,he high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. Banufacturers of digital watches used a skimming approach in the '25(s. )nce other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented. ()* MARKETING OF SERVICES S+ ,MS - SEM III - ACA.EMIC +EAR /0(0-/0(( - MMK CO11EGE .ompiled by #aculty" /. A. $0.osta 12' 23'24 55667 dcosta.l.a8gmail.com !ource of .ompilation" &eb 4

MARKETING MANAGEMENT "!ace Another element of @eil <. Aorden;s Barketing Bix is "!ace. :lace is also known as channe!6 7istri 5ti&n6 &r interme7iar#* It is the mechanism through which goods andDor services are moved from the manufacturerD service provider to the user or consumer. "r&75ct

#or many a pr&75ct is simply the tangible, physical entity that they may be buying or selling. 9ou buy a new car and that;s the product + simple= )r maybe not. &hen you buy a car, is the product more complex than you first thoughtE The "r&75ct 1i2e C#c!e $"1C' is based upon the biological life cycle. #or example, a seed is planted (introduction)F it begins to sprout (growth)F it shoots out leaves and puts down roots as it becomes an adult (maturity)F after a long period as an adult the plant begins to shrink and die out (decline). Gead more... The C5st&mer 1i2e C#c!e $C1C' has obvious similarities with the :roduct /ife .ycle (:/.). <owever, ./. focuses upon the creation of and delivery of lifetime value to the customer i.e. looks at the products or services that customers @??$ throughout their lives.

"r&m&ti&n Another one of the *:;s is pr&m&ti&n. ,his includes all of the tools available to the marketer for ;marketing communication;. As with @eil <. Aorden;s marketing mix, marketing communications has its own ;promotions mix;. ,hink of it like a cake mix, the basic ingredients are always the same. <owever if you vary the amounts of one of the ingredients, the final outcome is different. "h#sica! Evi7ence "h#sica! Evi7ence is the material part of a service. !trictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. "e&p!e "e&p!e are the most important element of any service or experience. !ervices tend to be produced and consumed at the same moment, and aspects of the customer experience are altered to meet the ;individual needs; of the person consuming it. Gead more... "r&cess "r&cess is another element of the extended marketing mix, or 5:;s.,here are a number of perceptions of the concept of process within the business and marketing literature. !ome see processes as a means to achieve an outcome, for example + to achieve a 4(H market share a company implements a marketing planning process. ()* MARKETING OF SERVICES S+ ,MS - SEM III - ACA.EMIC +EAR /0(0-/0(( - MMK CO11EGE .ompiled by #aculty" /. A. $0.osta 12' 23'24 55667 dcosta.l.a8gmail.com !ource of .ompilation" &eb *