1. Services
marketing
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2. Services marketing
Business
models
NOTE: View these pages as Notes Pages for more explanation of the content.
The contents of this document remain the copyright of Nicholas Coutts.
This document may be copied in whole or in part, provided the copyright holder is acknowledged.
3.
4. WHY ENROLL IN THE S•O•SSM SERVICES
PROGRAM?
By enrolling in the S•O•SSM Services Program,
a routine sampling interval can be establlished
to build-up a trend of data over time. that
trend allows you to compare sample history
and more easily identify deviations from the
normal trend. This consequently adds value to
the data interpretation process with more
meaningful recommendations and
recommended actions.
13. Intangibles
Complementary assets 80 per cent of the
impact, but only 20 per
Quality
cent of the costs
perceptions
Before
sales Value
service perceptions
After sales
During sales
service
service
Delivery
Guarantees
Other
Organisation user
PRODUCT recommendations
Availability
Warranties
Add - ons Advice
Brand
name Finance
Reputation
Corporate
Services
image
Value networks
Source: de Chernatony and McDonald
16. Technical Political Organisational Financial Emotional
and
social
• Barriers to purchase and use are lowered or eliminated by information,
experience and by services.
• This will tell you if you need to partner with a third party to provide some or
all of the services.
• Avoid giving away service, in order to sell the product. To sell service, you will
need to track time spent on providing services, have a rate card for services
and a billing system, to invoice the services.
• Note that service marketing is theoretically and practically very different to
product marketing. You may need to recruit service marketing skills.
31. Why blueprint?
Ensures the service delivery process matches client requirements
Identifies required resources
people, skills, systems, time, budget, collateral
Identifies up-sell and cross sell opportunities
Identifies ways to add value
Gets the right people doing the right things at the right time
32. Why blueprint? 2
Enables planning for when something goes wrong
Ensures capability and capacity are available to meet the revenue and
transaction targets.
Identifies minimum time required
Identifies the “moments of truth”
which need to be managed to ensure the right brand experience
Allows the handovers between channels to be engineered
33. Why blueprint? 3
Establishes policy and procedures
Identified the critical business processes
Important to make the process explicit to customers and partners
Important for systems design
especially customer relationship management systems
A valuable resource for training and communication
34. The blueprint
Swim lanes
horizontal swim lanes for each function, department or resource
the top lane is usually the customer
Moments of truth
occur when something involves the customer
Microsoft Visio is a good tool for creating and maintaining
the blueprint document
allows spreadsheets to be attached, as required, to show data
on time and cost
The blueprint may require adaptation for each customer segment
50. Service types and their
characteristics
Service type Characteristics
Professional services Barrier to entry is human expertise
Administration and money
Financial services management
Technical services An infrastructure of technology
High volume and based on
Consumer services consumer offers
51. Common mistakes in marketing
of services
• Lack of differentiation
• Services allowed to become commodities
• Poor understanding of customer needs
• Over-reliance on industry research reports
• “One off” services
• “Overclaim”
• Lack of proposition
• Product-led approach
• Servility rather than service
52. The discipline of services marketing
Intangibility, Simultaneous consumption, Perishability,
American
Lack of ownership, Variability, Inseparability
About 25 years old Nordic No product, Process outcomes are key
French Support, Process, Output
• Good application of the scientific process
• Related to customer care and customer service
• Not well known by industry
53. How do service differences
change marketing?
• Intangibility
• Simultaneous consumption
• Perishability
• Lack of ownership
• Variability
• Inseparability
54. How to address these differences
Intangibility brand presence
Simultaneous consumption quality of service
Perishability capacity planning
Lack of ownership control
Variability process design
Inseparability people selection
55. Differences in marketing of services
Intangibility
• Create “presence” through
physical things
• Brand gives reassurance
56. Differences in marketing of services
Simultaneous consumption
• Customer care must be real
• Service quality: no product to
compensate
• “Word of mouth”: people talk
about experience
60. Differences in marketing of services
Inseparability of delivery
personnel
• People behaviour important
61. A summary of the differences between
marketing of services and products
• The customer’s need for control
• The importance of the service process
• The customer learns the supplier’s process
• Intangibility of consumption
• Simultaneous consumption
• Stress makes quality issues more intense
• Emotional involvement
• The importance of the corporate brand
• Interdependency with customer care more intense
• Importance of people and their behaviour
62. Summary of the principles of
marketing of services
Make the intangible
tangible.
People are part of Turn the corporate
the offer. name into a brand.
Marketing of
services Manage the
Manage the corporate brand as a
processes. tangible image
strategy.
Segment customers
by service Service must be
preference and holistic.
emotional needs.
63. For example: the phenomenon
of control
• Corporate brand
Naive • People
• Process
Marketing to customer
• Streamline process
Experienced • Deploy technology
• Self service
The service process takes control from the customer
New customers feel vulnerable
Experienced customers want to regain control
64. Case study: Symbol Technologies
• Analysed supermarket experience
• Created new technology
• Compared service
• Attracted customers
• Reduced costs
70. Worth reading…
Building Routes to Creating Powerful Brands Why Can't You Just Give Building Great Customer
Customers: Proven Me The Number? An Experiences
Strategies for Leslie de Chernatony, Executive's Guide to
Profitable Growth Malcolm McDonald, and Using Probabilistic Colin Shaw and
Elaine Wallace Thinking to Manage Risk John Ivens
Peter Raulerson, 2010 and to Make Better 2005
Jean-Claude Malraison, Decisions
and Antoine Leboyer
2006 Patrick Leach
2006
Managing Hybrid Marketing Systems
Rowland T. Moriarty and Ursula Moran
Harvard Business Review Nov-Dec 1990