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Amity School of Architecture and Planning

Amity School of Architecture and Planning


Bachelors of Architecture
V year, X Semester
Session 2019-2020

Architecture Marketing Skills (ARCH516)


Amity School of Architecture and Planning

Revision
Amity School of Architecture and Planning

Concept of Services

A service is an intangible product that a contractor or product


vendor sells to help a customer manage a specific part of their
business. 
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Professional Services

A service requiring specialized knowledge and skill usually of a


mental or intellectual nature and usually requiring a license,
certification, or registration.
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Characteristics of services
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Intangibility:

• Services are intangible we cannot touch them are not physical


objects.
• According to Carman and Uhl, a consumer feels that he has the
right and opportunity to see, touch, hear, smell or taste the goods
before they buy them. This is not applicable to services.
• The buyer does not have any opportunity to touch smell, and
taste the services. While selling or promoting a service one has to
concentrate on the satisfaction and benefit a consumer can derive
having spent on these services.
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For e.g.

An airline sells a flight ticket from A destination to B

destination.

Here it is the matter of consumer’s perception of services than

smelling it or tasting it.


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Perishability :

• Services too, are perishable like labor, Service has a high

ES
degree of perish ability. Here the element of time assumes a

IC
significant position.

RV
• If labor stops working, it is a complete waste. It cannot be

SE
stored. Utilized or unutilized services are an economic
waste.
• An unoccupied building, an unemployed person, credit
unutilized, etc. are economic waste. Services have a high
level of perish ability.
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Inseparability:
• Services are generally created or supplied simultaneously. They are
inseparable. For an e.g., the entertainment industry, health experts
and other professionals create and offer their service at the same
given time.
• Services and their providers are associated closely and thus, not
separable.
• Goods are produced, sold and then consumed whereas the services
are sold and then produced and consumed. Therefore inseparability
is an important characteristic of services which proves challenging
to service management industry.
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Heterogeneity:
• This character of services makes it difficult to set a standard for any
service.
• The quality of services cannot be standardized.
• The price paid for a service may either be too high or too low as is seen Organisation A
in the case of the entertainment industry and sports.
• The same type of services cannot be sold to all the consumers even if
they pay the same price. Consumers rate these services in different
ways. Organisation B
• This is due to the difference in perception of individuals at the level of
providers and users. Heterogeneity makes it difficult to establish
standards for the output of service firm.
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Ownership:

• In the sale of goods, after the completion of process, the


goods are transferred in the name of the buyer and he
becomes the owner of the goods.
• But in the case of services, we do not find this. The users
have only an access to services. They cannot own the
service.
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For e.g.

A consumer can use personal care services or medical


services or can use a hotel room or swimming pool,
however the ownership remains with the providers.
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Service Goods Continuum


Service Goods Continuum Amity School of Architecture and Planning

Soft Radio Car Restaurant Plumbing House Teaching


Salt
Drinks Cleaning

Pure Pure
Commodity Service
Goods
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Nature of Service Marketing?


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Certain characteristics distinguish goods from services.

They are :
• Intangibility
• Inseparability
• Inconsistency
• Perishability
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Market Segmentation
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Market segmentation is the process of dividing a market of potential


customers into groups, or segments, based on different characteristics.

The segments created are composed of consumers who will respond similarly
to marketing strategies and who share traits such as similar interests, needs, or
locations.
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Types of Market Segmentation


Amity School of Architecture and Planning

Types of Market Segmentation

• A very popular form of dividing the market is through


demographic variables.

• Understanding who consumers are will enable you to more


closely identify and understand their needs, product and services
usage rates and wants.

• Understanding who consumers are requires companies to divide


consumers into groups based on variables such as gender, age,
income, social class, religion, race or family lifecycle.
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Amity School of Architecture and Planning

• Psychographic segmentation factors are slightly more difficult to identify


than demographics because they are subjective. They are not data-focused
and require research to uncover and understand.

