Professional Documents
Culture Documents
Marketing of Services
Introduction
Definition of Services:
“A service is a ny act or performance that one party can offer to another that
is essentially intangible and does not result in the ownership of anything. Its
production may or may not be tied to a physical product.” By Phillip Kotler
&Bloom (1984).
3. Hybrid
5. Pure services.
Characteristics of services:
1. Intangibility: Services are intangible. They cannot be seen, tasted, felt,
heard or smelt before they are bought unlike physical products.
Services
1. Intangible :
c) Pricing is difficult.
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2. Heterogeneous: a) Service
delivery & customer satisfaction
7. It is a thing
depend on employee actions.
8. Customers do not participate
b) Service quality depends on
in production.
many uncontrollable factors.
7. Finance
8. Health
a) It is difficult to synchronize
supply & demand with services.
6. Transfer of ownership takes
place. b) Services cannot be returned or
resold.
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7. It is an activity or process.
9. Tourism
10. Recreation
11. Transport
Classification of Services:
1. Judd (1964) : classified services on the basis of goods i.e., rented
goods services, owned goods services, non- goods services.
4. Hill ( 1977) : on the basis of; a) Services affecting persons v/s those
affecting goods. B) Permanent v/s temporary effects of the service, c)
reversibility v/s non- reversibility of these effects. D) Physical effects
v/s mental effects. e) Individual v/s collective services.
3.5 3.5
3.5
3 Most
Most
goods
services
2.5 2.5
2.5
2
Eas
1.5 y to
eva Y-Valu
1 1.5
luat y- valu
0.5 e
0 0
0 0 Difficult
0 0 0 0 Y-Values to
evaluate
Some of the major differences are given by Zeitham & Bitner these are:
10. The greater the human interaction in the service encounter, the
more likely the consumer’s evaluation of the service will be influenced
by moods & emotions.
19. Brand switching is less frequent with services than with products.
Total
Traditional perceived
marketing Quality
activities like:
Total
Expected Perceiv
-Market communication perceived
service ed
service
quality
- image quality
- word-of-mouth
-customer needs
-PR
-Advertising
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Image
Functional
quality
(how)
Technical
quality
(what)
Gaps Model of Service Quality Source
The figure below shows the "GAP" model of service quality from Parasuraman et al. (Zithaml &
Bitner 1996). This model offers an integrated view of the consumer-company relationship. It is
based on substantial research amongst a number of service providers. In common with the
Grönroos model it shows the perception gap (Gap 5) and outlines contributory factors. In this
case expected service is a function of word of mouth communication, personal need and past
experience, and perceived service is a product of service delivery and external communications
to consumers.
Importance of SERVQUAL.
These WHATS can then be compared with the HOWS (key business
processes) and relationships matched to check service design and
provision according to key requirements
ZONE OF TOLERANCE.
• Consider a bank customer who wishes to cash a check in 3 minutes
( desired level)
– Personal Needs
– Past Experiences
• MSA & MSS score will determine a firm’s competitive position from a
service standpoint
SEGMENTATION :
Market segmentation is learning & defining who the organization wants to
have relationship with. “Market Segmentation is the dividing of
heterogeneous markets into segments. It should be ensured while
segmentation that each segment is homogeneous in all significant
characteristics.”
2. Geographic segmentation
3. Psychographic segmentation
4. Behavioural segmentation
5.Technographic segmentation
2.Accessibility
3.Sustainability
4.Actionability
5.Differentiability
TARGETING:
There are 3 desirable alternatives for a service organization when selecting
a target market. They are:
1.undifferentiated market
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2. Differentiated markets
3. Customization
SERVICE POSITIONING:
Positioning means projecting the image of the product or service in such a
way that consumers perceive its value distinctively from that of
competitive offers. In other words, positioning intends to influence the
perceptual process of consumers against a product or a service.
Positioning Strategies:
Service attribute, Service benefits, Service application positioning,
Service user positioning, Quality positioning, Price positioning, Leadership
positioning, Excellence positioning.