Love

Triangle

in

Marketing

By Sushil Awale, Tribhuvan University, Nepal

Lecturer: Global College of Management, Peoples Campus, DAV College

Marketing
Marketing has been still taken as advertising and selling in under developed countries like ours.
Word market has been derived from Latin word mercatus which means place of buying and
selling. Now selling is taken as just the beginning of marketing in the modern world of
marketing. There is much more marketing activities before and after selling. Long processes,
huge efforts on research and development, advertisings before selling, and guarantees,
warrantees, after sales services, after sales calls, feedback, toll free number, repair and
maintenances, customer services, supplying spare parts and components, accessories,
reassurances, exchange offers, recycling and disposals of product to enhancement of product,
business relationships development are after selling activities which are much more important
marketing activities.
Now popularly, marketing is satisfying needs of target customer in doing business. If you address
the needs of customer, sales are almost granted. If you satisfy, sales are repeated. In future, in
newer sense, marketing is building relationship with customer. Relationship itself is built on
knowing each other, fulfillment of each others need and happiness and satisfaction of each other.
Once relationship is built customer becomes partner, each finds prosperity in other partners
development, which brings synergy effects, customer buys even if the partners product is inferior
to other competitors, customer becomes well wisher, provides valuable feedback to improve the
products, refer other customers to purchase from the partner company, saves companys
promotional expenses which eventually results into sustainable business. Generally it is ten times
cheaper to retain the present customer than finding new customer. In doing marketing, it
traditionally has four tools that are product, price, promotion and place popularly known as 4Ps.
If we design and arrange these tools rightly we succeed in marketing.

Services Marketing
Service has been taken as not for profit, social work traditionally. It is the free work, labour that
we do for others welfare. Here we do not lose anything tangibles that we posses nor others get
anything tangibles, in giving its service. Services can be providing values, benefits in terms of
health care, education, entertainment, security, transportation, lodging, financing, insurance etc.
All of these services do not result in possessing anything by buyer or receiver nor losing any
thing by giver or seller.
Service has grown from social service to commercialization since there are no enough volunteers
to give social services to the all six billion people of this world for their variety of services
needed. Therefore service does not merely mean social service any more.

Governments, courts, employment services, hospitals, military, police, fire, postal, schools,
museum, charities, church, college, universities, foundation, airlines, bankers, hotels, insurance,
consultant, medical, law, entertainment, real estate, retailing are services.
It does not possess material form, and thus cannot be touched, seen, heard, tasted, or smelled.
The use of a service is inherently subjective, meaning that several persons experiencing a service
would each experience it uniquely.
For example, a train ride can be deemed a service. If one buys a train ticket, the use of the train is
typically experienced concurrently with the purchase of the ticket. Although the train is a
physical object, one is not paying for the permanent ownership of the tangible components of the
train.
Services are generally intangible products which results through interaction between consumer
and service employee and/or physical resources of the service provider in creating values for
consumers. In service marketing it need 7Ps that is additional 3Ps which are people, process and
physical environment. If we think of service in 4Ps terms, service is invisible (intangible)
product. Monetary price is not so important in selling services. Promotion is challenging since
service cannot be demonstrated. Place has the little scope since it is not transported through
vehicles nor stored in the warehouses. Wholesaler and retailers of service do not exist. Among
remaining 3Ps, people, the employees are assumed as more important internal customer in
service marketing. Service delivery process itself is considered as service. Customer judge the
service on the basis of looks, appearance, physical environment of the service provider since
customer cannot evaluate service even after receiving services most of the times. Service
marketing is marketing with a twist.

