Services Marketing

Services Marketing

1. Creation of value and building good customer relationships are crucial

2. The Service Industries

   • Creative services
     • Advertising, software design, web services, film industries, theaters, TV & radio, publication music
     • Generate distinctive and authentic 'products'
     • Creativity is the centre of innovation
   • Government services
     • Has less clear goals so setting objectives is complex
   • Financial services
   • Hospitality, travel and tourism
   • Property management
   • Transport, storage and communications
   • Retailing
   • Non-profit organizations

3. The Nature of Services

   • Intangibility
   • Inseparanility
   • Variability
   • Perishability

4. Managing services

   • Managing customer relationships
     • Benefits for the organization
       • Increased purchases
       • Lower cost
         • Higher costs associated with attaining customers. Lowers costs for longer-time customers
       • Lifetime value of a customer
         • The profit made on a customer's purchase over his/her lifetime
       • Sustainable competitive advantage
         • The intangible relationship is hard to be copied from competitors
       • Word of mouth
         • Very important in this industry
       • Employee satisfaction and retention
         • Loyal customers provide mutually benefitial relationships to employees and less hassle
       • Net result - high profits
     • Benefits for the customer
       • Risk and stress reduction
       • High-quality service
         • Built-up knowledge about the consumer results in customization of the service
       • Avoidance of switching costs
       • Social and status benefits
         • Deriving from the personal aspect in the encounter
     • Developing customer retention strategies
       • Bonding
         • Level 1
           • Only through financial incentives. Does not sustain competitive advantage because it's easy to copy
         • Level 2
           • Social + financial bonds
         • Level 3
           • Social + financial + structural bonds
             • Structural - tying logistics with  the equipment of the supplier
           • Can be a strong barrier against rivals
       • Internal marketing
         • Training, communicating to and motivating internal staff who are the performers in the service performance sold to the consumer
   • Managing service quality
     • Barriers to the matching of expected and perceived service levels
       • Misconceptions
         • Of the manager of what the consumer actually wants and expects
     • Meeting customer expectations
       • Customer criteria for evaluating the outcome and experience of a service encounter:
         • Access
         • Reliability
         • Credibility
         • Security
         • Understanding the consumer
         • Responsiveness
         • Courtesy
         • Competence
         • Communication
         • Tangibles
     • Measuring service quality
       • SERVQUAL scale
         • Customers rate the service quality on five criteria (reliability, responsiveness, courtesy, competence and tangibles) using Likert scale
   • Managing service productivity
     • Improving productivity without compromising quality is achieved through
       • Technology
       • Customer involvement in productin
         • Should be used when there is clear advantage to consumers in their involvement in the production
       • Balancing supply and demand
         • Smoothing demand can be achieved through differential pricing and stimulating off-peak deamand
         • Supply flexibility can be increased through using part-time employees, multi-skilling and encouraging customers to serve themselves
   • Managing service staff
     • Front-line staff can aid in developing new service products as they communicate with the consumers
     • HR practice is crucial - satisfied and motivated employees result in satisfied customers
       • Selection of suitable people
         • Training
         • Socialization
       • Employee empowerment
       • Maintaining a motivated workforce
       • Service evaluation
         • So employees can change their way of working to meet the customer expectations
   • Positioning services
     • Target marketing
       • Market segmentation is the basis
       • Halo customers
         • Customers that are no directly targeted but may find the product attractive. They can make a substantial difference between success and failure
     • Differential advantage
       • In the target area, differentiation is created in those areas which are of most importance, while resources are no wasted on improving service quality levels in areas which are unimportant to consumers. Both efficiency and effectiveness are achieved
     • The services marketing mix
       • 7-Ps
         • Product
           • Intangibility -> higher perceived risk in decision-making
           • Brand name also affects perceptions (characteristics of successful brand names:)
             • Distinctiveness
             • Relevance
             • Memorability
             • Flexibility
               • It expresses both current business and foreseeable ventures
         • Promotion
           • Personal selling
             • Help reassure the customer and ask the them to refer the company to other people
           • Advertising
             • Use tangible cues
             • Communicate and reinforce image
             • Create awareness
           • Word of mouth
           • Internal communications (to staff) are also important
         • Price
           • Key marketing tool
             • Indicator of quality
             • Important tool for controlling demand and matching it with supply
             • Price sensitivity
               • Key segmentation variable in services
           • Pricing techniques for fees
             • Offset
               • Low fee for core services but recouping with add-ons
             • Inducement
               • Low fee to attract new customers or to help retain existing ones
             • Diversionary
               • Low basic fees on selected services to develop the image of value for money across the whole range of services
             • Guarantee
               • Full fee payable on achievement of agreed results
             • Predatory
               • Competition's fees undercut to remove them from the market; high fees charged later
         • Place
           • Less need for storage
           • Direct contact with the service provider or his agent
         • People
           • Key position in influencing consumer's perceptions
           • The interaction between individual customers who are simultaneously consuming the service should be monitored so the behaviour of one customer will not reduce the enjoyment of others
         • Physical evidence
           • Sometimes increasing efficiency by serving more customers at once may reduce the effectiveness of the service for the individual consumer
         • Process
           • Heed waiting time
     • Guidelines for positioning strategy implementation
       • Marketing should happen at all levels
       • Flexibility in service provision - customization when possible
       • High-quality staff and effective HR management
       • Market to existing customers to increase usage or try new service products
       • Quick-response facility for customers' problems
       • New technology - better service at lower cost
       • Branding for clear differentiaion

5. Non-profit organizations

   • Characteristics of this marketing
     • Meeting current needs but also educating (new ideas, issues, cultural development and social awareness
     • Multiple publics
       • Donors
       • Clients
       • => Need for coherent marketing to satisfy the need of both publics
     • Measurement of success and conflicting objectives
     • Public scrutiny
   • Marketing procedures
     • Like for profit organizations
     • Developing a merketing mix
       • Event marketing

Imagens e arquivos do mapa