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Service Marketing( INTRODUCTION, CLASSIFICATION, CONSUMER BEHAVIOR ETC……. )
Presented to:-Vivek Sir
Presented by:-Mohit PatodiyaMba 3rd sem
What is Service Marketing?
Activity or benefit 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
Examples: Defense, Postal, Education, health, Religious Services, Hospitals, Airlines, Hotels, Law Firms, Entertainment, etc
Health Care
hospital, medical practice, dentistry, eye care
Professional Services
accounting, legal, architectural
Financial Services
banking, investment advising, insurance
Hospitality
restaurant, hotel/motel, bed & breakfast ski resort, rafting
Travel
airline, travel agency, theme park
Others
hair styling, pest control, plumbing, lawn maintenance, counseling services, health club, interior design
Examples :-
Tangibility Spectrum
What is Service? The Old View
Service is a technical after-sale function that is provided by the service department.
Old:
Service = wrench time
Old view of service = Customer Service
Center
What is Service? The New View
Service includes every interaction between any customer and anyone representing the company, including:
Dealers
Sales people
Receptionists and Schedulers
Management and Executives
Service Employees
Billing and Accounting Personnel
Web site and any e-channel Interaction
Nature of Service Marketing
1. INTANGIBILITY
Services are intangible we cannot touch them as they are not physical objects.
A consumer feels that he has the right and opportunity to see, touch, hear, smell or taste the goods before they buy them but his is not applicable to services.
The services are not known to the customer before they take them.
EXAMPLE
Mobile network providers like Vodafone , Airtel , Reliance , etc
2. PERISHABILITY
Value of service exists at the point when it is required.
Services perish as soon as they are used.
Services last for a specific time and cannot be stored like a product for later use.
EXAMPLE
3. INSEPARABILITY
Services cannot be separated from the service provider.
Thus, the service provider would become a part of a service.
Production and consumption of services go hand in hand.
EXAMPLE
Taxi operator drives taxi, and the passenger uses it.
The presence of taxi driver is essential to provide the service.
4. HETEROGENEITY
The quality of services cannot be standardized.
Systems and procedures are put into place to make sure the service provided is consistent.
The service firms should make an effort to deliver high and consistent quality by selecting good and qualified personnel for rendering the service
EXAMPLE
Live concerts like singing , dancing and comedy shows , movies , etc.
Pure services : Activities performed that do not include a tangible product.
Non-good services - Personal/professional service for a fee.
Example: tax preparation.
Owned-good services - Activities that alter, improve, or repair products already owned.
Example: dry cleaning, appliance repair service.
Rented good services - Provide a product to use for a brief period for a fee. Example: carpet
cleaners, movie rental.
Consumer services
Classification of service
People processing
Level of involvement can vary.
Managers must think about processes / outputs in terms of what happens to customers or what benefits are created.
Identify non-financial costs, time, mental and physical effort, fear, and pain etc.
Example : healthcare, beauty saloon, dentist, spa, tourism, transportation, restaurant, lodging
Classification on the basis of involvement of customer
Possession processing
Working to tight deadlines to restore customer’s possessions to good working order.
People are less physically involved and usually, no real need for them to enter the service; often limited to requesting the service; explaining the problem or paying the bill only.
Eg : post office /currier, laundry, ATM, warehousing, landscaping, gardening, office cleaning, repair and maintenance, freight transportation
Classification on the basis of requirement of skill and expertise
Professional servicesRequires a set of qualificaion skills adequate training etc.eg lawyer, pilot
Non professional servicesDo not require any set of skills training.Eg house keeping, babysitting etc
Classification on the basis of end user
Consumer services: beauty case hair case
Business to business services: market research and consultancy
Industrial services: maachine installations
Consumer behavior in service marketing …. ?
Consumer behavior is the study of how people make decisions about what they buy, want, need, or act in regards to a product, service, or company. It is critical to understand consumer behavior to know how potential customers will respond to a new product or service. It also helps companies identify opportunities that are not currently met.
The Three Factors
Psychological Factors
In daily life, consumers are being affected by many issues that are unique to their thought process. Psychological factors can include perception of a need or situation, the person's ability to learn or understand information, and an individual's attitude. Each person will respond to a marketing message based on their perceptions and attitudes. Therefore, marketers must take these psychological factors into account when creating campaigns, ensuring that their campaign will appeal to their target audience.
Personal Factors
Personal factors are characteristics that are specific to a person and may not relate to other people within the same group. These characteristics may include how a person makes decisions, their unique habits and interests, and opinions. When considering personal factors, decisions are also influenced by age, gender, background, culture, and other personal issues.
For example, an older person will likely exhibit different consumer behaviors than a younger person, meaning they will choose products differently and spent their money on items that may not interest a younger generation.
Social Factors
The third factor that has a significant impact on consumer behavior is social characteristics. Social influencers are quite diverse and can include a person's family, social interaction, work or school communities, or any group of people a person affiliates with. It can also include a person's social class, which involves income, living conditions, and education level. The social factors are very diverse and can be difficult to analyze when developing marketing plans.
THANK YOU