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CHAPTER
CHAPTER
-
-
3
3
SERVICES MARKETING
SERVICES MARKETING
MANAGEMENT
MANAGEMENT
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Introduction
Introduction

Marketing management process for

Marketing management process for
services
services

Organizing marketing planning

Organizing marketing planning

Analyzing marketing opportunities

Analyzing marketing opportunities

Selecting target market

Selecting target market

Developing the service marketing mix

Developing the service marketing mix

Managing & controlling marketing

Managing & controlling marketing
effort
effort
3 3
INTRODUCTION
INTRODUCTION

Service marketing management

Service marketing management
represents marketing concept in action.
represents marketing concept in action.
The service firm must be customer
The service firm must be customer
oriented & must develop a competitive
oriented & must develop a competitive
marketing strategy, that strategy
marketing strategy, that strategy
formulation consists of two steps:
formulation consists of two steps:
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* Identifying target markets and
* Identifying target markets and
their needs
their needs
* Developing a marketing mix that
* Developing a marketing mix that
satisfies the unique needs of
satisfies the unique needs of
these target markets
these target markets
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MARKETIN MANAGEMET PROCESS FOR
MARKETIN MANAGEMET PROCESS FOR
SERVICES
SERVICES ( Fig. 3.1) ( Fig. 3.1)
ORGANIZING MARKETING PLANNING
ANALYSING MARKETING OPPORTUNITIES
SELECTION OF TARGET MARKET
DEVELOPING MARKETING MIX
MANAGING MARKETING EFFORT
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ORGANIZING MARKETING PLANNING
ORGANIZING MARKETING PLANNING

Developing a marketing strategy requires

Developing a marketing strategy requires
market planning and market planning is
market planning and market planning is
usually preceded by market analysis.
usually preceded by market analysis.
Before making any strategic plan the
Before making any strategic plan the
manager has to go through some self
manager has to go through some self
questioning. The answers of these critical
questioning. The answers of these critical
questions are the beginning of the
questions are the beginning of the
development of strategic plan.
development of strategic plan.
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The questions may be:
The questions may be:

What is the specific type of service

What is the specific type of service
business?
business?

Who are customers, how can they be

Who are customers, how can they be
identified, & what benefits are they
identified, & what benefits are they
seeking?
seeking?

How can the business be defended

How can the business be defended
from competitors?
from competitors?
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How can competitive advantage and

How can competitive advantage and
more cost efficient operations be
more cost efficient operations be
achieved?
achieved?

What efforts must be used to develop

What efforts must be used to develop
and test new product service
and test new product service
offerings?
offerings?

What role can be assigned to

What role can be assigned to
planning and research?
planning and research?
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The marketing information for
The marketing information for
planning purposes can be gathered
planning purposes can be gathered
through marketing research and
through marketing research and
marketing intelligence. Market
marketing intelligence. Market
research is more structured and
research is more structured and
quantifiable while marketing
quantifiable while marketing
intelligence gathering concentrates on
intelligence gathering concentrates on
intangible ideas and trends.
intangible ideas and trends.
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ANALYZING MARKETING
ANALYZING MARKETING
OPPORTUNITIES
OPPORTUNITIES

Analyzing market opportunity is to

Analyzing market opportunity is to
identify target markets and
identify target markets and
determine the changing needs of
determine the changing needs of
customers and their bases for
customers and their bases for
choosing among the many
choosing among the many
alternatives offered.
alternatives offered.
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Marketing orientation requires

Marketing orientation requires
organizations to monitor their
organizations to monitor their
environment to adjust their
environment to adjust their
offering so that customer needs
offering so that customer needs
are fulfilled. There are some other
are fulfilled. There are some other
imp. Factors to be considered to
imp. Factors to be considered to
analyzing the marketing
analyzing the marketing
opportunities, they are:
opportunities, they are:
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The internal environment

The internal environment

The immediate external environment

The immediate external environment

The uncontrollable external

The uncontrollable external
environment:
environment:

