The Service Revolution and the Transformation of Marketing Science

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علم تغییرات و خدمات تحول مقال�ه ارائ�ه بازاریابی

بازاریابی استراتژیک۱۳ارائه : دوره محسن عالمیان، فرشاد روحان��ی، نص��راله

مرتضوی ،محمدرضا مشعوف درس : بازاریاب�ی خدمات – دکت�ر رامی�ن ناجی

زاده

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1. Introduction 2. Information Technology and the Service Revolution

3. The Transformation of Marketing Science 4. Discussion and Conclusions

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Introduction• Service is transforming every developed economy,

resulting in an expansion of the service sector and the increasing infusion of service into the goods sector.

• These changes are largely due to the effect of information technology.

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Introduction

Service Information

Revolution

• We argue that the service revolution and the information revolution are two sides of the same coin.

• That understanding how advances in IT deepen customer relationships and expand opportunities for service explains the service revolution.

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Introduction

Our three main objectives are the following:

to explore the long-term trend of a shift from a goods-

based to a service-based economy.

to explain the trend’s relationship to advances in IT.

to consider the implications of this trend for marketing

science.

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Introduction

Agricultural Economy

Manufacturing Technology

Industrial Economy Service Economy

Information Technology

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1. Introduction 2. Information Technology and the Service Revolution

3. The Transformation of Marketing Science 4. Discussion and ConclusionsReminder

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Traditional Marketing

Introduction

• We move beyond these earlier conceptualizations to reflect the fact that service permeates our entire economy, and not just the service sector.

What is Service?

• Service is NOT …

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Introduction

What is Service?

• Service is …

“Service is any direct provision or co-creation of value between a provider and a customer.”

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Introduction

What is Service?

• Observations …

1. Service does not have to involve customer contact personnel.

2. “co-creating service”(dynamic) not “selling a service” (static).

3. Selling a good to a customer is not service.

4. Service is not restricted to the service sector.

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Introduction

What is Service?

• Service is everywhere, not just in the service sector.

• Service is more than just “services”.

• Our main thesis is that IT is expanding service and is profoundly influencing all of marketing, not just service marketing.

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Introduction

The Conceptual Framework

Information Revolution

Ubiquitous CustomerCommunication Big customer data

Better, More Personalized Service

Deeper ServiceRelationships

Expansion of Servicein The Economy

More ProfitableCustomers

Service Revolution

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21%

79%

Service Industry

Information Technology and the Service Revolution

The Service Revolution

• One of the longest and most stable economic trends is the shift in employment to the service sector.

Trend of U.S. nonfarm workers worked in the service Sector (U.S. Bureau of Labor Statistics 2012)

33%

67%

56%

44%

18391900194019802011

67%

33%

84%

16%

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The Service Revolution

• One of the longest and most stable economic trends is the shift in employment to the service sector.

Trend of U.S. nonfarm workers worked in the service Sector (U.S. Bureau of Labor Statistics 2012)

1839 1900 1940 1980 20110%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

21%33%

56%67%

84%

79%67%

44%33%

16%

IndustryService

54%

20%25%

70%

Year 1839 2011Service Share 21% 84%Total Duration

Tota Growth

AVG Gr per Year

172 Years300%1.7%

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The Advance of Information Technology

• Much of the radical transformation of the world economy from an industrial to a postindustrial service society comes from the contribution of IT to service and from IT as a service.

Service is not new; it is Service plus IT that transforms service.

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1980• IBM 3,850 mass storage system

• stored a total of around 100 GB

• used to store the entire U.S. Census database

2012• 2.5 quintillion (bytes) of data

• Were created every day

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1980• processing speed of the fastest supercomputer

was about 2 gigaflops

2011• a fast consumer desktop computer can easily

handle calculation at 50–90 gigaflops

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• Analytical capabilities and techniques used in marketing have taken advantage of huge increases in data processing speed.

• Hardware evolution has made all kinds of software run much faster.

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• Mobile and networking technology allows firm-to-customer, firm-to-firm, and customer-to-customer communications online.

• Such communications provide firms with useful information about individual customers as well as greatly amplify the power of word of mouth.

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• This allows marketers to interact with customers anywhere at any time to gain a deeper understanding of customer behavior.

• Also can reduce inefficiencies and allow the consumer to take some of the seller’s profit!?

Treat or Opportunity , for …?

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• Customer-to-firm communication has also been enhanced by mobile and networking platforms, where learning about customers has become a central issue in relationship management.

• Not just customer purchasing but also customer click streams and online behavior.

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• The availability of big data and marketing analytics on the cloud makes personalization increasingly feasible and cost efficient.

• Firms can collect more accurate and detailed customer information

• Mass customization of services and personalized marketing communications would be available.

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This means that personalization has two meanings here:

1. Service itself can be tailored to customer’s individual needs.

2. Marketing communications with customers can be personalized by taking advantage of the personal nature of communication content in many networking platforms.

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• This new IT trend thus allows firms to tailor service to individual customer needs and to build personal relationships with customers by leveraging personal content (not necessarily personal identity).