SERVICES MARKETING

TYPES OF SERVICES
• TRANSPORT SERVICES
• PUBLIC UTILITY SERVICES
• COMMUNICATION
• TRADING SERVICES
• FINANCIAL & INSURANCE SERVICES
• REAL ESTATE SERVICES
• MARKETING RELATED SERVICES
• GOVERNMENT PROVIDED SERVICES
• ENGINEERING SERVICES
• ENTERTAINMENT SERVICES
• BUSINESS & PROFESSIONAL
SERVICES
• HOSPITALITY SERVICES
• HEALTH SERVICES
GROWTH OF SERVICE SECTOR
ECONOMY
REASONS FOR THE GROWTH:
• CHANGING LIFESTYLE:
• Increase in affluency-greater demand for
dry-cleaning, carpet cleaning
• Increase in leisure time- greater demand
for entertainment, travel agencies
• Women in working places- greater
demand for domestic help, daycare
nurseries
• CHANGING WORLD:
– Increased complexity of life- greater demand for
accounting services, legal advisors
– Increased life expectancy- greater demand for
nursing homes, gyms
– Ecology & resource concerns- greater demand
for shared taxi service, environment consultants
• CHANGING ECONOMIES:
– Globalization- greater demand for courier
services, airways, waterways
– Privatization- greater demand for telecom
services, internet
• CHANGING TECHNOLOGY:
– Range of new products- greater demand
for e-commerce, software programming
– Product complexity- greater demand for
annual maintenance contracts, after sale
service, skilled service
CAUSE EFFECT GREATER
DEMAND FOR
Technological Higher
advances complexity of
products
Globalization Business
internationalizat
ion
Deregulation Privatization
policies
Competition & Specialization &
higher expert
productivity knowledge
Cost Optimum utilization
effectiveness of resources &
outsourcing
Computer Speed of work,
explosion availability of sound,
picture & motion at
affordable cost
Increase in Increased spending
affluency power & wish for
comforts
Working women Work performed at
home being done by
others
More leisure time Entertainment &
pleasure seeking

Greater life Desire to live long

expectancy

Increased Need for specialized

complexity of life services

Scarcity of Need for services that

resources & can meet resource
concern for crunch
ecology
Demographic Dual career couples
changes
Urbanization Fast, mechanical
& self centred life
SERVICE CHARACTERISTICS
 Intangibility

 Inseparability

 Inventory (Perish ability)

 Inconsistency (Variability)
 INTANGIBILITY

• Services are activities performed by the

provider, unlike physical products they cannot be
seen, tasted, felt, heard or smelt before they are
consumed.
• unlike goods, services do not have features that
appeal to the customers senses & its evaluation
is not possible before actual purchase and
consumption.
• services are not known to the customer before
they take them.
• service provider has to follow certain things to
improve the confidence of the client
 INSEPARABILITY
• Services are typically produced and consumed
simultaneously.
• services, cannot be separated from the service
provider.
• Inseparability of production and consumption
increases the importance of the quality in
services
• service marketers not only need to develop task-
related, technical competence of service
personnel , but also , require a great input of
skilled personnel to improve their marketing and
inter personal skills.
 INVENTORY (PERISH ABILITY)

• Services are deeds, performance or act

whose consumption take place
simultaneously
• services cannot be stored
• services go waste if they are not
consumed simultaneously
INCONSISTENCY (VARIABILITY)

• Services are highly variable, as they

depend on the service provider, and
where and when they are provided
• Service marketers face a problem in
standardizing their service, as it varies
with experienced hand, customer, time
and firm
 SERVICE CLASSIFICATION
• BY MARKET SEGMENTATION:
FINAL CONSUMER: life insurance, tution
ORGANIZATIONAL CONSUMER:
accounting services, legal services
• BY DEGREE OF TANGIBILITY:
RENTAL GOODS: hotel room rental, book
rental
OWNED GOODS: mobile repair,
refrigerator repair
NON GOODS: accountancy services,
legal services, education services
• BY SKILLS OF SERVICE PROVIDERS:
PROFESSIONALS: medical services,
management consulting
NON PROFESSIONAL: shoe polishing,
washing
• BY GOALS OF THE PROVIDER:
PROFIT: roadways, airways, insurance
NON PROFIT: postal services, unversities
• BY DEGREE OF REGULATION:
HIGHLY REGULATED: insurance,
hospitals
LIMITED REGULATED: fast food,
roadways
NON REGULATED: painting, cloth
washing
• BY DEGREE OF LABOUR INTENSIVENESS:
 EQUIPMENT BASED SERVICES:
 Automated: ATMs
 Operated by relatively unskilled operators: Taxis
 Operated by skilled operators: Airlines
 PEOPLE BASED SERVICES:
 Unskilled labour: Carpet cleaning
 Skilled labour: Catering, Plumbing
 Professionals: Lawyers
• BY DEGREE OF CUSTOMER CONTACT:
HIGH CONTACT: colleges, hotels
LOW CONTACT: car servicing
• BY END USER:
Consumer: leisure, hairdressing, personal
finance, package, holidays.
Business to business: advertising
agencies, printing, accountancy,
consultancy.
Industrial: plant maintenance and repair,
work wear and hygiene, installation,
project management.
• BY SERVICE TANGIBILITY:
Highly tangible: car rental, vending
machines, telecommunications.
Service linked to tangible goods: domestic
appliance repair, car service.
Highly intangible: psychotherapy,
consultancy, legal services.
• BY LABOUR INTENSIVENESS:
People-based services - high contact:
education, dental care, restaurants,
medical services.
Equipment-based -low contact automatic
car wash, launderette, vending machine,
cinema.
• BY EXPERTISE:
Professional: medical services, legal
services, accountancy, tutoring.
Non-professional: babysitting, care taking,
casual labour.
• BY PROFIT ORIENTATION:
• Not-for-profit: The Scouts Association,
charities, public sector leisure facilities.
• Commercial: banks, airlines, tour
operators, hotel and catering services.
 SERVICES MARKETING
TRIANGLE
• The Services Marketing Triangle model
focuses upon making and keeping
promises to customers and suggest three
structural relationships as the mode by
which this occurs.
 Company Management

