CHAPTER – 3

Research Methodology
3.1 Title of the study:

An Analysis of the Challenges and Problems in Services Marketing (From the view point of
Service Providers)

3.2 Need for the study:

The concept of marketing of services was not given much significance by most of the service
organizations in the 1970s. Researchers like Rathmal (1974), Baterson (1977), Larry (1980)
etc in their studies have displayed how important it is to identify the characteristics of
services in order to formulate strategies for marketing of services. However there have been
very few studies on how to overcome the marketing challenges posed by the characteristic of
services. Even physical products need to be supported by extraordinary services to become
successful.

The goal of our study is to compare the problems and challenges cited in the literature with
those reported by service firms, to study how these problems are impacting the service
organizations in marketing of their services, to analyse the marketing challenges faced by
service firms to overcome these problems, to understand the different gaps in service quality
of different service firms that belong to various sectors and also to examine the marketing
strategies used by various service firms to overcome the service quality gaps.

3.3 Research Objectives:

The objectives of our research aim to:

i. To study the problems arising from the unique characteristics of services

ii. To understand the marketing challenges faced by service firms arising from the
unique characteristics of services
iii. To examine the gaps in service quality of various service firms under different sectors
(Business Services, Personal Services, Transportation Services)
iv. To examine the marketing strategies used by various service firms to overcome the
service quality gaps

3.4 Research Questions:

 i. What are the problems in Services Marketing?
ii. How does the service characteristics pose a challenge to service organizations in
marketing of their services?
iii. How are the gaps in service quality handled by various service organizations?
iv. What specific strategies do service organizations use to overcome the problems,
challenges and gaps in Services quality?

Limitations of the study

i. The study was confined to a small number of sample in each group of companies,
hence generalization of the results of the study may or may not be possible.
ii. Demographic constraint: Most of the respondents are from in and around the locality
of Koramangala, Bangalore. Hence the study involves the limitation of demography.
iii. Non-probability convenience sampling is used. Hence the study contains the
limitations of Convenience sampling.
iv. iased opinion of some of the respondents.
v. Some data are confidential due to which we could not extract actual facts to do proper
research study.

Strategies

Service positioning

Conduct extensive research. Take the time to analyse your findings and discover the
real needs of your customers. Develop your ideal customer personas, and then
customize your service concept to fit the needs of those personas. Think in terms of
problems and solutions. More than demographic and psychographic attributes, you
should understand your customers and services in terms of “jobs” that consumers
need done and the people they hire for completing those jobs.

Consider your competitors’ positioning and create a unique, valuable, relevant, and
easy to understand positioning for your service. Your service positioning will
determine the behaviour of your people (employees) during service interactions. It
will define the voice of your service brand” and guide the interactions that constitute
your service offering.

Define service concept

Product marketers define the product concept as marketing mix or 4 Ps—Product,

Price, Promotion, and Placement. They try to create the perfect marketing

mix before they take the product to the market, so the customer would be more likely

to buy it right off the shelf.

But in service marketing management, the real game starts after the consumer

meets the service provider. This makes the job of service marketers much broader

and expands the service concept beyond the 4 Ps.

Service marketing management includes 3 extra Ps, namely People,

Process, and Physical Evidence.

 People include the employees who deliver the service. Because no company

ever made happy customers with unhappy or unable employees, you will

need to train your staff well, and keep them satisfied in their work—including

financially. Your people will have to work with the service consumers, who you

should also treat as your people—remember, they participate in the service

delivery process.

 Process is the service delivery process that we’re going to create in the next

step.

 Physical Evidence is the environment in which the service is delivered. It

includes the servicescape, or the physical facility where the service is

produced and sold.

Customer Relationship Management (CRM)

Customer relationship management (CRM) is a technology for managing all your

company's relationships and interactions with customers and potential customers.

The goal is simple: Improve business relationships. A CRM system helps companies stay

connected to customers, streamline processes, and improve profitability.

A Customer Relationship Management strategy is a plan to grow sales and improve

customer service through a combination of processes, actions, and technology. It

typically involves the sales, marketing, and customer service functions of a business

Sending out a thank you when a customer makes a purchase. Upsell or cross-sell a

client if they purchase a particular product. Offering a birthday greeting with a promo code.

Sending a discount to a customer that hasn't made a purchase recently.

Ex: Amazon Prime membership in discount mail, Facebook wishing you on your birthday,

SIB wishing you on your birthday