Services Marketing

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Services Marketing

• MARKETING 360
• Brian Gillespie

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Services

• Intangible products that are exchanged directly
  from the producer to the consumer. After the
  service is consumed, consumers dont typically
  leave with a physical asset.
• Characteristics of services
• Fewer search qualities
• More experience qualities
• May also possess credence qualities
• To market, marketers often try to link their
  service with a tangible cue

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Services Compared to Products

• Services are
• More intangible than products
• Cant feel, taste, hear, touch, or see in the
  same way as typical products
• Inseparable
• Production and consumption of services are
  inseparable
• Perishable
• Services cant be stored or inventoried
• Variable
• Services are more variable than products due to
  variability in inputs and outputs

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Targeting Customers

• Targeting services toward consumers can be broken
  down even further
• Tangible and intangible services
• Services for the consumer and services for the
  consumers possessions

Tangible Intangible
Consumer Haircuts Tattoos Education Psychic readings
Possessions Pluming Dry cleaning Insurance Money management
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Product Service Continuum

• Most offerings are actually hybrids between
  products and services
• Some products are really services
• Services use products
• Product/service bundles are also created to
  differentiate the vendors offering

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Product Service Continuum
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Service Quality

• SERVQUAL
• Five dimensions for measuring quality of service
• Reliability (most important)
• Dependable, accurate and consistent service
• Responsiveness
• The ability to provide fast service
• Assurance
• Knowledgeable and courteous employees who earn
  our trust
• Tangibles
• Physical facilities, tools and equipment used to
  provide service
• Empathy
• Caring, individualized attention to customers

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SERVQUAL
SERVQUAL Dimension(Rate each on a 1 to 7 scale) Last Meal at ??? (Total 35 possible) Last visit to store in Palouse Mall (Total 35 possible) ??
Tangibles (facilities)
Reliability (repeatable) (service was just like last time)
Responsiveness (service provider catered to my needs)
Assurances (service provider was trustworthy and exuded confidence)
Empathy - (service provider cared about me and my experience)
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SERVQUAL
SERVQUAL Dimensions(Rate each on a 1 to 7 scale) Last Meal at Taco Del Mar Last visit to Macys Last visit to WSU sporting event (Cougar Basketball)
Tangibles (facilities) 5 4 3
Reliability (repeatable) (service was just like last time) 4 3 7
Responsiveness (service provider catered to my needs) 4 7 7
Assurances (service provider was trustworthy and exuded confidence) 3 6 7
Empathy - (service provider cared about me and my experience) 6 7 5
Totals 22/35 27/35 29/35
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Gap Analysis Approach

• A measurement approach that gauges the difference
  between a customers expectations of service
  quality and what actually occurs
• Five service gaps
• Poor understanding of customers preferences
• Poor Management standards
• Current performance is sub-standard
• Unrealistic promises
• Unrealistic consumer expectations

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Closing the Gap

• Gap 1
• Between what customers want and what management
  thinks they want
• To close know your customers (needs,
  satisfaction)
• Gap 2
• Between what customers want and quality
  specifications management develops to meet
  customer desires
• To close understand satisfaction with service
• Gap 3
• Between quality specifications and actual
  services provided
• To close train and educate employees

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Closing the Gap

• Gap 4
• Between what the customer is told the company
  provides and what the company actually provides
• To close manage customer expectations and
  provide accurate communication about services
  that dont lead to unrealistic expectations
• Gap 5
• Between the service customers want (often
  irrational) and the actual service received
• To close understand satisfaction with service

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Service Examples

• Are the following products, services or a hybrid?
• Are they tangible or intangible?
• Are they for the consumer or the consumers
  possession?
• If they are service failures, what went wrong?
• How could we close the gap?

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Thanks Adam
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Thanks Jake
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Thanks Travis
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Thanks Brad
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