Service industry impact for the human welfare

The way a person live and except to be is very much important for the welfare of human need and desires and all we except is our advantage

1. WHAT IS A SERVICE?

A service is any act of performance that one
party can offer 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.

N

2. SERVICE SECTORS

3. CATEGORIES OF SERVICE MIX

( Pure tangible good
( Hybrid )

( Service w/ accompanying goods

( Pure service

4. SERVICE DISTINCTIONS

o Equipment-based or people-based
o Service processes

o Client's presence required or not
© Personal needs or business needs
© Objectives and ownership

5. CONTINUUM OF EVALUATION
DIFFERENT TYPES OF PRODU

Easy to
Evaluate

Clothing

Jewelry |

Fumilure |

Houses |

Automobiles |

Restaurant meals |

FOR

Vacation |

Root canal |

‘Auto repair |

6. DISTINCTIVE CHARACTERISTICS
OF SERVICES

OO Intangibilty 。
。 Inseparabiity 。。

7. PHYSICAL EVIDENCE AND PRESENTATION
Place
People
Equipment
Communication material

Symbols

Price

tivale Windows"

8. NPTEL

9. MATCHING DEMAND AND SUPPLY

Demand side Supply side
Differential pricing Part-time employees
Nonpeak demand Peak-time efficiency
Complementary Increased consumer
services participation
Reservation systems Shared services

N Facilities for future
> expansion

10. NPTEL

11. ROOT CAUSES
OF CUSTOMER FAILURE

12. SOLUTIONS TO CUSTOMER FAILURES

o Redesign processes and redefine customer
roles to simplify service encounters

© Incorporate the right technology to aid
employees and customers

© Create high-performance customers by
enhancing their role clarity, motivation,
and ability

© Encourage customer citizenship where
customers help customers

13. THREE TYPES OF MARKETING IN
SERVICE INDUSTRIES

14. — ~~

SERVICE-QUALITY MODEL

15. GAPS THAT CAUSE UNSUCCESSFUL
SERVICE DELIVERY

> Gap between consumer expectation and
management perception
Gap between management perception,
service-quality specifications
Gap between service-quality specificd
and service delivery

> Gap between service delivery and ex
communications

© Gap between perceived service and
expected service

16. DETERMINANTS OF SERVICE QUALITY

Reliability 。

“Responsiveness 。
“Assurance 00000
"Empathy
Tan gIbIes デ

17. Service Quality and
Productivity
+ Quality focuses on the benefits created for customers;
productivity addresses financial costs incurred by firm
= Importance of productivity:
- Keeps costs down to improve profits and/or reduce
prices
~ Enables firms to spend more on improving customer
service and supplementary services
- May impact service experience—
marketers must work to minimize
negative effects, promote positive effects

18. Promptness; helpfulness

Competence, courtesy, credibility, ー
security
-

Easy access, good communication, ーー
understanding of customer

19. NPTEL

20. NPTEL

21. Management definition
of these needs

| 2 standards Gar

Translation into ne
design/delivery specs
I

JE r | Communications @

I

Execution of Advertising and sales
ae = — 2 san

Customer perceptions Customer interpretation
of service execution of communic

— Service Gap

Customer experience
relative to expectations |

ations

22. Prescriptions for Closing the
Seven Service Quality Gaps (1)

ı Knowledge gap: Learn what customers expect
- Understand customer expectations
- Improve communication between frontline staff and
management
+ Turn information and insights into action
= Standards gap: Specify SQ standards that reflect
expectations
- Set, communicate, and reinforce customer-oriented
service standards for all work units
- Measure performance and provide regular feedback
- Reward managers and employees

23. Prescriptions for Closing the
Seven Service Quality Gaps (2)

- Seek comments from frontline employees and operations
personnel about proposed advertising campaigns

- Get sales staff to involve operations staff in meetings with
customers

- Ensure that communications sets realistic customer
expectations

24. Prescriptions for Closing the
Seven Service Quality Gaps (3)

5-

Perceptions gap: Educate customers to see reality of

service quality delivered

- Keep customers informed during service delivery and
debrief after delivery

+ Provide physical evidence

Interpretation gap: Pretest communications to make

sure message is clear and unambiguous

Present communication materials to a sample of

customers in advance of publication

Service gap: Close gaps 1 to 6 to meet customer

expectations consistently

25. Soft and Hard Measures
of Service Quality

ㆍ Soft measures—not easily observed, must be collected by
talking to customers, employees, or others
+ Provide direction, guidance, and feedback to employees on
- Can be quantified by measuring customer perceptions and

