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SERVICES MARKETING
What is a Service? A service is 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 .
Kotler and Amstrong (1997, p. 265)
What is a Brand? .. a name, term, sign, symbol or design, or a combination of them, which is intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of their competitors
American Marketing Association
SERVICES BRANDING
Goods Tangible
Services Intangible
Services Branding Implications Service brands cannot be patented Service brands cannot be inventoried Service brands cannot be readily displayed or communicated Pricing service brands is difficult Service brands face difficulties delivering on promises Service brand quality uncontrollable factors depends on many
Standardised
Heterogeneous
Inseparability
Simultaneous production
Non-perishable
Perishable
Customers participate in the service brand transaction Employees may affect the service brand outcome Customers may affect one another in the service brand transaction Satisfaction of service brand is influenced by expected and perceived behaviour of service provider and customer Mass production of service brands is difficult Service brands face challenges to build and sustain image and reputation to retain customers Fluctuating demand can cause problems for branding services
INTERNAL MARKETING
EXTERNAL MARKETING
CUSTOMERS
Interact CULTURE s
take ol er atisfactio
OBJECTIVES
D
Interact s
ystems
BRANDSPHERE
aracter)
o itor t e
evisit
Effectiveness Internal and external message alignment Consumer satisfaction Brand reputation Types of consumers
CONCLUSION
Branding plays a special role in service companies because strong brands increase customers trust of the invisible purchase. Strong brands enable customers to better visualise and understand intangible products. They reduce customers perceived monetary, social, or safety in buying services, which are difficult to evaluate prior to purchase. Strong brands are the surrogates when the company offers no fabric to touch, no trousers to try on, no water melons or apples to scrutinise, no automobiles to test drive.
Berry (2000, p. 128)