Marketing of Services
Services: A service is any act or performance, 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.
Customer Service: It is the service provided in support of a company’s core products. It includes, answering questions, taking orders, handling complaints, repairs etc. These are for building customer relationships and not the ones provided for sale by a company. Service Marketing Mix: The service marketing mix comprises off the 7’p’s. These include: • Product
• Physical evidence.
People: An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Process: Refers to the systems used to assist the organization in delivering the service. Physical Evidence: It is the element of the service mix which allows the consumer again to make judgments on the organization. If you walk into a restaurant your expectations are of a clean, friendly environment. On an aircraft if you travel first class you expect enough room to be able to lay down! Physical evidence is an essential ingredient of the service mix, consumers will make perceptions based on their sight of the service provision which will have an impact on the organizations perceptual plan of the service. [pic]
Tangibility Spectrum: Essentially services are intangible but sometimes they may involve the use of some tangible goods. In such cases the title of the goods doesn’t change from the service provider to the customer. But again some services do have a tangible component. There are four types of offer involving goods and services 1. pure tangible goods
2. tangible goods with accompanying services
3. major services accompanying minor goods
4. a pure service
Characteristics of Services: The services have unique characteristics which make them different from that of goods. The most common characteristics of services are: Intangibility.
Intangibility: Services are activities performed by the provider, unlike physical products they cannot be seen, tasted, felt, heard or smelt before they are consumed. Inseparability: Services are typically produced and consumed simultaneously. it cannot be separated from the service provider. Thus, the service provider would become a part of a service. Inseparability of production and consumption increases the importance of the quality in services. Perish ability:
Services are deeds, performance or act whose consumption take place simultaneously; they tend to perish in the absence of consumption. Hence, services cannot be stored. The services go waste if they are not consumed simultaneously i.e. value of service exists at the point when it is required. Variability:
Services are highly variable, as they depend on the service provider, and where and when they are provided. Service marketers face a problem in standardizing their service, as it varies with experienced hand, customer, time and firm.
Service Process: A service is essentially a process and not a physical product. The process is directed at different ends depending upon the nature of service. Some services process people and some may process objects. This leads to an important classification on the basis of two important dimensions:
1. What is processed? Object or a Person
2. How is it processed? What is the Nature of Process? Tangible or Intangible actions
People Processing : Here the customers must physically enter the system (like Transportation) and they must be prepared to...
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