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Friday, December 21, 2007

marketing strategies for service firms


Tasks in service marketing / marketing strategies for service firms
1) Understanding the nature of the service
2) Understanding the customer & his/her expectation of the service.
The methods for the collection of the information
a) Collection of information by field sales staff
b) Exit response from customer
c) Customer care panel.
3) Giving the shape to the service.
In order to carry it out, the service marketer must have a good grasp of the
following ideas….
Service benefits Service elements
Service expectations Service form
Service offer Service level / quality / standard
4) Organizing delivery systems & creating channels / intermediaries.
A service firm must consider the decision on location, channel.
5) Pricing.
In services the fluctuation in demand can’t be met through inventory.
6) Promotion.
7) Harnessing the special elements of service marketing such as People,
Physical evidence, Process.

A) People – People matter the utmost in service marketing, because quality
Depends on people.
B) Physical evidence – The surrounding constitute the physical evidence of
The service.
C) Process – The arrangement through which the customer actually receives
Delivery of the service constitutes the process.
8) Achieving differentiation.
The methods to develop the differentiation.
a) Differentiate the offer.
b) Differentiate the actual performance of the service on the basis of 3P’s
Service marketing.
c) Differentiate the image.
9) Measuring service Quality.

 The Gap Model of Service Quality
Formulated by Parasuraman, Zeithmal, & Berry looks into the gaps in
service quality.

 The Overall Gap – The Customer Gap
The customer gap represents two key concepts of services marketing.
1. Customer expectations
2. Customer perceptions

 Provider Gap 1 : Not Knowing what the customer expects
This provider gap comprises the difference between customer expectation
of service & the company’s understandings of these expectations.
This gap occurs because of no direct interaction with customers,
unwillingness to ask about their expectations & unprepared ness in
addressing the same.

 Provider Gap 2 : Not Selecting the right service designs standards
Service design & performance standards.
Leadership plays a pivotal role in ensuring that quality standards are in
place and adhered.

 Provider Gap 3:
This is the discrepancy between development of customer driven
standards & actual service performance by company employees.
The service companies need to synchronize demand and capacity.

 Provider Gap 4: Not matching performance to promises
This gap indicates the difference between the actual service delivery & the
service provider’s external communications.
External communication tends to raise customer expectations & set
certain standards to assess the service in the minds of customers.

 Monitoring customer satisfaction
Customer do not buy service as such they buy satisfaction.
Methods to monitor customer satisfaction…
1. Complaint
2. Suggestion System
3. Customer surveys
4. Comparison shopping
This gap occurs because of no direct interaction with customers,
unwillingness to ask about their expectations & unprepared ness in
addressing the same.
According to surveys up to March 1992 only 48 % of the urban population
had been covered from the sanitation point of view.

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