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SERVICES MARKETING

SESSION-1

INTRODUCTION TO SERVICES

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DEFINITION SERVICES TO INCLUDE ALL ECONOMIC

ACTIVITIES WHOSE OUT PUT IS NOT A

PHYSICAL PRODUCT OR CONSTRUCTION, ISGENERALLY CONSUMED AT THE TIME IT ISPRODUCED AND PROVIDES ADDED VALUE INFORM (SUCH AS AMUSEMENT,CONVENIENCE, TIMELINESS, COMFORT, ORHEALTH) THAT ARE ESSENTILLYINTANGIBLE CONCERNS OF ITS FIRSTPURCHASER.

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CLASSIFICATION OF SERVICES

RETAILING & WHOLESALING

TRANSPORTATION, DISTRIBUTION & STORAGE

BANKING AND

INSURANCE REAL ESTATE

COMMUNICATION AND INFORMATION

PUBLIC UTILITIES, GOVT ANDDEFENCE

HEALTH CARE

BUSINESS,PROFESSIONAL AND PERSONAL SERVICES RECREATIONAL AND HOSPITALITY SERVICES

EDUCATION

OTHER NON-PROFIT ORGANIZATION

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REASONS FOR GROWTH

DEMOGRAPHIC CHANGES LIFE EXPECTANCY INCREASED

NEED FOR INFRASTRUCTURE AND SUPPORT SERVICES FORNEW TOWNS

SOCIAL CHANGES INCREASED NO OF WOMEN WORKFORCE

QUALITY OF LIFE IMPROVED

INTERNATIONAL TRAVEL & Mobility

COMPLEXITY OF LIFE- MORE LEGAL AND FINANCIAL

ECONOMIC CHANGES GLOBALIZATION

INC SPECIALIZATION WITHIN THE ECONOMY

POLITICAL AND LEGAL HUGE INFRASTRUCTURE OF GOVT

INTERNALIZATION

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SERVICES CHARACTERISTICS

Inseparability

Perish ability

Heterogeneity

Intangibility

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SERVICES ARE DIFFERENTTangible Intangible Services Can Not Be Inventoried

Can Not Be Patented

Readily Displayed/Comm

Pricing Is Difficult

Standardized Heterogeneous Services Delivery & CustomerSatisfaction Depend On EmployeesQuality Depends On ManyUncontrollable Factors

No Surety That Svc Matches

As Planned/ Promoted

Prod Separate

FromConsumption

Simultaneous Prod

& Consumption

Customer Participate In And AfterThe Transaction

Customer Affect Each Other

Employees Affect Outcome

Centralization

Mass Production Difficult

Nonperishable Perishable It Is Difficult To SynchronizeSupply And Demand

Services Can Not Be Returned OrSold

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Marketing Challenges Intangibility

Fluctuations in demand can not be met. No patent, therefore can easily be copied. Quality can be judged.

Unit of service cost is hard to determine Heterogeneity

Across time, org and people Many uncontrollable factors for quality Customer and service providers are different Subcontracted.

Simultaneously production and consumption mass production is difficult.

Real time happening may produce inconsistent results Problem customers influence others

perish ability Service can not be resold. Inability to inventory

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SERVICE MARKETING TRIANGLECOMPANY

PROVIDERSCUSTOMERS

INTERACTIVE MKTG

Keeping Promises

INTERNAL MKTG

Enabling Promises

EXTERNAL MKTG

Making PromisesTechnology

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MARKETING MIX

PRODUCT PLACE PROMOTION PRICE

GOOD FEATURE CHANNEL TYPE PROMOTIONBLEND

FLEXIBILITY

QUALITY LEVEL EXPOSURE SALES PEOPLE PRICE LEVEL

ACCESSORIES OUTLET LOCATION ADVERTISING TERMS

PACKAGING TRANSPORTATION SALES PROMOTION DIFFERENTIATION

WARRANTIES STORAGE PUBLICITY DISCOUNTS

BRANDING

PRODUCT LINES

MANAGINGCHANNELS

ALLOWANCES

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EXPANDED MARKETING MIXPEOPLE PHYSICAL

EVIDENCEPROCESS

EMPLOYEES FACILITY DESIGN FLOW OF ACTIVITIES

Recruiting, training EQUIPMENT Standardized

Motivation SIGNAGE Customized

Teamwork & RewardsD

RESS NUMBER OF STEPSCUSTOMERS OTHER TANGIBLES Simple, Complex

Education Reports/Business Cards CUSTOMERINVOLVEMENT

Training Statements, gurantees

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CHALLENGES FOR SERVICES MARKETERS

How Can Service Quality Be Defined And Improved

New Services Designed And Tested Effectively

Accommodation Of Fluctuating Demand Select And Motivate Employees

Setting Of Prices

Org Of Firms

Balance Between Std And Personalization

Protection Of New Svc Concept

Communication Of Quality And Value To Customer

Delivery Of Consistent Quality

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DEFINITION A SERVICE IS AN ACTIVITY WHICH HAS

SOME ELEMENTS OF INTANGIBILITY

ASSSOCIATED WITH IT, WHICH INVOLVESSOME INTERACTION WITH CUSTOMERS ORWITH PROPERTY IN THEIR POSSESSION,

ANDDOES NOT RESULT IN A TRANSFER OFOWNERSHIP. A CHANGE INCONDITION MAYOCCUR AND PRODUCTION OF THE SERVICEMAY OR MAY NOT BE CLOSELY ASSOCIATEDWITH A PHYSICAL PRODUCT.

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CLASSIFICATION SCHEMES FACTORS

TYPE OF SERVICES

TYPE OF SELLER

TYPE OF PURCHASER

DEMAND CHARACTERISTICS

RENTED VS OWNED SERVICES

DEGREE OF INTANGIABILITY

BUYING MOTIVES

EQPT BASED VS PEOPLE BASED AMOUNT OF CUSTOMER CONTACT

DEGREE OF CUSTOMIZATION

DEGREE OF LABOUR INTENSITY