INTRODUCTION TO

SERVICES MARKETING
What is marketing?

 Marketing is the Identification and

satisfaction of consumers’ needs
– Why identify?
– Consumers?
– Needs?
Product?

 Examples Please?
Services

 Examples please?
What is different?

 Do u own it?
 Can u hold it?
 What dominates value?
 Are u involved?
 Others?
 Is it uniform?
 How do u assess?
 Time?
 How do u get it?
So ,What is it?

 AMA “ Activities, benefits or satisfactions

which are offered for sale or are provided in
connection with the sale of goods”
 Zeithmal and Bitner “ Services are deeds ,
processes and performances”
 Something that can be bought and sold, but
which cannot be dropped on your foot.
Service Sector in Indian Economy

 Share in GDP during 2008-2009

– ?
– Service sector growth at --- in 2008-2009
– Highest contributing sector??
– Source : Central Statistical Organisation
Evolution

 Public sector undertaking /Monopoly

 Until 1970 same principles

 1980s deregulation of services

 Self servicing

 Outsourcing

 Until 20th century focus was on product marketing –support

services
 Reasons for growth

 Two major reasons – interim dd from firm , Final dd from consumers

 Development of IT
 Aging population
 Working women
 Increase in Life expectancy (male 64, female -66)
 Change in socio-cultural values
 Advances in product technology
 Economic affluence (NCEAR- no of middle income household on
raise 445million in 2006-2007 , 53million – 94-95)
 Increased leisure time
 Government policies
 Internationalization
 Growth of DINKS
 Attitudinal Change in youth
Scope of Services

 Insurance  Postal services

 Tourism  Banking
 Health care  Education
 Transport  Telecommunication
 Software  Electricity
 Hospitality  Finance
 Logistics  Information technology
 Public Utility Services  Entertainment
Special Features

?
Intangibility
 IMPLICATIONS
– Cannot see, touch, feel
– Cannot be patented
– Cannot be Inventoried
– Cannot be displayed &
communicated
– No impulse purchase
– Pricing of services is
difficult – unit cost?
 Tackling intangibility
– Visualization
– Association
– Physical representation
– Documentation
– Facts and figures
– Personal sources of
information
– Strong corporate image
– Encouraging employees
to communicate with
customers
Inseparability
 Implications
– Physical connection of
service provider to
service(Cannot replicate)
– Opportunity lost
– Mass production is
difficult
– Customers’ presence
may affect
positively/negatively
– Presence of other
customers
 Tackling Inseparability
– Training of internal
customers
– Information technology
and innovations
– Develop process to
manage customers
– Open multiple sites
Heterogeneity

 Implications  How to?

– Ensuring consistency? – Training in standardized

– Ensuring quality procedures
– Subcontracting to third – Industrialization
party – Customization
Perishability
 Implications
– Inability to inventory
– Matching demand & supply
 Demand Strategies
– Creative pricing
– Reservation systems
– Complementary services
– Developing nonpeak
demand
 Supply Strategies
– Utilize part-time employees
– Share capacity
– Prepare in advance for
expansion
– Utilize third-parties
The services Triangle