1. GURURAJ PHATAK
SERVICE MARKETING

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What is a Service?
 “Any act or performance that one party can offer to
another party is essentially intangible and does not
result in the ownership of anything”
 Ex:
 Educational Services.
 Hospital Services.

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4. Differences between
Product and Services
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5. S.No.S.No. ProductsProducts ServicesServices
1.1. TangibleTangible IntangibleIntangible
2.2. Homogeneous(SameHomogeneous(Same
type)type)
Heterogeneous(Different)Heterogeneous(Different)
3.3. Production and distributionProduction and distribution
separated fromseparated from
consumptionconsumption
Production, distribution andProduction, distribution and
consumption reconsumption re
simultaneous processsimultaneous process
4.4. A thingA thing An activityAn activity
5.5. Customers do notCustomers do not
participate in theparticipate in the
production processproduction process
Customers participate inCustomers participate in
productionproduction
6.6. Can be kept in stockCan be kept in stock Cannot be kept in stockCannot be kept in stock
7.7. Transfer of ownershipTransfer of ownership No transfer of ownershipNo transfer of ownership
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Types of Services: Consumer Services.
 Food Services:
 Ex:
 Hotel Services:
The “TAJ” HOTEL, MUMBAI

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Types of Services: Consumer Services
 Personal Care Services:
 Health and Fitness Centers.
 Ex:
 Automotive Service Firms: Bike/Car Care outlets.

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 Entertainment Services:
 Music & Movies :
 Transport Services:
Types of Services: Consumer Services.
RFC: Amusement Park Hyderabad

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 Communication Services:
 Insurance Services:
 Financial Services:
Types of Services: Consumer Services.

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Types of Services: Industrial Services
 Financial Services:
 Insurance Services: Employee Insurance Corporation.
 Transport and Warehousing Services:

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 Engineering Services:
 Advertising & Promotion Services:
 O&M Advertising Agency, The Times of India etc
Types of Services: Industrial Services

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 Management Consultancy Services.
Types of Services: Industrial Services

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Define Service Marketing
 Marketing of Any act or performance that one
party can offer to another party is essentially
intangible and does not result in the
ownership of anything such as Educational
Institutions or Hospital or Entertainment
Services”

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Characteristics of Services & Their
Marketing Implications *2m *8m

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Service Marketing Mix
 Product
 Price
 Promotion
 Place
 People
 Physical Evidence
 Process

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Service Marketing Mix with Hutch
 “Where ever you go our network follows”…………
 Product:
 Postpaid connections
 Prepaid connections
 Hutch PCO
Product Decisions: Branding
Features
Quality

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Price
 The prices are
being charged
in accordance
with:
 The charges
vary from
region to
region.
Roaming
rates
Services
Talk plans
Prices

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Promotion....
Promotion
Advertisement Hoardings
Personal
selling
Media Publicity Internet

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Promotion…..
Two two
talk
plan
VIP no’s
Reducing
rates
Validity
offer
Easy
recharge
Promotion

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Place
• The hutch outlets are being situated in various places in
India which includes 16 states.
• It has both postpaid outlets and prepaid outlets.
• Andhra Pradesh, Punjab, West Bengal, Karnataka,
Maharashtra & Goa, Tamil Nadu, Rajasthan
• UP (E) UP (W)
• Kerala
• Delhi
• Mumbai
• Haryana

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Physical Evidence
Sim cards Bills
Before and
After sale
documents
PHYSICAL
EVIDENCE

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People
People are important because:
 Providing a service, rather than selling a product.
 Quality of personal relationships between company and
clients becomes vital.
 New staff needs thorough training and constant
monitoring.
 Staffing costs-----the highest cost
 Recruiting specialist staff ------time consuming and
expensive.

