The development of the business world in the era of globalization demands the perfect performance of every process executed by the company. Marketing is no longer viewed as a separate part of the organization that only serves as the product sales process. The development of the marketing concept itself is not detached from other organizational functions and ultimately has a purpose to satisfy customers. Ineffective marketing (ineffective marketing) can harm the business because it can result in dissatisfied consumers. Effective marketing is precisely the opposite result of creating value or utilities.
Creating value and customer satisfaction is the core of modern marketing thinking. The objective of marketing activities is to attract new customers by promising the right values and maintaining current customers by fulfilling their expectations so that they can create a level of satisfaction.
B. Marketing Concept
Generally, a company must adopt one of the concepts or philosophy of marketing, which is the philosophy or assumption that the company believed as the basis of each activity in fulfilling the needs and desires of consumers. Along with time travel, these concepts experience developmental or evolutionary thought. Nevertheless, it does not mean that the last concept is better. The selection and application of certain marketing concepts are influenced by several factors, including the values and vision of management, internal environment, and the company’s external environment.
According Fendy Tjiptono (2004), in his book titled Marketing Services, the concept of production is divided into five parts are as follows:
1. Production concept
Marketing adhering to this concept is oriented to the process of production/operation (internal).
2. Product Concept
In this concept, marketers think that consumers prefer products that have quality, performance, features, or superior performance.
3. Sales Concept
This concept is a concept oriented to the sales (internal) level, where marketers think that consumers should be influenced (if necessary, persuaded) so that the seller can increase.
4. Marketing Concepts
Unlike the three previous concepts that are oriented to the internal environment, customer-oriented marketing concept (external environment), assuming that consumers will only be willing to buy products that are able to meet the needs of And his wishes and give satisfaction.
5. Social Marketing Concepts
Marketing that adheres to this concept, think that consumers are only willing to buy products that are able to satisfy their needs and desires and contribute to the welfare of the consumer social environment.
1. Service Understanding
Services are economic activities that create and provide benefits to customers at certain times and places, as a result of the actions of realizing the desired change in or on behalf of the recipient of such services. Services are often seen as a complicated phenomenon. The word “service” (service) itself has many meanings, ranging from personal service (personal service) to services as a product.
Here are some services marketing experts who are trying to define the understanding of services, among others:
Valerie A. Zeithaml and Mary Jo Bitner (1996) (quoted in Lupiyoadi,2006; 6)
“Service is all economic activities whose output is not a physical product or construction is generally consumed at that time is produced, and provides added value in forms (such as convenience, amusement, comfort or health” (Jasa is all economic activity The results are not physical or construction products, which are generally produced and consumed simultaneously and provide added value (e.g. comfort, entertainment, pleasure, or consumer health).
According to Philip Kotler (2000)
The services may be defined as any action or activity that can be offered by one party to another, which is essentially intangible and does not result in any ownership. The production of services can be related to physical products or vice versa.
According to Christopher Lovelock & Lauren K. Wright (1999)
Services are actions or performance that a party offers to other parties. Although the process may be related to physical products, its performance is essentially unreal and usually, it does not produce ownership of production factors.
From some of the above sense can be concluded that in the service there is always an aspect of interaction between the consumer and the party manufacturers (services), although the parties involved are not always aware. The service is not an item, but a process or intangible activity.
2. Definition of marketing Services
There are several definitions expressed by experts for service marketing terms, among others:
According to (William J. Stanton, 1981)
Marketing Services is something that can be identified separately not materialized, offered to meet the needs. Services can be produced using tangible or intangible objects.
According to (Mary Jo Bitner, 2000)
Marketing Services is an economic activity that output, not products consumed along with production time and provide added value (such as: entertainment, enjoyment, leisure) is intangible.
According to Miller and Layton, 2000)
Marketing Services is a total business activity system designed to plan, set prices, promote and distribute products, services, and ideas that are able to satisfy the desires of the target market in order to achieve the objectives Organizational.
According to Lupiyoadi (2006; 5)
Marketing of services is any action offered by either party to the other in principle intangible and does not cause any transfer of ownership.
According to Umar (2003; 76)
Marketing Services is a marketing that is intangible and immaterial and is done when consumers deal with manufacturers.
From the above definition can be concluded that the marketing of services is an action offered by the producers to consumers, in the sense that the services provided can not be seen, felt, heard or felt before consumption.
B. Marketing Mix Services
Marketing mix of services is a development of marketing mix. Marketing mix of products includes only 4P, namely: Product, Price, Place, and Promotion. As for the fourth service P is still insufficient, so the marketing experts add 3 elements, namely: People, Process, and Customer Service.
According to Lupiyoadi (2006; 70), the marketing mix element consists of seven things: Product (what kind of services to offer to consumers), Price (How to pricing strategy), Place (how the delivery system will be Applied), Promotion (How to do Promotion), People (the type of quality and quantity of people who will be involved in providing services), Process (How to process in service operations), Customer Service (how will be given to Consumers).
