Ssd Smg l2 Classfcn

8/7/2019 Ssd Smg l2 Classfcn

1/30

SSD SMG - 2. 1

Services MarketingServices Marketing

Recap


2/30

SSD SMG - 2. 2

Proliferation of ServicesProliferation of Services

Older Economy = >Older Economy = >

Banking & InsuranceBanking & Insurance

TransportationTransportation

Tourism & HotelsTourism & Hotels

Public UtilitiesPublic Utilities

Auditing & TaxationAuditing & Taxation

New Economy = >

Mobile Telephony

Hospitals & Healthcare

Personal Care

Education & Training

Mngment Consulting


3/30

SSD SMG - 2. 3

Broad Learning ObjectivesBroad Learning Objectives

Nature & Imp of Services Marketing

Difference vis--vis Product Marketing Unique Characteristics of Services

Challenges in Marketing of Services

Strategies for Services Marketing

Understanding nuances within sector


4/30

SSD SMG - 2. 4

Services Sector :Services Sector :

The Global PowerhouseThe Global Powerhouse

ou tr % GP % l

U.S.A 72 78France 64 69

U.K 63 66

Canada 62 66Japan 57 61

India ? ?


5/30

SSD SMG - 2. 5

Global Majors in ServicesGlobal Majors in Services

MasterCard / Visa

CitiCorp / Amex

Marriott / InterContinental

Macdonalds / Pizza Hut

Hertz / Avis

Prudential / Allianz


6/30

SSD SMG - 2. 6

Services :The Indian ScenarioServices :The Indian Scenario

The Growth Story in India :

Share of GDP up from 26 in 1980s to

40 + in 2000.

Fastest growing sector for 15 years in a row.

Biggest contributor to exports for 10 years in a row.

Highest PCI for those in employment.

Creating new jobs at 3:1 to Industry.


7/30

SSD SMG - 2. 7

Factors driving services growthFactors driving services growth

Shift away from Industrial Economy

New jobs creation is 3 : 1

Emphasis on Excellence , esp B2B

Core Competence = >Process = > BPO

Strategic Competitive Advantage

Low product differentiation

Automobiles / Computers / Telephony


8/30

SSD SMG - 2. 8

Factors driving services growthFactors driving services growth

Major developments in Technology

Satellite Com => Real Time => ITES

Information & Comncn Explosion

Global Village => Customer Needs

Customer Focus => Performance Linkages

Value seeking customers => Amex Cards

Professionalisation of Education

Quality & Quantity of Skillsets


9/30

SSD SMG - 2. 9

Services : Some MisconceptionsServices : Some Misconceptions

Services grow at the expense of

other sectors.

Facts do not support.

Industrial production has grown.

BPO / ITES created a huge growth.


10/30

SSD SMG - 2. 10

Services : Some MisconceptionsServices : Some Misconceptions

Service : A necessary evil

Traditional view : Repair & Grievances

Modern Approach: Add value,differentiate

Services : Labour Intensive

Traditional jobs : RestaurantsModern offerings : Telecom / Utilities


11/30

SSD SMG - 2. 11

Defining ServicesDefining Services

All economic activities whose output

Is not a physicalproduct

Is generally consumed instantaneously

Provides value-addition in some form

To meet largely intangible concerns of consumers.

eg Beauticians / Grooming Services


12/30

SSD SMG - 2. 12

Diff between Goods & ServicesDiff between Goods & Services

Services are quite different from Goods

Tangibility / Output / Ownership / Value-addn / Cost

Difference / Distance , is fast getting blurred

Hybrids / Value-added products are the new norm

Stand-alone goods marketing may get extinct


13/30

SSD SMG - 2. 13

Classification of GoodsClassification of Goods

By Market segment :

Consumer : apparel / magazines / jewellery

Industrial : Cement mixers / Chillers / Cranes

By Durability :

Durable : Motorcycles / Computers

Non-Durable : Tooth Paste / Coffee


14/30

SSD SMG - 2. 14

Classification of GoodsClassification of Goods

By Degree of Regulation :

Regulated : Drugs / Explosives / Arms / Forex

Non-Regulated : Soft-drinks / Appliances

By Degree of Customer Contact :

High Contact : Medical Diagnostics / MF Computers

Low Contact : Stationery / Foodgrains


15/30

SSD SMG - 2. 15

Classification of ServicesClassification of Services

BY END USER / CUSTOMER :

B2C : Personal Finance / Taxi / Training

B2B : Advertising Agencies / Consulting

Industrial : Plant Maintenance / Designing


16/30

SSD SMG - 2. 16

Classification of Services ..ContdClassification of Services ..Contd

By Tangibility :

