Marketing Management – Essay Example
Service Marketing Service marketing, can no more be considered, as an extended or adapted version of goods marketing. Rather than considering “service” as an activity performed on behalf of customer it has to be appreciated as a process of servicing the customer i.e. delivering value to the customer. The customers are primarily not concerned about whether they buy goods or buy services; they take title to the goods or just temporary possession. These are secondary issues. The major issue is of value derived. Whether customers will buy goods or activities will be determined by value being derived.
Thus services should not be looked as activities, but as a process or way to deliver value. Service orientation need not be the focus of banks, airlines, gymnasium only rather it has to be internalized also by firms which sell consumer electronics and durables.
Thus today’s competition is not fought on the basis of functional features of the product as they can be very easily copied by any one, neither on the basis of services( activities), not even on relationships but its fought on the basis of experience. Thus service experience is the key; it is what determines the actual satisfaction derived by a customer. Product performance is just one part of it. Other service elements include: the brand, quality of service, relationships, ease of use and reliability.
The components of service experience are People, fellow customers, service process, and service setting etc. Thus a company irrespective of whether it deals in goods or services (activities), it should consider designing a service experience for the customers so that they will be delighted and thus become loyal to the company.
To build a robust service experience, companies will have to invest in training its people, designing operationally excellent processes, managing other customers and designing an environment (setting) that suits product usage and customer needs.
Example – Harley Davidson – the experience that a customer will derive will not be just due physical attributes of the Bike but it’s a combination of Bike’s features, customer’s encounters with Davidson’s employees, their interaction with other Harley Davidson owners and the processes that Harley Davidson employs to serve its customers.