Sengamala Thayaar Educational Trust Women’s College
(Affiliated to Bharathidasan University)
(Accredited with ‘A’ Grade {3.45/4.00} By NAAC)
(An ISO 9001: 2015 Certified Institution)
Sundarakkottai, Mannargudi-614 016.
CRM IN SERVICES MARKETING & ITS TOOLS (16RSBE3:2)
Dr. S.Geetha
Assistant Professor
Department of Business Administration
Department of Business Administration
CRM IN SERVICES MARKETING & ITS TOOLS (16RSBE3:2)
Skill Based Elective II (Semester V)
Unit I
Introduction Services – definition – Role of service sector – Difference between Services and goods – services characteristics – services marketing and Relationship marketing .
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Focuses on providing and maintaining quality service for customers, by effectively communicating and delivering products, services, information and solutions to address customer problems, wants and needs.
Introduction
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services marketing as an organizational function and a set of processes for identifying or creating, communicating, and delivering value to customers and for managing customer relationship in a way that benefit the organization and stake-holders.
Services marketing
Services
A service is an act or performance offered by one party to another. They are economic activities that create value and provide benefits for customer at specific times and places as a result of bringing desired change. The term service is not limited to personal services like medical services, beauty parlors, legal services etc.,
Meaning
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Definition
According to Philip Kotler and Bloom services is defined as “any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.”
The service sector is receiving much deserved attention resulting from its inevitable role in a country’s economic development. Where it is mainly focusing of developing an inbound relationship with the customer. Which helps in terms of retaining the customer. Because service is an “intangible good” include attention, advice, experience, discussion. The scope of CRM in service sector is vast where it includes Govt. Health care/ hospitality education, banking, insurance, financial, legal, consulting, new a media, tourism retails sales etc.,
Service Sector
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ROLE OF SERVICE SECTOR
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Consulting
Cleaning
Construction
Education (institutions offering the services of teaching and access to information)
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Entertainment (when provided live or within a highly specialized facility)
Fabric Care
Financial Services
Continuous………..
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Continuous………..
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GOODS
Meaning
Goods are the things that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need of a customer. Goods are tangible in nature, they can touched, smelled at, gripped, etc., before purchasing.
Goods have certain size, shape, physical structure, etc. They are neatly packed, branded, labeled, etc. and they are produced in advance by forecasting the future demand and can be stored as an inventory for sales.
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Services
Definition
Philip kotler, defined “service as an activity or benefit, that one party can offer to another that is essentially intangible and does not result in the ownership of anything. The production of service may or may not be tied to a physical product”.
Meaning
Services are intangible in nature and they cannot be seen, touched, gripped, smelled at, tasted, etc. Services are perishable in nature and they should be utilized at a very low time period. Services cannot be stored or produced in advance like we do for goods.
In services, there is no concept of transfer of ownership between seller and buyer. The quality of a service cannot be measured. Examples of services are financial services like banking, insurance, etc. and Transportation services like train travel, bus travel, etc. hotel services, etc..
DIFFERENCE BETWEEN GOODS AND SERVICES
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GOODS | SERVCES |
Goods are the material items that can be seen, touched or felt and are ready for sale to the customers. | Services are amenities, facilities, benefits or help provided by other people. |
Goods are tangible and homogeneous in nature. | Services are intangible and heterogeneous in nature. |
Very simple and easy | Complicated |
Goods purchased can be returned if not satisfied and can get returned. | Services cannot be returned back once they are provided. |
Goods can be separated from the seller. | Services cannot be separated from the service provider. |
Identical | Diversified |
Goods are physical things and involves production | Services cannot be stored. |
Goods are physical things and involves production | Services are more like a process |
CONTINUOUS……….
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GOODS | SERVICES |
Customers don't participate in production process of goods | Customers participate in the production process of services. |
Goods can be kept in stock for future sales, inventory of goods is possible | Services cannot be kept in stock, inventory of services is not possible. |
Transfer of ownership of the title is possible in case of goods. | Transfer of ownership of the title is not possible in case of services. |
In case of goods, production and distribution can be separated from consumption. | In case of services, production, distribution and consumption occur at a same point of time. |
The quality of a product can be measured and compared with other products. | The quality of a service cannot be measured. |
Core value of a good is produced in a firm or factory or manufacturing unit. | Core value of a service is produced at the time of buyer and seller interaction. |
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ADVANTAGES
CHALLENGES AND ISSUES IN SERVICE MARKETING
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Relationship Marketing
Meaning
Relationship marketing refers to those marketing activities that are aimed at developing and managing long-term relationships with the customers. The details about the customer, his buying patterns, contacts, etc. are maintained in a sales database and an account executive is assigned to fulfill the needs of the customers and maintain the relationships successfully.
Relationship marketing recognizes the value of a customer and the significance of keeping good relations with him
Definition
American Marketing Association (1995), “Relationship Marketing is marketing with the conscious aim to develop and manage long term and/or trusting relationship with customers, distributors, suppliers, or other parties in the marketing environment”.
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Characteristics of Relationship Marketing
Concern:
Strong relation can be maintained by knowing and understanding the needs of customers. Howsoever the size of business either it is small retailer or big manufacturer all enterprise need loyal customers and it can be achieved by showing concern towards customers
Trust and Commitment:
Relationship marketing focuses on developing strong relationship between buyers and sellers through trust and commitment. Trust can only be achieved if the strategy is not only transactional but relational. Both buyer and seller has to understand that strong trust full relation can only be achieved by avoiding focusing on short-term benefits and investing into building long term relationship.
service quality leads to customer satisfaction which leads to relationship strength, which leads to relationship longevity, which leads to customer relationship profitability
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RELATIONSHIP MARKETING STRATEGIES
Classification of Relationship Market:
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Steps in Relationship Marketing
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Conclusion
Customer Relationship Management entails all aspects of interaction a company has with its customers, whether it is sales or service related: it starts with the foundation of relationship of relationship Marketing
Relationship marketing is the practice of building long term satisfying relations with key parties ---Customers, suppliers, distributors ------- in order to retain their long – term preference and business
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