Characteristics of Service Product

Intangibility: service cannot be seen, touched, weighted, do not occupy space. You cannot show
your parents what you got after paying rupees 50,000 semester fees for your education. You do
not carry away pillow or the mattress or furniture or any other things that worth 1000 rupees that
you paid for lodging in the hotel. You just get one rupee worth receipt for paying 400 rupee for
doctors consultancy. Or you may spent billion rupees receiving services and you can
accommodate all those service within you, you do not need even a single room to store it.
Variability: service cannot be standardized. Same service is provided differently by different
people/companies with different features and processes. Same person provide the same service
differently in different time and different places because of persons moods and emotional state,
mind set, freshness. Same teacher is quite popular in one college and failure in other college,
teaching the same subject. It is also because of the type of customer that the service provider is
dealing and working environment that prevails in that particular place, service station.
Perish ability: service cannot be stored for later use. Students absent on free dental camp day in
the college do not get the same dental service next day. Dentist camped for whole day but if few
students showed up due to most of the students external academic examination. Dentists service
of that whole day perished as soon as they end the dental camp that evening. Student coming
back next day after their external exam could not recover dental service which was produced the
day before

Inseparability: service cannot be separated from service provider. Service is there where the
service provider is. Thats why most of the remote villagers die do to simple dysentery because
of not receiving the services of doctors because doctors are not present there . Most doctors are
concentrated in the cities not in the villages. Good education facilities are available in the cities
because better teachers are in the cities. In other sense service cannot be separated from service
provider, service never finishes, nor decreases rather service provider becomes more productive
as more service is delivered. Service providers service is not separated or emptied as service is
delivered to some one. Additionally, the service consumer is inseparable from service delivery
because he is involved in it from requesting it up to consuming the rendered benefits.
Simultaneity: service is produced and consumed simultaneously at the same time .thats why
time factor is important in service marketing. Service provider and service receiver must meet;
their time must match to execute the service. Service is consumed at the same time as it is been
in production, unlike; goods are produced months ahead of its consumption. It is popularly said
services are first purchased then only it is produced and consumed simultaneously, together, at
the same time. You pay the admission fees in the college then only you receive service in the
class room when teacher is performing the lecture when you are attaining the class. Simultaneity
is mostly attached to inseparability.

Tangibility Spectrum in Services: Service-Goods continuum

Services (compared with goods) can also be viewed as a spectrum. Not all products are pure
goods, nor are all pure services. An example would be a restaurant, where a waiter's service is
intangible, but the food is tangible.

Very few products are purely intangible, or totally tangible. In services intangible elements
dominate value creation (more than 50%value comes as services).
(more Tangibility side,100%goods)---Salt, soft drink, detergent, automobile(75%goods),
cosmetics, fast food (50/50),agency, airlines(75%service), banks, consulting, teaching, whether
forecast ---(more Intangibility side,100% service)

Services versus Customer Services:

Customer services: is the free services provided in support of companys core tangible products
e.g. answering question, taking order, complains handling, free maintenance and repairs
,warrantees, guarantee.
Service product: if more than 50% value comes in the form of intangibility in the product than
its service. It is purchased with money
Service companies: if more than 50% revenues are generated from selling services of the
company then it is service company
Derived services: benefits, services resulting from tangible goods are derived service. This
concept take every tangible or intangible product as services because even every tangible product
we buy gives us services eventually.eg transportation service from bike (tangible product) that is
bought. Calculation services from calculator. Convenience service from furniture.

Love Triangle
Company

Internal marketing

External marketing

Employee

Customer
Interactive marketing

Service marketing is one on of the most important emerging branch of the marketing. Service
marketing is marketing of services. Service makes more than 50% of the businesses in the world
in average. In USA, it is nearly 80% GDP. Services are generally intangible products which
results through interaction between consumer and service employee and/or physical resources of
the service provider company in creating values for consumers. Services are intangible,
inseparable variable and perishable products in nature. Governments, courts, employment
services, hospitals, military, police, fire, postal, schools, museum, charities, church, college,

universities, foundation, transportation, airlines, bankers, hotels, insurance, consultant, medical,

