SERVICE MARKETING

TRIANGLE
BY – GAUHAR (084)
RITI (064)
MUSKAN (098)
 SERVICE MARKETING TRIANGLE

• The service marketing triangle is a framework which shows how the service firm, its
employees and the customers interact to create value.
• The services marketing triangle was created to handle the complexity that service
marketers face when dealing with intangible products.
• This model does not apply to products. We define services as:
1. Intangible
2. Inseparable
3. Perishable
4. Heterogeneous
 SERVICE MARKETING MODEL

• It shows the key marketing

activities that happen between the
key components within services
businesses.
 KEY COMPONENTS

• The service marketing triangle highlights three key components, these are:

• Company: refers to the leadership team of the company in question.

• Employees: refers to all employees, including subcontractors who deliver
the company’s service.
• Customers: refers to all customers and potential customers of the
company.
 RELATIONSHIPS IN THE SERVICE TRIANGLE

• 1) Company and Customers- Communication to customers is important to

build the trust of customers and hence to convert the customers to be loyal to
the company.
• 2) Company and Employees- Empowering employees can make a positive
influencing force for the customers.
• 3) Employee and Customers- Once your employees starts treating the
customer well, the whole service triangle gets completed, and you will get the
best results from all processes employed.
INTERNAL MARKETING

• Internal Marketing is the most important dimension of Services marketing. It is the side
of the triangle between your organization and your employees. It involves all employees.
It also ensures that adequate training is given to the employees on the services to be
delivered.
BARRIERS TO INTERNAL MARKETING

• Resistance to change: Many a times people resist the change due to lack of complete
information, fear of loss of authority, fear of loss of promotional opportunities or job
security , to name a few, service managers must confront such factors leading to resistance
to change and ensure that all employees concerned are able to appreciate and accept the
proposed implementation of Internal Marketing.
• Failure to fix responsibilities: Often the service organizations are unable to identify the
position and delegate the responsibility to effectively implement Internal Marketing. This is
evident when the service employees are able to take a decision concerning quality service
delivery but are unable or unwilling to do it.
• Managerial incompetence: If the service managers responsible for the Internal
marketing are incompetent or does not rightly appreciate the concept of Internal
marketing, the implementation cannot be effectively done.
ADVANTAGES OF INTERNAL MARKETING

• Introduction of change: A service organization will have to consistently upgrade its

service creation and service delivery system to offer quality services to its consumers.
• Building corporate brand image: Internal Marketing commences with treating the
service staff as the potential consumers. Efforts are made to convince them of the
organiational practices and strategies so that in turn they are able to convey the same to
the target consumers with conviction. In this process, Internal Marketing facilitates the
Corporate Brand building.
• Improving coordination: Internal Marketing tries to contain the Inter-departmental and
Intra-departmental conflicts by aligning the organizational objectives with the individual
attitude and behavior.
• Motivates the employees and enhances performance: Internal Marketing begins with
the encouragement of the service employees and sharing with them the process of
decision making. This facilitates in improving the performance of the employees and
delivery of consumer satisfying experience during the service transaction.
EXTERNAL MARKETING

• The type of marketing that most brands know as external marketing. external marketing is promoting
brand’s identity, products, and services outside of your brand’s physical confines.

• external marketing use for to communicate with your target audience and expand your brand’s reach.
External marketing is done using different kinds of materials and content on different platforms. Some
examples of external marketing are websites, social media interaction, print, TV, and radio ads.

• Through external marketing, you build your brand equity or value by addressing your customers’ questions
and concerns. Effective external marketing builds rapport with potential clients and strengthens your brand’s
current ones.
Companies use external marketing to make promises to customers. External marketing is any communication to customers (or potential
customers) that happens before service delivery starts.

• Forms of external marketing include:

• Advertising
• Personal selling
• Public relations (PR)
• Direct marketing

• We use external marketing to achieve many aims including:

• Creating awareness.
• Setting price expectations.
• Setting service level expectations.
• Informing customers if any prerequisites that must be in place before they can use the service.
ADVANTAGES & DISADVANTAGES EXTERNAL MARKETING

• Price Elasticity Advantages

Price elasticity represents the likelihood that a change in the price of a services will result in an increase or
decrease of sales. If a services has a high amount of price elasticity, consumers will purchase less of the
services as the price increases. If the price of the services decreases, consumers will buy more of the services.
If a services has little elasticity, it means consumers consider it a necessity and there are few if any
substitutions available. Marketing of services with low elasticity presents less of a challenge for marketers.
• Price Elasticity Disadvantages

When competition against a services is fierce, consumers can easily substitute the services, resulting in high
price elasticity. Marketers must be careful not to raise prices too much, which might result in large numbers of
consumers switching to competitive services. Marketers must also carefully guard the image of the services
and continually remind consumers about the advantages of the services over all competing services.
• Population Overturn Advantages
Population overturn creates an advantage for marketers who are promoting services that appeal to the younger
population. Even if the services has not previously had much sales success, or it is new and has had no history of
market presence, if the emerging generation begins to favor the services, the younger generation may generate quick
and significant growth in sales of the services. services that the older generation lost interest in may be favored by the
new generation, resulting in the services sales increasing once more.
• Population Overturn Disadvantages
Population overturn may work against the marketing of a services. If the average age of the consumers of a product is
on the older end of the population, marketers face the challenge of keeping the services sales up as the number of
consumers drop due to death. When faced with an aging consumer base, marketers must find a way to make the
services appealing to those of younger generations while at the same time not alienating the current customer base of
the services.
INTERACTIVE MARKETING

Interactive Marketing is one of the hardest disciplines to be in because it changes quickly and without warning.

Interactive Marketing is always undefined until it begins to influence the market, then we as marketers must
rally to understand and implement.

Interactive Marketing is the Holy Grail of Business Communications.

INTERACTIVE MARKETING

Salient Features
Why? The World of Interactive • interaction” is a two-
• nteractive Marketing is about Marketing way relationship
conversations, discussions and • Websites • Voluntary
interactions participation from the
•Email consumer
• It is a complete shift from
traditional “PUSH” marketing •SMS/MMS • Starts with interaction
where the brand controlled all •Blogs b/w Marketer and
public communication and Prospective customer
•Social Media
messages • Marketer seeks to
• Interactive Marketing puts the •Wikis develop a greater
control of the brand message •Online Games familiarity with the
into the consumer’s dangerous desires of the
•Virtual Worlds prospective customer
hands and makes the brand
responsible for acting ethically, •Forums incorporating in
prudently and intelligently product development
… and so much more
INDUSTRY OUTLOOK

TRADITIONAL MARKETING INTERACTIVE MARKETING

• PUSH MODEL • PULL MODEL

• Message is being “pushed” from the ad to the • The audience is enticed and encouraged to
audience experience and interact with the message

• Online Gaming, Social Networking

ADVANTAGES OF INTERACTIVE MARKETING

• More relevant, More attraction, More Sales

• Prospective launch demand
• Seamless engagement & retention
• Greater Market Population
• Independent of sales personnel efficiency
THANK YOU!!