Meaning and definition of service s

Producer services (intermediate markets)

Types of services

Financial services (Banking,insurance,leasing)

Shipping and distribution (railway,airfreight ) Professional and Technical (Engineering design service, construction management) Other intermediate services (computer, advertising,business travel)

Characteristics of services
Intangibilty

Airlines Cinema hall tickets

Perishability

Ice-cream Movie tickets

Entertainment industry

Inseparability

Health expert

Heterogeneity

Ownership

Rice (taste,quality,price) Medical & hotel service Aeroplane

Simultaneity

Quality measurement

QUANTIFY THE FOOD SERVED IN HOTEL

NATURE OF DEMAND

Public transport

Classification of services Classification of service

End user
Individual customer Business to business Industrial end user

Degree of tangibility
Highly tangible services
Highly intangible services

People based servives

High contact

Low contact

Expertise

Highly professional services Non professional services

Orientation towards profit

Commercial Non profit organization

By location of points of service delivery

Repairs of household appliances

Other service at malls and movie theatres

Demographic changes

Social changes

Growth of service sector

Economic changes Political and legal changes

Reasons for growth of service in indiA

Economic affluence

Changing role of women

Cultural changes Information technology revolution Development of markets Market orientation

Health-care consciousness

Economic liberalisation
Rampant migration Export potential Service tax

Differences between physical goods and services

Physical goods
Tangible

services
Intangible

Homogeneous A think Core value produced in factory

Can be kept in stock

Heterogeneous An activity or process Core value produced in buyer-seller interactions Cannot be stocked

Introduction on services marketing environment

Service Marketing Environment

Internal Environment

External Environment

Micro Environment

Macro Environment

Micro Environment (Controllable)

Customers

suppliers

competitors

Marketing intermediaries

society

Corporate resources

Economic Environment Political Environment Regulatory Environment Demographic Environment

Industrial , Trade, Foreign Exchange Policy Fiscal, Monetary, Foreign Investment Policy

Legislature, Executive, Judiciary

Act Formation
Literacy Rate, Rural Urban Division, Size of family Standard of living of the people

Technological environment

Production ,innovation and invention techniques

Socio-cultural environment

Belief,attitude,customs etc
Weather and climatic condition Other factor like rainfall,minerals,soil etc

Natural/ecological environment

Global environment

Trade restrictions and war.

Case study
The indian travel and tourism industry has done significantly well in the past few months with key parameters like tourist arrivals foreign exchange earning and financial results of hotel and tour companies recording positive performance . Additionally the government announced withdrawal of expenditure tax, extension of benefit to financial institution that advance long-term capital to hotels in three star and higher categories and the continuance of exemption of service tax. Post 9/11 there couldnt have been anything better. The tourism industry is a cyclical industry with the key seasons being from october to february and then april to june. This year has seen a positive performance by the industry with several hotel companies posting positive results after going through many poor quarters. Tourist arrivals increased by 22% to 2.78% mn in january this year compared to the corresponding period last year although the annual years figures have shown a 7% drop to 2.35 mn tourists.

Questions.

(1) what are the main barriers in the hospitality industry?

(2) what were the effects of wtc attacks and iraq wars on tourism in india?

 Define services and give brief classification of services. Write a note on four key characteristics of services What are major factors that are driving the growth of the service in india?discuss in details. What do you mean by business environment? Explain the different components of business environment. Explain the different factors affecting micro environment . Explain Economic and Technological environment.

Questionaire