A Presentation onSERVICE MARKETING

Prepared by…Ankit C. Makvana

Management Student @ NGI

Guided by…Prof. Monali Jani

College :

Noble Group of Institutions,Junagadh.

Outlines of Presentation

• Introduction to Service• Product VS Service• Indian Service Sector• Various Service Sectors in India• Growth• Reasons for Growth• Global Service Sector• Future Forecasting• Conclusion

Introduction to Service

Introduction to Service

• Service include all the economic activities whose output is not physical product

• Also called Tertiary sector

• Service marketing need relationship development

• Areas– Primary sector

• (e.g. Farming, Mining, Fishing)

– Secondary sector• (e.g. banks, hotels, real estate, education, health)

Product VS Service

VS

Product VS Service

Points Product Service

Who comes to whom ?

Product to buyer Buyer to service

Standardization or Customization

Standardization Customization

Tangibility Tangible Intangible

Ownership Transferred Cannot transferred

Role of senior manager

Managers are heroes

Front line people are heroes

Product VS Service

Points Product Service

Place Can be anywhere Should be atconvenient place

Involvement less High

After sales service Short duration Long duration till service end

Heterogeneity Same product for all

Can be different for 1 service

Indian Service Sector

• Always served the country’s economy well

• Stood at 12th position worldwide

• Stood at the 2nd position in providing employment

• Approximately 23% of total workforce employed

• Accounting for about 57 per cent of the gross domestic product (GDP)

• Financial services sector has been an important contributor

Indian Service Sector

Sector Wise Contribution to GDP

18%

25%57%

contribution (2012)

Agriculture

Industry

Service

13.90%

27.30%58.80%

contribution (2014)

Agriculture

Industry

Service

Various Service Sectors in India

Various Service Sectors

• Insurance

• Education

Various Service Sectors

• Health

Various Service Sectors

• Banking and Non Banking institutions

Various Service Sectors

• Hotels

Various Service Sectors

• Communication

Various Service Sectors

• Transportation

Various Service Sectors

Growth

5.40%

9%

10.90%

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%

Russia

India

China

growth rate

Growth Rate of Service Sector 2012

Growth of Service Sector in India

15%

51.16%53.80%

56.90% 58.80%

0%

10%

20%

30%

40%

50%

60%

70%

1950 1990-91 2005 2012 2014

Growth of Service Sector

Service Sectors wise contribution in India

18%

2%

13%

2%

8%

17%

7%

18%

15%

0%2%4%6%8%

10%12%14%16%18%20%

various service sectors contribution in 2014

Why Growing ?

• Easily availability of skilled educated employee

• Increase per capita income

• Leisure time

• Cultural change

• Life expectancy

• Life complexity

Why Service Sector Growing in India?

• Reserve Bank of India (RBI) has eased norms for mortgage guarantee companies (MGC)

• Pradhan Mantri Jan DhanYojana in August 2014 (the objective to cover 75,000,000 households with at least one account)

• RBI has simplified the rules for credit to exporters

• Indian Railway initiated proposal, for changes in FDI policy in order to allow foreign players

Government Initiatives

Global Service Sector

Global Service Sector

• More based on service sector as it is generating revenue from service and manufacturing sector

• In 1948 contribution to GDP was 54% which currently estimated around 80%

• In 1950 contribution to employment was 55% which currently estimated around 83%

79%

14%

4%

2%1%

sector wise contribution

Service

Manufacturing

Construction

Mining

Agriculture

Future Forecasting

• Banking assets in India reached US$ 1.8 trillion in 2013 and is expected to touch US$ 28.5 trillion by 2025

• Information technology (IT) services, the largest spending segment of India's insurance industry at Rs 4,000 crore (US$ 653.71 million) in 2014, is projected to continue strong growth at 16 per cent

• The total market size of the insurance sector in India was US$ 66.4 billion in 2013 and is expected to breach the US$ 350–400 billion by 2020

Future Forecasting

Concluding Lines

Thank You