External
Internal Marketing Marketing :
:“Enabling the “setting the
promise”
SERVICES promise”
service
environment MARKETING the service
product
TRIANGLE

Employees
Interactive Marketing Customers
:“Delivering the promise”
service delivery
The Model University/Registry

Company Management Directorate Registry/

management team
Employees All registry staff

Customers Students,University
staff,
External bodies
External Marketing Consultation with Customers to
“Setting the promise” identify needs and obtain
feedback on performance:
the service product
Course Organisers Forum
Student Union Liaison meetings
Student Services Committee
Undergraduate Student
Questionnaire
Enrolment review
Service Statements/Plans:
Service Provision Statement
Departmental Plan
Internal Marketing Culture & philosophy
“Enabling the promise” Staff recruitment
the service environment Staff development/
training
Motivation and
involvement in planning
Team
meetings/briefings
Technical resources
Interactive Marketing The serviscape and
“Delivering the promise” service encounter:
service delivery Delivery of service
Physical environment
Meetings
Telephone
Post
E-mail
 SERVICE MARKETING MIX
• The Marketing mix is generally accepted
as the use and specification of the four p's
describing the strategic position of a
product in the marketplace.
• In case of services additional 3 p’s are
also included in these 4 p’s.
 SERVICE MARKETING MIX
• Service marketing mix comprises off the 7’p’s :
• Product
• Price
• Place
• Promotion
• People
• Process
• Physical evidence
 Product
• It must provide value to a customer but
does not have to be tangible at the same
time
• it involves introducing new products or
improvising the existing products
• Its study includes: service product, quality
level, range, features/benefits,
guarantees, brand names
• RATER: Reliability, Assurance, Tangibles,
Empathy, Responsiveness
 Price
• Pricing must be competitive and must
entail profit
• Pricing strategy can comprise discounts,
offers and the like
 Place
• It refers to the place where the customers
can buy the service/product and how the
service/product reaches out to that place
• This is done through different channels,
like Internet, wholesalers and retailers
• Issues involved: location, accessibility,
channels of distribution, distribution
facilities, service inventory, managing
channels
 Promotion
• It includes the various ways of communicating to
the customers of what the company has to offer
• It is about communicating about the benefits of
using a particular product or service rather than
just talking about its features
• What should be the channels of promotion:
advertising, personal selling, sales promotion,
word of mouth, tele-marketing, e-marketing etc
 People
• An essential ingredient to any service provision is the use of
appropriate staff and people.

• Recruiting the right staff and training them appropriately in the

delivery of their service is essential if the organization wants to
obtain a form of competitive advantage

• Consumers make judgments and deliver perceptions of the service

based on the employees they interact with

• Staff should have the appropriate interpersonal skills, aptititude, and

service knowledge to provide the service that consumers are paying
for

• Service encounter
• Employees: recruitment, training,
motivation, team work
• Customers: education, training
• Communication: about culture, values
 Process
• Refers to the systems used to assist the
organization in delivering the service
• Imagine you walk into Burger King and
you order a Whopper Meal and you get it
delivered within 2 minutes
• What was the process that allowed you to
obtain an efficient service delivery?
 Physical Evidence
• Where is the service being delivered?

• Physical Evidence is the element of the service mix

which allows the consumer again to make judgments on
the organization

• If you walk into a restaurant your expectations are of a

clean, friendly environment

• Consumers will make perceptions based on their sight of

the service provision which will have an impact on the
organizations perceptual plan of the service