SERVICE MARKETING

1. SERVICE MARKETING
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Course: MBA-I
Subject: MARKETING MANAGEMENT - 1
Unit: V

2. 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%

3. 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

4. Significance of
Service Marketing
 Intensive competition
 Growing consumer awareness
 Increasing specialization (hospitals,
hotels)
 Market sophistication
 Technology

5. 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)

6. Characteristics of services

7. 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.

8. 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

9. Product And Service Marketing Mix

10. Differences B/W Goods and
Services

11. 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

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

13. 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

14. Contd….
 Information processing:- service for
tangible assets Ex:- banking legal
consultation, brokerage , financial service.
 Skill level of service provider:-
 Teacher
 Doctor
 Engineer
 Accountant

15. Lobour Intensiveness
 Mechanic
 Electrician
 Labour
 Plumber
 Artisan

16. 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…

17. 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.

18. 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.

22. REFERENCES
 en.wikipedia.org/wiki/Services_marketing
 www.mktgsensei.com/MKTG478/kotler_mm1
3e_media_13.ppt
 PHILIP KOTLER (BOOK-MARKETING
MANAGEMENT- CHAPTER-13)
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