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This course taught me three marketing concepts that are key elements in the service industry. First of all, core customers must always be kept first and foremost in the mind of the marketers. It must be recognized that different segments of buyers demand different channels of distribution. Finally, it is essential to determine what specific elements produce quality in the mind of the consumer.
It is imperative for a company to never abandon the needs of its primary customers. Many times, in an attempt to bring in new customers, a company will alter its merchandise line to appeal to a different target market. However, in the meantime it may also be dissatisfying its most loyal customers. Exhibit 1 illustrates a situation in which the majority of a company’s revenue stems from one type of its stores. In this case, the company cannot afford to lose sight of its current strength and customers because of the high proportion of revenue generated from this segment.
The use of appropriate channels of distribution for specific market segments is crucial to recognize. In Exhibit , shoppers are divided into three different types of segments. Each type within the segment has a varying means of buying the company’s merchandise. If the company distinguishes the way in which that specific consumer wants to buy, the company can save in advertising costs and better appeal to that respective customer.
Finally, a company must identify what customers’ perception of quality includes and strive to improve in areas that it lacking in. Exhibit lays out five key elements to service quality. Customers’ will have varying demands for certain dimensions depending on the specific service and company. The company must work to improve its weaknesses all around, but especially in those areas where there is a sizeable gap between the quality of services being desired and the customers’ opinion of what is actually being offered. Customer satisfaction is vital to a service company because a big determining factor of its success is this intangible perception.
In conclusion, retaining core customers, choosing suitable distribution channels for different market segments, and satisfying the customers’ demands for service quality are all critical factors in services marketing.
“THE CUSTOMERS’ NEEDS ARE THE KEY!”
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