C. Service characteristics
The various research and literature management and marketing services reveal that services have four characteristics that distinguish goods and services called the IHIP paradigm: Intangibility, Heterogeneity, Inseparability, and Perishability (Lovelock & Gummeson, 2004) (quoted in Tjiptono and Chandra, 2005; 22).
The service is intangible, meaning the service can not be seen, felt, kiss, heard, or palpable before being bought and consumed. A service consumer cannot assess the outcome of a service before he or she is experiencing or consuming it himself. If a customer buys a particular service, he or she only uses, utilizes, or hires the service. The customer does not necessarily have the services he bought.
Services are Heterogeneity because it is a non-standarized output, which means there are many variations in shape, quality and type, depending on who, when and where the service is produced. For example, two people who come to the same salon and ask the same hairstyle will not get results that are one hundred percent identical (unless they both have their hair made plontos).
The service is inseparability means the services are sold first, only then produced and consumed at the same time and place. While the goods are usually produced first, then sold, just consumed. For example, dentists cannot produce their services without the patient’s presence. In addition to being physically and mentally present, the patient is actually also acting as a co-producer in the service operation, with the way of answering the doctor’s questions and explaining the symptoms of illness or specific needs.
Service is perishability means the service is a commodity that is not durable, can not be stored for reuse in the future, resold, or refunded. For example, an empty seat, an uninhabited hotel room, or a certain hour without a patient at the general Practitioner’s practice will pass or disappear as it cannot be stored.
Meanwhile, according to Griffin (1996) (quoted in Lupiyoadi, 2006; 6), the service characteristics are as follows:
1. Intangibility (intangible): The service can not be seen, felt, felt, heard, or kiss before the service was bought. An important value of this is the intangible value experienced by consumers in the form of enjoyment, satisfaction, or comfort.
2. Unstorability (cannot be saved): Service is not familiar with the inventory or storage of products that have been produced. This characteristic is also called inseparability (not separable), since generally the services are produced and consumed simultaneously.
3. Customization: Services are often designed specifically to meet the needs of customers.
So, based on the opinion of the experts above, it can be concluded that the main nature or characteristic of the service is that it can not be seen, felt, felt, heard, or kiss before the service was purchased, then the service also can not be stored, and services has many variations of shape, quality and type depends on who the service is sold, this is due to the needs of different services consumers, so that the services sold tailored to the demand of consumers.
D. Classify service processes
There are two major categories in the service process, namely: People and objects. By looking at the services from the operational perspective alone, the processing of services can be categorized into four large groups, namely:
1. The processing of people, covering actions that are tangible towards the human body. Examples of people processing services include passenger transportation, health maintenance, lodging, etc.
2. Processing of proprietary goods, including actions that are tangible on the goods and other physical objects belonging to the customer. Examples of processing of goods are goods delivery, refueling, reparation and maintenance, etc.
3. The processing of mind stimulation, referring to intangible action aimed at the human mind. Services in this category include entertainment, spectacle sports, theatrical performances, etc.
4. Information processing, describing intangible actions aimed at customer assets. Examples of services in this category: Insurance, banking, consulting, etc.
E. Quality service Dimensions
In principle, the definition of service quality focuses on the fulfillment of needs and wishes of customers and the accuracy of delivery to offset customer expectations. The quality of services must start from customer’s needs and end with customer satisfaction (Kotler, 2000; 52).
As a party to buy and consume services, customers who assess the level of service quality of a company. Unfortunately, the service has characteristic variability so that its performance is often inconsistent. This leads to customers using intrinsic requirements (outputs and delivery of services) and extrinsic cues (complementary elements of Service) as a reference or guideline in evaluating services (Tjiptono, Chandra, and Anastasia, 2004; 257).
Through a series of studies on a wide range of services industries, Parasuraman, Zeithaml, and Berry (1985) (quoted in Tjiptono & Chandra, 2005; 132-133) have successfully identified ten basic dimensions of service quality, namely:
1. Reliability, encompassing two main aspects, namely performance consistency (performance) and reliability (dependability). This means that the company is able to deliver its proper review right from the beginning (right the first time), fulfilling its promise accurately and reliably (for example, delivering services in accordance with the agreed schedule), storing the data (records) appropriately and An accurate invoice.
2. Responsiveness or responsiveness (responsiveness), which is the willingness and readiness of employees to assist customers and deliver services quickly. Some examples include: timeliness of services, the delivery of transaction slip immediately, the speed of customer redialing, and fast service delivery
3. Competence (competency), namely the mastery of skills and knowledge needed in order to deliver services according to the needs of the ship. It includes employee knowledge and skills of contact, knowledge and personnel skills of operational support, and organizational research capabilities.
4. Access (access), which includes easy to be contacted or encountered (approachability) and ease of contact. This means the location of the service facilities are easy to reach, time queueing or waiting not too long, company communication channels are easy to contact (e.g. phone, mail, e-mail, fax, and so on), and the operating hours are convenient.
5. Modesty (courtesy), which includes the attitude of manners, respect, attention, and friendliness of the contact employees (such as receptionist, telephone operator, Bell person, bank teller and others).
