Transcript Service Marketing

Principle of Marketing
Topic
Service Marketing
Lecture No
By: Salman Shahid
What is Service Marketing?
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Examples: Defense, Postal, Education,
health, Religious Services, Hospitals,
Airlines, Hotels, Law Firms, Entertainment,
etc
Definition: Activity or benefit that one
party can offer to another 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
Designing a services marketing program
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Fundamental Characteristics of a
Service :
What exactly are the characteristics of a
service? How are services different from a
product? In fact many organizations do
have service elements to the product they
sell, for example McDonald’s sell physical
products i.e. burgers but consumers are
also concerned about the quality and
speed of service, are staff cheerful and
welcoming and do they serve with a smile
on their face?
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1. Lack of ownership.
You cannot own and store a
service like you can a product.
Services are used or hired for a
period of time.
For example when buying a ticket to
the USA the service lasts maybe 9
hours each way , but consumers
want and expect excellent service for
that time.
Intangibility:
You cannot hold or touch a service
Inseparability:
Services cannot be separated from
the service providers.
Perishability: is used in marketing to
describe the way in which service
capacity cannot be stored for sale in
the future. It is a key concept of
services marketing.
Heterogeneity.
It is very difficult to make each
service experience identical. If
travelling by plane the service quality
may differ from the first time you
travelled by that airline to the
second, because the airhostess is
more or less experienced.
Designing a services
marketing program
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The services customer
Selecting target marketing
Product planning( service offering)
Product mix strategy
Pricing structure
Pricing strategy
Distribution system
Promotional program
Service Marketing
Mix/Extended Marketing Mix
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• Product
• Price
• Place
• Promotion
• People
• Process
• Physical evidence.
Lets now look at the remaining
3 p’s:
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People:
An essential ingredient to any service
provision is the use of appropriate staff and
people. Recruiting the right staff and training
them appropriately in the delivery of their service
is essential if the organization wants to obtain a
form of competitive advantage. Consumers make
judgments and deliver perceptions of the service
based on the employees they interact with. Staff
should have the appropriate interpersonal skills,
attitude, and service knowledge to provide the
service that consumers are paying for.
Process
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Refers to the systems used to assist
the organization in delivering the
service. Imagine you walk into
Burger King and you order a
Whopper Meal and you get it
delivered within 2 minutes. What
was the process that allowed you to
obtain an efficient service delivery?
Physical Evidence
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Where is the service being delivered? Physical
Evidence is the element of the service mix which
allows the consumer again to make judgments on
the organization. For Example:- If you walk
into a restaurant your expectations are of a
clean, friendly environment. On an aircraft if
you travel first class you expect enough
room to be able to lay down!
Physical evidence is an essential ingredient of the
service mix, consumers will make perceptions
based on their sight of the service provision
which will have an impact on the organizations
perceptual plan of the service.
Scope of services
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Housing and other structures;
Household operations:
Recreation and entertainment:
Personal care
Medical and health care
Private education:
Professional business services:
Financial services:
Transportation
Communications
N.F.P services organizations
Education
 Cultural
 Religious
 Social concerns
 Heath care
 Political
And many more………….
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Thank you