SERVICE MARKETING

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Course: MBA-ISubject: MARKETING MANAGEMENT - 1Unit: V

SERVICES The sector of Explosive growth More than 50% of the average

family’s budget is spent on services Share of services in the country’s

GDP is about 60% & likely to grow Service sector is expected to grow

@7%

MAJOR BENEFITS OF SERVICE SECTOR

To provide largest no. of jobs Least affected by recession &

highly stable Potential for global trade in

services with the implementation of WTO

Significance of Service Marketing

Intensive competition Growing consumer awareness Increasing specialization (hospitals,

hotels) Market sophistication Technology

Why should you Focus on service marketing Tremendous scope for employment Highly rewarding Globalised opportunities Challenging Scope for innovation Scope for self employment (we help) Suited for women ( customer courtesy)

Characteristics of services

Characteristics Intangibility: It cannot be taste, feel & smell before they are

bought unlike physical product. The intangibility creates a feeling of uncertainty about the outcome of service.

Inseparatebility: Services cannot be separated from the services

provided (we cannot separate the service from the product) in fact the product delivers consumption of a service.

Variability: Services of highly variable. It is almost

impossible to have the same service from the same seller the second time.

Contd…. Customer participation: Service product is not a one side activity

customer are core product of services. The product quality of services greatly depends upon the ability, skills and performance of the employees as well as the activity and performance of the customer.

No ownership here we cannot transfer ownership from one

person to other person that particular service belongs to particular person because its purely intangible

Pershability They cannot be stored

Product And Service Marketing Mix

Differences B/W Goods and Services

Classification of service It is required to design & apply marketing

techniques to completely satisfy the customer & increase profit & identify new emerging services

Classification can be done on the following basis

Classification by industry Classification by target effect Skill level of service provider (professional/Non

professional) Labour intensiveness(people-based/ equipment-

based) Degree of customer involment

Classification by industry Entertainment industry Education Telecommunication Finance & insurance Transportation Public utilities Government services Health Hospitality industry Business services

Classification by target effect

Based on degree of customer involment People processing:- service aimed at physical

care Ex:-health care, clinics, restaurants, hospital, hair stylist, fitness centers.

Mental Stimulus processing:- services aimed at mind of customer Ex:-education, information, entertainment, consulting, psychotherapy.

Possession processing:- Service aimed at physical possession & tangible assets Ex:- repair & maintance, Laundry, repair Services, House cleaning services

Contd…. Information processing:- service for

tangible assets Ex:- banking legal consultation, brokerage , financial service.

Skill level of service provider:- Teacher Doctor Engineer Accountant

Lobour Intensiveness Mechanic Electrician Labour Plumber Artisan

Degree of customer contact High degree (every day)-TV

channels, Mobile etc…..

Moderate Degree(regular)- teacher, barber, washer man etc…

Low degree(occasional)-priest, doctor etc…

Service encounter A service encounter is a period of time

during which customer interact directly with a service. It is also called as "Moment of Truth“

Service encounters are transactional interactions in which one person (e.g., a vendor, office clerk, travel agent) provides a service or good (e.g., a product, an appointment, airline tickets) to another person.

Service blueprint The blueprint is an operational tool

that describes the nature and the characteristics of the service interaction in enough detail to verify, implement and maintain it.

REFERENCES en.wikipedia.org/wiki/

Services_marketing www.mktgsensei.com/MKTG478/

kotler_mm13e_media_13.ppt PHILIP KOTLER (BOOK-MARKETING

MANAGEMENT- CHAPTER-13)

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