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Value System and Marketing Strategy of Service

Author: WangJing
Tutor: SunXuanZhong
School: China University of Political Science
Course: Business management
Keywords: service product value elements value system value position
CLC: F274
Type: Master's thesis
Year: 2009
Downloads: 166
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Abstract

After the Second World War, the service industry developed rapidly. Services Department has been rising in the national economy, especially western developed countries have entered the time of the service economy. Service become a key factor in competitive advantage,service has become a core value provider, which enterprise uses to meet customer’s demands. Because the service has the nature of intangibility, heterogeneity, synchronicity of production and consumption, and perishability, the traditional marketing strategy can not meet the requirements of the service development, so more and more scholars engaged in the theoretical research of service.In previous research, description and analysis over service products are all made from differences between tangible products and services, rather than in-depth analysis over value composition and essential relations, so it is difficult to provide strategic guide to service product in aspect of value marketing. Some scholars put forward the concept of customer value, and made the definition and analysis of customer value, revealed the source and constitute of customer value. All of this changed the business concept to a large extent, and made the core of business concept transform from product to customer. However, these concepts did not make the deep analysis of the composition of the customer value, nor can provide strategic guide to service product.This paper analyzed service product in aspect of value, summarized major value element components in service product. Utility value is the value that could directly meet customer’s requirements. Experience value is the value customer perceived in the course of participation. It is immeasurable, and is the happiness customer feels. Knowledge value is relevant information and technology customer gained from enterprise’s service. Relation value is the value customer obtained from relations which established and maintained with service enterprise by customer’s purchase of product. Brand value is psychological identification that customer obtained after purchase of branded service product.Relations among the five value elements compose value system of service product. This basic relationship in the value system mainly reflected at arrangement and relevance among five value elements. Firstly, utility value is the first level, and is the basis and core of the value system. Secondly, experience value, knowledge value and relation value are the second level, and are further development based on utility value, and they could meet customer’s demands better. Thirdly, brand value is the third level, and the value is at a higher level, which combines utility value, experience value, knowledge value and relation value, and will finally win customer’s recognition of benefit and favor in feelings. In addition, five value elements of service product are connected to each other, and will penetrate into each other.This paper analyzed value elements of service, and summarized systemic strategy for service marketing.——By drawing service product value element analysis Figure, orient service product in viewpoint of value elements, confirm development tread of service product, and formulate marketing strategy on basis of value elements and according to development trend of service product. At the basis of theoretical analysis, this article further demonstrated the relationship between the five values, as well as the importance of value-based marketing strategy, through the analysis of the course of development and marketing of McDonald’s.

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