PART 1 : FOUNDATIONS FOR SERVICES MARKETING
MODULE 1 : INTRODUCTION TO SERVICES
WHAT ARE SERVICES?
Services are deeds, process, and performances provided or coproduced by one entity or person for another entity or person.
Services are mostly not tangible things that can be touched, seen, and felt, but rather are intangible deeds and performances provided and/or coproduced for its customers.
Services can be divided into four distinct categories: Service Industries and companies, services as products, customer service, and derived service.
Service industries and companies – include those industries and companies typically classified within the service sector whose core product ...view middle of the document...
Services marketing address the concerns and needs of any business in which service is an integral part of the offering.
SERVICE AND TECHNOLOGY
New Service Offerings – technology has been the basic force behind service innovations such as automated voice mail, interactive voice response systems, fax machines, automated teller machines, and other common services were possible because of new technologies. Because of these new service offerings the need for services marketing are rapidly rowing.
New Ways to Deliver Service – technology is providing vehicles for delivering existing services in more accessible, convenient, and productive ways. The following are some of the benefits of technology in service sector:
1. Technology facilitates basic customer service functions.
2. Technology facilitates business transactions.
3. Technology facilitates easy learning.
4. Technology facilitates empowerment to customers and employees.
5. Technology facilitates efficient communications.
CHARACTERISTICS OF SERVICES
Intangibility – is the most basic distinguishing characteristics of services. Services are performances or actions rather than objects, they cannot be seen, felt, tasted or touched in the same manner that you can sense tangible goods. Here are the resulting marketing implications: Services cannot be inventoried, cannot be easily patented, cannot be readily displayed, and is difficult to put a price.
Heterogeneity – since services are performances and are frequently produced by humans, no two services will be precisely alike. Heterogeneity in services is largely the result of human interaction. The resulting marketing implications: Satisfaction depend on the employee and customer actions, Quality depends on uncontrollable factors, and Delivery depends on actual performance.
Production and Consumption – most services are sold first and then produced and consumed simultaneously. The resulting marketing implications are: Customers participates and affect the transactions, customers affect each other, employees affect the service outcome, decentralization may be essential, and mass production is difficult.
Perishability - refers to the fact that services cannot be saved, stored, resold, or returned. The resulting marketing implications are: Synchronization of supply and demand is difficult, and services cannot be returned or resold.
SERVICE MARKETING MIX
Traditional Marketing Mix – the elements an organization controls that can be used to satisfy or communicate with customers. The traditional marketing mix is composed of the four Ps: Product, Place, Promotion, and price.
Expanded Marketing Mix – because services are intangible, customers are looking for any tangible cue to help them understand the nature for the service experience. The expanded marketing mix help marketers define these intangible for tangible understanding. These are composed of: People, Physical evidence, and process.
1. People –...