law, entertainment, real estate, retailing are services.
In service marketing love Triangle is created among Company, Employees, and Customer. In
service marketing, there is love affair in three fronts. From long time there is love story between
company and customer. But her in service marketing companys employees are considered as
more important, internal customers therefore intelligent smart companies are always trying to
impress and satisfy the employees. Service itself is born through love affair, interaction between
employee, the service provider and customers. Here in services marketing, there is love affair in
three fronts. Here in service marketing, marketing takes place in three fronts. External marketing:
love affair between company and customer. Internal marketing: love affair between company and
employee. Interactive marketing: love affair between employee and customer. These love affairs
are justified below.
1. External Marketing: external marketing take place between company & customer. It is
general marketing. Tools are as usual 4Ps.product, price, promotion and place. But among 4ps,
Promotion takes the important role in external marketing. Advertising, personal selling, publicity,
personal relations, sales promotions, direct marketing are major activities in external marketing.
Among other Ps and apart from usual marketing activities, product research and development,
service ideas are gathered through interaction with customer interactive marketing. Service
product itself is created in interaction between customer and employee. Here service marketing
must also consider the minority tangible goods attached to service products (like candies, lunch
packets in air travel service). In pricing, none monetary prices like convenience(E.g. traveling
distance to service station) cost, time(E.g. appropriate class timing) cost, search(E.g. searching
information on service companies) cost, psychological (uncertainty of service quality)cost are
more important in pricing of services. In placement of services, distribution has very low scope
in service marketing. Generally Services are distributed directly through zero level channels, and
customer must reach the service factory usually. That is why Promotion takes the major role in
external marketing. External marketing is making the promise in general in service marketing. It
is challenging but Company must communicate exactly what is to be delivered in services
marketing. This is the form of love affair between company and customer.
2. Internal Marketing: internal marketing take place between company and Employee.
Employees must be taken as internal customer. Satisfying them is very important in service
marketing since only satisfied employees can create valuable services to satisfy final customer.
Famous marketing scholar Karl Albert rightly stated, Unhappy employee can become terrorist
to the organization. Unhappy employees can terrorize the organization creating strike, back
biting, spreading bad word of mouth, spoiling the service and, vandalizing company. It is found
that, Most of the companies that are failed or, not successful because company has not been able
to satisfy the employees.
Internal service quality is created by internal marketing. Which start from announcing the
vacancies so as many competent people can apply. Before announce vacancies on most effective
medias, company must create better image, itself. Company must position well so people are
encourage to apply for the post in that company. Be preferred employee. Hire right people
through who are not only competent but enthusiast for that work. If a person is Enthusiastic
and passionate toward that work and match its work with its interest and ability, people work
for less money, works easily, more and better. Training, empowerment, teamwork, measuring

performances, monitoring, rewarding, provide supportive technology and equipment, develop

service oriented processes, including employee in company vision, treat employee as customer,
rewarding strong performances all are part of internal marketing which result into employee
satisfaction and employee retention which cerate employee productivity and efficiency, which is
external service value to final customer resulting into customer satisfaction, customer loyalty,
customer referrals eventually revenue growth and profitability to the company. This is also
referred to as service profit chain.
Internal marketing is concern with enabling the promise. Concerned with enabling the employees
so that they can fulfils the promises made during external marketing. Service profit begins with
taking care of those employees who take care of customers. Happy employees will unleash their
enthusiasm on customers.Employees must be taken as internal customers. Hire right people,
develop people, provide needed support systems, and retaining the best people are important in
services marketing. It is training and motivating employees, supporting them to work as team,
participatory decisions systems. This way love grows between company and employees
Figure: Human resource strategies for delivering service quality through people

