International services Service different from products because: services are experiential international marketing course services are

s are delivered in real time a holiday services can often be delivered face to face visit to the doctor in service marketing trust, reputation, integrity are very important : banking, insurance

Paradigm for marketing services 1. 2. 3. 4. Intangibility services have no form or shape Inseparability services are made only when you need them Variability - people quality ! Perishability you cant stock or store a service

9 Ps of Service Marketing 1. 2. 3. 4. 5. 6. 7. product/ service place, price, promotion people, processes, physical facilities

Service marketing and delivery system

Service Quality Model of Service quality SERVQUAL Model (Parasuraman et al. 1988) 1. Reliability: the ability to consistently provide the service 2. Assurance: knowledgeable employees who convey trust and confidence 3. Tangibles: the appearance of the physical equipment, personnel and communication materials 4. Empathy: provision of a caring approach and attention to customers 5. Responsiveness: helping customers and providing prompt service

Reasons for the growth of international services

Issues in international service mktg Issues: Globalization think global, act local ..reason for gwoth in intl svc trade Decreased Government regulation its now easier to trade (bank,airline & telecommunication )(WTO freeing up trade in svc) Social changes rising affluence and focus on leisure and quality of life caused increase in service like tourism Business trends more wealth = expanded needs = more demand

Advances in technology www, smart phones, nano technology, payment systems

Drivers of Services Internationalization Firm level Following clients o Following clients into overseas market to provide the same services as they do domestically. e.g. legal firms, banks Domestic market pressures o The domestic market becomes saturated and forces the provider to go international. e.g. education services Unsolicited orders o Domestic now international clients approach the supplier. e.g. consulting services

Industry level Common customer needs - entertainment Scale economies films, music Government policy financial incentives, links Competition drivers less intense markets, higher margins Information technology drivers internet, payment systems\

Exporting services internationally Service Delivery Options in International Markets

International Service Firm Profiles Cell 1 Location Free Services Examples: executive recruitment market research IT product design finance / insurance environment consulting Cell 2 Location Bound Services Examples: project management engineering consulting management consulting HR consulting legal services

Cell 3 Standard Packages Examples: software development distance education installation new hardware

Cell 4 Customized Packages Examples: on site training serviced offices accommodation services catering facilities management

Major ways to export services Remote cross border The service is delivered to an overseas customer without the supplier being present e.g. medical diagnosis Consumption overseas Overseas customer comes to the suppliers country to receive the service e.g. tourism Commercial presence Supplier establishes an office, appoints a representative or develops a partnership overseas e.g. building services People movement

Employees of the supplier travel to the overseas country to deliver the service e.g. technical / IT support

Major Service Exports: Service exports Accountancy Legal Building Architecture Medical Banking Insurance Engineering IT hardware / software Advertising Market Research Telemarketing Management Consulting Distribution Logistics Education overseas students .. Tourism overseas visitors Retailing / wholesaling Woolworths India Entertainment music, film, theatre etc Government services tax services to Russia

Market Entry for Services The major options are: Exporting ... Legal firms Licensing ... Disney Franchising ...Just Cuts Joint ventures ... Universities Direct investment ... Banks

low
Degree of commitment, risk ,control and profit potential

high

Note ! Government regulations may mandate and or limit these options Major ways to differentitae services

Business model Ordering ease Amazon.com Delivery - Fed Ex structures Installation but does it work ? Customer training Cisco Systems John Chambers Customer consulting mystery shopping Maintenance and repair Rolls Royce

People/employee Competence test them / set standards Courtesy recruit behaviors Credibility up skill / training Reliability skill simulations Responsiveness role plays Communication role plays

Channel Selection Image Symbols, colors, slogans Atmosphere Events Brand contacts Coverage - when, where, how, how often ? (medical, educational) Expertise by channel ? ( IT support, banking ) Performance standards ? (engineering, insurance )

Key issues in Service Exports Delivery issues (Medical Care) Infrastructure requirements (Web) Direct contact needs (Entertainment) Legal protection (Copyright) Economies of location (Tourism

International Service Standardization Standardising services is hard because of the people element (service delivery) e.g. medical services

The more local the service and delivery the less likely it will be able to be standardized o e.g. legal services