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BYPADMINI.G

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Service as an act or performance that one party canoffer to another that is essentially intangible that doesnot result into ownership of anything . Its productionmay or may not be tied to physical product

- PHILIP KOTLER

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Production TangibleOutput

ValueGeneration

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Tangible Goods Goods withSome Services

Goods andServices Equal

Service withminor Goods

Pure Service

Column1Series 2Series 1

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YEAR PRIMARY

SECTOR

SECONDARY

SECTOR

TERTIARY

SECTOR

GROWTH

OVER PERIOD(% in services)

1950-51 55.4 16.1 28.5 -

1960-61 50.9 20.0 29.1 +2.1

1970-71 44.5 23.6 31.9 +9.6

1980-81 38.1 25.9 36.0 +12.9

1990-91 30.9 30.0 39.1 +8.6

1999-2000 27.5 24.6 47.9 +22.5

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GOODSy Tangible in Nature

y Separability of productionand Consumption

y Uniformity in Specificationsand Delivery

y Non-perishable in nature

y Ownership

SERVICESy Intangible in Nature

y InSeparability of productionand Consumption

y Variability in Specificationsand Delivery

y Perishable in Nature

y Lack of Ownership

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Time Differential

Quantity Differential

Place Differential

Seasonal Differential

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Price Discounting

Odd pricing

Penetration Pricing

Bundled Pricing

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Prestige Pricing

Segment-wise Pricing

Loss leadership Pricing

Money Back Gurantees

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y Services available to their geographic vicinityy Services widely available without greater capitaly

Gather data about current and PotentialCustomers, Competitors etc .,y Provide local Knowledge for dealingeffectively with customers .y Arrange the Buy/Sale transactionsy Provide funds for Physical Facilitiesy Develop and put into effect Promotional

efforts

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Service Shop(Low labour intensity and HighInteraction)

Examples:1. Restaurants2. Hospitals3. Car Repairs

Professional Services(Very High labour intensity andInteraction)

Eg:1.Doctor 2. Lawyer 3. Accountants

Service factory(Low labour intensity and LowInteraction)

Eg:1.Airlines2.Hotels3.Resorts

Mass services(High labour intensity and LowInteraction)

Eg:1.Retaling2.Schools3.Retail Banking

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Tourism Services

Product Mix

Accommodation

5 Star Cottages

Recreation

1. Theatres

2. Music Concert

3. Social Get together

Restaurant

1. Western

2. Chinese3.Indian

Attractions

1.Natural

Scenes2.Heritageforest

3. Lakes

4.Parks

5.HistoricBeautics

Transportation

1. Air2. Rail

3.Bus

Shopping

1. Handlooms2. Dresses

3. Accessories

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Tour Operators

Travel Agents

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y Giving a feel for the producty Managing Demand Fluctuationsy

Maintaining Qualityy Cost Containmenty Attitudinal block in using proven marketingprinciples in service marketing