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What is service marketing?
“Services include all economic activities whose output is not a physical product or
construction, is generally consumed at the time it is produced, and provides added
Value in forms (such as convenience, amusement, timeliness, comfort or health) that
are essentially intangible concerns of its first purchaser”.

The Special Characteristics of Services

Lack of tangible assets that can be seen, touched or smelled prior to the purchase at restaurants

�Inseparability of production and consumption

Simultaneous production and consumption of a service
Eg.The restaurant prepares food for customer when it is ordered .the customer
consumes the food at restaurant and the customer’s perception of quality will be
partly due to the interaction of the customer with the restaurant employees.

� Variability
Unwanted or random levels of service quality customers receive when they
patronize a firm.Eg.the quality of service will depend on how well the food is
prepared b the cook. Even the same may not prepare the food exactly same way
each time

� Perish ability
Inability of service to be inventoried or stored
Eg.the food is prepared when the customer places the order. Some food may be
cooked in advance, but the actual order is prepared only after it is ordered, it cannot
be inventoried or stored for a later time.

The Expanded Marketing Mix for services:

 Product
 Price
 Place
 Promotion
 People
 Physical evidence
 Process

 all humans who play a role in service delivery and who influence The
perceptions of customers (Zenithal and Bitner, 1996)
 Service delivery employees (front-line staff)
 The general staff of the service company
 the customer
 The other customers that are present in the servuction and delivery process
Physical Evidence
 The setting where the service is delivered (Zenithal and Bitner,1996)
 where the service company and the customer interact
 Any tangible components that facilitate performance or communication of the
 The actual procedure, mechanisms and flow of activities through which a
service is delivered (Zeithaml and Bitner 1986)
 The dimensions of a process’s efficiency and effectiveness:
the number of steps that participants have to follow in order to affect service
the time that elapses from the first to the last activity of the service delivery
Logistical effectiveness:
the degree of smoothness in the flow of the steps of the service delivery process.

Relationship with the Customer

1. Continuous delivery of service

A) Membership relationship:
� Insurance
�Telephone subscription
B) No formal relationship
�Police protection
�Radio stations

2. Discrete transactions
A) Membership relationship:
�Theatre series subscription
�Football club free season ticket
B) No formal relationship
�Car rental
�Mail service
�Pay phone
�Public transportation

The Service Industry:-

�Transportation services
� Communication services
� Wholesale and trade
� Retailing
� Financial services (banking, insurance, real estate etc.)
� Tourism services
� Health services
� Auto repair services
� Business services
� Legal services
� Government services
� Education

Government as it is today
• Complex procedures and Hierarchy
• Insulated departments
• Slow response
• Poor G2C interface
• Lack of accountability
• Lack of Transparency
• Lack of Reliability
• Queues every where
Traditional structure of G2C Interface

Information Information
System System

Governme Governmen
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Why eSeva?

Situation prior to eSeva

• Citizen to visit multiple offices even for simple services like payments
• Restricted service hours: 10.30 AM to 5.00 PM
• Service hours not convenient for many citizens
• Long journeys and travel time to offices
• Long Queues
• Too much physical interface with offices staff

ESeva Objectives
• Citizen services closure to people
• Multiple services under one roof
• System driven delivery of services
• Transparency in delivery of services
• Least physical interface with office staff
• Convenient and extended service hours
• Citizen friendly and comfortable ambience
• Value for Time and Money

The Vision

“The Government of Andhra Pradesh has a

clear vision to create a knowledge society by using Information
Technology in all aspects of development and governance.
Pioneering efforts are being made to reach the benefits of IT to
the citizens - urban and rural, rich and poor, literate and
illiterate. The Government is conscious of the dangers of the
'digital divide', and is making special provisions for reaching the
'information have-nots'.”

Salient Features of e seva

�6 eSeva centers (with 400 service counters) spread over the Twin Cities
and Ranga Reddy District.
� All service counters are facilitated with an electronic queuing system.
� operating from 8.00 am to 8.00 pm, on all working days and 9.00am to
3.00pm on holidays (Second Saturdays & Sundays).
� 'One-stop-shop' for over 66 G2C and B2C services.
� No jurisdiction limits - any citizen in the twin cities can avail of the
services at any of the 46 eSeva service centres.
� Online services: forms, filing, payments’.
� Payments by cash/cheque/DD/credit card/Internet
Location of eSeva Centers . In Hyderabad
Banjara Hills
Sultan Bazar
Musheerabad X Roads
New Nallakunta
Sanjeeva Reddy Nagar
Jubilee Hills (Andhra Bank)
Ram Nagar
Prakash Nagar (Andhra Bank)
Malkajgiri (State Bank of Hyderabad)
Vijaynagar Colony
Kushaiguda (State Bank of Hyderabad)
Yellareddyguda Mint Compund
Meerpet Rethi Bowli (Mehdipatnam)
Snehapuri Colony
Lalaguda KPHB
HariHara Kalabhavan
ESeva Concept:
Customer goes to different departments for
different services…..

