Marketing of Services

Agenda
Intangibility of Service Products
Customers Expectations in Service Delivery
Application of Marketing knowledge to Service
Operations
Brand Management in Services

2
 Consequences of Intangibility
Perishability
Demand Management, Supply capacity balancing,
competitive-cooperation/collaboration
Variability
Challenge in Quality Management, Expectations
management
Inseparability
Unilateral, bilateral, one-to-many and multilateral
systems designs, service quality optimisation

3
 Service-Quality Framework
Zeithaml, Parasuraman & Berry, "Delivering Quality Service; Balancing
Customer Perceptions and Expectations," Free Press, 1990

Word-of-mouth
communications
GAP 1

GAP 2 GAP 3 GAP 5

Management Translation of Service delivery

Perceptions perceptions into (including pre- Perceived Expected Personal
of Consumer service-quality and post- Service Service Needs
Expectations specifications contacts)

GAP 4

External
communications Past
to consumers Experience

MARKETER CONSUMER
 Determinants of Service Quality
Reliability
Ability to perform promised service dependably and accurately
Responsiveness
Willingness to help and provide prompt service
Assurance
Knowledge, courtesy and ability to convey trust and confidence
Empathy
Provision of caring, individualised attention to customers
Tangibles
Appearance of physical facilities, equipment, personnel, and
communication material

5
 Services Marketing Mix
Product (Service)
Price
Promotion
Place
People
Process
Physical Evidence

6
 Managerial Issues
Strategic Concept Customer Obsessed
Top Management Commitment
High Standards
Service Recovery Strategies
Self-service Technologies
Monitoring Systems
Employee Commitment

7
 Service Brands
Commoditisation due to standard regulation
Differentiation through Service-line extension
Importance of visual brand elements
Brand Associations to Service Quality
parameters credibility, expertise, trust,
likability
Visibility Credibility crisis
After Sales Service and Service After Sales
8
 Issues in the face
Service Failure Liability and Hedging the risks
Private Sector Economic Service Businesses
Governmental or Public services
Public Private Partnership in services
Regulation of services
GATS and Mode-4 consumption
Service dominance of economies
Skills and employment generation potential

9
Apollos Interdependent Service System

Supports or
Renowned enables
consultant doctors Technology
in all specialities and Facilities People and
objects

Quick Higher utilisation Conditions, situations

Treatment Shorter stay rates for technology and processes
in hospital and facilities Bold indicates elements
Excellent
medical that directly serve
outcomes Less High demand for customers (internal or
time in Lower total hospitals services, external)
pain opportunity waiting lists for
cost of care admissions

Patients Referring
(satisfied) doctors
Evaluating Expansion Options

Ability to transfer service

Low High

Strong

Strength of
Competition
Building and operating
HMO wholly-owned facilities
Weak
Licensing