SERVICE MARKETING

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Marketing Management-2

Service Defined
Acc. To American marketing Association, Activities, benefits, or satisfactions, which are offered for sale, or provided in connection with sale of goods. Acc. To Kotler, Any Activity or benefit that one party can offer to 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.

Acc. To Robert Judd, A Market transaction where the object is other than the transfer of ownership of a tangible commodity.

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Marketing Management-2

Unique characteristics of Services

Intangibility Instorability Perishability Inseparability Heterogeneity Simultaneity of Production and Consumption.
Marketing Management-2

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Service-Mix : 4 + 3 Extra Ps
Product Price Place Promotion People Physical Evidence Process
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Product
Core Services (Benefits) Accessibility, Interaction, Consumer Participation Different types, as per the customers needs

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Marketing Management-2

Price

Fixed Costs are high Flexible Pricing Discriminatory Pricing

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Marketing Management-2

Place
Accessibility Limited role for intermediaries Franchising Service delivery

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Promotion
Word of Mouth- the strongest promoter Boundary Spanners (Customer-contact employees) Every employee has to promote

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Marketing Management-2

People
Recognized as most important P Employees represent organization to the customers Only satisfied employees can render satisfactory services Only competent employees can render satisfactory services Only motivated employees can render satisfactory services Employees must share a vision

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Marketing Management-2

Physical Evidence
A physical object is tangible, possess search qualities and is self-defining Unfortunately, Services are not So a Corporate identity need to be created Architecture Aroma Area Aesthetics

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Marketing Management-2

Process
Process of creating and delivering the service How easily the service is accessible? How fast the service is created? Where the service is delivered? Whether the service is customized? What is the role of customer in service production? What is the level of complexity in creating the service?

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Marketing Management-2

Service Quality
Quality is the ability of a product to live up to the customers expectations.

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Marketing Management-2

Measurement of Service Quality

Technical Quality Functional Quality

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Marketing Management-2

Technical Quality (What is received?)

Performance Quality : The level at which the service operates Conformance Quality : All the performances of the service adhere to the standard performance level. Reliability: Ability of the service not to malfunction Reparability : Ease with which the service can be recovered in case of failure.

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Marketing Management-2

Functional Quality (Ways through which it is delivered)

Responsiveness : Promptness with which the employees are willing to serve. Courtesy: Politeness and respect while dealing with the customers Credibility : Trustworthiness and believability of the service provider Accessibility : Approachability and ease of contact with the service providing staff. Empathy : Ability of the service staff to appreciate the predicament the customer is in.

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Marketing Management-2

Gaps in Service Quality management

Gap 1 : Customers Expectations--Management perception of Customers expectations. Gap 2: Management perception of customers expectations -- Service Quality specifications Gap 3: Service Quality specifications -- Service Delivery Gap 4: Service delivery-- External market communication Gap 5: Service delivered -- service expected

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Marketing Management-2