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Question
Illustrate with examples, the differences between Product marketing &
Services marketing?

Answer
A.PRODUCT MARKETING
Product marketing deals with the first of the "4P"'s of  MARKETING , which are PRODUCT , PRICING , PLACE , and PROMOTIONS.Product marketing, deals with more outbound   MARKETING  tasks. For example, product management deals with the nuts and bolts of  PRODUCT  DEVELOPMENT   within a firm, whereas product marketing deals with marketing the PRODUCT  to PROSPECTS CUSTOMERS , and others.
EXAMPLE : LUX  TOILET  SOAP.

Role of product marketing
Product marketing in a business addresses five important strategic questions:
1   What products will be offered (i.e., the breadth and depth of the PRODUCT LINE ?
2   Who will be the target customers (i.e., the boundaries of the market segments to be served)?
3   How will the products reach those (i.e., the distribution channel)?
4   How much should the products be priced at?
5   How to introduce the products (i.e., the way to promote the products)?


THE  MOST  APPROPRIATE / SELECT  A  COMBINATION   FOR    YOUR  SITUATION
SAY, LUX  TOILET  SOAP.

-your  product  has a  '' unique  advantage/benefits.

-your  product  offers  the  most  competitive  ''value  for  money''.

-your  product is  one  of   the  affordable   in the   market  for  its  range.

-your  product  positioning  in the  niche  market.

-your  product  distribution  is  matchless  in the  market,  available  at   arms  length.

-your  product  merchandising   is   the  most  attractive  at  the  retail   level.

etc etc.
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SERVICE  MARKETING

SERVICE IS ANY ACT OR PERFORMANCE THAT ONE PARTY CAN OFFER TO ANOTHER THAT IS ESSENTIALLY INTANGIBLE AND DOES NOT RESULT IN ANY OWNERSHIP
Services marketing is  MARKETING  based on relationship and value.
Marketing a service-base business is different from marketing a goods-base business.
There are several major differences, including:
The buyer purchases are intangible
The service may be based on the reputation of a single person
It's more difficult to compare the quality of similar services
The buyer cannot return the service
The major difference in the services marketing versus regular marketing is that instead of the traditional "4 P's," Product, Price, Place, Promotion, there are three additional "P's" consisting of People, Physical evidence, and Process. Service marketing also includes the servicescape referring to but not limited to the aesthetic appearance of the business from the outside, the inside, and the general appearance of the employees themselves.

EXAMPLE:  EDUCATION

Service quality is not one-dimensional; it encompasses numerous factors that are important to customer satisfaction. Satisfaction basically is related to expectations and perceived delivery on these dimensions and as shown by the equation given below.
The quality of service delivery results in customer satisfaction & their retention as it reinforces the perception that the value of the service received is grater than the price paid for it.
Quality is defined as the ability of the service provider to satisfy customer needs. Customer perception , service quality & profitability are interdependent variable.
Even in the case of products, quality is difficult to define because it is highly dependent upon customer perception. The task is made more complicated in the case of service because of the intengible nature of service & the variation in services offered to different customers.
There are several reasons why customers must be given quality service. Most important of them are

1. Industry has become so competitive that customers now have variety of alternatives. If the customers are lost, it can be extremely difficult to win back the individual.

2. Most customers do not complain when they experience problems, these customers simply opt out & take their business elsewhere.

What is CUSTOMER  Satisfaction?
CUSTOMER  Satisfaction = function of {CUSTOMER -Expectation and Perceived delivery}
A person is said to be dissatisfied when the perceived delivery is lower than expectation; he/she is satisfied when they match; delighted when the delivery exceeds expectation and astonished when the delivery far exceeds expectation. The following equations explain these relationships.
Perceived Delivery < Expectation --> Dissatisfaction
Perceived Delivery = Expectation --> Satisfaction
Perceived Delivery > Expectation --> Delight
Perceived Delivery >> Expectation --> Astonishment
Dimensions of Service Quality:
There   are  various aspects that a customer expects from different services.

1. Reliability: This refers to the ability of the company to perform the promised service dependably and accurately. Reliability is probably the single most important dimension of quality. Customers expect that companies will do what they say and they will do when they say they will do it.

2. Tangibles: This refers to the appearance of the physical facilities, equipment, personnel, and communication materials. As services are intangible, the tangibles give an impression to the customers about the quality of service they can expect from a firm. A bank in a shabby building will make the customer wonder whether their money will be safe in such a bank.

3. Responsiveness: This refers to the willingness of the employees to help customers and provide prompt service. When you go to a bank the minimum that you expect is that the employees would attend to you rather than chit-chat amongst themselves.

4. Assurance: This factor is linked to several minor factors such as competence, courtesy, credibility and security. Competence depends on the service provider's possession of the required skills and knowledge to perform the service. The politeness, respect, consideration, and friendliness of the service providers can be bundled into the term courtesy. Credibility refers to the perceived trustworthiness, believability, and honesty of the service provider. Security refers to the fact that the service should be free from danger, risk, and doubt. In sum, the assurance factor refers to the knowledge and courtesy of employees and their ability to inspire trust and confidence.

