Course Name: Principles of Marketing Code: MRK 152 Chapter: Six Services Building Customer Value.

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Presentation transcript:

Course Name: Principles of Marketing Code: MRK 152 Chapter: Six Services Building Customer Value

Why to study services marketing It contributes more than 50% in the income of developed countries. Lots of job opportunities in the services industry. Many industry in the services.

Sectors in Services The various sectors under the Services Sector are: ◦ Hotels, ◦ Transport, ◦ Insurance, ◦ Financing, ◦ Business services, ◦ Real estate, ◦ Tourism etc.

Services Services are a form of product that consist of activities, benefits, or satisfactions offered for sale. They are essentially intangible and do not result in the ownership of anything.

Characteristics of Services

Services Marketing Mix Product Price Place Promotion People Physical Evidence Processes

Marketing Strategies for Service Firms Internal service quality Satisfied and productive service employees Greater service value Satisfied and loyal customers Healthy service profits and growth Service-profit chain is the chain that links service firm profits with employee and customer satisfaction.

Managing Services Service Differentiation Service Quality Service Productivity

Service Differentiation How do you differentiate your service from that of competitors? ◦ Ordering ease: Refers to how easy it is for you to place an order with the company. ◦ Delivery: It is related to how well the product or service is delivered to the customer, covering speed, accuracy and customer care.

Service Differentiation ◦ Customer training: refers to how the customer’s employees are trained to use the vendor’s equipment properly and efficiently. ◦ Customer consulting: refers to data, information system and advising services that the seller offers to buyers.

Service Quality Reliability Tangibles Responsiveness Assurance & Empathy

Service quality Reliability: The ability to perform the promised service dependably & Accurately. Tangibles: The appearance of physical facilities, equipment, personnel & communication materials. Responsiveness: The willingness to help customers and provide prompt service.

Service Quality Assurance: The knowledge and courtesy of employees and their ability to convey trust and confidence Empathy: The caring, individualized attention provided to the customer.

Thank You