Nature of a Service Marketing as:
(i)
Inseparable — from the point where it is consumed, and from the provider of
the service. For 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).
(ii)
Intangible — and 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.e., it is intangible.
(iii)
Perishable — in the sense that once it has occurred it cannot be repeated in
exactly the same way. For example – once a 100 metres Olympic final has been
run, there will be no other for next four more years, and even then, it will be
staged at a different place with many different participants and finalists.
(iv)
Variability — the human involvement of service provision means that no two
services will be completely identical. For example – returning to the same
garage time and again for the required services on your car might see different
levels of customer satisfaction, or speediness of work.
(v)
Right of Ownership — is not taken to the service, since you
merely experience it. For example, an engineer may provide service to
air-conditioning systems installed at your works’ offices, but you do not own
the service, the engineer or his equipment. You cannot sell it on once it has
been consumed, and do not take ownership of it.
A service is an intangible product involving a
deed, performance, or an effort that cannot be physically possessed. Dominant
component is intangible.
Services includes rental of goods, alteration
and repair of goods owned by customers, and personal services.
Problems in Services Marketing:
1. A service cannot be demonstrated.
2. Sale, production and consumption of
services takes place simultaneously.
3. A service cannot be stored. It cannot
be produced in anticipation of demand.
4. Services cannot be protected through
patents.
5. Services cannot be separated from the
service provider.
6. Services are not standardized and are
inconsistent.
7. Service providers appointing
franchisees may face problems of quality of services.
8. The customer perception of service
quality is more directly linked to the morale, motivation and skill of the
frontline staff of any service organization.
Importance
of Services Marketing:
1. A Key Differentiator:
Most of the consumers consider the services as
an important element in order to judge the product or a service. For example,
Dominos and Pizza Hut are known to sell similar products in the market; however,
the service that they provide to their customers matter a lot.
Since there is not much difference in the
product of the above mentioned two brands, at such times their services create
an impact on the customer’s mind. Hence, “service” is defined as a key
differentiator where a company can provide excellent customer services to
retain their old customers and to attract new ones.
2. Importance of Relationship:
Since service is an intangible product,
customers will be able to buy such services based on mutual trust and
confidence in the seller. Hence, it is important for the seller to maintain
good relationships with the customers by listening to their needs properly and
delivering exactly what they want. Hence, relationship is considered very important
in a service sector, which will help the seller to retain loyal customers and
also attract the new ones.
3. Customer Retention:
In today’s highly competitive environment, it
is very important to retain old customers than to attract new ones. This is because
there are a lot of sellers trying to catch from the same pool of buyers. Thus,
sellers must concentrate on retaining the customers by fulfilling their
changing needs.
They must promote feedback amongst customers
and must work on the given feedback in order to match up to their wants. This
way they will be able to retain their loyal customers by offering increasing
satisfaction.
4. Multiple Touch Points:
Service sector does not provide any tangible
services to the customers. Thus, customers have to depend on intangible
services like talking to many people about the services before buying the same.
This creates a perception in the customer’s mind whether to go ahead with the
purchase or not. These multiple touch points are important to motivate the customers
to trust them and make the purchases.
5. Services Proliferate:
Since it is a challenge to market the
intangible services to the customers, marketers should find various ways and
means to market the product in such a way that it stands out from the rest of
the crowd. They should invent various ways to communicate the benefits of the
services to the customers in such a language which they find easy to reflect to
their needs and value.
6. Feedback Improves Services:
Since it is difficult to match up the
marketing concepts of the service sector with the needs of the customers,
sellers must work on the feedback given by the customers. These feedbacks are
genuine suggestions and tips given by the customers and if the seller works on
the same, it will help him to match up with the changing needs and desires of
the customers. Sellers must cultivate the habit of collecting regular feedbacks
from the customers and working on the same.
7. Technology Impacts:
Technology is a big boon for the service
sectors. People like to collect information on the services before actually
purchasing them. Thus, internet plays a very important role here to flash the
required details of the services so that customers can directly visit the
website for details and this will also prevent them from talking to many other
people. Service sellers must take full advantage of the growing technology and
reach out to maximum customers with the required knowledge and quality.
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