Marketing of Services

50 %
50 %
Information about Marketing of Services

Published on December 23, 2008

Author: mssridhar


Marketing of Services : Marketing of Services M S Sridhar Head, Library & Documentation ISRO Satellite Centre Bangalore 560017 E-mail: & A lecture delivered in the UGC Refresher Course on “Library and Information Science” at Academic Staff College of Bangalore University on March 22, 2001 Marketing of Services : Marketing of Library Services M S Sridhar, ISRO 2 Marketing of Services What are we selling? Information? (‘we sell dreams’ – Raj Kapoor; “in the factory we make cosmetics, in the the store we sell hope’ – Revlon) Customer buy satisfaction and not what we make Customer needs are core to marketing; product should not come in-between organisation and customer and block the vision Know your customer Choose a segment for proper focus Define target market don’t offer one universal service to all If you don’t know where you want to go, any road will take you there Chalk-out service marketing strategy; Positioning the service Environmental & SWOT analyses, goals, resource allocation Common questions, uncommon answers Type of business, customer, competitors, etc. Expand 4Ps to 8Ps and co-ordinate marketing mix (product, price, place, promotion, people, physical evidence and process) Marketing of Services contd. : Marketing of Library Services M S Sridhar, ISRO 3 Marketing of Services contd. Marketing within the organisation what you can’t sell to your own staff, you can’t sell to the customer either Do internal marketing ; real/ crucial heroes are front line employees; social interaction between the customer and service personnel, customer focus and care, etc., Developing marketing connections with operations - Mutual dependence of marketing and operations Continuous customer care, focus and maintenance - putting the customer at the centre of all organisational efforts in the ultimate aim Tangiblise the intangibles; create physical evidence in service to appeal to senses of customers Pricing should take care of perishability nature and fluctuations in demand Do niche marketing with unique customised services Marketing by NFP Organisations & Extended Marketing Mix : Marketing of Library Services M S Sridhar, ISRO 4 Marketing by NFP Organisations & Extended Marketing Mix Types of Marketing by NFP Organisations 1. Commercial marketing 2. Social marketing (a long term goal) Dissemination of ideas Changing the public’s attitudes 3. Marketing to donors Facilitating indirect ‘exchange’ Range & complexities of motivations of donors Marketing to Official funders ‘Barrier’ approach ‘Facilitator’ approach Extended Marketing Mix {(4+3+1) P} for Marketing of Services 1. Product 2. Price 3. Place 4. Promotion 5. Physical evidence 6. People (uniform / dress) 7. Process (equipment, furniture, etc.) PR & social marketing Note: ‘Place’, ‘physical evidence, ‘people’ and ‘process’ are major components relating to ‘creation of physical environment’ The economics of demand analysis : Marketing of Library Services M S Sridhar, ISRO 5 The economics of demand analysis The internet and aviation are made for each other: flights are a high-value, perishable commodity on which up-to-date information can be made available electronically. The buyer is hungry for such information so he can get the best deal. The airtimes, for their part, depend for their profits on what they call yield - management systems, which are highly sophisticated computerised models for altering the price of seats on the given flight to reflect the demand over time. ? Cheap tickets for early bankers and last minute travelers needing flexible tickets pay much more for the privilege ( it may be 20 times) 1. Price (negatively related) Income - “What distinguishes want from effective demand is the willingness and ability to pay the price asked’ (a) Normal goods (positively related) <1 income elasticity of demand (b) Inferior goods (positively related) <1 income elasticity of demand therefore shifting to better higher quality alternatives (C )Superior or luxury goods positive increase by a greater percentage than income i.e, income elasticity of demand >1 The economics of demand analysis contd... : Marketing of Library Services M S Sridhar, ISRO 6 The economics of demand analysis contd... 3. Price of related goods (a) Substitute goods (positive): Increase in price results in increase in demand for the others (b) Complimentary goods(-ve) : Increase in price of one results in a decrease in the demand for the other (cross-price elasticity of demand) 4. Tastes and preferences: Unlike essentials, books, journals etc., have positive income elasticity (i.e expenditure decreases as income rises) Demand types 1. Latent demand i.e, potential or unrealised 2. Induced or ‘generated demand 3. Diverted’ and ‘Substitute’ demand (e.g.: books Vs TV) Capacity utilization or load factor Pricing - Price discrimination; Membership scheme Cost-plus price or full-cost price 2. Variable cost + gross profit (to cover FC and profits) 3. Marginal cost ( public sector) ‘Physical Evidence’ in Marketing of Services : Marketing of Library Services M S Sridhar, ISRO 7 ‘Physical Evidence’ in Marketing of Services Physical environment is ‘packaging’ for service Customer judges the service quality through the process of deduction Creation of service environment (i.e., context) should not be left to chance Both dominant and peripheral physical evidences should be co-ordinate to achieve uniformity in its projected service image Peripheral evidences are small and trivial but have impact on customer perception about services and are real sources of competitive differentiation When it comes to perception “feelings are facts” Help to reinforce the proposed position and image of the organisation, i.e.., tangibilise the intangible service ‘People’ & ‘Process’ in Marketing of services : Marketing of Library Services M S Sridhar, ISRO 8 ‘People’ & ‘Process’ in Marketing of services ‘Process’ in Marketing of Services Policies Procedures Systems Use of technology Customer involvement Customer direction Workflow Standardisation Employee discretion Demand control Quality control ‘People’ in Marketing of services Service employees Training Discretion Commitment Incentives Appearance Interpersonal behaviours Attitudes Customer contact Customer interactions ‘Place’ in Marketing of Services : Marketing of Library Services M S Sridhar, ISRO 9 ‘Place’ in Marketing of Services Location is important for homogeneous services Site selection Choice of community, region, etc. Factors Convenience Operating cost Proximity to competitor Availability of support system Geographical or environmental factors Communication networks Transport facilities Channels /distribution / service centres Interdependent Facets of Service Management : Marketing of Library Services M S Sridhar, ISRO 