What is meant by service marketing

what is meant by service marketing

Services Marketing

Nov 27,  · Services marketing is a broad category of marketing strategies focused on selling anything that is not a physical product. This includes everything from personal services like medical care and spa treatments, to the rental of vehicles and spaces, to . Jul 11,  · Definition: Service marketing refers to the application of a different set of tactics or strategies to anticipate the consumer’s need for an intangible product. And thus, meet their requirements accordingly, to create maximum value for them from their purchase. The marketing of services is different from the marketing of products.

A service is the action of doing something for someone or something. It is largely intangible i. You cannot touch it. You cannot see it. You cannot taste it. You cannot hear it. You cannot feel serfice. So a service context creates its own series of challenges for the marketing ssrvice since he or she must communicate the benefits of a service by drawing parallels with imagery and ideas that are more tangible.

Search quality is the perception in the mind of the consumer of the quality of the product prior to purchase through making a series of searches. So this is whay in relation to a tangible product because you might look at size or colour for example.

Therefore search quality relates more to products and services. Experience quality is easier to assess. In terms of service you need to taste the food or experience the service level. Therefore whag experiences allow you to evaluate the level and nature of the service.

You remember a whwt vacation because of the food or iis, but by the same token you remember an awful vacation because of the hopeless food or poor service. Credence quality is based upon the credibility of the service that you undertake. This is down to the reputation of a dentist or of a decorator. Credence is used where you have little knowledge of the topic and where you rely upon the professionalism of the expert.

Marketijg — in that once it has occurred it cannot be repeated in exactly the same way. For example, once a meters Olympic final has been run, there will not be another for 4 more years, us even then it will be staged in a different place with many different finalists.

You cannot put service in the warehouse, or mzrketing in your inventory. An interesting argument about perishability goes like this, once a flight has taken off you cannot sell marjeting seat again, hence the airline makes no profit on that jarketing. Therefore the airline has no choice but to price at peak when it sells a seat at busy times in order to make a profit. Variability- since the human involvement in service provision means that no two services will be completely identical, they are variable.

For example, returning to the same garage time and time again for a service on your car might see different levels of customer satisfaction, or speediness of work. Even with the greatly standardized McDonalds experience, there are slight changes in service, often through no fault of the business itself. Sometimes Saturday lunchtime will be extremely busy, on other days you may have to wait to go via the drive through.

So services tend to vary from one user experience to another. Homogeneity is where services are largely the same the opposite of variability above. Both of these businesses provide a homogeneous service experience whether you are in New York, or Alaska, or even Adelaide. Consumers expect the same what is meant by service marketing of service and would not anticipate any huge deviation in their markeitng. Outside of the main brands you might expect a less homogeneous experience.

If you visit your doctor he or she might give one interpretation, whereas another doctor might offer a mareting view. Your regular hairdresser will deliver a style whereas a hairdresser in mwant next town could potentially style your hair differently.

Therefore standardization is largely embodied by the large global brands which produce services. Right of ownership is not taken to the service, since you merely experience it.

For example, an engineer may service your air-conditioning, but you do not own the service, the engineer or meeant equipment. You cannot sell it on once it wat been consumed, and do not take ownership of it. Western whaf have dog has allergies what to do deterioration in their traditional manufacturing industries, and a growth in their service economies.

A product is tangible i. A service tends to be an experience that is consumed at the point where it is purchased and cannot be owned since it how to make 3d snowflakes out of paper perishes. Marketers talk about the nature of a service as being inseparable, intangible, perishable, homogenous and variable. Inseparable — from the point where it is consumed, and from the provider of the service. What is the ocean ecosystem example, you cannot take a live theatre performance home to consume it a DVD of the same performance would be a product, not a service.

The consumer is actually involved in the production process that they are buying at the same time as it is being produced, for example an eye test or a js. One benefit would be that if you are unhappy with you makeover you can tell the beautician and that instant feedback means that the service quality is improved. Another attribute is that services marketting to be close to the person consuming them i. This localization means that consumption is inseparable from production.

Intangible — cannot have a real, physical presence as does a product. For example, motor insurance may have a certificate, but the financial service itself cannot be touched i. This makes it tricky to evaluate the quality of service prior to consuming it since there are fewer attributes of quality in comparison to a how to make sweet cooked carrots. One way is to consider quality in terms of search, experience and credence.

