OPVK_MU_vlevo_2 Logo Service Science, Management and Egineering Introduction to service marketing Název prezentace v zápatí •1 Logo Content of the course * Basic of marketing methodology * Management of marketing * Analysis of market environment * Marketing and work with information * Basic marketing tools (marketing mix) • * 2 Logo Course evaluation * Team work * Student will make a group of 2 – 4 members * Prepare short presentation (5 minutes) of marketing of selected company (case) * Try to answer: * What is unique on this company (approach)? * Why have you chosen it? * The presentations will held at the beginning of each lesson. * Written exam at the end of the course 3 Logo Definition •Marketing is defined by the American Marketing Association [AMA] as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." • Název prezentace v zápatí •4 Logo •Why should we concentrate to marketing of services? Logo Introduction to Services * What are services? * Why services marketing? * Service and Technology * Characteristics of Services Compared to Goods * Services Marketing Mix * Staying Focused on the Customer Logo Introduction to Services * Explain what services are and identify important trends in services. * * Explain the need for special services marketing concepts and practices and why the need has developed and is accelerating. * * Explore the profound impact of technology on service. * * Outline the basic differences between goods and services and the resulting challenges and opportunities for service businesses. Logo Examples of Service Industries * Health Care * hospital, medical practice, dentistry, eye care * Professional Services * accounting, legal, architectural * Financial Services * banking, investment advising, insurance * Hospitality * restaurant, hotel/motel, bed & breakfast * ski resort, rafting * Travel * airline, travel agency, theme park * Others * hair styling, pest control, plumbing, lawn maintenance, counseling services, health club, interior design * Logo Contributions of Service Industries to Gross Domestic Product • Logo Tangibility Spectrum zei80938_0102 Logo Overview: Why Services Matter * Services dominate EU and worldwide economies * Services are growing dramatically * Service leads to customer retention and loyalty * Service leads to profits * Services help manufacturing companies differentiate themselves Logo Why do firms focus on Services? * Services can provide higher profit margins and growth potential than products * * Customer satisfaction and loyalty are driven by service excellence * * Services can be used as a differentiation strategy in competitive markets Jerome The are 3 main reasons why our program is focusing on services. •It provides a higher profit margin than tangible products, •Increases satisfaction and retention, •Provides a competitive advantage over others. I am going to use two examples to illustrate these points. The automotive industry has typically been perceived as a manufacturing industry. However, •after-sale services and parts account for nearly 80% of all revenue opportunities, and more than 50% of the average automobile dealer’s profits •It is by far the largest creator of shareholder value on a percentage basis. A GM study revealed that $9 billion in after sale revenue produced $2 billion in profits (22% margin). Profits from $150 billion car sales were much lower. •JD Power and Associates published a report showing a strong correlation between customer satisfaction with after-sale services and customer intent to repurchase the same brand (Lexus and Saturn cars) •Hyundai’s success is due largely to its differentiation strategy of offering 10 year - 100,000 mile guarantee. The service offering is changing customer’s perception of the brand The same can be said about the personal computer industry. •With the advancement of technology, personal computers are now becoming more and more of a commodity. While 25% of revenue opportunities are in the initial sale, most revenue opportunities are from after-sale. •Company responsiveness to customer calls is the biggest driver customer satisfaction with its product. •Dell revolutionized the industry by being the first to offer mass customization of personal computers. ------------------------- •Across manufacturing companies, after-sale services and parts contributes about 25% of total revenue, and 40%-50% of all profits •Services related revenue exceeds first-time product sales by 500% - 2000% •Retail industry derive largest margins from sale of extended warranties •It is a program that is designed in response to a business environment that is increasingly moving away from a product orientation to a service-focus •GE, IBM other good examples. Logo Why study Services Marketing? * Service-based economies * * Service as a business imperative in manufacturing and IT * * Deregulated industries and professional service needs * * Services marketing is different * * Service equals profits * Logo What is Service? The Old View * Service is a technical after-sale function that is provided by the service department. • •Old: •Service = •wrench time PE02002_ C:\Documents and Settings\zeithamv.KENAN-FLAGLER.000\Local Settings\Temporary Internet Files\Content.IE5\1E7N3C2W\MMj03567770000[1].gif Old view of service = Customer Service Center Logo What is Service? The New View * Service includes every interaction between any customer and anyone representing the company, including: * •Customer Logo Service Can Mean all of These * Service as a product * * Customer service * * Services as value add for goods * * Service embedded in a tangible product MMj03567770000[1] UNC | UNC Directory | Site Map | Equal Opportunity Policy | Terms of Use & Privacy Policy | Webmaster Kenan-Flagler Gear Directory Academic Areas Centers & Institutes The Kenan Institute Contact Us spacer home_OneMBA spacer spacer Logo Characteristics of Services Compared to Goods •Intangibility •Perishability •Simultaneous •Production •and •Consumption •Heterogeneity Logo Implications of Intangibility * Services cannot be inventoried * * Services cannot be easily patented * * Services cannot be readily displayed or communicated * * Pricing is difficult Logo Implications of Heterogeneity * Service delivery and customer satisfaction depend on employee and customer actions * * Service quality depends on many uncontrollable factors * * There is no sure knowledge that the service delivered matches what was planned and promoted Logo Implications of Simultaneous Production and Consumption * Customers participate in and affect the transaction * * Customers affect each other * * Employees affect the service outcome * * Decentralization may be essential * * Mass production is difficult Logo Implications of Perishability * It is difficult to synchronize supply and demand with services * * Services cannot be returned or resold Logo Comparing goods and services Goods Services Resulting Implications Tangible Intagible Services cannot be inventoried. Services cannot be easily patented. Services cannot be readily displayed or communicated. Pricing is difficult. Standardized Heterogenous Service delivery and customer satisfaction depend on employee and customer actions Service quality depends on many uncontrollable factors. There is no sure knowledge that the service delivered matches what was planned and promoted Production separate from consumption Simultaneous production and consumption Customers participate in and after the transaction. Customer affect each other. Employees affect the service outcome. Decentralization may be essential. Mass production is difficult. Nonpershable Pershable It is difficult to synchronize supply and demand with services. Services cannot be returned or resold. Logo Challenges for Services * Defining and improving quality * Ensuring the delivery of consistent quality * Designing and testing new services * Communicating and maintaining a consistent image * Accommodating fluctuating demand * Motivating and sustaining employee commitment * Coordinating marketing, operations, and human resource efforts * Setting prices * Finding a balance between standardization versus customization * Logo Examples of Goods Companies that are Expanding into Services cisco logo.gif sap.gif Image:Otis.gif GE Healthcare.gif http://ssme.fi.muni.cz/system/images/BAhbBlsHOgZmSSIpMjAxMi8wNy8wNy8xMF81Ml8xOV83OTRfaWJtX2xvZ28uan BnBjoGRVQ/ibm_logo.jpg https://upload.wikimedia.org/wikipedia/en/d/db/Xerox_2008_Logo.png http://cdn-1.famouslogos.us/images/boeing-logo.jpg Logo •Thank you for the attention Název prezentace v zápatí •25