Service Marketing..
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Services Marketing
What makes it different from marketing products?
Objectives • • • •
Concept Good–service continuum Characteristics Marketing mix
Service sector Post-industrial Society is defined by the quality of life as measured by the service desirable and possible for everyone. USA becomes the world’s first service economy with more than 50% of the working population employed in producing services. Today,80% of the US economy is service oriented.
Indian Service sector Accounts for 41% of its GDP compared to 30% in 1970. Slow growth of Indian service sector bcz of Highly agrl. Dominated.
Main features of service sector 1.Highly employee oriented and heavily overstaffed. 2.Mostly under govt. control. 3.Avg. operating environment 4.Monopolistic and dominated by procedures and statistics.
Tangible / Intangible Attributes • Tangible – touch – see – taste – smell
• Intangible – can’t see – can’t touch – can’t smell – can’t taste
G-S Continuum
Characteristics of services • Intangibility: Intangibility difficult to sample and to evaluate, consists of intangible components • Inseparability: difficult to separate services from the service provider; • Heterogeneity: Heterogeneity virtually every service is different; very difficult to standardize quality • Perishability: Not sold can not be stored • Fluctuating demand: demand for some services fluctuates by season, or even by time of day
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: – – – –
Product Price Place Promotion
Expanded Mix for Services -The 7 Ps • • • • • • •
Product Price Place Promotion People Process Physical Evidence
Expanded Marketing Mix for Services
PRODUCT
PLAC
Ph ysical good Chann features Quality level
Expos
Expanded Marketing Mix for Services
PEOPLE
PHYSICAL EVIDENCE
PROCESS
Employees
Facility design
Flow of activities
Customers
Equipment
Number of steps
Communicating culture and values
Signage
Level of customer involvement
Employee research
Employee dress Other tangibles
The Hospitality and Travel Marketing Environment Marketing Strategy Factors The Marketing Mix/8 Ps Traditional 4 Ps of Marketing
Product Place Promotion Price
Additional 4 Ps of Hospitality and Travel Marketing People Packaging Programming Partnership
What makes it different from marketing products?
Objectives • • • •
Concept Good–service continuum Characteristics Marketing mix
Service sector Post-industrial Society is defined by the quality of life as measured by the service desirable and possible for everyone. USA becomes the world’s first service economy with more than 50% of the working population employed in producing services. Today,80% of the US economy is service oriented.
Indian Service sector Accounts for 41% of its GDP compared to 30% in 1970. Slow growth of Indian service sector bcz of Highly agrl. Dominated.
Main features of service sector 1.Highly employee oriented and heavily overstaffed. 2.Mostly under govt. control. 3.Avg. operating environment 4.Monopolistic and dominated by procedures and statistics.
Tangible / Intangible Attributes • Tangible – touch – see – taste – smell
• Intangible – can’t see – can’t touch – can’t smell – can’t taste
G-S Continuum
Characteristics of services • Intangibility: Intangibility difficult to sample and to evaluate, consists of intangible components • Inseparability: difficult to separate services from the service provider; • Heterogeneity: Heterogeneity virtually every service is different; very difficult to standardize quality • Perishability: Not sold can not be stored • Fluctuating demand: demand for some services fluctuates by season, or even by time of day
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: – – – –
Product Price Place Promotion
Expanded Mix for Services -The 7 Ps • • • • • • •
Product Price Place Promotion People Process Physical Evidence
Expanded Marketing Mix for Services
PRODUCT
PLAC
Ph ysical good Chann features Quality level
Expos
Expanded Marketing Mix for Services
PEOPLE
PHYSICAL EVIDENCE
PROCESS
Employees
Facility design
Flow of activities
Customers
Equipment
Number of steps
Communicating culture and values
Signage
Level of customer involvement
Employee research
Employee dress Other tangibles
The Hospitality and Travel Marketing Environment Marketing Strategy Factors The Marketing Mix/8 Ps Traditional 4 Ps of Marketing
Product Place Promotion Price
Additional 4 Ps of Hospitality and Travel Marketing People Packaging Programming Partnership
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