• Personality traits
• Values
• Attitudes
• Interests
• Lifestyles
• Psychological influences
• Subconscious and conscious beliefs
• Motivations
• Priorities
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While demographic and psychographic segmentation focus on who a


customer is, behavioral segmentation focuses on how the customer acts.

Behavioral Market Segmentation Examples 


•Purchasing habits
•Spending habits
•User status
•Brand interactions

Behavioral segmentation requires you to know about your customer’s


actions. These activities may relate to how a customer interacts with your
brand or to other activities that happen away from your brand.
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Geographic segmentation is the simplest type of market


segmentation. It categorizes customers based on geographic
borders.

Geographic Market Segmentation Examples   


ZIP code
City
Country
Radius around a certain location
Climate
Urban or rural

Geographic segmentation can refer to a defined geographic boundary (such as a


city or ZIP code) or type of area (such as the size of city or type of climate).
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Market segmentation: a critique


Market segmentation: a critique Amity School of Architecture and Planning

Products and services are constantly reinvented by consumers.

What a marketer intended to be a children’s toy becomes a cult


object among college students
Market segmentation: a critique Amity School of Architecture and Planning

A fizzy drink is not only drunk but is also used in


imaginative ways, it becomes the perfect cleaning
companion, removing rust spots from chrome car bumpers
or cleaning corrosion from car battery terminals.

Consumer’s divergent ways uses of product and services


hint at some of the shortcomings associated with market
segmentation.
Market segmentation: a critique Amity School of Architecture and Planning

• Market segmentation assumes that consumers are static and


stable.
• It places very complex behaviour into neat and exclusive
categories that fail to account for all the complexities of
human behaviour.
• Most people find it difficult to describe their own
personality.
• There is also an underlying supposition that
• human behaviour is always rational, failing to take into
consideration spontaneous and playful behaviour.
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Understanding consumer behavior in the marketing of


services
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"The study of individuals, groups, or organizations and the


processes they use to select, secure, use, and dispose of
products, services, experiences, or ideas to satisfy needs and the
impacts that these processes have on the consumer and society."
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Decision making

The thought processes consumers use in their decision making TOLERANCE 20 %


is an important behavior to try and understand.
Marketers want to try and tap into what makes consumers tick Consumer spend 20 minutes to use or
as they ponder their choices and learn just what the types of try the product
things lead to a final decision.
This way they can align their products to remain in the running
58% return the product if they
and be hopefully chosen.
found it unsatisfactory

Dr Jhumkee Iyegar, IIT Kanpur


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Product use/complements

Understanding how consumers use products and what


complement items are used is of value.
Marketers who gain insight to how products are used
and what accompanying products are purchased can then
use this information to design products and develop
complement products that are enticing and attractive to
consumers.

Deborah Edler Design


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Environmental influences

Environmental influences also play an important


role in consumer behavior.
Culture, family, types of advertising and the media
can all influence the ways consumers make
choices.

This is one of the reasons why advertisements are


In
India
?
Big Mac USA
designed to be attractive and consumers identify
with the content.
Environmental influences Amity School of Architecture and Planning

Maharaja Mac India


Amity School of Architecture and Planning

Social media marketing

Friends influencing friends is also an important behavior today's marketers


need to understand.
Some statistics, as e Marketer points out, suggest about 7 out of 10
millennial social users are "somewhat" influenced by the recommendations
provided by friends on social networks.
It is unwise for marketers to ignore this very popular and valuable channel
of advertising.
Social media has become an important channel, and will likely continue to
maintain a strong presence in the lives of consumers; however, how it is
leveraged will depend on how social networks are perceived and utilized.
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Brand Laddering
Amity School of Architecture and Planning
Amity School of Architecture and Planning

