SERVICES MARKETING WHAT IS A SERVICE? Services are

Transcript:SERVICES MARKETING WHAT IS A SERVICE? Services are:
SERVICES MARKETING WHAT IS A SERVICE? Services are deeds, efforts and performances. Services are everywhere, be it a travel and tourism destination or a doctor or a school or a meal at a restaurant. Earlier the perception of srevice was to work with only a service motto, without charging a fee but now it is not possible as the commercial viability of the organisation has to be secured. What is Service? The Old View Service is a technical after-sale function that is provided by the service department. Old: Service = wrench time Old view of service = Customer Service Center What is Service? The New View Service includes every interaction between any customer and anyone representing the company, including: Customer Examples of Service Industries Health Care hospital, medical practice, dentistry, eye care Professional Services accounting, legal, architectural Financial Services banking, investment advising, insurance Hospitality restaurant, hotel/motel, bed & breakfast ski resort, rafting Travel airline, travel agency, theme park Others hair styling, pest control, plumbing, lawn maintenance, counseling services, health club, interior design DEFINITION OF SERVICE Kotler and Bloom defined “A service is any activity or benefit that one party can offer to another which is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.” Services defined Most company offerings to customers contain an element of service and this is illustrated by the service continuum. Figure 15.1 The tangible–intangible continuum for goods and services Services defined Robert Judd defined services as “ a market transaction by an enterprise where the object of the market transaction is other than the transfer of a tangible commodity.” Nowadays not only the traditional service industries are responsible for the growth of the service sector but other manufacturers are also turning towards the service aspects of their operations to generate additional revenue. DIFFERENCE BETWEEN SERVICES AND GOODS Levitt proposed a distinction between the two by categorising them as follows:- Search goods (which can be packaged and seen, and evaluated before purchase) Experienced goods (which can be seen and evaluated after purchase) ...................contd. Kotler classified product-service relation into four categories: Pure tangible good. No service associated. A tangible good with accompanying service. Eg. Refrigerator with warranty A major service with accompanying minor service. Eg. railway(major service) offering food service(minor service). Pure service. Eg. telecomm Service characteristics Intangibility Inseparability Variability Perishability Lack of ownership