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Service Marketing
What are services Definition that defines  services to include all economic activities whose output is not a physical product or construction, is generally consumed at the time it is produced and provides added values in forms ( such as convenience, Amusement, timeliness, comfort and health) that are essentially intangible concerns of its first purchaser
Tangibility Spectrum Intangibility is a key determinant of whether an offering is a service Very few products are purely intangible and totally tangible For example fast food industry while classified as a service also has many tangible components Automobiles while classified within the manufacturing sector supply many intangibles such as transportation
A service Based Economy  Services marketing concepts and strategies have developed in response to the tremendous growth of service industries resulting in their increased importance to US and world economies  Almost all of the absolute growth in numbers of jobs and fastest growth rates in job formation are in service industries  World class poviders of services such as amercian express , Mc Donald's are exporting information, knowledge, creativity and technology that the world badly needs.
Differences in good versus service marketing  Intangibility  Heterogeneity Simultaneous production and consumption Perishability
Service Marketing Mix Product Place  Promotion  Price People  Process Physical Evidence
Goods Service Tangible  Intangible Standardized Heterogeneous Production separate from Simultaneous Consumption  Service cant be inventoried Services cant be easily parented Pricing is difficult Service delivery and customer satisfaction depends on employee actions There is no sure knowledge that the service delivered matches what was planned and promoted Customers participate in and affect the transaction Customers affect each other
NP Perishable  Mass production is difficult It is difficult to synchronize supply and demand with services Services cant be returned or resold
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Indroduction1

  • 2. What are services Definition that defines services to include all economic activities whose output is not a physical product or construction, is generally consumed at the time it is produced and provides added values in forms ( such as convenience, Amusement, timeliness, comfort and health) that are essentially intangible concerns of its first purchaser
  • 3. Tangibility Spectrum Intangibility is a key determinant of whether an offering is a service Very few products are purely intangible and totally tangible For example fast food industry while classified as a service also has many tangible components Automobiles while classified within the manufacturing sector supply many intangibles such as transportation
  • 4. A service Based Economy Services marketing concepts and strategies have developed in response to the tremendous growth of service industries resulting in their increased importance to US and world economies Almost all of the absolute growth in numbers of jobs and fastest growth rates in job formation are in service industries World class poviders of services such as amercian express , Mc Donald's are exporting information, knowledge, creativity and technology that the world badly needs.
  • 5. Differences in good versus service marketing Intangibility Heterogeneity Simultaneous production and consumption Perishability
  • 6. Service Marketing Mix Product Place Promotion Price People Process Physical Evidence
  • 7. Goods Service Tangible Intangible Standardized Heterogeneous Production separate from Simultaneous Consumption Service cant be inventoried Services cant be easily parented Pricing is difficult Service delivery and customer satisfaction depends on employee actions There is no sure knowledge that the service delivered matches what was planned and promoted Customers participate in and affect the transaction Customers affect each other
  • 8. NP Perishable Mass production is difficult It is difficult to synchronize supply and demand with services Services cant be returned or resold