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Service Marketing

By | September 2011
Page 1 of 18
Differences between tangible and services
* Intangibility
* Heterogeneity(yi zhi xing)
* With people involvement
* Perishability
* Inseparability

4ps in services:
1- product: product service must be well designed in order to create value to the,, even though the other ps are well executed. Services product consist of a core product tat respond to customer primary need and array (bu shu) of supplement service elements that aere mutually reinforcing value added enhancement that helps customer to use core product more effectively. 2- Place: service distribution wy can be thru electronic channels. For eg: bank: visit bank, using network of ATMs, doing business with telephone, e-banking. Information based sevices can be delivered to any location. Spped and convenience of place and time have become more important determinants of effective distribution and delivery of services. Comtemporary customer view wasted time as a cost to avoid. Willing to pay more to save time. Nowayda many services available in 24/7, via more channel distribution. 3- price: a value exchangeb between firm and customers. For supplier; pricing strategy is the financial mechanism through which income is generated and to offset the costs of providing service and to create profits. Price level adjusted according to tye of customers, time snd place of delivery ( such as fedex) level of demand. For customer: see price as cost, and obtain desired benefits. To calculate whether a particular service is worth or not. 4- Promotion: providing info and advice;persuading target customers;encouraging them to take action at specific time. For eg: education line, need more promotion. Supplier need to teach customer about the benefits, where n when to obtain. Promotional activities: often design to stimulate immediate trial pruchsse pr encourage consumption when demand is low ( for eg: MBT 1st launch, 30% discount anf free laptop)

1.2 Extra P’s- Physical...

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