Service Economy Can Refer To One or Both of Two Recent Economic Developments

c

A 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 is
quickly perishes. A person could go to a café one
day and have excellent service, and then return the
next day and have a poor experience. So often
marketers talk about the nature of a service as:
- from the point where it is
consumed, and from the provider of the service. For
example, you cannot take a live theatre
performance home to consume it (a DVD of the
same performance would be a product, not a
service).

- and cannot have a real, physical
presence as does a product. For example, motor
insurance may have a certificate, but the financial
service itself cannot be touched i.e. it is intangible.
- in that once it has occurred it cannot
be repeated in exactly the same way. For example,
once a 100 metres Olympic final has been run,
there will be not other for 4 more years, and even
then it will be staged in a different place with many
different finalists.

- since the human involvement of
service provision means that no two services will be
completely identical. For 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.

!"!# - is not taken to the service,
since you merely experience it. For example, an
engineer may service your air-conditioning, but you
do not own the service, the engineer or his
equipment. You cannot sell it on once it has been
consumed, and do not take ownership of it.
Western economies have seen deterioration in their

traditional manufacturing industries, and a growth
in their service economies. Therefore the marketing
mix has seen an extension and adaptation into the
extended marketing mix for services, also known as
the 7P's - physical evidence, process and people.
c$%&' c

( ($!
)
%

c$%
c$% analysis is a tool for auditing an organization

and its environment. It is the first stage of planning
and helps marketers to focus on key issues. c
stands for

(# (
!!
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(

Strengths and
weaknesses are
factors. Opportunities and
threats are
factors.
c$%(

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ëp Your specialist marketing expertise.

ëp A new, innovative product or service.
ëp ocation of your business.
ëp -uality processes and procedures.
ëp Any other aspect of your business that adds value to your product or
service.
&# !) '
ëp ack of marketing expertise.

ëp Dndifferentiated products or services (i.e. in relation to your
competitors).
ëp ocation of your business.
ëp Poor quality goods or services.
ëp Damaged reputation.
! c

! is another element of the extended
marketing mix, or 7P's.There are a number of perceptions of the concept of process within the
business and marketing literature. Some see processes as a means to achieve an outcome,
for example - to achieve a 30% market share a company implements a marketing planning
process.
Another view is that marketing has a number of

processes that integrate together to create an
overall marketing process, for example -
telemarketing and Internet marketing can be
integrated. A further view is that marketing
processes are used to control the marketing mix,
i.e. processes that measure the achievement
marketing objectives. All views are understandable,
but not particularly customer focused.
For the purposes of the marketing mix, process is
an element of service that sees the customer
experiencing an organisation's offering. It's best
viewed as something that your customer
participates in at different points in time. Here are
some examples to help your build a picture of
marketing process, from the customer's point of
view.
Going on a cruise - from the moment that you
arrive at the dockside, you are greeted; your
baggage is taken to your room. You have two
weeks of services from restaurants and evening
entertainment, to casinos and shopping. Finally,
you arrive at your destination, and your baggage is
delivered to you. This is a highly focused marketing
process.
Booking a flight on the Internet - the process

begins with you visiting an airline's website. You
enter details of your flights and book them. Your
ticket/booking reference arrive by e-mail or post.
You catch your flight on time, and arrive refreshed
at your destination. This is all part of the marketing
process.
&

!"
! (

'
ëp Deliver value through all elements of the marketing mix. Process,

physical evidence and people enhance services.
ëp Feedback can be taken and the mix can be altered.
ëp ustomers are retained, and other serves or products are extended
and marked to them.
ëp The process itself can be tailored to the needs of different
individuals, experiencing a similar service at the same time.
Processes essentially have inputs, throughputs and

outputs (or outcomes). Marketing adds value to
each of the stages.
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Service Economy Can Refer To One or Both of Two Recent Economic Developments

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Service Economy Can Refer To One or Both of Two Recent Economic Developments

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