Services Marketing

1
Services Marketing
any 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.

• Pure tangible good
• Tangible good with accompanying services
• Hybrid
• Major service with accompanying minor goods or
  services
• Pure service

2
Characteristics of Services Their Marketing
Implications

• Intangibility
• Manage the Evidence
• Inseparability
• Variability
• QC (selection/training service blueprinting
  monitor satisfaction)
• Perishability
• Matching Supply Demand
• Demand (differential pricing, cultivating
  non-peak demand, reservation system...)
• Supply (part-time help increase consumer
  participation peak-time efficiency routines)

3
Marketing Strategies for Service Firms

• 3 Ps
• People
• Physical Evidence/Presentation
• Process

• Types of Marketing for Service Providers
• External (of course)
• Internal
• Interactive

4
Evaluating Service Quality
Most Goods
Most Services
Easy to Evaluate
Difficult to Evaluate
High in ( ) Qualities Search
Experience Credence
5
Service Provider Challenges

• 1) Managing Differentiation
• Offer (primary secondary service features)
• Delivery
• Image
• 2) Managing Service Quality (Gaps)
• Consumer expectation/Management Perception
• Management Perception/Service Quality
  Specifications
• Service Quality Specifications/Service
  Delivery
• Service Delivery/External Communications
• Perceived Service/Expected Service

6
Service Provider Challenges

• 3) Managing Productivity
• Increase quantity of services/decrease some
  quality
• Industrialize the service
• Develop incentives for others to assume some
  service component
• Use of technology

7
Common Characteristics of Excellent Service
Companies
1) History of Top-Management Commitment
Customer Obsessed 2) High Standards Set 3)
Systems for Monitoring Service Performance 4)
Systems for Satisfying Customers Complaints 5)
Satisfying Both Employees and Customers
8
Customer Importance and Performance Ratings for
an Auto Dealership
Attribute Attribute
Mean Mean
Description Importance
Performance
Rating
Rating
1 Job done right the first time
3.83 2.63 . . 6
Courteous friendly service 3.41
3.29 . . 11 Convenient
to home 2.52
2.25 . 14 Send out maintenance notices
2.05 3.33
9
Extremely Important
(Keep up the good work)
1
6
(Concentrate Here)
Fair Performance
Excellent Performance
11
(Possible Overkill)
14
(Low Priority)
Slightly Important