Service-Marketing

A brief Introduction. By M.M.Killedar

Why study Services Marketing!

The services sector has been growing at a rate of 8% per annum in recent years

48% of our GDP is accounted for from the services sector

This sector dominates with the best jobs, best talent and best incomes

23% of the total workforce is in service sector.

What is Service

A Service is a type of a product.

“… a deed performed by one party for another…”

Discussions about the marketing of goods apply to services as well.

Services have special characteristics that make them different than products

Definition of services

“In exchange for their money, time, and effort, service customers expect to obtain value from access to goods, labor, professional skills, facilities, networks, and systems; but they do not normally take ownership of any of the physical elements involved”. ____

Christopher Lovelock

Goods and Services: Scale of Elemental Dominance

Characteristics of Services

1. Intangibility - “u can’t touch this” 2. Production (or performing the service) and

Consumption (using the service) - happens at the same time

3. Heterogeneity - services are not always delivered the same way

4. Perishability - cannot be put in inventory or stored for later use. i.e.. You can’t buy 2 haircuts

The 8 Ps of services marketing.

Product.

Place.

Price.

Promotion.

Process.

Physical environment.

People

Productivity & quality.