5. Empathy: Empathy refers to the caring, individualized attention the firm provides to its customers. It includes access, communication and understanding. Access refers to the approachability and ease with which the customer can contact the firm. Communication refers to keeping the customer informed in the language they can understand and listening to them. Understanding has to do with the efforts made by the service provider to know customers and their needs.
The Service Quality Gaps:
Gaps between perceived & expected levels of service quality delivery result in the failure of the service provider.
These are the  5   gaps.
-The First gap does not know what customers expect. rea
-The second gap is between what the customer expects and what the management understands as the customers' expectation from the company.
-The third gap is with reference to the management's understanding of the customer expectations and the service quality standards set by the management.
-The fourth gap is between the quality specifications and actual service delivery.
-The fifth gap is between what is communicated to customers and what is actually delivered.
It is possible to measure the gaps and take corrective actions to fill them to the extent possible. The most difficult gap to fill is the one between customer expectations and the perceived service delivery. The expectation of the customers keeps rising with every good experience. When a customer visits the service organization, he/she expects a better service than what was experienced in the last encounter.
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The service marketing  challenges  are
-to generate  re-sales
-to create  a  waiting list
-to create a positive word of  mouth advertising
as  a  lot  of  new  business  is generated  from  satisfied  customers.
WHICH  MEANS  THAT  THERE  IS  NO/LITTLE GAP  BETWEEN
SERVICE  EXPECTATIONS AND SERVICE  DELIVERY.
====================================
HOW DO  YOU MATCH  SERVICE  EXPECTATION  WITH  DELIVERIES
IN PRODUCT  MARKETING , WE  RELY  ON  4 P's
-product  attributes/benefits
-pricing  strategy
-place [ right / easy  place to buy]
-promotions [ selected  weighted  mix]
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IN CASE  OF  THE  SERVICE, THE PRODUCT  IS
-intangible, the greater the  intangibility the  more  complex
the  promise.
-perishable /heterogeneous, the  production  and consumption are  often  simulaneous.
IN SERVICE  MARKETING, WE  RELY  ON  7 P's
-product service [ features/benefits]
-place [ flexibility]
-price [ flexi]
-promotions [ selected  weighted  mix]
-people [ ability,competent, right  attitude ]
-physical  evidence
-process
====================================
IN SERVICE  BUSINESS,
-SERVICE  MARKETING  PROMOTES  AND  
SERVICE  MANAGEMENT  GENERATES  RESULTS, through
*service  delivery
*service  quality
*customer satisfaction/ relation   management
-service  recovery
-service  management  audit.
=======================================
SERVICE  MANAGEMENT  PROVIDES SATISFACTORY SERVICE
-by designing  the  customer  oriented business  process
-cost  effective  service
-continuous  improvements through research/development
-improving  people's  abilities/competences.
====================================
SERVICE  MARKETING  MEETS SERVICE  MANAGEMENT
-by  managing  customer behavior
-by conducting  customer research
-by  managing  customer expectations
-by reverse-engineering  the  product/service  portfolio.
-by determining  what  service  the  market  needs/ we can  offer.
-what  do  we  need  to  do  to  fill  the  gap.
=======================================
THE  INTEGRITY  OF  PRODUCT-SERVICE  DELIVERY
when the  service  marketing  is intergrated with service  management
that is ,what you  promise [either explicitly or  implicitily]  and  
what  you deliver
IN THIS  CASE  , ''INTEGRATED'' =  ''INTEGRITY''
There  is no  gap
WHICH  MEANS  CUSTOMER  SATISFACTION,
WHICH IT  TURN  MEANS = SUCCESSFUL  SERVICE  MARKETING.




EXAMPLES---PRODUCT  MARKETING
------------------------------------------------------------------
Company launching non aerated fruit juice,
CONSUMERS  SALES  PROMOTIONS
consumer coupons
consumer  volume   discounts and sales,  
consumer  contests
point of purchase displays
free samples  
gifts


RESELLERS  TRADE  SALES  PROMOTION  
-stockholding  bonus
-sales  target
-bonus  for performance
-retailer contests.
-special   rebate  for  above  target  performance.
---------------------------------------------------------------------------
Consumer durable product like Air conditioner, where dealer support is necessary to achieve target,
CONSUMERS   SALES  PROMOTIONS
consumer  contests
point of purchase displays
free samples  
gifts
incentive items


RESELLERS  TRADE  SALES  PROMOTIONS
-stockholding  bonus
-sales  target
-bonus  for performance
-retailer contests.
-special   rebate  for  above  target  performance.

--------------------------------------------------------------
Toilet Soaps,A detergent facing Heavy Competition.
CONSUMERS  SALES  PROMOTION
consumer coupons
consumer  volume   discounts and sales,  
consumer  contests
point of purchase displays
free samples  
gifts
incentive items
free travel, such as free flights

RESELLERS   TRADE SALES  PROMOTION
-stockholding  bonus
-sales  target
-bonus  for performance
-retailer contests.
-special   rebate  for  above  target  performance.



SERVICE  MARKETING
EXAMPLE   Low Cost domestic Airliner
Consumer sales promotion techniques
-Price deal: A temporary reduction in the price, such as off-season.
•Loyalty rewards program: Consumers collect points, miles, or credits for purchases and redeem them for rewards.

•Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price
[ buy  one ticket  and  get  another  for half  the price]
•Coupons: coupons have become a standard mechanism for sales promotions-discount  coupons.

•Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery.
•On-line couponing: Coupons are available on line. Consumers  buy  ticket  for   a  discounted  rate.
•Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the ticket,
like  a trip  to  a  resort for 2.
 
•   Point-of-sale displays:
•   Aisle interrupter: A sign the juts into the aisle from the shelf  at  the  travel  agents.
•   Dangler: A sign that sways when a consumer walks by it  at  the  travel  agents.
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TRAVEL  AGENT --Trade sales promotion techniques
•   Trade allowances: short term incentive offered to induce THE  TRAVEL AGENT  to SELL  up on a product.
•   Trade contest: A contest to reward  TRAVEL   AGENTS  that sell the most product.
Point-of-purchase displays: Extra sales tools given to  TRAVEL  AGENTS  to boost sales.
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