UNIT 2 Lesson 2 Service Marketing PDF

LESSON 2: SERVICE MARKETING Characteristics of Service 1. Intangible. A service does not have a physical manifestation...

LESSON 2: SERVICE MARKETING Characteristics of Service 1. Intangible. A service does not have a physical manifestation that can be seen, touched and described quantitatively. For Lesson objectives: customers to remember and rate the quality of the service, In this lesson the learners should be able to: they must experience it. A vacation package in a resort will be remembered and rated by the customer based on the 1. Define the meaning of service; accommodation, food, facilities, and staff. 2. Identify the characteristics of service 3. Discuss the components of service marketing; and 2. Inseparable. A service involves simultaneous production and 4. Discover the importance of service entity and identify the effective consumption, so there is outright feedback. A haircut is done components it applies. by the hairstylist and at the same time, done to the customer. The latter can provide feedback to the former during and after the service. LET US LEARN 3. Perishable. Because they are intangible, rendered services We encounter services on a daily basis: we eat meals in cannot be stored or returned. A poorly done massage, once dining places, go to school, use the Internet, call and text family rendered, can no longer be returned to the service provider and friends, and many others. Most aspects of our life, if not all for improvement. revolve around services. As consumers, we want the services we avail to satisfy our needs and meet or even exceed our 4. Hamogeneous. The service in itself is the same but the way expectations. Also, we make sure that companies receive, it is provided may be different from time to time. A salesperson respond to and address our feedback regarding them. in a department store may be friendly and accommodating today, but may also be rude and disrespectful the next day Given the wide variety of services nowadays, businesses due to various reasons are challenged not just to offer services but also to make them innovative and a cut above the rest. One of the best ways to Components of Service Marketing achieve this is for companies to train their employees or service personnel to deliver excellent customer service. The components of service marketing form part of the integrated service management which is considered as the Service Defined ultimately satisfying delivery of a service. A service is an act that is provided by a party that creates 1. Product and its elements. There are services that only value and provides benefits to the other party: Organizations that supplement the main product. The goal of the marketer is to offer services include restaurants, hotels, airlines, banks, create a bundle of supplementary services that increases the schools, hospitals, telecom companies, among others. value of the main product. For example, a high quality appliance with superior quality has a higher value if it comes with free delivery and extended warranty. 2. Time and place. The channel of distribution is crucial in 7. Physical evidence. While a service is inherently tangible, service delivery. The service should be rendered on time and there should still be visible cues that will indicate its quality. in an appropriate venue or location. For example, fast food For example, a hotel with elegant furnishings and a beautiful restaurants do not take long in preparing and serving meals landscape creates an impression of quality service. as they are expected to deliver spendy service. Also, these restaurants must be located somewhere accessible and with 8. Price. The price of the service depends on its perceived high foot traffic quality. For example, two salons in the same neighborhood with the same services may have different price points 3. Process. This is the method of service delivery. Marketers because of many factors. The first salon may have a more should be able to make the process of availing and receiving sophisticated ambiance and a group of well- known the service convenient for the customers. For example, banks professional hairstylists so they charge more; the other one are now offering onine and mobile banking services for clients may be an establishment with simple interiors and self-taught who want to avoid the long lines in their branches hairdressers so customers pay less for their services. 4. Quality service or productivity. The kind and quality of service provided to a customer cannot be separated from how the service is rendered. The quality of a service is seen in how a service satisfies and meets the needs, wants, and expectations of the customer. For example, a couturier designs a wedding gown. The productivity rests on how the he or she transforms the raw materials (e.g., cloth, thread, embellishments) into a gown on schedule. 5. People or service providers. The ultimate proof of service quality manifests on the people who provide the service to the customers. They must be skilled, knowledgeable, friendly, accommodating, and customer-oriented. For example, the quality of a dining establishment does not depend on the food or the place alone; the servers' skills and attitude towards the diners are also taken into account. 6. Promotion. Companies must use various means to inform the public about the service and reach a wider customer base. This may be through word-of-mouth and advertisements. For example, a salon can benefit from customers recommending their services to others as well as promo flyers distributed in crowded places.