วันพฤหัสบดีที่ 15 กันยายน พ.ศ. 2554

Managing Service Marketing Challenge in the Globalized World – by Ruth E Stuettgen by Ruth Stuettgen

The service sector of the global economy has developed rapidly over the last few decades, transforming the way businesses are operated and how business and organizational models are being applied. Due to the nature and characteristics of service products which is distinctive and sets it apart from the physical goods marketing, the traditional business models applicable for manufacturing businesses is no longer effective for the service firms (Schlesinger & Hekette 1991). The evolution of the service sector has been fueled by five main factors including government policies, social changes, business trends, advances in informational technology and the internationalization. Service product marketing poses a key challenge for today's managers.
Need for changing organizational business models, business processes and practices has become critical for staying in business and competing effectively. Under the facilitation of world trade governing bodies such as WTO, globalization is escalating and mergers and technology transfer arrangements are common. Organizations are either integrating operations in to service industries which complements with their existing physical goods or forming alliances with service providers to complete the product offer consisting of both core product and the auxiliary services (Swartz. & Iacobucci 2000).
Industries such the automobile maintenance is a simple example where global manufacturers and marketers of automobiles use their licensed dealers worldwide to not only sell the automobiles but also provide auxiliary services such as maintenance and repairs. Today, an increasing number of vehicles are maintained and repaired through workshops and maintenance stations operated by the automobile dealers. These maintenance operations have the advantage of technical know-how, training from parent company as well as required equipments to provide enhanced services for the consumer. For example, it is common and preferred choice today to service your Mazda vehicle at the Mazda Licensed dealer's maintenance station. However the maintenance and repair services are also provided by a host of other individual operators as well as small and medium scale businesses. These operations have the advantage of accessibility and being able to offer more personalized services due to their smaller scale. However in order to compete effectively it is important that they too enhance and improve their strategies applied in marketing their services. This is the same dilemma that is faced by all domestic firms when they are competing in service marketing with global players.
While marketing services involve the effective managing of all the marketing elements such as Product elements, Place and Time, Process, Service Quality, People, Promotion, Physical Evidence and the Price, importance of service quality is an area which merits special attention of today's marketing managers. As service quality is a subjective concept, which is dependent upon the customer's perceptions of the service encounter. Therefore managing service quality involves managing all dimensions of quality, which contributes to the customer's overall perception of the service encounter. The edge which the domestic service providers have in the face of global competition would be the greater knowledge of the domestic nuances, cultural habits, values and other aspects which adds to the overall consumer experience. Since these factors are closely linked with some of the peripheral service elements such as people, place and time, and the process, the domestic service providers might be better placed to offer a service marketing "element bundle" that better appeals to the local customers.
In conclusion, the points to note by those who have to compete in the service industry, whether with global players or with local competition, is that managing one aspect of the service offer is not sufficient. It is not acceptable to think that just because you cut the best hair cuts in town that clients are going to be choosing you. The people in your saloon, the ambiance, the price, the parking facilities, servicing a refreshment and making available comfortable sitting while waiting, fast and efficient service are all part of the expectation, ON TOP OF A FABULOUS HAIR CUT! As apparent, the theories of service marketing are applicable regardless of scale of operation. Be it a small scale spa, an online business, an automobile service center or any other, the need for managing the full service elements remain a constant. So, if you intend to win the service marketing battle, do not neglect a single element of the service marketing mix.

About the Author

Author
Ruth E. Stuettgen has a keen interest in Magnetic Entrepreneurial Skills including Business Empowerment, Magnetic Empowerment Skills, Magnetic Time Management Techniques, Magnetic Selling and Marketing Skills and more. These are invaluable to small business owners and solopreneurs as well as other businesses. In this blog, and her <u>Focus on Balance</u> website, she offers valuable tips and insights into developing various business entrepreneurial and managerial skills that help achieve success. Visit her Business Entreprenurial Skills blog for interesting insights on a weekly basis.

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