Services and the marketing strategies Essay Example for Free

serve wells and the commercialiseing strategies EssayQns discourse the 4 major characteristics of run and the selling strategies available for the serve well organization.Qns What argon the primary differences between harvesting and emoluments? Give representatives that highlight these differences between harvesting and aids. Give examples that highlight these differences and provide examples of hybrid render.Qns. utilise a service of process example of your choice, explain how the service company fag end deal with intangibility, insepar susceptibility, variability and perishability. quadruplet Major characteristics of serve1) Intangibility2) Inseparability3) Variability4) PerishabilityIntangibility*Lack of tangible assets which digest be seen, touched, smelled, hear or taste prior to secure. E.g., education, air travel, sporting events, super intangible*Purchasing movie ticket, subvert you an experience, services subjectively evaluated*Own set of perceptions and expectations, opinions differ regarding value of experience*Customer returns home with a memory of experience and obtain somatic ownershipTangibility*Anything that tin bum be offered to a market for attention, acquisition, custom, or consumption that might satisfy a want or call for*Tangible assets seen, felt, tasted or touched*E.g. shoes, objectively evaluated before actual purchase*Take shoes home, have ownership and somatogenetic possession of a tangible objectHybrid produce*Offer a tangible product with their service, service is still intangible because consumer atomic spell 18 purchasing the service, not the effectual*Restaurant, consumer are giveing the eating place to prepare the regimen for them*Evaluation of service is based on how well the restaurant prepared the sustenance*To reduce intangibility, an airline company feature tangible assets such(prenominal) as their airplanes, pilots, flight attendants, or another(prenominal) personnel in an advertisem entInseparability*Refers to the service providers physical connection to the service being provided*Involve nodes conflict in the service production process*Service is causeed and consumed at the same m, with the lineament of service highly dependant on the ability of the service provider and quality of interaction between the service provider and the customer*E.g., getting a haircut, customer ordain go to the hair stylist and being evince era the service is being producedSeparability*In contrast, products are produced and sold at a later cadence*E.g., television is produced at the factory and sold at a later timeHybrid Offer*Is in the case of getting medical services. Dentist is using acquireing to fill cavities for the customer while the customer is present*To reduce inseparability or the dependence on the customer-employee interaction, an airline company can make out its air tickets through the internet where customers can buy air tickets directly from their website.Var iability*Unwanted at random levels of service quality customers receive when they patronize a service*Primarily caused by charitable element, although machines may malfunction causing a variation in the service*Various employees testament perform the same service differently and even the same service*E.g, commercial window cleaning, the outcome will differ if the firm uses different employees each time a business is servicesContrast*Goods are mass-produced by factories and as such their features, ability and usage are the same*E.g. telephone are mass-produced in the factories and sold to customers offering the same features, abilities and usageHybrid Offer*Fast food restaurant, the hamburgers, French fries and other food are mass produced and put in warming bins. Customers are respondd with hamburgers, French fries and other food when they ordered and served by service staff at the incompatible*To reduce variability, the airline company can put their service staff through intens ive reading or customize the service based on the customers specific instructions by asking the customers to fill in details on how they expect to be treated and what they want from the service staff when they purchase the air tickets from the companyPerishability*Refers to the trait that services cannot be saved, their unused condenser cannot be reserved and they cannot be inventoried*Most services consumed at a point of production*E.g. Hotel rooms that go unoccupied for the flush cannot be stick ind and used it at a later date*Caused the reverse to occur where the demand is greater than supply. E.g. Airline does not have enough seats for everyoneContrast*Products can be mass produced and stored in the warehouses until consumer are ready to purchase*The ability not creates an inventory of the good that will eventually be purchased by the consumer means that production and consumption of the good can be separated in time and space. E.g., in the case of a pair of jeans does not s ell today, a retailer can store it and sell it at a later timeHybrid Offer*In a close food restaurant, they can inventory part of their service process example, inventory hamburgers for a limited plosive consonant of time*However, the outlet cannot inventory the entire service experience, the counter staff still wish to serve the customers with the hamburgers and the hamburgers cannot be saved for the next day*To reduce perishability, the airline essential develop strategies to cope with fluctuate demand. This goal can be accomplished by making simultaneous ad middlingments in demand, supply and capacity*One method of adjusting the demand is that the airline company can reduce the price or offer promotions during the lower-ranking peak season to attract customer to travel and utilize the airline seats during the low peak season instead of the peak season.*Supply can be adjusted by outgrowth the number of in flights departing the country during the peak season. To increase capa city, the airline company can arrange to increase the number of flights departing at the same time.Marketing StrategyIt is defined as the process of adjusting controllable marketing factors to cope with or exploit uncontrollable environment. Four strategies that are available for the service organizations are so follows1.Three additional Ps2.Managing service differentiation3.Managing Service Quality4.Managing Service ProductivityThree additive PsThe traditional four Ps marketing approaches cut back well for goods, but additional elements enquire attention in service business. Three additional Ps for service marketing1.People Most services are provided by people. Therefore, the selection, training and motivation of employees can make a huge difference in customer satisfaction. Ideally, employees should exhibit competence, a caring attitude, responsiveness, initiative, problem-solving attitude and goodwill.E.g. At Marriot, their front-line personnel are empowered to deliver plac e up to $100 to resolve a customer problem.2.Physical Evidence Companies in like manner try to demonstrate their service quality through physical and presentation. A virulentel will develop a look and style of transaction with customers that realizes its intended customer value proposition, whether it is cleanliness, speed or near other benefit.3.Process Service companies can call for among different processes to deliver their service. For example, restaurants to develop different formats such as buffet candlelight dinner and debauched food.Service marketing requires not only external marketing but also internal and interactional marketing. External marketing describes the normal work to prepare, price, distribute and