_ For example: SERVQUAL, surveys, and customer advisory panels

26. Hard Measures of Service Quality
ㆍ Control charts to monitor a single variable
- Offer a simple method of displaying performance over time
against specific quality standards
- Are only good if data on which they are based is accurate
- Enable easy identification of trends
» Service quality indexes
+ Embrace key activities that have an impact on customers

27. te delivery—right day

te Delivery—wrong day
acing request unanswered
»mplaints reopened

ssing proofs of delivery
foice adjustments
ssed pickups

st packages

umaged packages
rcraft delays (minutes)
rercharged (packages missing label) 5
jandoned calls

wm ら 88 さ っ m っ gm ュ っ

28. ntrol Chart for Departure Delays

29. Aircraft late to Gate agents Delayed check-in
acne に ーーー に ーー ¿cannot process procedure
lechas fast enougl
Se 5 Acceptance of late
Late/unavailable passengers
Late pushback ーー
Late food Late cabin >
service 1
— Gr Poor announcement 일어 그
Late baggage departures
Late fuel Weight and balance

sheet late

Backstage

|Suppiles Personnel

ation

@ia

30. STRATEGIC MARKETING PROCESS

Business Marketing
Analysis Strategy

~ Segr

31. WHAT IS A PRODUCT

・ Bundle of benefits

- A product is anything that can be
offered to a market to satisfy a want
or need, including physical goods,
services, experiences, events, persons,
places, properties, organizations,
information, and ideas. ww |

32. FIVE PRODUCT LEVELS

‘potential proaucy

33. NEW PRODUCT DEVELOPMENT PROCESS
(THE STAGE GATE SYSTEM)

34. DIFFUSION CURVE

35. Sales & profits ($)

SALES & PROFIT LIFE CYCLES

36. INTRODUCTION STRATEGY

37. WHAT IS A BRAND?

A brand is a name, term, sign, symbol or design, or
a combination of them, intended to identify the
goods or services of one seller or group of sellers
and to differentiate them from those of competitors
(AMA).

Branding has been around for centuries

38. CUSTOMER-BASED BRAND EQUITY

BE

Brand Differential Consumer

Knowledge Effect Response

39. DECODING POWER OF A BRAND

Y 4
= F

40. PATANJALI

41. ETTING PRICE

Select the price objective
Determine demand
Estimate Costs

Analyze comp

for price mix

Select pricing method

Select final price

42. PRICING METHODS

© Markup pricing

o Target-return pricing

o Perceived-value pricing
o Going-rate pricing

© Auction-type pricing _ N

43. PRODUCT STRATEGY

Product Bundle of physical. service. and symbolic attributes designed to satisfy
buyers” wants.

Classifying Goods and Services

Classifying Consumer Goods and Services

… Convenience products are items the consumer seeks to purchase frequently.
immediately. and with little effort.

・ Shopping products are those typically purchased only after the buyer has
compared competing products in competing stores.

44. Martenng Inpocts of Corsumer Product Class fcaners

45. NPTEL

46. Classifying Business Services
+ Classified as either B2C or B2B

+ Like goods. can also be convenience. shopping. or specialty products dependin:
on the buying patterns of customers

+ Unlike goods. they are intangible. perishable difficult to standardize

- From buyers perspective. the service provider is the service

y”

47. Marketing Strategy implications
In B2B. greater emphasis on personal selling for installations and many
component parts.

n new-product development

ay also involve customers i
and accessory equipment

Bivertising more commonly used to sell supplies

アデ icing strategies.

eater emphasis on

48. ducts—and legal ownership

or business users

49. Direct Distribution
+ Direct contact between producer and customer
> Most common in B2B markets

+ Often found in the marketing of relatively expensive. complex products that may
require demonstrations

gternet 15 helping companies distribute directly to consumer market
+ Producers distribute produets through
wholesalers and retailers

ts that sell

+ Often used for produ
inexpensively to thousands of consumers

in Widely scattered locations

50. NPTEL

51. WHOLESALING
istribution channel member that sells primarily to retailers. other
wholesalers_ or business user.
Manufacturer-Owned Wholesaling Intermediaries
+ Owned by the manufacturer of the good!

