Transcript Document

Introduction to Services Marketing
Session 1
1
Administrative Details
• Syllabus
– Cases
– Additional Readings
• Optional Text
– Lovelock, Christopher, “Services Marketing”, 4th edition
• Performance Evaluation
– Class Participation (Individual)
– Project (Group)
40%
60%
• Course Website
–
http://faculty.insead.edu/padmanabhan/services_marketing
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Services Marketing – Professor V. Padmanabhan
2
Service: Some Definitions
• Service Sector includes all economic
activities whose output
– is not a product
– generally consumed as it is produced
– provides added value in form
• “Anything sold in trade that could not be dropped
on your foot ” - The Economist
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Services Marketing – Professor V. Padmanabhan
3
Course Headlines
• Services are significantly different from products on several
dimensions. The consequences is that as managers you need
– a broader conception of the search, purchase, consumption and
post-consumption phases of the consumer experience
– manage a broader set of variables that go beyond the traditional
4P’s of marketing (managing services is an interdisciplinary
exercise)
– to understand consumer economics, its relationship to firm
performance and implications for a firm’s strategic and tactical
decisions
• There are very few pure plays (pure product or pure services).
Consequently, you need to be good at managing products and services
to grow your and your company’s bottomline.
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Services Marketing – Professor V. Padmanabhan
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Product versus Service : Generic Differences
• Nature of product
– Tangible versus Intangible
• Customer involvement in production
– Co-production
• People as part of the product
– Product + Process
• Simultaneity of Production and Consumption
– Quality Control
• Search –vs- Experience –vs- Credence Attributes
• Consider QB House
– hair-cut as a service
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Services Marketing – Professor V. Padmanabhan
5
Marketing Analysis Framework
3 C’s
Market Intelligence
Customers
Competitors
Company
T
S
(Segment)
P
(Target)
Product
(Position)
Promotion
4 P’s
Price
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Place
Services Marketing – Professor V. Padmanabhan
Framework for Services Marketing
Company
Internal Marketing
External Marketing
Customers
Employees
Interactive Marketing
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Services Marketing – Professor V. Padmanabhan
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Services Marketing Mix
Place
Product
Process
Customer
Promotion
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Price
Services Marketing – Professor V. Padmanabhan
8
Final Comments
• Related Reading
– The Four Service Marketing Myths, Vargo and Lusch, Journal of
Service Research, May 2004.
• IHIP = Intangibility, Heterogeneity, Inseparability and Perishability
• Issue
– Differences reflect the producer’s perspective, and not the
consumer’s perspective
• Question for You
– What do you make of their claim?
• Tomorrow’s Session
– First of Three Sessions on Customer Analysis
– I need your answers to the 3 questions posed
• Cold Call
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Services Marketing – Professor V. Padmanabhan
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