Chapter 1 (Terms) Flashcards
are economic activities performed by one party to another.
Services
Often time-based, these performances bring about desired results to recipients,
objects, or other assets.
Services
In exchange for money, time, and effort, service customers expect value from access to labor, skills, expertise, goods, facilities, networks, and systems.
Services
However, they do not normally take ownership of the physical elements involved.
Services
provide benefits without ownership
Services
2.Most New Jobs Are Generated by
____________
Beauty and cosmetics
Banking
Design
Fitness
Health care
Hospitality
Landscaping
- Consulting
- Advertising
- Staffing and Recruitment
- Call Center Representative
- Travel and Reservation
Services
WHY STUDY SERVICES?
*Understanding Services Offers Personal Competitive Advantage
Learning about the distinctive characteristics of services and how they affect both customer behavior and marketing strategy will give you important insights and perhaps create a _______________ for your own career.
The knowledge gained from studying __________________ books may even encourage you to think about starting your own service business.
competitive advantage
service marketinG
WHY STUDY SERVICES?
Powerful Forces are Transforming _______________
Government Policies
Social Changes
Business Trends
Advances in IT
Internationalization
Service Markets
is a form of marketing businesses that provide a service to their customers to increase brand awareness and sales.
services marketing
Unlike product marketing, ________________ focuses on advertising intangible transactions that provide value to customers.
services marketing
_______________ focuses on bringing intangible benefits to customers, or benefits that they can’t see, touch or feel. Professionals use service marketing to build loyalty and
maintain long-term relationships with customers.
services marketing
______________ differs from product marketing because it allows customers to personalize services based on their needs and receive them by meeting the service
provider in person.
Typically, the customer can begin using the service immediately upon
purchase. ___________________ often persuade their target audiences and increase sales by using a framework called the seven Ps of service marketing, a set of best practices that
builds upon the four Ps of product marketing.
Service marketing
Service marketers
Focuses on marketing tangible, physical products
Product Marketing
Focuses on marketing intangible, non-
physical services
Service marketing
Involves promoting and selling a specific product to consumers
Product Marketing
Involves promoting and selling a specific service to consumers
Service marketing
Emphasizes the features, functionality, and benefits of the product
Product Marketing
Emphasizes the value, quality, and customer experience of the service
Service marketing
Tangible products can be seen, touched, and evaluated before purchase
Product Marketing
Intangible services are experienced and evaluated during delivery
Service marketing
Often involves packaging, branding, and physical product attributes
Product Marketing
Often involves customer interactions,
service delivery, and customization
Service marketing
______________ may include warranties, guarantees, or product return policies
Product Marketing
__________________ may focus on service guarantees, customer satisfaction, or service level agreements
Service marketing
In this type of service processing, the customer must be physically present for the service to be delivered.
People Processing
Some of the most common types of service processing involve people.
Health care
Lodging
Passenger transportation
Fitness centers
Haircutting salons
People Processing
When the customer is not required to be present while giving the necessary
service, then it is a type of service process involving objects.
Possession Processing
These are procedures where the input is from the customer, but the processing does not require the customer’s presence at all.
Repair and maintenance work
Warehousing
Recycling of waste
Laundry or dry cleaning
Possession Processing
The customer is not required to be present at all and not even an object of the customer is required. He just
needs to understand what is happening. The physical exchange of objects or people is not necessary.
Mental Stimulus
These services touch people’s minds and have the power to shape attitudes and influence behavior
Mental Stimulus
In this type of service processing, there is only _______ work involved. As this is very difficult to measure, it is
classified as intangible.
Advertising
Movies
Religious Activities
Theatre performance
Education
News
Professional Advice
Mental Stimulus
processing describes intangible actions directed at a customer’s assets.
Information Processing
In this category, little direct involvement with the customer may be needed once the service request has been initiated.
Examples of information-processing services include
Insurance
Banking and consulting.
Information Processing
The __________________ is a significant tool for creating the right marketing strategy and its implementation through effective tactics.
marketing mix
The assessment of the roles of your product, promotion, price, and place plays a vital part in your marketing approach.
marketing mix
The _________________ is a variation of the four p’s of product marketing and
focuses only on customer service industries like hotels, insurance companies, salons, aviation, etc.
7ps of service marketing
The ____________________ mix are Product, Price, Place, Promotion, People, Process, and Physical evidence.
7ps of the service marketing
_____________________ is a model that focuses on creating an emotional connection with your customers. This is done by providing them with high-quality, valuable customer experiences to achieve customer satisfaction. Additionally, this approach helps to build loyalty and encourage repeat business.