Directly tangible :ATMs,Car Rental,Wash

Along w T- Goods: AMCs for Computers

Almost intangible: Psychotherapy , Lawyers


17/30

SSD SMG - 2. 17


By Degree of Skill Required :

Professional : Doctors / Auditors / Lawyers

Semi-Skilled : Plumbing / Electrical Repair / TaxiUnskilled : Washing / Security / Shoe-shine

By Degree of Regulation :

Regulated : Public Utilities / Insurance

Non-Regulated : Travel / Property Maintenance


18/30

SSD SMG - 2. 18


By Degree of Customer involvement :Self-Service : ATM / Eateries

Interpersonal : Training / Coaching / Hair-Styling

Remote Service : Dry-Cleaning / Lawn Mowing


19/30

SSD SMG - 2. 19

Services ClassificationServices Classification

One more way of looking at it


20/30

SSD SMG - 2. 20

The SOD Concept of ClassificationThe SOD Concept of Classification

6 Service Operating Dimensions => 3 Categories

Product Focus(Car Repairs) orProcess Focus(MBA Education

Delivery :

People Based(Audit) or Equipment Based(ATMs)

VAD source : Front Office(Beautician) or Back Office(Banking)

CCN people empowerment level (call centre v/s hospital)

Duration of CCN - service encounter( Lobby v/s Coffee Shop)

Customisation Expectation Level (architect)

Professional / Service Shop / Mass Services


21/30

SSD SMG - 2. 21

SOD Approach Grouping & UtilitySOD Approach Grouping & Utility

Classification = > Volumes = > Typical Characteristics

Professional Low

People Focus , High Customizn & Em

Service Shop Med People + Equip , Med Customizn

Mass Services High Equip , Low Customizn & Empwrmt

Strategy / Marketing / Training / Performance Measure


22/30

SSD SMG - 2. 22

Classify the following Correctly :Classify the following Correctly :

Architects Services

Courier Services Personal Fitness Trainer

Portfolio Management

Bell Boy at a hotel reception

SAP Trainer at a computer institute


23/30

SSD SMG - 2. 23

Special features of servicesSpecial features of services

Intangibility = > Unseen , Untouched

= > Customer Confidence

= > Customer Valuation

Customers seek evidence of quality

Inseparability = > Integrated w offerer

Service provider participates ,so does the customer !!


24/30

SSD SMG - 2. 24

Special features of servicesSpecial features of services

Variability = > Consistency

Service Quality Uniformity

Articulation by Customer

Perishability = > Non-storability

Direct Opportunity CostsMatching demand & supply


25/30

SSD SMG - 2. 25

Services : The Key IssueServices : The Key Issue

TANGIBILITYOr Lack of it !!


26/30

SSD SMG - 2. 26

Adding dimensions to TangibilityAdding dimensions to Tangibility

Tangibilising the Intangible Tangible Actions : Services Directed Towards :

Customers Body :

Transportation / Healthcare

Beautician / Fitness Trainer

Customers Possessions :Freight Transportation / Warehousing

Landscaping / Laundry


27/30

SSD SMG - 2. 27

Adding dimensions to TangibilityAdding dimensions to Tangibility

Tangibilising the Intangible Intangible Actions : Services Directed Towards :

Customers Minds :

Advertising / PR / Education

Religious Discourses / Television

Customers Intangible Assets :

Accounting / Data Transmission

Life Insurance / Portfolio Management


28/30

SSD SMG - 2. 28

Services v/s Product MktngServices v/s Product Mktng

Distinct Consmp Immediate Unique ,Customer Influe

Nonperishable Perishable Inventory,Syncg Demand

No Participation Interactive QC , Cust SatisfactionWide Reach Ltd Reach Limited Market

Cost-plus Pricing Arbitrary Pricg Pricing Strategy , Balance


29/30

SSD SMG - 2. 29

Challenges for Service MarketersChallenges for Service Marketers

Service Quality defining? Intangibility & Variability

Service Quality maintaining? Integrated Offering

Org structure? Mktng+Opns+HR interlinked

Fluctuating Demand ? Perishability

Balancing Act? Standardisation v/s Personalisation

Competition Thwarting ? Patenting Problems/Entry

Consistent Communication?Extended Marketing Mi

Direct com to customers by frontline


30/30

SSD SMG - 2. 30

Thank YouThank You

For YourFor YourParticipationParticipation

Documents

Ssd Smg l2 Classfcn