Benadryl

Benadryl deliver a rapid response to fever symptoms improving them within


15 mins.
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1 2
Functional consequences
3
Psychosocial
4
Values
Attributes
consequences
These are the immediate,
These are the physical tangible consequences of Talk about two types of Refers to the end
characteristics of product product use. It answers the consequence of product states of being and
as well as more questions "What does the use: psychological (How preferred modes of
subjective, less tangible product do?" and "What do I feel?) and social behavior. Self-esteem
characteristics. functions does it perform?" (How do others feel is an example.
For example, the high- For continuation of our about me?). Example,
price attribute of Ferrari example, Excellent Others notice me.
car. performance of Ferrari car.
Amity School of Architecture and Planning

1 2
Functional consequences
3
Psychosocial
4
Values
Attributes
consequences
These are the immediate,
These are the physical tangible consequences of Talk about two types of Refers to the end
characteristics of product use. consequence of product states of being and
product as well as more It answers the questions use: psychological preferred modes of
subjective, less tangible "What does the product (How do I feel?) and behavior. Self-esteem
characteristics. do?" and "What functions social (How do others is an example.
For example, the high- does it perform?" For feel about me?).
price attribute of continuation of our Example, Others notice
Ferrari car. example, Excellent me.
performance of Ferrari car.
Amity School of Architecture and Planning

1 2
Functional consequences
3
Psychosocial
4
Values
Attributes
consequences
These are the immediate,
These are the physical tangible consequences of Talk about two types of Refers to the end
characteristics of product product use. It answers the consequence of product states of being and
as well as more questions "What does the use: psychological (How preferred modes of
subjective, less tangible product do?" and "What do I feel?) and social behavior. Self-esteem
characteristics. functions does it perform?" (How do others feel is an example.
For example, the high- For continuation of our about me?). Example,
price attribute of Ferrari example, Excellent Others notice me.
car. performance of Ferrari car.
Amity School of Architecture and Planning

1 2
Functional consequences
3
Psychosocial
4
Values
Attributes
consequences
These are the immediate,
These are the physical tangible consequences of Talk about two types of Refers to the end
characteristics of product product use. It answers the consequence of product states of being and
as well as more questions "What does the use: psychological (How preferred modes of
subjective, less tangible product do?" and "What do I feel?) and social behavior. Self-esteem
characteristics. functions does it perform?" (How do others feel is an example.
For example, the high- For continuation of our about me?). Example,
price attribute of Ferrari example, Excellent Others notice me.
car. performance of Ferrari car.
Amity School of Architecture and Planning

Product Life Cycle


Amity School of Architecture and Planning
Amity School of Architecture and Planning

Introduction Growth Maturity Decline

This is when a new product is Demand begins to Demand levels off and The product begins to lose
first brought to market, before accelerate and the size grows, for the most part, consumer appeal and sales
there is a proved demand for it, of the total market only at the replacement drift downward, such as
and often before it has been fully expands rapidly. It and new family- when buggy whips lost out
proved out technically in all might also be called the formation rate. with the advent of
respects. Sales are low and creep “Takeoff Stage.” automobiles and when silk
along slowly. lost out to nylon.
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Source –Chrome-extension://cbnaodkpfinfiipjblikofhlhlcickei/src/pdfviewer/web/viewer.html?file=http://www.ijrms.com/olvolume2issue5/GedelaRakeshVarma-JaladiRavi-1.pdf
Amity School of Architecture and Planning

Product Marketing Service Marketing


Amity School of Architecture and Planning

Product Marketing Service Marketing

Product marketing refers to the Service marketing implies the


Meaning
process in which the marketing marketing of economic
activities are aligned to activities, offered by the
promote and sell a specific business to its clients for
product for a particular adequate consideration.
segment.

Sells Value Value + Relationship

Who comes to Products come to customers. Customers come to service.


whom?
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Product Marketing Service Marketing

Transfer It can be owned and resold to It is neither owned nor


another party. transferred to another
party.

Returnability Products can be returned. Services cannot be


returned after they are
rendered.

Quality Quality of a product can be easily Quality of service is not


measurement measured. measurable.

Marketing Mix Product 4Ps+


Place People
Promotion Physical Evidence
Price Process
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