Marketing of Services

Prof. Jacob Thomas

Christ University
 Meaning of services

• Services are the non-physical, intangible parts of our

economy, as opposed to goods, which we can touch or handle.
• Services, such as banking, education, medical treatment, and
transportation make up the majority of the economies of the
rich nations. They also represent most of the emerging nations’
economies.
• Unlike product marketing, services marketing focuses on
advertising intangible transactions that provide value to
customers.
• Service marketing is simply the process of promoting and selling
a service or an intangible good to a specific group of people
• Service marketing involves promoting a service that can’t be
seen but is still sold to customers.
Unique characteristics of services
 Unique characteristics of services
• 1. Perishability
• Service is highly perishable and time element
has great significance in service marketing.
• Service if not used in time is lost forever.
Service cannot stored.
 Unique characteristics of services
• 2. Fluctuating Demand:
• Service demand has high degree of
fluctuations.
• The changes in demand can be seasonal or by
weeks, days or even hours.
• Most of the services have peak demand in
peak hours, normal demand and low demand
on off-period time.
 Unique characteristics of services
• 3. Intangibility:
• Unlike product, service cannot be touched or
sensed, tested or felt before they are availed.
• A service is an abstract phenomenon.
 Unique characteristics of services
• 4. Inseparability:
• Personal service cannot be separated from the
individual and some personalised services are
created and consumed simultaneously.
• For example hair cut is not possible without
the presence of an individual.
• A doctor can only treat when his patient is
present.
 Unique characteristics of services
• 5. Heterogeneity:
• The features of service by a provider cannot
be uniform or standardised.
• A Doctor can charge much higher fee to a rich
client and take much low from a poor patient.
 Unique characteristics of services
• 6. Pricing of Services:
• Pricing decision about services are influenced
by perishability, fluctuation in demand and
inseparability.
• Quality of a service cannot be carefully
standardised.
• Pricing of services is dependent on demand
and competition where variable pricing may be
used.
 Unique characteristics of services
• 7. Service quality is not statistically measurable:
• It is defined in form of reliability, responsiveness,
empathy and assurance all of which are in control of
employee’s direction interacting with customers.
• For service, customer’s satisfaction and delight are
very important.
• Employees directly interacting with customers are to
be very special and important.
• People include internal marketing, external marketing
and interactive marketing.
 7Ps of service marketing

• The 7 Ps of service marketing are product, price, promotion,

place, people, process, and physical evidence.
• These seven elements will facilitate in enhancing customer
satisfaction and increasing brand awareness.
• These marketing elements also help establish the marketing
strategy and, thus, increase the sales of products and services.
• Marketing mix acts as a method for facilitating the sales of
products and services in the market. In the 1960s, there were
only 4Ps which later added additional 3Ps in the 1980s.
• The strategy was often built based on the four marketing
pillars of product, pricing, location, and promotion.
• Later, it was expanded to include People, Process, and
Physical Evidence, making it the 7Ps of marketing.
1. Product
• Product -includes quality, packaging, design, and
brand.
Here are a few things to think about while developing
product mix strategies:
• What do consumers anticipate from a good or service?
• How will they use it, and what will they do with it?
• What characteristics are necessary to satisfy the client's
needs?
• Is the name of the product memorable?
• What makes your product better than the competitors?
2. Price

• Indicates the amount of money the buyer is ready to

spend to obtain your product.
• Consumers consider the cost as a measure of the quality of
the good or service.
• The sales, demand, and perception of your brand are all
significantly impacted by pricing changes.
While deciding on a price, marketers should consider…
• What is the price of your product?
• The cost of the services offered by competitors
• Does the customer have to adhere to any credit terms?
• Costs of materials, labour, and overhead for the company.
3. Promotion

• Refers to what is communicated, who receives it, how that

audience is reached, and how often it is advertised.
• Include promotional tactics, including advertising, direct
marketing, and in-store promotions.
Creating a promotion strategy won't be as difficult if you can
affirmatively respond to these questions:
• When and where can you deliver your marketing messaging to
your target audience?
• How do your rivals market their businesses?
• How do your competitors' marketing strategies affect the ones
you choose?
• When should your product be marketed for maximum effect?
4. Place

• Refers to the distribution and accessibility of your products to

potential customers.
• Once you have a good grasp of their purchasing habits and can
target them at the appropriate stage in their buying cycle, you
will know where to promote and display your products and
services.
• This can be both in the digital space and in the physical market.
The following are some factors that the business should consider
when it comes to location and place:
• What locations do buyers look for your product?
• How can I locate the finest distribution channels?
• The placement of rival businesses
• Will you sell your goods just on your business's website or on
external online marketplaces like Amazon and eBay?
 5. People

• Refers to those who work for the company and provide

customer service (generating sales, providing satisfactory
customer service)
• Anyone who interacts with customers and represents your
brand, needs to be an adequately qualified sales expert with
good knowledge of your product
Various strategies can be implemented to improve customer
services, such as:
• giving the employees vital information regarding their interests,
careers, and recurring clients
• teaching salespeople how to solve problems with the product or
service
• establishing a framework for the sale of goods or services to
customers that will make them feel at ease
 6. Process

• Includes how your goods and services are introduced to the

customers.
• Some of the crucial components of the marketing mix, as a
result of the development of online buying, are digital
partnerships and logistics.
Because of the following, the process mapping should be
consistent:
• Regular process revision to reinforce existing company
procedures and introduce new ones
• Symbols at different stages of the process make it simpler for
the workers to follow
• Diagram of the process and changes from one step to another.
 7. Physical Evidence

