bba 506 m2 unit 1 introduction service marketing dr kanchan.pptx

Study Material for Management students

1. SERVICE MARKETING UNIT 1 INTRODUCTION TO SERVICE MARKETING PROF (DR) KANCHAN KUMARI FACULTY OF DIGITAL MARKETING & INTERNATIONAL BUSINESS

2. Introduction of Service Marketing Service definition is foundational to service management . Clearly defined services enable customers to understand service offerings, including what each service does and does not include, eligibility, service limitations, cost, how to request services, and how to get help At the Services Marketing Conference in 1981, Booms and Bitner proposed a model of seven Ps, comprising the original four Ps plus process, people and physical evidence, as being more applicable for services marketing. Service marketing is simply the process of promoting and selling a service or an intangible good to a specific group of people . It is a new way of marketing that has become very popular and helps companies all over the world promote their services. It looks at how a certain kind of service is advertised in the market.

3. Definition of Service Marketing Services marketing is a form of marketing businesses that provide a service to their customers use to increase brand awareness and sales . Unlike product marketing, services marketing focuses on advertising intangible transactions that provide value to customers. Service marketing is a unique aspect of marketing that focuses on promoting intangible services rather than physical products. It involves a combination of strategies and techniques to enhance customer satisfaction and provide exceptional experiences.

4. Characteristics and Classification of Services It emphasizes the unique characteristics of services: intangibility, inseparability, perishability, and variability . The marketing mix for services expands to 7 Ps: Product, Price, Place, Promotion, People, Process, and Physical Evidence. Goods and services can be sorted and classified according to two characteristics: Exclusion and consumption . The resulting classification determines the roles of government and of the nongovernmental institutions of society in supplying the goods and services.

5. Importance of Service Marketing Differentiation: Organizations must differentiate themselves from their competitors in a crowded marketplace. Service marketing provides an avenue to showcase unique service offerings, exceptional customer experiences, and customized solutions, setting businesses apart from the competition. Customer Loyalty: By delivering excellent service experiences, organizations can foster customer loyalty and build long-lasting relationships. Satisfied customers are more likely to become repeat customers and brand advocates, leading to increased referrals and positive word-of-mouth. Revenue Generation: Effective service marketing can drive revenue growth by attracting new customers and encouraging upselling or cross-selling opportunities. When customers perceive value in the services provided, they are willing to pay a premium, leading to increased profitability. Reputation and Trust: A strong service marketing strategy helps build a positive reputation and instils trust in consumers. When customers have confidence in an organization's ability to deliver on its promises, they are likelier to choose that service provider.

6. Types of Service Marketing Internal Marketing: Internal marketing focuses on strategies for employees and enhancing their understanding of the service offering. Organisations can ensure that employees deliver consistent and high-quality service by aligning the internal culture and values with the service objectives. External Marketing: External marketing involves strategies targeted at prospective and existing customers. This includes advertising, public relations, social media campaigns, and other promotional activities to create awareness, attract new customers, and retain existing ones. Interactive Marketing: Interactive marketing focuses on creating positive and engaging customer experiences. This includes personalised interactions, customer feedback systems, loyalty programs, and anticipating customer needs to provide seamless service encounters. Relationship Marketing: Relationship marketing emphasises long-term relationships with customers. It involves understanding customer needs, fostering trust and loyalty, and building strong connections through personalised communication and tailored service offerings.

7. Examples of Service Marketing Healthcare: A hospital offering personalised patient care programs, 24/7 accessibility to healthcare professionals, and online appointment booking systems. Advance your career with healthcare management courses tailored to equip you with the skills and expertise needed to excel in this vital field. Hospitality: A hotel providing exceptional concierge services, personalised welcome messages, and customised room amenities based on guest preferences. You can embark on a rewarding career through a hospitality management course to equip you with the skills and knowledge needed to excel in this dynamic industry. Consulting: A management consulting firm offering tailored solutions, dedicated client managers, and regular knowledge-sharing sessions to add value to their clients' businesses. Education: An online learning platform providing interactive courses, personalised learning paths, and access to expert instructors to enhance the learning experience.

8. Difference between Product and Services marketing

9. Paradigms in Services Marketing A paradigm in a business is defined as a change in the perception or mentality of individuals, including customers in the business world . Paradigm lets a business person shift their business views. Paradigm also results in making customers change their purchasing perception. Example: A paradigm is a set of assumptions that creates a viewpoint of the world. In order to explain what a paradigm is, let's compare them to a pair of glasses. If the glasses are tinted red, the person looking through them will see everything through a red filter, or their paradigm.

10. Paradigms in Services Marketing

11. Present Marketing Environment Key characteristics of services include intangibility, variability, perishability, simultaneous production and consumption, and lack of customer ownership. The environment in which services are delivered and where firms and customers interact is the service marketing environment. The marketing environment refers to all internal and external factors, which directly or indirectly influence the organization's decisions related to marketing activities . Internal factors are within the control of an organization; whereas, external factors do not fall within its control.

12. Difficulties & Challenges in Service Marketing Services lack ownership and tangibility, are inseparable from their providers, perishable, and heterogeneous in their delivery. Challenges in service marketing include low tangibility, difficulty promoting relationships and value compared to products, limited options, harder quality measurement, and lack of returns . Selling a service is much harder than selling a product since the latter can be seen Products allow the customer to examine their physical quality and characteristics to help with their purchasing decision. Solution: Get customers involved. Nothing helps sell more than positive word of mouth. Unlike products, services are intangible, there's no difference between the provider and the product, they're perishable and the quality can vary from day to day . It is more difficult to sell something one can't own or see

13. THANK YOU PROF (Dr) KANCHAN KUMARI