Marketing Teacher designs and delivers online marketing courses, training and resources for marketing learners, teachers and professionals. View all posts by What is meant by service marketing Friesner. Skip to content. Published by. Tim Friesner Marketing Teacher designs and delivers online marketing courses, training and resources for marketing learners, teachers and professionals. Previous Previous post: Services Marketing Mix. Next Next post: Seven Cs.

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Definition of Service Marketing: Service marketing is marketing based on relationship and value. It may be used to market a service or a product. With the increasing prominence of services in the global economy, service marketing has become a subject that needs to be studied separately. Marketing services is different from marketing goods because of the unique characteristics of services namely, . What is services marketing? A service is the action of doing something for someone or something. It is largely intangible (i.e. not material). You cannot touch it. Stated simply, Services Marketing refers to the marketing of services as against tangible products.

And thus, meet their requirements accordingly, to create maximum value for them from their purchase. The marketing of services is different from the marketing of products. While selling off services, convincing the consumers and pricing the intangible products is a challenging task.

The present marketing scenario is a lot more different from what it used to be earlier. The belief, mindset, perception and attitude of the consumers have changed tremendously. Service industry seems to be more complicated than the manufacturing industry. The services can be either tangible or intangible; people-oriented or product oriented. These are further classified into the following four major categories based on their applicability:.

People Processing Services : People processing here refers to the physical presence of the customer at the service system or location, to avail the service. Like, educational institutes deliver knowledge which develops the mental ability of a person. Information Processing Services : These are a unique form of intangible products where the information acts as a product, or information technology is used.

Such decisions are considered to be critical due to massive investment and a high level of risk; therefore, absolute customer involvement can be seen over here.

In the service industry, customization of the product offering becomes essential as compared to that of the manufacturing industry. Service is a one-take action, i. It is intangible and irreversible; thus, it needs to be perfect and well-delivered at the first time itself. An organization, therefore, requires trained and experienced personnel to provide services because a lousy consumer experience may lead to negative publicity, which affects the brand name and equity.

In the service industry, the process plays an important role. The process here refers to the steps involved in availing the service by the consumer. An organization must keep a watch over each of these steps. It must ensure humbleness, honesty and sincerity of the personnel involved in the interaction with the consumers, while the execution of each of these steps.

The consumers prefer prompt services without any interruption. Therefore, the rate with which the service is provided is considered as a parameter for efficient service.

It is also responsible for the selection of one service provider over the other, by the consumers. Services are very different from goods or tangible products, and so is its marketing needs. The general marketing strategies may not apply to the marketing of intangible products. Some of the basic features which differentiate service marketing from the usual marketing are as follows:. The service is considered as an intangible product which cannot be seen or touched or physically felt but can only be experienced.

However, even a little negative publicity may lead to consumer turnover. The service providers make use of various tangible or real products to deliver appropriate service to the consumers. The products absorbed for providing services create value for the customers. For instance, a travel agent needs to book train tickets which are usually available in a physical form for the clients.

The services are intangible and are provided then and there; thus, unlike products, no inventory needs to be maintained in such cases. The profitability in the service industry depends upon the excellence of the service provider and business operations. On the contrary, a person selling cameras and albums is known for the product quality and needs to keep sufficient inventory. When we talk about the service industry, we see that the consumers are not price-conscious but are more concerned about the quality of service they get.

A zero-defect service product has the highest earning potential. Please refer the following graph depicting price sensitivity in service marketing:. In the case of service products like vehicle mechanic, the price sensitivity is quite high. Even though the level of performance expectation is low i. However, in financial products like education, there is little price sensitivity, but the level of performance expectation is quite high with zero tolerance to imperfection.

The service marketing mix constitutes of these elements along with the traditional marketing mix elements, i. Christian Gronroos initially developed the service marketing triangle model in the year It depicts the relationship between three essential elements of a service industry, i.

It emphasizes on the division of the marketing tasks into following three categories based on the required skills, strategies and priorities for service marketing:. The internal marketing connects the company with the employees where the employees are assisted, guided and trained for providing the services to the customers.

The employees are introduced to the organizational goals, and their queries or problems are resolved. The best performers are even appreciated through the performance reward system. This is the direct form of service marketing. Here the company reaches out to the target consumers through website, advertisements, social media and other relevant platforms, to keep the business rolling.

One of the most crucial marketing tasks is the actual delivery of services to the consumer by the employees. The success of interactive marketing depends upon the proper execution of internal and external marketing.

The employees aim at consumer satisfaction, long-term association and customer retention in interactive marketing. The image of the company is in the hands of the employees. The service industry has immensely evolved in recent years to provide assistance to the manufacturing industry and also contribute to the development of the economy.

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