• Refers to the physical proof of whether the business exists

and whether the transactions have occurred.
• In the period of digitalisation, digital techniques and
strategies are playing an essential role in providing physical
evidence.
• Invoices, follow-up emails, Receipts, and newsletters you send
to your customers are a few examples of proof of purchases.
• Everything your customer can see, listen to, and even smell
about your product must be considered in relation to the
marketing mix.
• Naturally, this includes the products' packaging and branding,
but it should also cover how things are exhibited in stores,
where they are situated, and other factors.
 TYPES OF SERVICE DELIVERY EXAMPLES

1. Consultancy / Professional Services Delivery

• A consulting service that businesses provide could be
anything from business turnaround to IT consultancy.
• They help a wide array of businesses that need it, and can
bring in unique expertise and skills that the customer
does not usually have access to.
• A key benefit of a consultant is that they can often provide
a view from the outside of the company, and give
unbiased advice, two things which the customer may not
see due to the fact that they are too close to the business.
 TYPES OF SERVICE DELIVERY EXAMPLES

• 2. Support Services Delivery

• An effective customer support service involves assisting
customers during both the pre and post-sale journey.
• Any issues customers run into or any questions they have,
your support team will be on hand to provide answers and
help them understand your product better.
• While your support team is crucial to the success of your
customers with your product, the way in which your
support can be delivered can go beyond your team.
 TYPES OF SERVICE DELIVERY EXAMPLES

3. Onboarding Services Delivery

• Onboarding is the first opportunity to create a great and truly
memorable customer experience.
• You only get one chance to make a good first impression and this
is that chance!
• In many cases, just one person will cover multiple roles, aiming
to satisfy the demands of Support, Account Management AND
Customer Onboarding.
• This is not a future-focused strategy and will eventually succumb
to the weight of demand.
• Keeping customer success at the heart of the business goals will
allow onboarding to take its rightful place in your organization’s
strategy.
 TYPES OF SERVICE DELIVERY EXAMPLES

• 4.Management Consulting Service Delivery

• How they can structure their processes to be successful in service
delivery.
This can be broken down into five key areas:
• Realistic and measurable milestones
• Clear and consistent communication
• Quality assurance
• Timely reporting
• Effective collaboration
• Only with the above in place can they deliver their client promise
and provide the best service possible.
• With management consulting firms, testimonials and positive
customer feedback will be the backbone of their strategy to
increase their customer base and by extension, their own business.
 TYPES OF SERVICE DELIVERY EXAMPLES

• 5. IT Services Delivery
• IT service providers can offer a wide range of services, some
of which include standard IT support, which can be anything
from password and network management, cloud transfers,
and regular backups.
• IT specialized skills are another big part companies can offer,
such as software development, AI services, cyber security, and
website management.
 Service Delivery Process:

• Step # 1. Flowcharting
• Flowcharting refers to creating a diagram that shows
the steps in a process and their relation.
• The flowchart outlines all steps involved in the
process.
• Businesses can gain valuable insights by looking at
the process from a high-level perspective and seeing
how all steps fit together.
• It shows where improvements can be made and help
train new employees.
 Service Delivery Process:

• Step # 2. Service Blueprinting

• After creating a flowchart, a service blueprint is developed.
• The service blueprint shows how the customer interacts
with the service process.
• It includes steps in the process and shows what happens at
each step.
• The service blueprint can help identify potential problems
and areas where improvements can be made.
• It will also help organizations understand how the
customer interacts with the process and their experience.
 Service Delivery Process:

• Step # 3. Identify Failure Points

• The next step is to identify failure points in the process.
• A failure point is a place where issues can occur.
• Failure can be caused by human error, equipment failure,
etc.
• Identifying failure points is key to improving the service
process. It also helps in creating contingency plans for
when things go wrong.
Examples of failure can be a lack of:
• Staff to handle customer demands
• The right tools to finish the job
• A clear understanding of the process
 Service Delivery Process:

• Step # 4. Failure Proofing

• After identifying the failure points in the process, the
next step is to failure proof them.
• Failure proofing making changes to the process to stop
failures from happening.
There are different ways to failure proof a service
process. Some common methods include:
• Adding additional staff to handle customer demands
• Providing more training to employees
• Installing better equipment or tools
• Creating clearer instructions for the process
 Service Delivery Process:

• Step # 5. Setting Service Targets

• The next step is to set service targets.
• Service targets are goals that businesses want to
achieve.
• They can be customer satisfaction, quality, speed
of service, etc.
• Setting service targets is important because it helps
track progress and ensure that goals are being met.
• It also helps to identify areas where modifications
are required.
 Service Delivery Process:

• Step # 6. Service Process Redesign

• Once service targets have been set, the next step is to
redesign the process to meet those targets.
• Here, processes are redesigned to improve quality,
speed of service, customer satisfaction, etc.
This step can change:
• The way tasks are performed
• The order of tasks
• The tools and equipment used
• The training provided to employees
• The customer interface
 Service Delivery Process:

• Step # 7. Managing Customers Effectively

• When it comes to providing service, managing
customers is the key.
• Customers can be valuable assets or liabilities.
• It is important to know how to manage them
effectively, so they become an asset.
• There are many ways to manage customers
effectively.
 There are many ways to manage customers
effectively.
• Below are steps to follow.
• Recruitment and Selection: Recruit people with the right skills
and attitude for the job.
• Job Analysis: Understand the job and customers’ requirements.
• On-boarding: Train customers on how to use the service.
• Coaching and Feedback: Provide coaching and feedback to help
customers improve their performance. Give them opportunities
to develop their skills further.
• Motivate the Best Performer: Recognize and reward good
performance. Help them see how their efforts contribute to the
company’s success.
• Appraisal: Review customer performance regularly. Take action
to improve their performance if necessary.