10 Interdependent Facets of Service Management SERVICE MANAGEMENT Objectives Service quality Marketing of services User requirement Output measurement Evaluation Interdependent facets of library services : Marketing of Library Services M S Sridhar, ISRO 11 Interdependent facets of library services 1. Objectives - where you want to go? In line with the needs of users 2. User requirements Service which empower the customer will thrive & those that frustrate the customer will shrivel 3. Marketing of services What are we selling ? Information? Customer seeks technology solutions to complex problems & buys ‘confidence’ or reduction of uncertainty surrounding the problem 4. Quality in service Greatest lever for marketing Intangible, relativistic, indivisible & has tendency to deteriorate Like ‘happiness' difficult to measure What a client expects of a service and how he perceives that the service received lived up to those expectations 5. Output measurement Service & NFP nature cause many problems 6. Evaluation Only outcome can be evaluated & process is difficult to evaluate User evaluation is affected by service process, physical evidence & quality of service personnel How Consumers of Services differ from Consumers of Goods in Evaluation ? : Marketing of Library Services M S Sridhar, ISRO 12 How Consumers of Services differ from Consumers of Goods in Evaluation ? 1. Rely more on personal sources of information 2. Greater post-purchase evaluation and information seeking 3. Price and physical facilities are used as major cues to service quality 4. Evoke a smaller set of alternatives 5. For nonprofessional services, self-provision is more frequentaly considered 6. Adoption to innovation is slower 7. Perceive greater risk 8. Brand switching is less frequent 9. Part of the dissatisfaction is attributed to own inability to specify or perform their part of the service 10 Complain less frequently due to the belief that they are partly responsible 11 Intangibility, inseparability, heterogeneity and permissibility lead them to possess high levels of experience and credence properties, which in turn, make them more difficult to evaluate Customer Management : Marketing of Library Services M S Sridhar, ISRO 13 Customer Management 1. Can timing of demand be influenced? 2. Does the customer have spare time while he is waiting? 3. Do customers and contact personnel meet unnecessarily face to face? 4. Are such contacts used to the maximum effect? 5. Are contact personnel doing respective work which the customer could do himself (e.g. customer-operated machines) Do the customers sometime try to 'get past' the contact personnel and do things themselves? could that interest and knowledge be better utilised? Do the customers show interest in a knowledge about the tasks of the contact personnel? 8. Is there minority of customers which disturbs the service delivery system and its effectiveness? 9. Do the customers ask for information which is available elsewhere? 10. Can the customers do more work for each other, or use the resources of `third parties'? 11. Can part of the service delivery process be relocated to decrease cost? (e.g. cost of premises) 12. Can the customer be given an opportunity to choose between service levels? Conclusions : Marketing of Library Services M S Sridhar, ISRO 14 Conclusions 1. Customers give importance to: Reliability (dependency, accuracy & consistency) Responsiveness (quick & prompt delivery) Assurance (courteous, knowledgeable & assuring employee) Empathy (individualised & personalised attention) Tangibility (clean physical evidence & well groomed employee) Competency (of service employee) Courtesy (of service personnel) 2. Patron judgments differ from those of experts 3. Satisfaction is heavily influenced by expectations. References : Marketing of Library Services M S Sridhar, ISRO 15 References Applegate, Rachel. “Models of satisfaction”. In Kent, Allen, ed. Encyclopedia of library and information science. New York: Marcel Dekker, 1997, v.60, Supplement 23, p 199-227. Batra, Pramod. Simple ways to make your customers happy. New Delhi, Think Inc., 1994. Chase, R B and Tansik, D A. “The customer contact model for organisational design”. Management Science, 29, 1983, p 1037 – 1050. Chase, R B and Dasu, Sriram. “Want to perfect your company’s service? Use behavioural science”. Harvard Business Review, June 2001, p 79 – 84. Czepiel, John A, et. al., eds. The service encounter. Lexington, MA: Lexington Books, 1985. Jones, Thomas O. “Why satisfied customers defect”. IEEE Engineering Management Review 26 (3) Fall 1998, p16 – 26. Lovelock, Christopher H. Managing services: marketing, operations and human resources. New Delhi: Prentice Hall, 1988. References contd. : Marketing of Library Services M S Sridhar, ISRO 16 References contd. Sridhar, M S. "Customer participation in service production and delivery system", Library science with a slant to documentation and information studies, 35 (3) September 1998, 157-163. Sridhar, M S. "Waiting lines and customer satisfaction", SRELS journal of information management, 38 (2) June 2001, 99-112. Sridhar, M S. "Book procurement delay : a de-motivator to user participation in collection development". In : Building Library Collections and National Policy for Library and Information Services : Seminar Papers presented in XXX All India Library Conference, Rajasthan University, Jaipur, 28-31 January 1985. ed. by P.B.Mangala. Delhi: ILA, 1985. 329-334. Sridhar, M S. "Customer-characteristics as criteria for market-segmentation in libraries". In: Marketing of library and information services in India : Papers presented at the 13th National Seminar of IASLIC, Calcutta, December 20 - 23 , 1988, ed. by S.K.Kapoor and Amitabha Chatterjee. IASLIC Special Publication No. 28. Calcutta : IASLIC, 1988, p43-52. Sridhar, M. S. "Managerial quality and leadership". In: Management of library and information centres. New Delhi: Indira Gandhi National Open University, 1995, MLIS-05, Unit 3, p 43-68. Wilson, Au brey. New directions in marketing: Business-to-business strategies in 1990s. New Delhi: Excel books, 1995. Slide 17: Marketing of Library Services M S Sridhar, ISRO 17 About the Author Dr. M. S. Sridhar is a post graduate in Mathematics and Business Management and a Doctorate in Library and Information Science. He is in the profession for last 36 years. Since 1978, he is heading the Library and Documentation Division of ISRO Satellite Centre, Bangalore. Earlier he has worked in the libraries of National Aeronautical Laboratory (Bangalore), Indian Institute of Management (Bangalore) and University of Mysore. Dr. Sridhar has published 4 books, 86 research articles, 22 conferences papers, written 19 course materials for BLIS and MLIS, made over 25 seminar presentations and contributed 5 chapters to books.   E-mail:,, Phone: 91-80-25084451; Fax: 91-80-25084476.

