Emerging Trends in Services Marketing.
Emerging Trends in Services Marketing.
Emerging Trends in Services Marketing.
services marketing
BY SRAVAN REDDY.
Introduction
Service sector is the backbone of social and economic
development.
it is emerged as one of the fastest growing sectors in the world
and making higher contributions to the employment and global
output.
the growth of service sector is predominantly more than
agriculture and manufacturing sector.
India has second fastest growing sector with its compound
annual growth of 9% just below china 10.9 %.( source :
economic survey 2013-14)
Service industry
Health Care
Financial Services
Hospitality
Travel and tourism
Warehousing
Transportation
Retail trade
Communication and information technology
Contribution
26.4
20.6
13.0
Total services
60.0
Service ???
American Marketing Association defined services
asactivities, benefits or satisfactions which are
offered for sale or provided in connection with the sale
of
goods.
Any activity or benefit that one party can offer to
another that is essentially intangible and does not
result in the ownership of anything. Its production may
or may not be tied to a physical product. Kotler and
bloom
Cont..
Service marketing required three additional Ps
People employees represents organization to customers
Physical evidence physical environment , atmosphere and
facilities helps to shape customer perceptions. it also helps in
socializing , changing impression and trust.
Processit assures service availability and consistent quality.
Nature of services
Intangibility
Perishability
Relative and subjective quality dimension
Fluctuating
Variability
Heterogeneity
Inseparability
Understanding customer
It easies new customer acquisition
Drives customer loyalty
Improves retention
Increases customer satisfaction
Reduces customer switching
Creates competitive advantage
Increases revenues to meet financial goals
Helps to build strong customer relationship
Customers are preferring to have dinner at steakhouses and gas station hotels.
What did holiday inn did ???
They didnt changed neither location or the menu or price. The hotel thought to improve
the customer experience . they defined customer experience strategy at the hotel.
It rooted that strategy into four brand attributes
Inclusiveness
Purposefulness
Social
familiar
Cont..
They tried to create customer experience strategy by adding all the elements.
since customer is not only coming for dinner but to have fun.
They have called there restaurant as social hub , the hotel described the experience they
want to give to customer as we give guest flexible options so they can be themselves.
The activities they classified as
Eat/drink
Have fun with family and friends
Relax
Connect
Transition
All the above places are arranged with customer touchpoints.
Cont..
Using technology
Movie , cricket matches and other
entertainment at across India.
Online bus
ticketing ,
travelling and
hotel booking`
Discount offers ,
tour packages ,
transport
facilities
Social networking
Amusement parks at kochi , banglore
and now in Hyderabad. Provides
Transport service to customers and
special offers to school children and
corporate bulk group packages.
Be A roman in Rome
Added Indian menu for its
stores in India. Including
vegetarian
Rewarding loyalty
Virgin AtlanticFlying Club
Virgin Atlantic allows members to earn tier points.
The clubinducts members at the Club Red tier, then bumps them up toClub
Silver and then Club Gold.
Club Red members earn miles on flights and get discounts on rental cars,
airport parking,hotels, and holiday flights.
Club Silver members earn 50% more points on flights and have access to
expedited check-in and priority stand-by seating.
Club Gold members get double miles, priority boarding, and access to exclusive
clubhouses where they can grab a drink or get a massage before their flight.
Testimonials
Innovation
KFC plans to grow on four frontsgeographical reach, food menu, serving
hours and customer base, with particular
focus on the Indian youth.
Adding different food products
Planning home delivery
Price starts from as low as 25 rs
Free wireless in outlets
Shift towards healthier meal
Conclusion
Service marketing differs from product marketing due to the
fact that services are in tangible.