Service Marketing

Lecture Series By Prof. Hansel DSouza

Introduction

More than 60% of Western Economies are in the service sector Second Industrial Revolution Definition: Service is an activity with some element of intangibility which involves interaction with customers but does not result in transfer of ownership of goods.
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Service Marketing

Prof. Hansel D'Souza

Visual Definition
Pure Tangible

Tangible

Soap, toothpaste, salt

Tangible + Service

Computers, Fridge, TV

Service+ Tangible

Airlines, Restaurants

Pure Service

Service

Baby-sitting, counseling

Service Marketing Prof. Hansel D'Souza

Characteristics of Services

Intangible Heterogeneous

Perishable

Inseparable

Service Marketing Prof. Hansel D'Souza

Classification

Retailing Transportation, distribution, storage Banking, insurance Real estate Communications, information Public utilities, government, defence Health care Business, professional, personal services Recreation, hospitality Education Non-profit organisations
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Service Marketing Prof. Hansel D'Souza

Service Marketing Mix - 7 Ps

Product Elements Price

People Promotion & Education Customer Service

Process Place &TIme

Physical Environment

Service Marketing Prof. Hansel D'Souza

Service Delivery
People processing (Hotel) Possession processing (Laptop) Mental Stimulus processing (Weather) Information processing (Insurance)

Service Marketing Prof. Hansel D'Souza

Service Encounters
High Contact Low Contact

Service Marketing Prof. Hansel D'Souza

Levels of Contact
High
Nursing Home Haircut 4 * Hotel Good restaurant Airline Travel Retail Banking Motel Fast Food Dry Cleaning Movie Theatre Subway Insurance Cable TV Car Repair Telephone Banking

Encounters With Personnel

Management Consulting

Encounters With Equipment

Service Marketing Prof. Hansel D'Souza

Internet Banking Mail Based Repairs Internet Based Repairs

Low

Purchase Process
Awareness of Need Information Search Define Needs Explore Solutions Identify Alternatives Service Suppliers Evaluation of Alternative Service Suppliers Review Documentation (e g., advertising, brochures, Web sites) Consult with Other People (e.g., friends, family, other customers) Visit Possible Service Suppliers, Speak to Personnel Request Service from Chosen Supplier Or Initiate Self Service Service Delivery Evaluation of Service Performance Future Intentions Service Marketing Prof. Hansel D'Souza

Pre Purchase Stage

Service Encounter Stage Post Purchase Stage 10

Perceived risks
Functional Financial Temporal Physical Psychological Social Sensory

Service Marketing Prof. Hansel D'Souza 11

Personal Needs Desired Service Beliefs about what is possible

Explicit & Implicit Service Promises Word of Mouth Past Experience

Perceived Service Alterations

Zone Of Tolerance

Adequate Service Situational Factors

Predicted Service

Factors Influencing Customer Expectation of Service

Service Marketing Prof. Hansel D'Souza 12

Breadth of Service Offering Narrow Wide

Many

Service Focused

Unfocused

Few

Fully Focused

Market Focused

Service Marketing Prof. Hansel D'Souza

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Positioning

Identification, development and communication of a differentiated advantage which makes the product or service to be perceived as superior and distinctive in the prospects mind Copy Positioning - Marlboro Product Positioning Reliance phone Case Study Dominos Pizza
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Service Marketing Prof. Hansel D'Souza

Shostacks Molecular Model

Vehicle Inflight service

Service Frequency transport Food & Drink

Passenger Airline service

Pre & Post Flight Service

Price Distribution
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Positioning Service Marketing Prof. Hansel D'Souza

Service For Overnight Hotel

Reservations Use Phone Parking

Nature Scheduling Of Process

Room Service CORE Check In/Out

Service Level
Pay TV

Customer Role

Porter

Meal Service Marketing Prof. Hansel D'Souza

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Service Flower
Payment

Information Consultation

Billing Facilitating Enhancing Exceptions

CORE

Order Taking

Hospitality Safekeeping

Service Marketing Prof. Hansel D'Souza

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8 Basic Steps to Branded Customer Experience

1. 2. 3. 4. 5. 6. 7. 8.

Target customers using psychographics Understand what customers value Create a Brand Promise Shape Differentiated Customer Experience Train employees to deliver experience Every employee a Brand manager Processes should exceed promises Measure monitor consistent delivery
Service Marketing Prof. Hansel D'Souza 18

7 New Service Categories

1. 2. 3. 4. 5. 6. 7.

Major Service Innovations Major Process Innovations Product Line Extensions Process Line Extensions Supplementary Service Innovations Service Improvements Style changes
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Service Marketing Prof. Hansel D'Souza

Communication Mix For Services

Personal Communication Selling Advertising Sales Promotion Sampling Publicity & PR Instructional Materials Websites Corporate Design Signage

Broadcast

Press Releases Press Conferences Special Events Sponsorship

Customer Service Training

Print

Coupons

Manuals

Interior Decor Vehicles

Internet

Gifts

Brochures

Telemarketing

Outdoor

Sign Up Rebates Price Promotions

Audio Video Casettes CD Roms

Equipment

Word of Mouth

Direct Mail

Trade Shows Exhibitions

Stationery

Media Initiated Service Marketing Prof. Hansel D'Souza Coverage

Voicemail

Uniforms 20

Service Marketing Prof. Hansel D'Souza

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