Presentation On Marketing Of Services
From; Himani Sehgal Deepti Sadana Bharti Bhasin Debashree Ganguly
Defining a Service
“Any activity or benefit 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)
The various sectors under the Services Sector in India are construction, trade, hotels, transport, restaurant, communication and storage, social and personal services, community, insurance, financing, business services, and real estate.
Defining Marketing of services
Service marketing is the endorsement of economic activities offered by a company to its consumers, it is considered to be a special sub set of marketing because it focuses on how rendering of services can affect both the customer attitude and the marketing strategy.
Service marketing includes building public relations, advancing customer loyalty, developing quality of service, handling relationships and complaint management.
Types of Services
Core Services: A service that is the primary purpose of the transaction. Eg: a haircut or the services of lawyer or teacher. Supplementary Services: Services that are rendered as a corollary to the sale of a tangible product. Eg: Home delivery options offered by restaurants above a minimum bill value.
Characteristics of a service are:
Intangibility: Services are intangible and do not have a physical existence. Hence services cannot be touched, held, tasted or smelt. This is most defining feature of a service and that which primarily differentiates it from a product. Also, it poses a unique challenge to those engaged in marketing a service as they need to attach tangible attributes to an otherwise intangible offering.
Heterogeneity/Variability: Given the very nature of services, each service offering is unique and cannot be exactly repeated even by the same service provider. While products can be mass produced and be homogenous the same is not true of services. e.g.: All burgers of a particular flavor at McDonalds are almost identical. However, the same is not true of the service rendered by the same counter staff consecutively to two customers.
Perishability: Services cannot be stored, saved, returned or resold once they have been used. Once rendered to a customer the service is completely consumed and cannot be delivered to another customer. eg: A customer dissatisfied with the services of a barber cannot return the service of the haircut that was rendered to him. At the most he may decide not to visit that particular barber in the future.
Inseparability/Simultaneity of production and consumption: This refers to the fact that services are generated and consumed within the same time frame. Eg: a haircut is delivered to and consumed by a customer simultaneously unlike, say, a takeaway burger which the customer may consume even after a few hours of purchase. Moreover, it is very difficult to separate a service from the service provider. Eg: the barber is necessarily a part of the service of a haircut that he is delivering to his customer
Unique aspects of the marketing of services
The service can not usually be effectively demonstrated (it does not exist before purchase). Direct Contact is necessary. Selling is a crucial part of the service.
Many aspects of quality are difficult to measure.
Services are difficult to automate.
Services of Marketing MIX: 7 P’s
For services it is more appropriate to refer to the 7P’s of the Marketing Mix rather than the more normal 4P’s.
Product/Service Price Promotion Place Process People Physical Evidence
Service Marketing Triangle
1. External Marketing
In an external marketing, marketers interact directly to the end users. They try to understand the need of customers and satisfy them after fulfilling their demands. In an external marketing, marketers set the pricing policies and create...
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