Economic Factors
Economic Factors

Social Factors
Social Factors

Political and legal factors

Political and legal factors

Technical factors
Technical factors
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SELECTING TARGET MARKET
SELECTING TARGET MARKET

The process of identifying and

The process of identifying and
evaluating marketing opportunities
evaluating marketing opportunities
gives rise to many new ideas, each of
gives rise to many new ideas, each of
these opportunities must be studied
these opportunities must be studied
relevance to the company
relevance to the company

s
s
resources. This steps involves:
resources. This steps involves:

Segmenting & Targeting

Segmenting & Targeting

Positioning
Positioning
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Services marketing can not be

Services marketing can not be
separated from market
separated from market
segmentation. There are some
segmentation. There are some
segmentation methods which are
segmentation methods which are
used by service organization:
used by service organization:

Demographic variant
Demographic variant

Psychographic variant
Psychographic variant
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After this process

After this process
market
market
targeting
targeting
is focused, deciding on
is focused, deciding on
which of the market segment to
which of the market segment to
target is a challenging one & after
target is a challenging one & after
this process the service provider
this process the service provider
decides upon the number of
decides upon the number of
segments to serve such as :
segments to serve such as :
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Undifferentiated marketing
Undifferentiated marketing

e.g. Mass banking

e.g. Mass banking

Differentiated marketing
Differentiated marketing

e.g. bank products for products for

e.g. bank products for products for
corporate clients and individual clients
corporate clients and individual clients

Concentrated marketing
Concentrated marketing

e.g. special
e.g. special
agricultural banks or industrial credit
agricultural banks or industrial credit
banks.
banks.
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DEVELOPING THE SERVICE
DEVELOPING THE SERVICE
MARKETING MIX
MARKETING MIX

The marketing mix which is the

The marketing mix which is the
essence of every marketing strategy
essence of every marketing strategy
& includes tangible dominant
& includes tangible dominant
products, they are:
products, they are:

Service Product
Service Product

Place
Place

People
People
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Price
Price
-
-
Demand oriented method
Demand oriented method
-
-
Cost oriented method
Cost oriented method
-
-
Competitor based pricing
Competitor based pricing

Process
Process

Physical Evidence
Physical Evidence
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MANAGING AND CONTROLLING
MANAGING AND CONTROLLING
MARKETING EFFORT
MARKETING EFFORT

The service firm must mobilize its

The service firm must mobilize its
people and resources e.g. money
people and resources e.g. money
equipment, physical facilities within
equipment, physical facilities within
the organization to put the strategic
the organization to put the strategic
plan to work. Another key issue that
plan to work. Another key issue that
relates to the implementation
relates to the implementation
programme is the organizational
programme is the organizational
framework.
framework.
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Heskett lays out a link of activities

Heskett lays out a link of activities
that emphasizes on the
that emphasizes on the
interrelation of various activities
interrelation of various activities
of the organization. This
of the organization. This
interdependence between
interdependence between
marketing, operations, & human
marketing, operations, & human
resources is termed as service
resources is termed as service
management trinity.
management trinity.
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The service Management
The service Management
Trinity
Trinity (Fig. 3.2) (Fig. 3.2)
Operations
management
Marketing
Management
Human Resource Management
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There are some strategies to control
There are some strategies to control
service performance:
service performance:

Establishing customer service

Establishing customer service
divisions
divisions

Performance Control
Performance Control

Profitability Control
Profitability Control

Strategic Control
Strategic Control
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SUMMARY
SUMMARY
The application of the management
The application of the management
process involves following steps.
process involves following steps.

Organizing the marketing

Organizing the marketing
opportunities
opportunities

Analyzing the marketing

Analyzing the marketing
opportunities
opportunities

Selecting the target market

Selecting the target market
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Developing the marketing mix

Developing the marketing mix

Managing the marketing effort

Managing the marketing effort
Thus, this chapter very briefly
Thus, this chapter very briefly
explains the marketing management
explains the marketing management
process, the foundation on which
process, the foundation on which
corporate and functional strategy is
corporate and functional strategy is
built.
built.
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