The Service Revolution and the Transformation of Marketing Science

1. 1
‫ارائه‬‫مقاله‬‫تحول‬‫خدمات‬‫و‬‫تغییرات‬
‫علم‬‫بازاریابی‬
‫ارائه‬:‫دوره‬۱۳‫بازاریابی‬‫استراتژیک‬
‫نصراله‬،‫روحانی‬‫فرشاد‬،‫عالمیان‬‫محسن‬
‫مرتضوی‬‫،محمدرضا‬‫مشعوف‬
‫درس‬:‫بازاریابی‬‫خدمات‬–‫دکتر‬‫رامین‬
‫ناجی‬‫زاده‬

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3. 3
1. Introduction 2. Information Technology and the Service Revolution
3. The Transformation of Marketing Science 4. Discussion and Conclusions

4. 4
Introduction
• Service is transforming every developed economy,
resulting in an expansion of the service sector and the
increasing infusion of service into the goods sector.
• These changes are largely due to the effect of
information technology.

5. 5
Introduction
Service Information
Revolution
• We argue that the service revolution
and the information revolution are
two sides of the same coin.
• That understanding how advances in
IT deepen customer relationships
and expand opportunities for service
explains the service revolution.

6. 6
Introduction
Our three main objectives are the following:
 to explore the long-term trend of a shift from a goods-
based to a service-based economy.
 to explain the trend’s relationship to advances in IT.
 to consider the implications of this trend for marketing
science.

7. 7
Introduction
Agricultural Economy
Manufacturing
Technology
Industrial Economy Service Economy
Information
Technology

8. 8
1. Introduction 2. Information Technology and the Service Revolution
3. The Transformation of Marketing Science 4. Discussion and Conclusions
Reminder

9. 9
Traditional
Marketing
Introduction
• We move beyond these earlier conceptualizations to reflect the fact that
service permeates our entire economy, and not just the service sector.
What is Service?
• Service is NOT …

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Introduction
What is Service?
• Service is …
“Service is any direct provision or co-creation of value between a provider and a customer.”

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Introduction
What is Service?
• Observations …
1. Service does not have to involve customer contact personnel.
2. “co-creating service”(dynamic) not “selling a service” (static).
3. Selling a good to a customer is not service.
4. Service is not restricted to the service sector.

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Introduction
What is Service?
• Service is everywhere, not just in the
service sector.
• Service is more than just “services”.
• Our main thesis is that IT is expanding
service and is profoundly influencing all of
marketing, not just service marketing.

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Introduction
The Conceptual Framework
Information Revolution
Ubiquitous Customer
Communication
Big customer data
Better, More
Personalized Service
Deeper Service
Relationships
Expansion of Service
in The Economy
More Profitable
Customers
Service Revolution

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21%
79%
Service Industry
Information Technology and the Service Revolution
The Service Revolution
• One of the longest and most stable economic trends is the shift in employment to the service sector.
Trend of U.S. nonfarm workers worked in the service
Sector (U.S. Bureau of Labor Statistics 2012)
33%
67%
56%
44%
18391900194019802011
67%
33%
84%
16%

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Information Technology and the Service Revolution
The Service Revolution
• One of the longest and most stable economic trends is the shift in employment to the service sector.
Trend of U.S. nonfarm workers worked in the
service Sector (U.S. Bureau of Labor Statistics 2012)
21%
33%
56%
67%
84%
79%
67%
44%
33%
16%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1839 1900 1940 1980 2011
Industry
Service
54%
20%
25%
70%
Year 1839 2011
Service Share 21% 84%
Total Duration
Tota Growth
AVG Gr per Year
172 Years
300%
1.7%

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Information Technology and the Service Revolution
The Advance of Information Technology
• Much of the radical
transformation of the world
economy from an industrial to a
postindustrial service society
comes from the contribution of
IT to service and from IT as a
service.
Service is not new; it is Service plus IT that transforms service.

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Information Technology and the Service Revolution
The Advance of Information Technology

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Information Technology and the Service Revolution
The Advance of Information Technology
1980
• IBM 3,850 mass storage system
• stored a total of around 100 GB
• used to store the entire U.S. Census database
2012
• 2.5 quintillion (2.5 × 1018 bytes) of data
• Were created every day

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Information Technology and the Service Revolution
The Advance of Information Technology
1980
• processing speed of the fastest supercomputer
was about 2 gigaflops
2011
• a fast consumer desktop computer can easily
handle calculation at 50–90 gigaflops

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Information Technology and the Service Revolution
The Advance of Information Technology
• Analytical capabilities and techniques used in marketing have taken advantage of huge increases in data
processing speed.
• Hardware evolution has made all kinds of software run much faster.

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Information Technology and the Service Revolution
The Advance of Information Technology
• Mobile and networking technology allows firm-to-
customer, firm-to-firm, and customer-to-customer
communications online.
• Such communications provide firms with useful
information about individual customers as well as
greatly amplify the power of word of mouth.

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Information Technology and the Service Revolution
The Advance of Information Technology
• This allows marketers to interact with customers
anywhere at any time to gain a deeper understanding
of customer behavior.
• Also can reduce inefficiencies and allow the consumer
to take some of the seller’s profit!?
Treat or Opportunity , for …?

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Information Technology and the Service Revolution
The Advance of Information Technology
• Customer-to-firm communication has also
been enhanced by mobile and networking
platforms, where learning about customers
has become a central issue in relationship
management.
• Not just customer purchasing but also
customer click streams and online
behavior.

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Information Technology and the Service Revolution
The Advance of Information Technology
• The availability of big data and
marketing analytics on the cloud
makes personalization increasingly
feasible and cost efficient.
• Firms can collect more accurate and
detailed customer information
• Mass customization of services and
personalized marketing
communications would be available.

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Information Technology and the Service Revolution
The Advance of Information Technology
This means that personalization has two meanings
here:
1. Service itself can be tailored to customer’s
individual needs.
2. Marketing communications with customers
can be personalized by taking advantage of
the personal nature of communication
content in many networking platforms.

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Information Technology and the Service Revolution
The Advance of Information Technology
• This new IT trend thus allows firms to
tailor service to individual customer
needs and to build personal
relationships with customers by
leveraging personal content (not
necessarily personal identity).