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People Include...
Higher
managers
Middle managers
Lower managers
Others like:
Technicians
Dealers
Other Employees
(BPO Employees)

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Process: Process of taking a postpaid connection
Go to Hutch Shop
Choose a product (Say Postpaid connection)
Pay the appropriate fees
Take the Respective product (Like SIM Card in this case)
Avail the facilities
Give the feedback

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Suggestions
 The charges should be less
 The outlets should be opened in the small towns also
 No. of Hutch PCO should be raised
 More schemes should be introduced
 Customer satisfaction should be there

26. GURURAJ PHATAK
Marketing Strategies for Service Firms
SERVICE
PROFIT
CHAIN
Internal Service
Quality
Satisfied &
Productive Service
Employees
Healthy Service
Profits and Growth Greater Service
Value
Satisfied and Loyal
Customers

27. GURURAJ PHATAK
1. Service Profit Chain
 The chain that links service firm profits with employees
and customer satisfaction.
 Internal Service Quality: superior employee selection and
training.
 Satisfied and productive service employees: loyal and hard
multi tasking and smart working employees
 Greater service value: more efficient and effective
customer value creation and service delivery.
 Satisfied and loyal customers: repeat purchasers, referrers.
 Healthy service profits growth: superior service firm
performances

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SERVICE MARKETING TRIANGLE
 Internal Marketing:
 Orienting and motivating customer-contact employees and supporting
service people to work as a team to provide customer satisfaction.
 Interactive Marketing:
 Training service employees in fine art of interacting with customer to
satisfy their needs.
COMPANY
EMPLOYEES CUSTOMERS
INTERNAL
M
ARKETING
EXTERNAL
M
ARKETING
INTERACTIVE
MARKETING

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3. Managing Service Differentiation
1. Give different offers to the customers which is not
given by your competitor.
2. Delivery of the services plays key role.

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4. Managing Service Quality.

The determinants of Service Quality are: RATER
 Reliability: the ability to perform the promised service
dependably and accurately.
 Assurance: the knowledge and courtesy of the employees
and their ability to convey trust and confidence.
 Tangibles: the appearance of physical facilities, equipment,
personal and communication materials.
 Empathy: the provision of caring and individual attentions to
customers.
 Responsiveness: the willingness to help customers and to
provide prompt service.

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Managing Product Support Services.
 What is Product Support Service?
 To provide the best support to the product a manufacturer
identify and prioritize the services that customers value the
most.These types of services is known as Product Support
Services.
 Ex: Assembling of Computer System
 Installation of new software's like antivirus system ex:
Quick Heal Antivirus.
 Installation of new processing technologies like Dual Core,
Core2duo,Windows Xp,Windows 7.
 Installation of Management Software's such as ERP Systems.

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Types of Product Support Services.
 Ordering Ease: how easy it is for customer to place an
order with the company.
 Delivery: refers to how well the product as service is
brought to the customers. It includes speed, accuracy and
care throughout the process.
 Installation: refers to the work done to make a product
operational in its planned location.This service is
important for companies offering complex products such
as Integrated Circuits related to Digital Electronics
Ex: IC 7400 etc.

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 CustomerTraining: refers to the training of
customers/his employees to use the equipment properly
and efficiently.
 Customer consulting: refers to the data, information
systems and advice services that the seller offers to the
buyers.
 Maintenance & Repair:
 1. Pre-Sale Services:
Facilitating the value augmented services.
2. Post-Sale Services:
Customer service Departments
Repair and Maintenance.
Types of Product Support Services.

34. GURURAJ PHATAK
GAP Model
 Introduce the framework, called the gaps model of service
quality, used to organize this textbook.
 Demonstrate that the gaps model is a useful framework for
understanding service quality in an organization.
 Demonstrate that the most critical service quality gap to close
is the customer gap, the difference between customer
expectations and perceptions.
 Show that four gaps that occur in companies, which we call
provider gaps, are responsible for the customer gap.
 Identify the factors responsible for each of the four provider
gaps.

