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What are the three levels of service marketing?

Published in Service Levels 3 mins read

The question "What are the three levels of service marketing?" is ambiguous. It can be interpreted in a few ways:

  1. Levels of Servitization: Focusing on how service is incorporated within a product-based business.

  2. The Service Marketing Triangle: Examining the interactions between the company, employees, and customers.

  3. Levels of a Service Offering: Detailing the components of a service, from core to augmented.

Let's explore each of these interpretations:

1. Levels of Servitization

This perspective, based on the reference mentioning servitization, concerns manufacturers adding services to their product offerings. The three levels here are:

  • Basic Servitization: The manufacturer provides a foundational level of service alongside the physical product. This might include warranties, basic support, or installation assistance.

  • Intermediate Servitization: This involves offering a broader range of services that complement the product, such as maintenance contracts, training, or upgrades. This level aims to enhance the product's value and customer experience.

  • Advanced Servitization: The manufacturer provides comprehensive solutions where the product becomes integrated into a service package. The customer effectively pays for an outcome or result, rather than just the product itself. For example, a company might provide "compressed air as a service" instead of just selling air compressors.

2. The Service Marketing Triangle

This framework emphasizes the relationships between different parties involved in service delivery:

  • Company (Management): Sets the promises for service quality and value to customers. This involves creating effective marketing strategies and communication.

  • Employees: Are responsible for delivering the service to the customers. Their performance, attitude, and skills directly impact the customer's perception of service quality.

  • Customers: Actively participate in the service delivery process and influence the service experience. Their expectations and perceptions are critical factors in evaluating service quality. This triangle represents how these three parties interact to ensure successful service marketing.

3. Levels of a Service Offering

This approach examines what constitutes a complete service:

  • Core Service: The fundamental benefit or solution offered to the customer. It addresses the primary need of the customer (e.g., transportation by taxi).

  • Expected Service: The basic requirements that customers anticipate and consider essential (e.g., a clean taxi and a safe driver).

  • Augmented Service: Features that exceed customer expectations and differentiate the service from competitors. These are the additional elements that can enhance customer satisfaction and loyalty (e.g., free Wi-Fi in the taxi, bottled water).

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