Add a comment

Related presentations

Related pages

Services marketing - Wikipedia, the free encyclopedia

Services marketing is a sub-field of marketing, which can be split into the two main areas of goods marketing (which includes the marketing of fast moving ...
Read more

Dienstleistungsmarketing – Wikipedia

Mit Dienstleistungsmarketing (engl. Services Marketing oder Marketing of Services) bezeichnet man in der Betriebswirtschaftslehre einen beziehungs- und ...
Read more

What is service marketing? definition and meaning

The promotion of economic activities offered by a business to its clients. Service marketing might include the process of selling telecommunications ...
Read more

Services Marketing: Christopher H. Lovelock ...

Synopsis For advanced undergraduate and MBA/EMBA courses in Services Marketing. Organized around a strategic marketing framework to give instructors ...
Read more

Marketing - Wikipedia, the free encyclopedia

Services marketing. Services marketing relates to the marketing of services, as opposed to tangible products. A service (as opposed to a good) ...
Read more Shopping Cart

Kundendienst: Digital Marketing Services. Ihre Anfrage kam über: ... (Kein Postfach, kein DHL Packstation, ausnahme MBE Service von UPS ). ...
Read more

Learnmarketing - Google+

Learnmarketing - Learnmarketing provides free articles, videos and lessons for those working or studying th dynamic subject of Marketing. - Learn marketing ...
Read more

PR, Marketing, KrisenPR - Agentur für PR Marketing ...

Public Relations, marketing, Marketing, PR, Pressetexte, Texte, internat.PR, Kommunikationskonzept, Presse, Guld, Veronika Guld, Siegburg
Read more

Definition of Marketing - American Marketing Association

The following marketing definitions were approved by the American Marketing Association Board of Directors
Read more