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Defining GAP Model
The Gaps Model—A Conceptual Tool to
Identify and Correct Service Quality
Problems

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GAP MODEL/SERVQUAL MODEL
CUSTOMER GAP

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Key Factors Leading to the Customer Gap
 Provider Gap 1: Not knowing what customers expect
 Provider Gap 2: Not selecting the right service designs and standards
 Provider Gap 3: Not delivering to service standards
 Provider Gap 4: Not matching performance to promises
Customer
Expectations
Customer
Perceptions
Customer
Gap

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Gaps Model of Service Quality
 Customer Gap:
 difference between customer
expectations and perceptions
 Provider Gap 1 (Listening Gap):
 not knowing what customers
expect
 Provider Gap 2 (Service Design
& Standards Gap):
 not having the right service
designs and standards
 Provider Gap 3 (Service
Performance Gap):
 not delivering to service
standards
 Provider Gap 4 (Communication
Gap):
 not matching performance to
promises

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Company
perceptions of
customer
expectations
Customer
expectations
CUSTOMER
COMPANY
Gap 1:
The Listening Gap
Provider Gap 1
Perceived
Service

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Key Factors Leading to Provider Gap 1

41. CUSTOMER
COMPANY
Gap 2: The Service
Design and Standards
Gap
Customer-driven
service designs and
standards
Company
perceptions of
customer
expectations
Provider Gap 2
2-41
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42. Key Factors Leading to Provider Gap 2
2-42
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43. CUSTOMER
COMPANY Service delivery
Gap 3: The
Service
Performance Gap
Customer-driven
service designs and
standards
Provider Gap 3
2-43
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44. Key Factors Leading to Provider Gap 3
2-44
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45. CUSTOMER
COMPANY
External
communications to
customers
Gap 4: The Communication Gap
Provider Gap 4
Service delivery
2-45
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46. Putting All Gaps Together
2-46
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47. GURURAJ PHATAK
You Find 4 GAPS in Zeithmal Text Book
And
You Find 7 GAPS in Christopher Lovelock Text Book.
Both the Models Describes the Same Context.
NOTE:

48. Seven Service Quality Gaps
Customer experience
relative to expectations
1. Knowledge Gap
2. Standards Gap
3. Delivery Gap
5. Perceptions Gap
7. Service Gap
Customer needs and
expectations
6. Interpretation Gap
4. Internal
Communications Gap
MANAGEMENT
CUSTOMER
4.
Customer perceptions
of service execution
Management definition
of these needs
Translation into
design/delivery specs
Execution of
design/delivery specs
Advertising and
sales promises
Customer
interpretation of
communications
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49. Prescriptions for Closing the
Seven Service Quality Gaps
1. Knowledge gap: Learn what customers expect
 Understand customer expectations
 Improve communication between frontline staff and
management
 Turn information and insights into action
1. Standards gap: Specify SQ standards that reflect
expectations
 Set, communicate, and reinforce customer-oriented service
standards for all work units
 Measure performance and provide regular feedback
 Reward managers and employees
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50. Prescriptions for Closing the
Seven Service Quality Gaps
3. Delivery gap: Ensure service performance meets standards
 Clarify employee roles
 Train employees in priority setting and time management
 Eliminate role conflict among employees
 Develop good reward system
3. Internal communications gap: Ensure that communications
promises are realistic
 Seek comments from frontline employees and operations
personnel about proposed advertising campaigns
 Get sales staff to involve operations staff in meetings with
customers
 Ensure that communications sets realistic customer expectations
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51. Prescriptions for Closing the
Seven Service Quality Gaps
5. Perceptions gap: Educate customers to see reality of
service quality delivered
 Keep customers informed during service delivery and debrief
after delivery
 Provide physical evidence
5. Interpretation gap: Pretest communications to make sure
message is clear and unambiguous
 Present communication materials to a sample of customers
in advance of publication
5. Service gap: Close gaps 1 to 6 to meet customer
expectations consistently
GURURAJ PHATAK