MANAGING SERVICES FOR BUSINESS MARKETS

Click to edit Master subtitle style

Rohan Mehra (2010184) Rohit deshmukh (2010185) Ronak kejriwal (2010189) Saket rathi (2010197) Shradha singhania (2010221) Hemank chauhan (2010289)

5/5/12

INTRODUCTION
Services play critical role in marketing programs of

many B2B firms

Impossible to imagine any firm having surviving in

todays highly competitive market scenario

Eg: IBM
Services are often part of value package demanded by customers. Over half of IBMs revenues come from services

Most product manufacturers are now using integrated

product and service solutions as part of core marketing strategy.

5/5/12

SERVICES IN THE B2B MARKET

Two distinct groups:

Products supported by services

The wide range of service elements that accompany the physical product are frequently as important as the technical solutions offered by the product itself. Those that are marketed in their own right without necessarily being associated with a physical product.

Pure services

5/5/12

BUSINESS SERVICE MARKETING: SPECIAL CHALLENGES

Services are different:

Tangibility vs Intangibility Time lag between production and consumption Services cannot be stored Services highly variable, while products standardized

5/5/12

BUSINESS PRODUCT SERVICE CLASSIFICATION ( BASED ON TANGIBILITY)

Very few offerings can be termed as Pure Product or

Pure Service

5/5/12

FEW SERVICE CATEGORIES

Business services: Those market offerings that are intangible-dominant.

Few services are totally intangible--they often contain elements with tangible properties
Few types of service examples based on characteristics:

5/5/12

SERVICE QUALITY
Quality standards ultimately defined by customer,

based on his experience.

Dimensions of Service Quality:

5/5/12

CUSTOMER SATISFACTION & LOYALTY

Customer satisfaction measured by firms, as it leads

to loyalty and ultimately long term profitability. linking process affect customer satisfaction:

Four components of a firms offering & its customer

The basic elements of the product or service that customers expect all competitors to provide. Basic support services, such as technical assistance or training. A recovery process for quickly fixing product or service problems. Extraordinary services that so excel in solving customers unique problems or in meeting their needs that they make the product or service seem customized.
5/5/12

SERVICE RECOVERY
Encompasses the procedures, policies, and

processes that a firm uses to resolve customer service problems promptly and effectively.
Service providers who satisfactorily resolve service

failures often see that their customers level of perceived service quality rises.

5/5/12

ZERO DEFECTIONS
Defections: Customers who do not come back

Customer defections have a drastic effect on bottomline

As relation with customer strengthens, profits rise

Research has found that profits from a Fourth Year

customer is Triple that of a First Year customer

5/5/12

MARKETING MIX FOR SERVICE FIRMS

Target segments must be selected, and then a marketin g mix must be tailored

Developme nt of service packages

Pricing

Promoti on

Distribut ion

5/5/12

SEGMENTATION
First, service segments are often narrower.
Expectations

and routine

may not be met if service received is standardized

Second, service segmentation focuses on what they

business buyers expect as opposed to what they need.

Assessing

buyer expectations plays major role in selecting target market & developing appropriate service package

Third, segmenting service markets helps the firm to

adjust service capacity more effectively.

5/5/12

SERVICE PACKAGES
Service Package:

Can be thought of as the product dimension of service Includes the range of services provided, and the quality and level of service.

Must also consider factors like the personnel who

perform the service, physical product that accompanies the service, & the process of providing the service

5/5/12

CONCEPTUALIZING THE SERVICE PRODUCT

5/5/12

DEVELOPING NEW SERVICES

Conventional process of developing new products:

Exploration, business analysis, development, testing, commercialization applies to services as well.

However, a major stumbling block to creating and launching

a new service is the difficulty in tangibilizing the service concept.

Traditional approaches, such as product prototyping, do not

work effectively with services because it is hard to prototype services that are often customized for individual buyers.
5/5/12

NEW SERVICE PROJECTS THAT SUCCEED

The Customized, Expert Service: These new

services are relatively straightforward and inexpensive but are customized to fit the needs and operating systems of client firms.
The Planned, Pioneering Venture: These are

first-to-market services that are unique, complex, and expensive.

The Improved Service Experience:

Represented here are equipment-based 5/5/12

NEW SERVICE PROJECTS THAT FAIL

The Peripheral, Low Market Potential

Service: These new services tend to be peripheral to the firms core offerings, fail to provide added value to the customer, and enter a market with very limited potential.
The Poorly Planned Industrialized Clone:

These are complex new services that rely on hard technology for their production and delivery.

5/5/12

THANK YOU
5/5/12