Process of Service Planning and Development:
The demand for service comes as a result of a standard of living in a nation's economic development. The primary level of economic development is dominated by agricultural and extractive products marketing; the secondary level is dominated by manufactured and processed products marketing; and the third level is characterised by tertiary or service marketing.
In service marketing segmentation and product differentiation are skilfully combined into a single package. For example, an airline offers first class and economy class services in one flight and Kenya Railways usually offers first, second, and third class coaches (i.e. differentiated product and segmented market in one package). In the cinema industry, the sitting arrangement consists of viewers from upstairs (circle) and stalls. The football stadia segmentation depends on locality differentiation, seat quality, roofing on an area, etc.
New services, improvement of existing services, elimination of unwanted or unprofitable services are all key factors in service planning and development.
Marketing managers can use the following systematic procedures in developing their marketing programmes:-
- to determine the services to be offered;
- to determine the length and breadth of the service mix to be offered;
- to decide the service attributes e.g. branding or offering guarantees.
If the service firm wants to increase its total volume, or reduce the seasonal fluctuations, or cater for changing buyer patterns, then the firm can: expand or contract the service mix; change current services; and trade up or down.