6. Communication (communication) means communicating information to customers in a language they are easy to understand, and always listening to customer suggestions and complaints. Included is an explanation of the services offered.
7. Credibility (credibility), namely the nature of honesty and trustworthiness. Credibility includes the company name, company reputation, personal character of the employee’s contact, and customer interactions (hard selling versus soft selling approach).
8. Security, which is free from danger, risk or doubt. This includes physical safety, financial security, privacy and confidentiality (confidentiality). “
9. The ability to understand customers, which is to strive to understand their customers and their specific needs, give individual attention, and get to know regular customers.
10. Physical evidence (tangibles), including the appearance of physical facilities, equipment, personnel, and communication materials of the company (such as business cards, letterhead, etc.).
In subsequent research, Parasuraman, Zeithaml, and Berry (1988) found overlapping among the above several dimensions. Therefore, they simplify these ten dimensions into five core dimensions. Competence, politeness, credibility and security are incorporated into assurance. While access, communication, and ability to understand customers are integrated into empathy. As such, there are five main dimensions arranged in order of the level of relative importance as follows:
1. Reliability, related to the ability of the company to provide accurate service from the first time without making any mistake and deliver the services in accordance with the agreed times.
2. Responsiveness (responsiveness), in respect of the willingness and ability of employees to assist customers and respond to their requests, and inform when services will be provided and then provide services quickly.
3. Assurance, the behavior of employees able to foster customer confidence in the company and the company can create a sense of security for its customers. The guarantee also means that employees are always polite and master the knowledge and skills needed to address any customer inquiries or concerns.
4. Empathy (empathy) means the company understands the problems of our customers and acts in the interest of customers, and provides personal attention to its customers and has convenient operating hours.
5. Physical evidence (tangibles), with regard to the attractiveness of physical facilities, equipment, and materials used by the company, and the appearance of employees.
F. Integrated service Management
Integrated service Management is a coordinated planning and implementation of marketing activities, operations and human resources that are important to the success of the service company. When discussing the strategy to market the services, then to be considered is the nature of the service that involves various aspects of customer involvement in the production and the importance of time factors and other strategic elements.
Marketing Integrated services using the 8P model highlighting eight variable decisions for service company managers. The eight integrated service management components are as follows:
1. Product elements, are all components of service performance that create value for customers.
2. Place and time, is a management decision about when, where and how to deliver services to customers.
3. Process, is a method of operation or a specific set of actions, which is generally the necessary steps in a predefined order.
4. Productivity and quality.
Productivity can be interpreted as how efficient the input of services inputs into outputs that add value for customers. Quality is the extent to which a service satisfies customers by fulfilling their needs, desires and expectations. Productivity and quality should be seen as two sides of the same currency. Improving productivity is crucial to keeping costs under control. The quality of service defined by the customer, plays an important role for product differentiation and for the establishment of customer loyalty.
5. People, including employees or sometimes customers involved in the production process. Many services depend on direct and private interactions between customers and employees of the company. This trait and interaction greatly affects the customer’s perception of service quality. Customers often assess the quality of services they receive based on. Assessment of those who provide such services.
6. Promotion and education, are all activities and tools that inspire communication designed to build customer preferences to certain services and service providers. This component plays three important roles: providing the information and advice needed, persuading the target customer about the excess of a product and encouraging customers to take action at a time.
7. Physical evidence, is a visual or other tangible clue that gives evidence for the quality of services.
8. Prices and other service fees, including spending money, time and effort by customers to buy and consume services.
Marketing Services is an action that the manufacturer offers to consumers, in the sense that the services provided can not be seen, felt, heard or felt before consumption.
Marketing mix of products includes only 4P, namely: Product, Price, Place, and Promotion. As for the fourth service P is still insufficient, so the marketing experts add 3 elements, namely: People, Process, and Customer Service. The seven elements are: Product (what kind of services to be offered to consumers), Price (how to determine the pricing strategy), Place (how the delivery system will be applied), Promotion (how the promotion should be Done), People (the type of quality and quantity of people who will be involved in providing services), Process (How to process in service operations), Customer Service (how to be provided to the consumer).
The service has four characteristics that distinguish goods and services called the IHIP paradigm: Intangibility, Heterogeneity, Inseparability, and Perishability. The main nature or characteristic of the service is that it can not be seen, felt, felt, heard, or kiss before the service was bought, then the services also can not be saved, and services have many variations of the form, quality as well as the type depends on who the service Are sold, this is due to the needs of different services consumers, so that the services sold are adjusted to the demand of customers.
Integrated service Management is a coordinated planning and implementation of marketing activities, operations and human resources that are important to the success of the service company. When discussing the strategy to market the services, then to be considered is the nature of the service that involves various aspects of customer involvement in the production and the importance of time factors and other strategic elements. Marketing Integrated services using the 8P model highlighting eight variable decisions for service company managers. The eight integrated service management components are as follows: Product elements, place and time, process, productivity and quality, people, promotion and education, physical evidence, as well as prices and other service fees.
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