SERVICE MARKETING Presented By: Bincy Anni Mathew

WHAT IS SERVICE?  Service is any act or performance that one party can offer to another party that is essentially intangible and does not result in any relationship of anything. Its production may or may not be tie to a physical product. -PHILIP KOLTER  Service marketing is marketing based on relationship and values. It may be used to marketing a service or a product.

FEARTURES OF SERVICE MARKETING SERVICE MARKETING INSEPARABLE INTANGIBLE PERISHABLE HETEROGENEOUS VARIABLE

INSEPARABLE  Services are produced and consumed simultaneously.  provider – client interactions is a special feature of service marketing  In Inseparability,key quality of services as distinct from goods

INTANGIBLE Services are intangibility cannot be seen, tasted, felt, heard or smelled before purchase. Service quality is the perception in the mind of the consumer of the quality of the product prior to purchase through making a series of searches. Experience quality is easier to assess. In terms of service you need to taste the food or experience the service level.

Credence quality is based upon the credibility of the service that you undertake. It is used where you have little knowledge of the topic and where you rely upon the professionalism of the expert.

PERISHABLE Perishable in that once it has occurred it cannot be repeated in exactly the same way. Perishability is used in marketing to describe the way in which service capacity cannot be stored for sale in the future.marketing

VARIABLE Variable- since the human involvement in service provision means that no two service will be completely identical, they are variable. Service may vary from one user experience to another.

HETEROGENEOUS Heterogeneous is where service are largely the same. Two doctors expressing or giving two opinion or solution to the same disease. Therefore standardization is largely embodied by the large global brand which produce service.

SERVICE MARKETING MIX

Service marketing mix refers to the combination of marketing activities an organization engages in to promote and sell intangible service, as opposed to tangible product. It include four P’s of traditional product market- product, price, place, promotion and also three P’s of service market- people, process and physical evidence.

Product: It provide value to a customer but does not have to be tangible at the same time. The important issue in the service product is understanding what benefit and satisfaction the consumer is seeking from service. Price : it must be competitive and must entail profit. The pricing strategy can comprise discount, offer and like. It is more labor based. Place : It refers to the place where the customers can buy the product and how the product reaches out to that place. This is done through different channels like internet, wholesaler and retailer.

Promotion: It includes the various ways of communicating to the customers of what the company has to offer. It is about the benefit of using a particular product or service rather than talking about its features. People: It refers to the customers, employees, management and everybody else involved in it. Because quality depends upon the people who constitute the organization. Process : Service process is the way in which a service is delivered to the end customer.

Physical evidence: It refers to the experience of using product or service. When service goes out to the customer, it is essential that you help him see what he is buying or not.

S ERVICE MARKETING TRIANGLE External Marketing Internal Marketing Interactive Marketing CUSTOMERSEMPLOYEES MANAGEMENT

The external marketing efforts that the firm engages in to set up its customers’ expectations and make promises to customers regarding what is to be delivered. Anything that communicates to the customer before service delivery can be viewed as part of this external marketing function. On the bottom of the triangle is what has been termed interactive marketing, or what some refer to as real-time marketing. Here the actual service delivery takes place-the firm’s employees interact directly with customers. It is at this point that the promise is delivered ( or nor delivered).

The left side of the triangle suggests the critical role played by internal marketing, which enables employees to keep the promises that have been made to customers. Internal marketing refers to the activities the firm must carry out to train, motivate, and reward its employees. unless service employees are able and willing to deliver on the promises made, the firm will not be successful in keeping its promises and the services marketing triangle will collapse. Internal marketing hinges on the assumption that employee satisfaction and customer satisfaction are inextricably linked.

THEORY OF GAP MODEL Word of mouthPersonal needPast experience Experience service Perceived service Service Deliver Translation of perception Service Quality Space Managements perception of consumer Expectation External Communication to customers CUSTOMER MARKETER Gap 5 Gap 3 Gap 2 Gap 4 Gap 1

Customer Gap : The difference between customer expectation and customer perception the service quality gap. Gap 1 : The difference between what customer expected and what management perceived about expectation of the customer. Gap 2 : The difference between management perception of customer expectation and translation of perception into service quality specification and design. Gap 3 : The difference between services delivered to the customers and the promise of the service delivery to the customer. This is of great importance to services where the delivery system relies heavily on people

Gap 4 : The difference between services delivered to the customers and promise of the firm to customer and about its service quality. This establishes expectations within the customer which may not be met. Gap 5: The difference between the actual performance and the customers’ perceptions of the service.

Word of mouthPast experiencePersonal need Expected service Perceived service Determinants of Service Quality: Access Communication Competence Courtesy Credibility Reliability Responsiveness Securities Tangible Understanding & Knowing the customer Fig: The determination of Service Quality

The gap model assist in understanding the customer perception of service quality. Customers use these determinants to form the expectation and perception of Service quality. The model identifies the key factors that causes unfavorable situations or mishap in meeting customer expectation.