International Services Marketing

1
International Services Marketing

• Definitions and distinctions
• Goods are physical objects, devices, or things.
• Services are deeds, performances, or actions.
• Goods are fixed in form and require physical
  distribution services are delivered as problem
  solutions on or off-site.
• The main difference between goods and services
  is intangibility. Services are generally more
  intangible, personalized, and perishable.

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Nature of servicesGoods vs Services

• Intangibility
• Heterogeneity (Variability)
• Perishability
• Simultaneous Production and Consumption

3
Nature of servicesGoods vs Services

• Nature of the output (Performance)
• Customer involvement in production
• People as part of the service
• Likelihood of QC problems
• Difficult to evaluate
• Lack of inventories\
• Greater importance of time factor
• Electronic channels of distribution

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Linkage between Services and Goods

• Goods and services complement one another. Goods
  frequently require servicing after their
  purchase.
• Goods and services are marketed in varying
  packages or combinations to targeted customer
  groups
• Customer groups have differing perspectives on
  the features and provisionof services.

5
Nature of ServicesCategories of Services

• People Processing Services
• Customers are part of the production process
  Service Factory eg. massage
• Use is simultaneous with production
• Geographic presence

6
Nature of ServicesCategories of Services

• Possession Processing Services
• Tangible actions to physical objects
• Object not customer involvement
• Geographic presence

7
Nature of ServicesCategories of Services

• Information Based Services
• Collecting, manipulating, interpreting and
  transmitting data
• Minimal customer involvement
• Limited physical presence

8
Stand-alone Services

• Services compete with goods and compete with
  other services (e.g., video rentals).
• Services are intangible and perishable,
  presenting problems in matching service capacity
  to variations in demand.
• Consumption of servicesrequires provider and
  customer involvement.
• Service consistencyis required.

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Tangible/intangible offerings
Distribution
Airlines
Price
Vehicle
Service Frequency
Transport
Transport
Transport
Food and Drinks
Intangible
Tangible
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Problems with Services

• Market transparency
• Consumers have difficulty in evaluating services
  because customers may use (or require )the same
  service in different way.
• Service heterogeneity
• Services vary in their content and quality of
  delivery as customer requirements change.
• Cultural sensitivity
• Services are delivered directly to the customer,
  making them potentially more culturally
  sensitive than products.

11
Global Transformation of Services

• Reduced governmental regulation
• Transportation, banking, and telecommunications
• Decreased regulation by industry groups.
• Technological advances are opening up and
  increasing worldwide service trade
  opportunities.
• Both labor-intensive and technology-intensive
  services are expanding into global markets.

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Globalisation Drivers

• Common customer needs
• Global customers
• Global channels
• Global Economies of scale
• Favorable Logistics
• IT
• Government policies and regulations
• Transferable competitive advantage

13
International Trade Problems with Services

• Data collection problems
• The quality of data collected on the service
  trade is poor due to the difficulty of
  quantifying and tracking the delivery of
  services.
• Services lack of homogeneity for transparency,
  making comparisons and the measurement of the
  effects of services in global markets
  difficult .

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International Services Marketing

• Typical International Services
• Banking and financial services
• Construction, design, and engineering services
• Legal and accounting services
• Communication services
• Teaching and training services
• Management consulting

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Starting to Market Services

• For services tied to complementary goods
• Follow the path of the good in the market.
• For services independent of goods
• Identify market situations abroad similar to the
  domestic market where the application of services
  expertise presents opportunities for market entry
  and expansion.
• Identify and understand transition points
• Domestic and economics changes in foreign
  countries can create the need for services
  expertise.

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International Services Marketing

• Strategic Implications
• Identify the nature and the aim of the service
  offering core.
• Communicate the performance of the service on
  both the mass level and the personal level.
• Train organizational personnel to convey the
  spirit, values, and attitudes of the corporation.
• Address issues of service pricing and financing.
• Consider the distribution implications of
  internationalservices.

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Thank You