URGENT - SERVICE MARKETING - CUSTOMER VALUE REPORT - NEED DONE ASAP - OFFERING HIGH
j.mas95
ServicesMarketingLecture1MarketingintheServiceEconomy1.ppt- Lecturer: Steve Dix
- [email protected]
- Office phone: (08) 9266 7246
Please read the unit outline carefully
Marketing in the service economy
Based on Text book Chapter 1
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Marketing of Services Lecture 1
- Explain how services are defined
- Describe how services contribute to a country’s economy
- Identify the powerful forces that are transforming service markets
- Describe the key characteristics that distinguish services from goods
- Explain how services create value for consumers
- Describe ways of categorising services
- Identify the key components of a service operations system
- Describe the expanded ‘marketing mix’ for services
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Marketing of Services Lecture 1
- The service sector is the engine of economic growth, particularly in developed countries
- Consider the remarkable growth in IT, health, telecommunications, hospitality and tourism
- Every day, we consume a vast array of services
Marketing of Services Lecture 1
Marketing of Services Lecture 1
- Any act, performance or experience that one party can offer to another
- Services are essentially intangible and do not result in the ownership of anything
- Service businesses offer processes (economic activities) that provide time, place, form, problem solving or experiential value to the receiver
- A service is something that may be bought or sold, but cannot be dropped on your foot
Marketing of Services Lecture 1
Marketing of Services Lecture 1
- Value comes from a variety of value-creating elements rather than transfer of ownership
- Firms must create and deliver services that are perceived (by customers) to provide value
Choose the value: segmentation, positioning, market focus, Unique Value Proposition
Create the value: service quality, price, customer service, website, channel strategy
Communicate value: Advertising, PR , selling, service encounters
Marketing of Services Lecture 1
- Physical Goods Businesses
- Core product (tangible)
- May provide supplementary services (customer service)
Service businesses
Core service (intangible)
Generally provide supplementary services around the core service
For example, after-sales service, consultation, finance, delivery, installation, maintenance, upgrades
For example, Billing, Hospitality, Consultation
“Everyone is in Service” Theodore Levitt
Marketing of Services Lecture 1
- An telecommunications company supplies and sells mobile phones. Is this a product or services company?
- A theme park provides baby-sitting services for it’s staff. Is this a supplementary service?
- McDonalds gives away free movie tickets to selected customers. Is this a supplementary service?
- Is a restaurant a goods or service business?
It’s core business is telecommunications services. Mobile phones are secondary to the service offering.
No, because the service is directed at staff – not customers. This is a Human Resources function.
No, this is a sales promotion which is part of McDonald’s Marketing Communication
It’s a hybrid of both
- Service businesses typically have both tangible and intangible elements
- The question is: “How much value is created by the service elements compared to the total package”?
For example, a hotel is a service business but also manages a variety of tangibles within its service offering, such as bedrooms, dining areas and recreational facilities. These tangibles contribute to the consumer’s perception of service quality
Marketing of Services Lecture 1
1. Perishable (cannot be inventoried)
2. Intangible elements dominate value creation
3. Difficult to visualise and evaluate
4. Customers may be involved in co-production
Marketers should find ways to smooth demand levels
Marketers should create physical cues and strong brand associations as ‘physical evidence’
Manage high levels of perceived risk by emphasizing experience, credentials and expertise of the services provider
Build consumers’ knowledge and confidence to perform as a co-producer
Marketing of Services Lecture 1
5. People are often part of the service experience
6. Operational inputs and outputs tend to vary more widely
7. Timing and urgency are more important
8. Distribution can take place via non-physical channels
For example, banking via the Internet
Consumers expect services to be available when it suits them
Final ‘assembly’ takes place in real time. Attitudes, transaction speed and performance quality can vary widely
Employees and other customers’ appearance and behaviour reflect directly on your brand
Both
Business
Mostly standardized
Relationship
Continuous
Low
| Tangible/ Intangible | Place of Service | Customised/ Standardised | Relationship/ Transactional | Discrete/ continuous | High / Low Contact |
| Gym | |||||
| Hotel | |||||
| Hairdresser | |||||
| Online guitar lessons | |||||
| Dry Cleaning | |||||
| Bank | |||||
| Landscape Services |
- Tangible actions to people’s bodies (people processing)
- Tangible actions to goods and other physical possessions (possession processing)
- Intangible actions directed at people’s minds (mental-stimulus processing)
- Intangible actions directed at intangible assets (information processing)
Marketing of Services Lecture 1
| People Processing (Tangible action to People’s bodies) | Possession Processing (Tangible action to people’s possessions) | Mental-stimulus Processing (Intangible action to people’s minds) | Information Processing (Intangible action to people’s possessions) |
| Taxi | |||
| Cinema | |||
| University | |||
| Theme Park | |||
| Stockbroker | |||
| Physiotherapy | |||
| Advertising Agency |
- 1 – 4: Product, Price, Place, Promotion (Marketing Communication)
- 5. People: direct, personal interaction between customers and the firm’s personnel or employees for the service to be ‘manufactured’ and delivered.
- 6. Physical evidence (tangible cues): e.g. servicescape— such as physical layout of the service facility, ambience, background music, seating comfort etc.
- 7. Process of service production: required to ‘manufacture’ and deliver the service.
Marketing of Services Lecture 1
Marketing of Services Lecture 1
Human Resources drives key staffing areas such as recruitment, incentivization and promotion
Operations and Technology Managers drive facilities planning and customer process/critical paths
Marketing needs to have input into people, process and physical evidence since these all impact the customer interface.
Marketing must manage the ‘moments of truth’
Customers
Marketing
management
Human
Resources
management
Operations and information
Technology management
Marketing of Services Lecture 1
Done!
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Marketing of Services Lecture 1
