The nature of services
One of the
megatrends of recent years has been the phenomenal growth of services. In the
United States service jobs now account for 79 percent of all jobs and 74
percent of gross service occupations will be responsible for all net job growth
through the year 2005. These numbers have led to a growing interest in the
special problems of marketing services. Service industries are quite varied.
The government sector with its courts employment services hospital loan
agencies military services police and fire departments post office regulatory
agencies and schools is in the services business. The private non- profit
sector with its museums charities churches colleges, foundations, and hospital
is in the its airlines banks hotels insurance companies.
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Since home
depot opened its first store in 1978 in Atlanta, the company has emphasized
exemplary customer service. Its sales staff is trained to offer on the spot
lessons in tile laying, electrical installation, and other projects they are
experienced tradespersons- plumbers, electricians, and carpenters. In recent
years there have been customer complaints about clutter in the aisles and
salespeople stocking items instead of providing service so starting in 2001,
Home Depot gave its stores a makeover called Service performance Improvement.
SPI limits re- stocking to off peak hours and prohibits forklifts in store
aisles during the day.
The program
resulted in up to a 70 percent increase in employee interactions with
customers. Before SPI was introduced employees spent as little as 40 percent of
their time with customers. Not everyone agrees that single- benefit positioning
is always best. What if the market tire of the benefit of believes the most
competitors now deliver it? Today people believe the most cars are safe and the
most cars have pretty good quality. Double- benefit positioning may be more
distinctive. Steelcase Inc, a leading office- furniture- systems company claims
two benefits best on – time delivery and best installation support.
There are
even cases of successful triple- benefit positioning. Beecham promotes its as
offering three benefits, ant cavity protection better breath and the brand
delivers all three. Solution was to create a packers and movers that squeezes
out of the packing three tips, thus visually confirming the three benefits. In
doing this counter segmented that is it attracted three segments benefits for
their brands they risk disbelief and a loss of positioning errors. Solving the
positioning problem enables the company to solve the marketing- mix problem.
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