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nature of service marketing

Services are intangible. Service marketing designs different strategies that are adopted by business for promoting their intangible product. Service marketing deals with the marketing of products that can’t be seen or touched. Instead of using economic theories to set price, S.I.V.A. Use the link below to share a full-text version of this article with your friends and colleagues. place in the business environment in which they were operating. create and offer services at the same time. The price of services is often determined in this manner as services are intangible products that can’t be priced based on the input of raw materials. changes in technology and the business environment have served to provide Quality of services cannot be standardized. Definition of Service Marketing: Service marketing is marketing based on relationship and value. philosophies. Services are the activities which can only be experienced and provide satisfaction to the public. The service is being produced at the same time that the client is receiving it; for example, during an online search or a legal consultation. Hence services cannot be touched, held, tasted or smelt. The key marketing issues that face any service firm relate to managing If services are not used today, it is lost forever. Generally, there are three ways of doing this: In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. Hence services cannot be touched, held, tasted or smelt. among these three components comprise external marketing, internal marketing It cannot be produced in anticipation of demand. It may be used to market a service or a product. For example, we cannot take a hotel room home for consumption; we must “consume” this service at the point of provision. The rationale for this approach is that there is no reason to spend R&D funds developing products that people will not buy. products and goods. Inseparability (simultaneity)–the service is being produced at the same time that the client is receiving it (eg during an online search, or a legal consultation). The essential elements of product, promotion, price and place remain but three additional elements – people, physical evidence and process are included to the 7Ps mix. A service cannot be stored. Services are unique and four major characteristics separate them from goods, namely intangibility, variability, inseparability, and perishability. Report a Violation, Difficulties Faced in Providing Technical Assistance in Industrial Services, Retail Marketing: Meaning and Types of Major Retail Outlets. A formal approach to this customer-focused marketing is known as S.I.V.A (Solution, Information, Value, Access). Moreover, its production and consumption are inseparable. google_ad_height = 60; The customer perception of service quality is more directly linked to the morale, motivation and skill of the frontline staff of any service organization. The services marketing mix is an extension of the 4Ps framework. 5. Copyright © 2018 IBS Center for Management Research. Since a service offering can be easily replicated, promotion becomes crucial in differentiating a service offering in the mind of the consumer. process. A fine dining restaurant is better located in a busy, upscale market as opposed to the outskirts of a city. A formal approach to customer-focused marketing is known as S.I.V.A. characterized by three additional P's, namely people, physical evidence and Copyright 10. Additional three Ps are included in the service marketing mix considering the unique and different characteristics of services as compared to physical product. Instead of placing ads, S.I.V.A. However, the nature of a particular service business may dictate a need to place much greater emphasis on certain marketing elements, which in turn could lead to different marketing approaches. Dentist, musicians, dancers, etc. Describe S.I.V.A. front-line employees, and the company. Service provider and services can’t be separated from each other. The community defines the product instead of the corporation. model and its role in the marketing mix. Plagiarism Prevention 4. Service marketing is a managerial function for promotion of intangible products.

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