+ Two main types:

>

52. presents a number of

ferchant wholesalers Independently lesaling intermediarıe

Full-function merchant wholesaler P range of services for retay
industrial buyers. such as warehousing. shipping. and even financin:

+ Limited-function merchant

saler Takes legal ttle to the product

ewer services: such as Warehc

Igents and brokers Never take title

bring buyers and sellers together

Magn facmrers ‘reps Act as independent sales forces by representing the

ufactu lated but noncompeting product

53. RETAILING

Retailer Channel member that sells goods and services to individuals for their
own use rather than for resale

54. NPTEL

55. ill attract customers in their target

ind profit pe

- Determining the right mıx of product categories and product line

- Deter ng the right level of customer service to maximuze sales and

on the costs of purchasing products trom other channe

- Can play a ion

in customer pers

56. Choosing a Location

+ Depends on the retaile:

competition, and. of course. its

s size. financial r

urces. product offerir

get market

+ Planmed shopping center Group of retail stores planned. coordinated. and
marketed as a unit to shoppers in a phica

trade area

+ Growing shift to to smaller strip centers. name-brand outlet centers. and //250v%

centers. open-air complexes containing retailers that often focus on specific

shopper segments and product interests
Building a Promotional Strategy

- Advertising and other promotions to stimulate d
inform:
Creating a Store Atmosphere

+ Store atmospherics Physical Character

시 and to provide
E

stics of a store and its amenities

57. Choosing a Location

+ Depends on the rei

competition. and. of course. its target market

le:

s size. financial resources. product offerings:

> Planned shopping center Group of retail stores planned. coordinated. and

marketed as a unit to shoppers in a phical trade ares

+ Growing shill to to smaller strip centers. name-brand outlet centers. and i
centers. open-air complexes containing retailers that often focus on spe
shopper segments and product interests

Building a Promotional Strategy

+ Advertising and other promotions to stimulate
inform,

hand and to provide

ion
Creating a Store Atmosphere

-= Store atmospherics Physical characterisues of a store and its amenities

58. + Firms face two major ibout distribution channel
+ What specific channel will it use
+ What will be the level of distribution intensity
+ Market factors greatly affect decision General
+ Complex. expensive. custom-made. or perishable products m hrough
horter distribution channels mvolving few 一 or no—intermediart

- Standardized pr

¡ets or items with low unit values usually f

rough relativel

long distribution channels:

59. eturer distributes its goods
- Intensive distribution Firms product

in nearly every available outlet

- Generally suits low-priced convenience goods such as milk. news- papers

and soft drink

+ Requires cooperation of many intermediaries

+ Selective distribution Limited number of retailers to distribute its product lin

60. NPTEL

61. : MARKETING
- COMMUNICATION

Key Concepts
Week 8 Wrap-up

62. "he Role of Promotion

Communication by
marketers that informs,
persuades, and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response.

63. he Role of Promotion
ı the Marketing Mix

Marketing Mix
Product

Place
Promotion
Price

Promotion Plan i

…

64. ompetitive Advantage

Rapid delivery

Unique features

65. oals and Tasks of Promotion

66. oals and Tasks of Promotion

67. The AIDA Concept

Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message.

68. Conative (doing)

Affective (feeling)

Cognitive (thinking)

69. Push and Pull Strategies

PUSH STRATEGY

@p o
s to manufacturer

PULL STRATEGY

70. Factors Affecting Promotional
Mix

Nature of

%

% Public

% Sales

% の ine rn

Funds I market

available character

istics.

Type of

buying decision

71. The Promotional ME

Impersonal, gn Ie-way

72. Integrated Marketing
Communications

Integrated
Marketing
emmunications

The careful coordination of all
promotional messages to assure
the consistency of messages at
every contact point where a
company meets the consumer.

73. IMC Popularity Growth

e Proliferation of
thousands of media
choices

+ Fragmentation of the
mass market

@Slash of advertising
spending in favor of
promotional techniques
that generate immediate

response

74. Advertising Media

Internet

Banner ads
hgazines ® Viral marketing
oks E- mail
lect mail Interactive video

75. Public Relations

76. = of
Function
one Relations

全 Mainta;

IN a Positive ;
> Educ ate the 20666
Ompany's

o en

7Ce new Products
久 <

Support the

Sales
o Gener

> effort

ate favorz able

Publicity

77. Sales Promotion

Free samples End
> (9) Consumers
Contests

emiums Company
e Shows = @) Employees

Trade
Customers

78. Marketing Communication

79. NPTEL

80. ristics of the Elements
Pro

Communication Mode Indirect and impersonal
Little

One-way

Message Flexibility Same message to

81. Communication Mode
Feedback Amount
Message Flow Direction
Sponsor Identification

Message Flexibility

Usually indirect and impersonal

Little to moderate

Mostly one-way
Yes

Same message to varied target

82. Characteristics of the Elements
in the Promotional Mix

Communication Mode

Feedback Amount o Much

Message Flow Direction Two-way

Sponsor Identification

Message Flexibility 1 Tailored to prospect

83. MARKETING COMMUNICATION

IMPACT OF THE NEW MEDIA
INTERNET
BLOGGING

VIRAL MARKETING