5 - Service marketing

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Presentation Transcript

Marketing Services : 

Marketing Services Arild Aspelund Associate Professor

Outline : 

Outline What are services? The growth of services What differentiate service marketing from product marketing? Holistic marketing of services

Defining services : 

Defining services

- Why services?- A global trend! : 

- Why services?- A global trend! Jim Spohrer (2005) The largest labor force migration in human history is underway, driven by urbanization, global communications, low cost labor, business growth and technology innovation.

Service mix : 

Service mix

The Goods – Service Continuum : 

The Goods – Service Continuum

Distinguishing Characteristics of Services : 

Distinguishing Characteristics of Services Intangibility A service is not physical and you need to make some evidences Inseparability A service is normally produced, consumed and evaluated simultaneously Variability Services are heavily dependent on the person that provide them Perishability Services can not be stored

Service Characteristics - Intangibility : 

Service Characteristics - Intangibility Intangibility “Manage the evidence” and “tangibilize the intangible” Create physical image of service offer and add physical evidence The tangibilization and evidence check list: Place People Equipment Communication material Symbols Price

Service Characteristics - Inseparability : 

Service Characteristics - Inseparability Inseparability Typically produced, consumed and evaluated simultaneously If the availability of service-producers are constrained Use pricing to reduce demand Increase service efficiency Serving multiple customers simultaneously Increase speed of service providing Focus efforts on training of front staff for better service evaluation

Service Characteristics - Variability : 

Service Characteristics - Variability Variability Service quality depends heavily on the person that provides them How to secure service quality Good hiring and training procedures Identify customer service evaluation criteria Standardize the service – performance process Monitor customer satisfaction

Service Characteristics - Perishability : 

Service Characteristics - Perishability Perishability Services cannot be stored Vulnerable to fluctuations in demand Demand side Differential pricing Nonpeak demand Complementary services Reservation systems Supply side Part-time employees Peak-time efficiency Increased consumer participation Shared services Facilities for future expansion

Holistic Marketing in Service Firms : 

Holistic Marketing in Service Firms Holistic marketing Along the dimensions: Internal marketing Integrated marketing Relationship marketing Social responsibility marketing The special importance of internal marketing of services Since service marketing is so dependent of the provider, internal marketing is especially important The service marketing department is at its most valuable when it makes the rest of the organization better able to market the firm’s services

Summary and Conclusions : 

Summary and Conclusions Summary To extract value from service sciences are one of the major managerial challenges of the modern western economy Services are different from goods Intangibility Inseparability Variability Perishability These differences gives raise to certain differences in marketing priorities, but basic marketing principles still apply! Continuation Product Strategy