promote the service to the customer.Internal Marketing describes the work to train and motivate employees to serve customer.Interactive marketing describes the employees skills in serving the client. Client judges service not only by technical quality but also by its functional quality, indeed service providers must deliver high touch as well as High tech.Managing Service DifferentiationIn these days of intense price competition, service marketers often complain virtually the clog of differentiating their services from those of competitors. If customers view the services of different providers as similar, they care less about the provider than the price.The theme to price competition is to develop a pockd offer, delivery and image. The offer can include mod features that set one companys offer apart from their competitors offers. What the customer expects is called primary service package the provider can add secondary service features. E.g. airlines have introduced innovation such as advance seating, sleeping compartment, hot showers to differentiate their offers. The major challenge is that most service offerings and innovations are easily copied. However, the company that regularly introduces innovations will gain a succession of temporary advantages over competitors.Service companies can differentiate itself by aim a let on and faster delivery system. There are three levels of differentiation. The first is reliability whatsoever suppliers are more reliable in their on-time delivery, order completeness and order cycle time. Second is resilience some suppliers are better at handling emergencies, product recalls and answering inquiries. The third is innovativeness some suppliers create better information systems, introduce bar coding and mixed pallets and in other centerings to help the customer. An example is banking system, a bank might offer its customers electronic home banking as a better way to deliver banking services thank having to drive, park and wait in line. Service companies can work on differentiating their images through symbols and branding. E.g. Merill Lynchs bill.Managing Service QualityOne of the ways that a service firm can differentiate itself is by delivering consistently higher qu ality than its competitors do and meets or exceed customer expectations. Customers form service expectations from past experiences, word of mouth and advertising. Customers compare the perceived service with expected service. If the perceived service travel below the expected service, customers are disappointed. If the perceived service e meets or exceeds their expectations, they are apt to use the provider again.Service provider need to identify the expectations of target customers concerning service qualities. Although greater service quality results in greater customer satisfaction, it also results in high costs. Still, investments in service usually pay off through increased customer retention and sales.5 determinants of service quality1. Reliability The ability to perform the promised service dependably and accurately.2. Responsiveness The willingness to help customers and to provide prompt service3. Assurance The knowledge and courtesy of employees and their ability to co nvey trust and confidence4. Empathy The provision of caring, individualized attention to the customer.5. Tangibles The appearance of physical facilities, equipment, personnel and communication materials.Even though the companies have invested heavily to develop streamlined andefficient service-delivery systems, problems will inevitably occur. However, even though the company cannot always prevent service problems, it can learn to rectify from them and good service recuperation can turn angry customers into loyal ones. In fact, good recovery can win more customers purchasing and loyal than if things had gone well in the first place. Therefore, companies should take steps not only to provide good service every time but also to recover from service mistakes when they do occur.The first step is to empower front-line service employees where authority, responsibility and incentives are given(p) to the employees that they need to recognize, care about and tend to customer needs.Studie s of well-managed service companies show that they share a number of common virtues regarding service quality. First they are customer obsessed. They have a distinctive strategy for pleasurable customer needs that wins enduring customer loyalty. Second, they have top management commitment to quality. Management such as Ritz-Carlton looks not only at financial performance but also at service performance. Third, the best service providers set high service quality standards. They dont settle for good service, they aim at 100% defect-free service. Forth, the top service firms watch service performance closely. Both their own and competitors.They use methods such as comparison-shopping, complaints from and etc. Fifth, the service companies replaced person-to-person service interactions to self-service technologies, e.g. self-pumping at gas stations. Even though not all self-service technologies improve service quality, they have the potential of making service proceedings more accurate , convenient and faster. Every company needs to think about how it might improve its services using SSTs,Sixth, excellent service companies know that positive employee attitudes will promote stronger customer loyalty. Service companies must attract the best employees they can find they need to market a career rather than just a job. They must design a sound training program and provide support and rewards for good performance. They can use intranet, internal newsletter, daily reminders and employee roundtables to reinforce customer-centeredattitudes. It is important to audit employee job-satisfaction regularly. However, a company must be careful in training its employees to be friendly.In additional, good service companies should communicate their concerns about service quality to employees and provide performance feedback.Managing Service ProductivityWith the rising costs, service firms are beneath pressure to increase productivity. They can do so in several ways.First the compan y can hire and foster more skilful workers through better selection and training.Second the service firms can also increase the quantity of their service by giving up some quality, e.g. doctors working fro some HMOs have moved towards handling more patients and giving less time to each patient.Third industrialize the Service by adding equipment and standardizing production. E.g. Macdonalds assembly-line approaches to fast food retailing, culminating in the technological hamburger.Fourth reduce or make obsolete the need for service by inventing a product solution. E.g. the wash-and-wear shirt reduced the need commercial laundries.Fifth the company can design a more effective service. E.g. The hiring of paralegal workers reduces the need for more expensive legal professionals.Sixth the company can present customers with incentives to substitute their own fag for company labor, E.g. banks have turned their customers into tellersSeventh the service provider can harness the power of technology. E.g. therapists can call up the information on hand-held computers, which pluck the data from a central computer. As a result, they can spend more timeworking directly with patients.However, companies must avoid force productivity so hard that quality is reduced. Some productivity steps help standardizes quality, increasing customer satisfaction but others might lead to over-standardization and can diminish customized service.Companies should also try to enhance the quality.