Services Marketing 2

SERVICES MARKETING HOSPITAL VALUE ADDED SERVICES

Presented By: Arjun Singh Kalsi - 7 Disha Solanki

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Tangible Components  Services more Intangible than Manufactured Products and Manufactured Products more Tangible than Services.

 Example: Hygienic environment, Latest equipment, infrastructure, furniture & fixtures etc.

Intangible Components  Intangibles are produced by Service sector as well as by Manufacturing sector.

 Example: Trust, Consultation, Reliability, Responsiveness & Assurance.

Area Of Service Operations  Variability: Services can be evaluated for quality before reaching the customers. Example: Consultation – Meet the service provider at his/her best time.

Area Of Service Operations  Difficult Evaluation: Services may emphasize Experience properties. Credence properties – characteristics difficult to evaluate even after consumption, customers not knowledgeable. Example: Executive Health Check Up

Test’s

Report’s

Surgery

Area Of Service Operations  Time Factor: Services delivered in Real Time. Customers may be willing to pay faster service. Real Time = Service Time + Delivery Time Example: Completing the whole check up on time & timely deliver of reports.

Area Of Service Operations  Distribution Channels: Advances in technology, electronic delivery of services is expanding fast. Example: Reminders through SMS, CD of test’s, email reports – Reduced Anxiety.

Service Category Four Categories : 1.) People Processing: Services directed at themselves. Customers must physically enter the service system. Example: Executive Health Check Up

Service Category 2.) Possession Processing: Customers want Services for treatment of Physical possession. Customers not personally involved. Example: Not valid in terms of a Executive Health Check Up.

Service Category 3.) Mental Stimulus Processing: Services that interact with people’s minds – News, education, Information, Consultancy, Discourses. Customers have to be mentally in communication with information being processed. Example: Executive Health Check Up – Test’s being conducted or Consultation – Case History.

Service Category 4.) Information Processing: Information is the most Intangible form of Service output. Financial and professional services as Accounting, Medical diagnosis are highly dependent on effective collection and processing of Information. Example: Executive Health Check Up – Test’s being conducted and report generation.

Services Marketing Mix 1.) Product: Select features of Core Product. Example: Executive Health Check Up

Realistic picture

2.) Place: Place, Time of Delivery and Methods. Speed and convenience determine Strategy. Example: Conveniently located and timely delivery of services.

Services Marketing Mix 3.) Promotion: Effective Communication Strategy: Provide Information, Features and Advantages, Persuading for action. Example: Information available on the internet/person features Initiate Action

List of

Services Marketing Mix 4.) Price: Price to pay for benefits of Services. Example: Various packages available for health check up: 

Pearl Adolescents – Male Rs.2700 & Female Rs.2900



Silver > 30 years – Male Rs.2000 & Female Rs.2300



Gold > 30 years –



Platinum > 45 years – Male Rs.10000 & Female Rs.12000



Male Rs.4000 & Female Rs.5000

Diamond > 45 years – Male Rs.17000 & Female Rs.20000

Services Marketing Mix 5.) Physical Environment: Provide Tangible evidence of a firm’s Service quality. Customers impressions get impacted by Interior furnishing, Equipment, Printed material, Signs etc. Example: Physical Environment

Spike & Span

Services Marketing Mix 6.) Process: A method and sequence of actions in Service performance. Example: Good Process

Effective Service Delivery

Satisfied Customers

7.) People :

Services Quality is often assessed based on customer’s interactions with front -line staff. Example: Cooperative & Friendly front- line staff

Purchase Process  PREPURCHASE STAGE: Need Information Suppliers

Search

Evaluation of Service

 SERVICE ENCOUNTER STAGE: Initiate Service Service Delivery  POSTPURCHASE STAGE: Evaluation of Future Reference

Service Evaluation Attributes  Search Attributes: Physical goods can be evaluated before purchase. E.g. Style, Color, Texture etc.  Experience Attributes: To evaluate some services, customers must experience them.  Credence Attributes: Product characteristics extremely difficult for customers to evaluate even after purchase and consumption. Example: Health Check Up

Experience Attributes

Service Positioning

 Positioning Strategy is to create and maintain distinctive differences that will be noticed and valued by Potential Target Customers for a long term relationship.  Fortis Vision: "To create a world-class integrated healthcare delivery system in India, entailing the finest medical skills combined with compassionate patient care"  Firms Focus – Market Or Service Focused Example: Fortis Hospital

Service Focused

Target Market Segment  Upper Middle Class  Corporate Tie-Ups  Company Executive.

Customer expectation from the services Level Of Expectation

Desired Service Zone Of Tolerance Adequate Service

Desired Service

Zone Of Tolerance

Adequate Service Reliability

Tangible

Measuring Service Quality Consumers evaluate 5 dimensions of service quality: Tangibles : Modern looking, visually appealing, equipment & facilities that easy to use.

Reliability :

Understandable, knowledgeable, accurate and dependable,

Responsiveness: Assurance:

Empathy

Polite & Courteous, always willing to help etc.

Inspire trust and confidence through knowledge competence and courtesy .Have guest’s best interest at heart.

: Caring, Individualized Attention.

Scale to give scores to the gap model  -3 2

-2

-1

0

1

3

0 to 3 – Meeting of customer 0expectation to -3 – Low satisfaction or no satisfaction

Gap 1 : K nowl edge gap

 Difference between Customers’ Needs & Expectation and Service Providers Perceived Customer Expectation.  Good : 1.) Marketing research M 2.) Communication 3.) Sufficient relationship focus 4.) Adequate Service Recovery 

Result : Gap +2

Gap 2 : Standards Gap  Difference between firm’s perceived Customer Expectation and its translation to Service Quality Specifications.

Factor leading to gapResource Constraint, Market Condition

Result : Gap -1

Gap 3: The Del ivery Gap 

Difference between firm’s Service Quality Specifications and Delivery of Specifications. This could be due: Service Provider’s employees’ Performance



Example: Untrained Employee



Result: Gap -2

Gap 4 : Communi cati on gap The difference between the External communication about service (Advertising, Sales Promise) and Service delivered. Factor leading to gap : Over promising (Time constraint) Result : Gap 0

Gap 5 : The perception gap The difference between what Consumers Receive and what they Expected. This is the sum of Gaps 1 to 4. The score of Gap 5 =+2+(-1)+(2)+(0) = -1