3. Interactive Marketing: Interactive Marketing takes place between employee and customer.
This is also known as Real Time Marketing or Service Encounter or Moment of truth. Interactive
marketing is real time of delivering the promises made during external marketing.
Interactive marketing is uplifting quality of interaction between seller and customer through
stated service deliver and quality of delivery through high touch (human contacts,) and high tech
(access through calls, clicks of technology, equipments)
Interactive marketing is marketing by service firm that recognizes that, the perceived service
quality depends heavily on the quality of buyer-seller interaction. Interactive marketing is
managing service encounters. Encounter is duration of interactions between service providing
employee and/or technology with the customer. To manage the encounter and enhance the love
affair between employee and customer following steps are considered
First and last encounters as well as some crucial encounters must be given more
important. E.g. first encounter in reception, or encounter with doctor is more important
than encounter with waitress in the cafeteria of the hospital
Encounter must match with what has been promised
Customers perception should be considered not the world view in addressing the needs
Human factors personal and inter personal factors must be considered. Age, education,
personality, life-style, mood, emotions, love, fear, empathy, kindness etc are important, to
be considered during interaction.
Employees must be well managed in high contact services where people process the
services.
In low contact services (machine base, remote encounters, ATM, Vending machines) must
try 100% defect free because there is fewer contacts, failure in one encounter may create
bad impact and has limited scope of service recovery.
Must manage visible part of service operations, service delivery and other contact points
add up to what we call the service marketing system (can refer to service blue print).
evidence management, physical environment management, supporting equipment,
assuring, facilitating arrangements are part of it
Right People, process, physical evidence are evidence in encounter to assure customer.
Compatible group must be set in delivering collective services
Back stage support services must be well planned and coordinated
Role and script should be well planned for all participants( employee, customer) in
service marketing system
Customer should be educated, well instructed and must be taken as part of service
Feedbacks must be taken during service delivery
Service recovery is important when service fails. Acknowledging the problem. explain
causes of the problem, apologize for short falls, compensation, upgrading the services,
layout options and choices, taking responsibility, empower employee to recover service
failure promptly are important.
Spontaneity in service delivery is important. Spontaneity is delivering services naturally,
delivering necessary services before customer asking for it. spontaneity can be achieved
through taking time in understanding customer, becoming attentive toward customer,
Anticipating needs of customer, Listening to customer, Providing up to date information
on service delivery Showing empathy.

Adaptability to customer need is important. Recognize the seriousness of need.

Acknowledge the need. Anticipate the need. Attempt to accommodate. Adjust the system
accordingly to customer need. Explain rules and policies to customer. Take responsibility
are command to become adaptable to individual customer needs.
Adapting standards globally (SERVICE:S-Smile, E-Eye contact, R-Recognition of
customer, V-Voice, I-Informed staff, C-Clean, E-Every one-Everywhere all the time show
care toward guest has been global service culture standards of Four Seasons Hotels,
USA) and locally in taste, preferences, seasons, whether, values must be considered
Coping with difficult customer is important in the interaction. Listening to customer
needs, trying to accommodate customer wants, explaining the causes and helplessness, let
go of the customer etc are the ways to cope with the difficult customers.
Likewise service quality dimensions reliability, responsiveness, assurance, managing
tangibles, empathy must be considered in the time of interactions.
This is the love triangle among company, customer and employees in the form of external
marketing, internal marketing and interactive marketing, which is also referred popularly
as The service marketing triangle in marketing.

References
- Zethaml, V. A., M. J. Bitner, D. D. Gremler and A. Pandit (2008) Services Marketing.
New Delhi: Tata McGraw-Hill
- Lovelock, C. (1996) Services marketing. New Delhi: Pearson Education Asia.
- Woodruffe, H. (1995) Services Marketing. Macmillan India Ltd.
- Claw and Kenneth (2003), Services Marketing. New Delhi : Biztantra
- Kotler, P., Keller, Koshy and Jha (2007) Marketing Management. New Delhi :Pearson
Education.
- Awale, S. (2011) Services Marketing. Kathmandu: Buddha Academic Publishers and
Distributors Pvt. Ltd.
- Awale, S, (2009) Marketing with a Twist. GCM. Nepal
- Rao, K. R. M. (2009)Services Marketing, Pearson Education in South Asia , India
- Gronroos, C. (2010) Service Management and Marketing, 3e, Wiley India (P.) Ltd,
New Delhi