Emerging Trends In Services Marketing. 17511m

Emerging trends in 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

Service sector contribution Service sector type

Contribution

Trade , hotel , transport and communication

26.4

Finance , insurance and real estate

20.6

Public istration and defence

13.0

Total services

60.0

Source Economic survey 2013-14

Service ??? American Marketing Association  defined services as “activities, 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

Marketing Vs Services Marketing Marketing emphasized on: ◦Product ◦Price ◦Place ◦Promotion

customer need and wants cost of the product convenience communication

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. ◦Process—it 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

Services marketing at Holiday Inn Holiday Inn one of the fine restaurants loosing its customer dinner.

for breakfast , lunch and

Customers are preferring to have dinner at steakhouses and gas station hotels. What did holiday inn did ??? They didn’t 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.

Competition and convenience Cash on Delivery Wide range of products Displaying the delivery date of the product and retailer. Secure, reliable, time-definite distribution across 26,804 locations in India and 220 countries -

Cont..

Keep it very simple In airlines industry customers demand for quality for less cost , indigo punctuality in service with out any extra add on services keeps indigo market leader in domestic flying. “ on time is a great thing “

Using technology Movie , cricket matches and other entertainment at across India.

Olx and quickr both are internet and mobile classified advertising Companies`

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.

Icicidirect provides demat services

We can share the service experiences of service providers , give ratings and to service providers

Be A roman in Rome Added Indian menu for its stores in India. Including vegetarian

Offers 90% locally sourced items in there stores. In India it offers appx 5000 items in cash and carry wholesale.

Fast delivery of service ICICI BANK –Best and Fast service to the customer in retail and corporate banking All cargo logistics- one of the best e-commerce logistics company , best in class service with speed Amazon India- one of the fastest delivery online shopping platform Narayana hrudayalaya – offering medical services Nielsan– leading global information and measurement company provides faster marketing research surveys

Rewarding loyalty Virgin Atlantic Flying Club Virgin Atlantic  allows to earn tier points. The club inducts at the Club Red tier, then bumps them up to Club Silver and then Club Gold.  Club Red earn miles on flights and get discounts on rental cars, airport parking, hotels, and holiday flights.  Club Silver earn 50% more points on flights and have access to expedited check-in and priority stand-by seating.  Club Gold 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.



Quality of this service interaction becomes an important subset of marketing strategy. A business can be defined only in of customer benefits in order to create a market-driven culture It requires developing marketing programs which continually create benefits and value for the customer, It demands the offerings more tangible.