For Every service customers have to go every government

department like…………..

Current bill Electricity office

Water and sewerage bill Municipality office

Telephone bill Telephone office

Service tax and sales tax Income tax office

E seva System

Current bill Telephone bill

Service tax and sales tax Water and sewerage bill
Customer goes to any counter in any center for
any service…….

ESeva offers a wide spectrum of citizen-friendly services that

will save citizens the bother of running around various departments

Payment of Utilities Bills

• Electricity bills
• Water and sewerage bills
• Telephone bills (BSNL & TATA Tele Services)
• Property Tax
• Sales Tax


• Registration of births / deaths

• Issue of birth / death certificates
• Registration Department : Issue of encumbrance certificates
• Issue of Caste/Nativity Certificates

Labour Department

• License New Registration

• License Renewal

Permits / Licences

• Medical and Health Department: Renewal of Drug Licences

• Issue / renewal of trade licences.

Transport Department Services (available at Banjara Hills

Centre only)

• Change of address of a vehicle owner

• Transfer of ownership of a vehicle
• Issue of learners' licences
• Issue / renewal of driving licences (non-transport vehicles).
• Registration of new vehicles


• Transport Department Procedures

• Registration Department: Market value assistance

• Reservation of APSRTC bus tickets

• HMWSSB: Reservation of water tanker
• Tourism: Reservation of tickets/ accommodation

Other Services at eSeva Centers

• Sale of passport application forms

• Receipt of passport applications
• Receipt of applications for new telephone connections.
• Registration Department: Sale of non-judicial stamps
• Registration Department: Document writing service
• Collection of small savings

Internet Services

• Internet-enabled electronic payments

• Downloading of forms and Government Orders (GOs)
• Filing of applications on the web
• Receipt of complaints or requests in connection with citizen services

B2C Services’

• ATM: Issue of statements of account *

• Mutual Funds: Collection of applications *
• Mutual Funds: Transfer of shares *
• Cell Phone Bill Payments

Polices Services
• Payment of Inquest/Panchanama fees 50 Rs.
• Payment for First Information Report 50 Rs.
• Payment for Inquest/Panchanama fees 50 Rs.
• Payment for Post Mortem Report 50Rs.

Implementation Model

• Built on Public Private Partnership (PPP) model

• GOAP Contribution
Building space, Furniture, Counter operators
• Service Provider
 IT infrastructure like PCs, Servers, Printers,
 Connectivity
 Software and hardware maintenance
 Housekeeping and Security
 Running expanses like Electricity, Communication, Stationer
misc expanses
 Stationery and misc. expanses

Revenue Model

Service provider is paid transaction charges

Utility bill payments at Rs. 2.10 to Rs. 5.00
By respective department/agency
Certificate Services at Rs.10/‐
By citizen
•ESeva takes a share of 20% from transaction charges to meet it
• ESeva is partly self sustainable
Gap in revenue is filled by GOAP
• But slowly moving towards self sustainable model

ESeva Reach
• Covers all Municipal towns in the state
• 248 centre’s
• 14 State Government Departments
– Electricity, Water Supply, Municipal Services
– Public Transport, Motor vehicle Tax,
– Value Added Tax Returns,
– Land Department
– Civil supply
– Examination applications and results
– Police,
– Labour Department
– Fire Services etc

ESeva Reach

• 3 Central Government Departments

• Telephone Bills
• Passport services
• Railway tickets
• 10 Private enterprises
o Private Telecom phone bills
o Western Union Money Transfer

• Twin Cities of Hyderabad
– 40,000 Transactions per day
– INR 60 million collection per day

• Municipal towns
– 70,000 Transactions per day
– INR 60 million collection per day
Over 0.10 million citizens served everyday

Benefits to Citizens
• More Service delivery points
– Convenience and Reduced cost of travel and time
• Multiple Services available at one point
• Any service at any Centre in the city.
• Extended Service Delivery Hours
– 8 AM to 8 PM
– Open even on holidays for half day
• Improved ambience and reduced waiting time
• On line data updating in server
– Timely and Correct accounting

Benefits to Government
• More number of Outlets / Delivery Channels at no extra cost
• Extended hours of service at no extra cost
• Reduced cost of service
• Online and real‐time data updating and monitoring
• Reduced interface between citizen and Government
– Department Staff can focus on core functions
• Improved efficiency in service delivery
• Higher levels of citizen satisfaction
• Improved interface between citizen and Government
Future is in Communication

• Pay online
• Apply Online
• Receive Service
– Online or
– Through Courier
• Verify Online

Lessons from eSeva

1. Integrated Citizen Service Centers is a viable delivery system in

Urban areas
2. Public-Private-Partnership is the ideal model
3. Cost & Time savings for citizens demonstrated
4. Cost savings to Government departments
5. Real-time monitoring of citizen services possible
6. Exponential growth of transactions
7. Eseva covers services gaps like Knowledge gap and not selecting
right customer design
8. The difference between before and now is decreasing zone of
tolerance and increasing in search qualities and experience

• if implemented well

2. Employees in eseva