Introduction to Service Marketing

Topics: Marketing, Service, Good Pages: 8 (396 words) Published: October 13, 2013
2012-02-27

Introduction to Service Marketing

Why Services Marketing?
• 
• 
• 
• 
• 
• 

Service-based economies
Services marketing is different
Deregulated industries
Mature markets - tougher competition
More complex products - extended demand for
professional services
Service equals profits

What is a service?
• 

“.. A service is rendered. A service is
experienced. A service cannot be stored on a
shelf, touched, tasted, or tried on for
size.“ (Shostack, 1977)

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What is a service?
• 

“..is a process consisting of series of more
or less intangible activities that normally,
but not necessarily always, takes place
between the customer and the service
employees and/or physical resources or
goods and/or systems of the service
provider, which are provided as solutions
to customer problems.”

What is a service?
Essential

• 

Product - service – good

– 

• 

“Offers” can be:

Tangibility Spectrum
Salt

l

Soft Drinks
Detergents
Automobiles
Cosmetics
Fast-food
Outlets

l

l

Tangible
Dominant

l

l

Intangible

l
l

Fast-food
Outlets

Dominant

l

l

Advertising
Agencies
Airlines
Investment
Management
Consulting
Teaching

l

l

l

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Goods vs. Services

Implications of

Intangibility

Integrating Evidence
(Shostak)

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Molecular Model
Reflects the fact that a market entity can be partly
tangible and partly intangible without dismissing
the importance of either characteristics.

• 

Diagramming Marketing Entities

Airlines vs. Automobiles
• 

Similarities:

• 

Differences in configuration and marketing
implications:

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Implications of

Heterogeneity

Implications of

Simultaneous Production and Consumption

Implications of
Simultaneous Production and Consumption

Production

Consumption

Marketing
Service Process
Service consumption

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Implications of

Perishability

Challenges for Services
•  Defining

and improving quality
and testing new services
•  Communicating and maintaining a consistent image
•  Designing

Traditional Marketing Mix
•  All

elements within the control of the firm that
communicate the firm’s capabilities and image to
customers or that influence customer satisfaction
with the firm’s product and services:

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Expanded Mix for Services
The 7 Ps
•  People
•  Physical

Evidence

•  Process.

Expanded Marketing Mix for Services

The Gaps Model of Service Quality
• 

Introduce a framework, called the gaps model of service
quality, which is used to organize this textbook.

• 

Demonstrate that the gaps model is a useful framework
for understanding service quality in an organization.

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The Gaps Model of Service Quality
• 

Customer Gap:

• 

Provider Gap 1 (The Knowledge Gap):

• 

Provider Gap 2 (The Service Design & Standards Gap):

• 

Provider Gap 3 (The Service Performance Gap):

• 

Provider Gap 4 (The Communication Gap):

Gaps Model of Service Quality
CUSTOMER
Customer
Gap

COMPANY
Gap 4
Gap 3
Gap 1
Gap 2

The End!!

8

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