Service Marketing

is marketing based on relationship and value. It may be a used to market a service or a product.

promoting intangible items.• Marketing- is the flow of goods and services

from the producers to consumer.• Services- is the non-ownership equivalent of a

good. Is a set of singular and perishable benefits.

• Product define as a “thing produced by labor or

effort” or the “result of an act or a process”. can be classified as tangible or intangible.

Tangible productsis any physical product.

Intangible productsis a non-physical product.

Services Defined

Services are usually intangible.Is not a physical good; rather, it is the

performance of an act or a deed.Requires consumers to be present during thte

production or delivery of the service.The service industries, are actually selling an

experience.

Lovelock and Wright differentiate services from goods

Search, Experience, and Credence Qualities

Qualities to evaluate product or services:• Search qualities – attributes that the

consumer can investigate prior to making a purchase.

• Experience qualities – attributes that ca be evaluated only after the purchase and consumption of a service

• Credence qualities – attributes that are difficult to evaluate even after the service is consumed.

Firms use two basic strategies to compete:Become a low-cost provider of a particular

serviceFocus on price competition, or focused on

quality and try to differentiate your service from those offered by your competitors.

Firms that can project high-quality images can charge higher prices.

GAP 1

GAP 2

GAP 3

GAP 4

GAP 5

Service Quality Gap

Management perceptions of

consumer expectations

Translation of perception into

quality specificaitions

Management perceptions of

consumer expectations

Delivery gap

• This occurs when there is a difference between the service delivery specifications and the actual service delivery

Service delivery

Translation of perception into

quality specificaitions

Communication gap

• This occurs when there is a differnce between the service delivered and the service promised.

Service deliveryExternal

communications to consumers

Service Gap

Is the final gap that exists when there is a

difference between customers’ expectations

of a service and their perceptions of the actual

service once it is consumed.

Expected service

Perceived service

Managing Service Quality

to develop a service-quality orientation, customers should perceived in the following way:

• Each customer is the most important person in any business

• Customers are not dependent on us, but we are dependent on them.

• Customers do not interrupt our work. They are the purpose for it.

• Customers do us a favor when thay call. We are not doing them a favor by providing them services.

• Customers are part of our business, not outsiders.

• Customers are human beings like us, with the same feelings and emotions.

• Customers bring us their wants, and it is our job to fulfill them

• Customers deserve the most courteous and attentive service we can provide.

• Customers are the lifeblood of every business

Relationship Marketing

is based on the proposition that it is less expensive to keep the customers that you already have than to acquire new customers.

It involves attracting, developing, and retaining customer relationships.