Service Marketing

Study Notes

Service marketing is a sub-field of marketing that focuses on promoting and selling intangible goods, also known as services.
Services are experiences or activities that provide value to customers, but do not result in the ownership of a physical product.

Intangibility: Services are invisible and can't be touched or seen.
Inseparability: Services are often produced and consumed at the same time.
Variability: Services can vary in quality and delivery from one provider to another.
Perishability: Services cannot be stored or inventoried, and their value is lost if not used.

Goods:
- Tangible
- Can be stored and inventoried
- Quality control is easier
Services:
- Intangible
- Can't be stored or inventoried
- Quality control is more challenging

Business-to-Consumer (B2C) Services: Services provided directly to individual consumers, e.g., healthcare, education, and hospitality.
Business-to-Business (B2B) Services: Services provided to other businesses, e.g., consulting, logistics, and IT services.
Government Services: Services provided by government agencies, e.g., public transportation, healthcare, and education.

7 Ps of Service Marketing:
1. Product: The service itself
2. Price: The cost of the service
3. Promotion: Advertising, sales promotions, and public relations
4. Place: The location and accessibility of the service
5. People: The employees and staff delivering the service
6. Process: The systems and procedures used to deliver the service
7. Physical Evidence: The tangible aspects of the service, e.g., ambiance, equipment, and facilities

Service Quality: The degree to which a service meets customer expectations.
Customer Experience: The overall feeling or attitude a customer has towards a service provider.
Service Encounter: A specific interaction between a customer and a service provider.

Differentiation: Creating a unique service offering to stand out from competitors.
Segmentation: Targeting specific customer groups with tailored services.
Relationship Marketing: Building long-term relationships with customers.
Branding: Creating a strong brand identity for the service provider.

Service marketing focuses on promoting and selling intangible goods, known as services.
Services are experiences or activities that provide value to customers, but do not result in physical product ownership.

Intangibility: Services are invisible and cannot be touched or seen.
Inseparability: Services are produced and consumed simultaneously.
Variability: Services can vary in quality and delivery from one provider to another.
Perishability: Services cannot be stored or inventoried, and their value is lost if not used.

Goods are tangible, can be stored and inventoried, and have easier quality control.
Services are intangible, cannot be stored or inventoried, and have more challenging quality control.

Business-to-Consumer (B2C) Services: Directly provided to individual consumers, e.g., healthcare, education, and hospitality.
Business-to-Business (B2B) Services: Provided to other businesses, e.g., consulting, logistics, and IT services.
Government Services: Provided by government agencies, e.g., public transportation, healthcare, and education.

7 Ps of Service Marketing: Essential elements for service marketing.
Product: The service itself.
Price: The cost of the service.
Promotion: Advertising, sales promotions, and public relations.
Place: The location and accessibility of the service.
People: The employees and staff delivering the service.
Process: The systems and procedures used to deliver the service.
Physical Evidence: The tangible aspects of the service, e.g., ambiance, equipment, and facilities.

Service Quality: The degree to which a service meets customer expectations.
Customer Experience: The overall feeling or attitude a customer has towards a service provider.
Service Encounter: A specific interaction between a customer and a service provider.

Differentiation: Creating a unique service offering to stand out from competitors.
Segmentation: Targeting specific customer groups with tailored services.
Relationship Marketing: Building long-term relationships with customers.
Branding: Creating a strong brand identity for the service provider.