Title: 118'334 Services Marketing May 29 June 20, 2006 1'303'30pm Session 1'1: Understanding marketing, Ser
1118.334 Services MarketingMay 29 -June 20, 2006
(1.30-3.30pm)Session 1.1 Understanding
marketing, Services and service marketing
framework
Learning Coach Dr. Mohan Agrawal Principal
Strategy Consultant Marketing Aims
Inc. Canada www.marketingaims.com Email
magrawal_at_marketingaims.com
2Agenda
- Recap of marketing understanding
- Services economy
- Services defined
- Service family
- Service marketing challenges
31 Marketing Defined
- A social and managerial process by which
individuals and groups obtain what they need and
want through creating and exchanging products and
value with others.
41 Core Marketing Concepts
52 Services Our Life
- Weather forecast on Net
- Mailbox for letter
- Bus ride
- Education
- Food Service
- Bank ATM
- Telephone
- Hairdresser
- Dry Cleaners
- Mail delivery
- Electricity service
- Pizza delivery
62 Services Our economy
- In most countries, services adds more economic
value than agriculture, raw materials and
manufacturing combined.
72 Services Our economy
- Banking, stock broking
- Lodging
- Restaurants, bars, catering
- Insurance
- News and entertainment
- Transportation (freight and passenger)
- Health care
- Education
- Wholesaling and retailing
- Laundries, dry-cleaning
- Repair and maintenance
- Professional (e.g., law, architecture,
consulting)
82 GDP by Industry in the USA, 2005
Source Bureau of Economic Analysis, December 2000
92 Changing Structure of Employment
Share of Employment
Agriculture
Services
Industry
Time, per Capita Income
Source IMF
103 Facilitating factors
- Government Policies (e.g., regulations, trade
agreements) - Social Changes (e.g., affluent, time poor, seek
experiences) - Advances in IT (e.g., speed, digitization,
wireless, Internet) - Internationalization (travel, transnational
companies)
114 What is a Service?
- An act or performance offered by one party to
another - Economic activities that create value and provide
benefits for customers as a result of bringing
about a desired change in, or on behalf of, the
recipient
124 Service A Concept in the Making
- An add on to a physical product American
Marketing Association (1966). - a benefit or activity that one party can offer
to another which 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, 1999.
13 4. Characteristics of a Service
144 The Three Most Common Confusions
- Service,
- Customer Service
- Serving a customer
154 Goods Vs. Services Fundamental differences
- Intangibility (service can not be seen, touched
or put on a shelf) - Inseparability or, simultaneity (services usually
are inseparable between production and
consumption) - Perishability (can not be produced or stored
before consumption) - Variability or, heterogeneity (services are hard
to standardize)
16(No Transcript)
175 Challenges in Marketing Services
- A. Intangibility - The product is a process, a
deed or a performance therefore, - For the customer Perceived risk is higher
harder to evaluate before (even during or after
the service). - For the marketer Harder to help customer
visualize the product and differentiate from the
competition.
185 Challenges in Marketing Services
- B.Simultaneity - The provider and the customer
are part of the product production and
consumption are simultaneous and inseparable
therefore, - For the customer Some interaction with the
service provider is necessary and sometimes
product is shared with other customers. - For the marketer Customers are co-producers, and
their interaction and roles have to be managed.
195 Challenges in Marketing Services
- C. Heterogeneity - The product varies across
customer, provider, and for the same provider and
customer from one consumption occasion to the
next therefore, - For the customer Consistency of product quality
is always suspect, and service provider
relationship is critical. - For the marketer Customization is an
opportunity and frontline operations and
customer skills training is critical.
205 Challenges in Marketing Services
- D. Perishability - The product cannot be stored
and can be produced only after customer
initiates therefore, - For the customer Product needs to be available
and produced when necessary. - For the marketer Supply must match demand
otherwise (revenue) opportunity to produce is
lost the task is to manage rather than build
demand.
216 Service Marketing Framework
22 6 What is Marketing Goal?
- Attract new customers by promising superior value
and - keep and grow the current customers by delivering
customer value.
23 6 The Traditional Vehicles of Customer Value
24 6 The Specific Vehicles of Customer Value
in services
- People
- Physical setting (servicescapes)
- Service quality and Productivity
- Balancing the process of demand and supply
25Websites to check out
- ORBIS International
- (http//www.orbis.org), p. 3
- United Airlines
- (http//www.ual.com), p. 3
- America Online
- (http//www.aol.com), p. 6
- Veterinary Pet Insurance
- (http//www.petinsurance.com), p. 8
26THANK YOU