7ps of service marketing
The product is the actual thing you are selling to the customer.
PRODUCT
In a hotel, this could be a room with a bed or an airline ticket that can take you anywhere in the world.
There are different types of products depending on the industry you are in and the target market. For
example, a hotel might have different products depending on if it is a 3-star or 5-star hotel.
PRODUCT
Service products consist of a core product that meets the customers’ primary need and a variety of
supplementary service elements that are mutually reinforcing, and add value to help customers to use
the core product more effectively. Supplementary service elements include providing information,
consultation, order taking, hospitality, handling exceptions, etc.
PRODUCT
The building where the service happens
Additional products customers can buy during the service, such as hairspray in a hair salon
PRODUCT
Explicit services that offer an obvious benefit, like pain relief from a massage
Implicit services that provide a psychological benefit, like feeling more confident after a haircut
PRODUCT
________________ that offer an obvious benefit, like pain relief from a massage
________________ that provide a psychological benefit, like feeling more confident after a haircut
Explicit services
Implicit services
Pricing strategies affect how customers react to prices, recurring fees and discounts. Customers often use price to predict the quality of a service.
So if a business provides a high-quality service, they’re more likely to attract customers if they have higher prices. Companies also consider these factors when thinking about price:
Price
Overhead costs like advertising, rent and insurance
Cost of labor and materials
The price of competitors’ services
Price packets, which educate customers about all the services a company
provides
Price
Service distribution may take place through physical or electronic channels (or both), depending on the
nature of the service.
For example, today’s banks offer customers a wide range of distribution channels, including visiting a bank branch, using a network of ATMs, doing business by telephone, online banking on
a desktop, and using apps on a smartphone
Place
Businesses that sell services often require the customer to come to them, location is important.
Customers often purchase services near where they live, which means a business is more likely to make a
sale if it chooses a location closer to its target audience.
Place
Place also refers to where and when a business places its ads.
Some other location-based factors that businesses consider include:
What their customers’ typical schedules are
Whether customers can access the business by walking or driving
Where the business advertises online
Where competitors locate their businesses
Place
____________ focuses on making potential customers aware of a brand and helping them determine the quality of that brand’s services. Businesses often Offer services that look similar to their competitors’ services, so using promotional material can help a business distinguish itself.
Promotion
Businesses do this by advertising frequently and targeting their advertisements to address the wants and needs of their target audiences.
The types of advertisements often
include:
Contests
Livestreams
Endorsements from influential figures
Social media advertising
Promotion
This refers to the people who work for a company in customer-facing roles. These people can affect a customer’s level of satisfaction as much as the service they provide because customers associate services with the people who deliver them.
Effective customer service can motivate customers to return to the business for additional services as repeat buyers and also refer their
peers to the business.
PEOPLE
Businesses apply several methods to strengthen the customer service of
their staff, including:
Training staff on how to greet customers, answer questions about the services they provide and
resolve customer challenges
Creating a service script so that staff can create a unified, consistent customer experience
Establishing a protocol for upselling so customers feel comfortable when a staff member suggests purchasing additional products and services
Instructing staff to remember important details about repeat customers, such as their career
path and interests.
People
Businesses train their staff members to perform a service using a set process.
Process
These processes ensure that the employee delivers a service efficiently and that customers can expect a consistent standard of quality.
Process
Many companies use process mapping to teach their staff what actions to perform when delivering a service. Process mapping usually consists of the following:
Symbols that visualize each step of the process, which can make it easier for employees to follow
Details about when and where the action happens
Flowcharts showing how each step transitions into another
A regular revision process to strengthen existing steps and add new ones
Pocess
Physical evidence refers to everything your customers see when interacting with your business.
This includes:
The physical environment where you provide the product or service.
The layout or interior design
Your packaging – Packaging relates to how your product looks–from its design down to the use of recyclable materials if possible–and also any instructions needed by consumers before using it correctly such as dosage amounts or warnings about potential side effects.
Your branding – Small things like the receipt you provide and the logo also contribute to your
brand awareness and recall.
PHYSICAL EVIDENCE
Why an understanding of the 7 P’s of services is important?
In ___________________, knowing these elements play a crucial role to create a
customer-centric marketing plan for you as a service provider.
services marketing
Why an understanding of the 7 P’s of services is important?
By understanding your _____________ (who you are serving), how you
communicate with them (your process), what products and customer service you provide (products and services), and how much they should pay (prices) – you can design efficient marketing strategies that will achieve your business
objectives.
customers
