CHAPTER NO 1 CONCEPT OF SERVICES Meaning of Marketing: 1. Process by which companies create customers. 2.

Generates strategies that underline sales techniques, business communication & business development. 3. Builds customer relationship. 4. Developed in the last 2-3 centuries. 5. Shift focus from prodn to perceived needs of customers. 6. In order to satisfy orgnl objectives, orgn has to anticipate wants of customers. 7. Need- basic requirement Want- desire for specific product. e.g. Consumers need to eat when hungry what they want to eat vary. 8. Consumer wants are shaped by social, cultural, media & marketing activities. 9. Leads to another concept- customer dd Comprising of ability & willingness. 10. Mktg- Not only to make products but make it affordable.

11. Business try to influence dd by designing products & services that are : Attractive Work well Are affordable Are available Definition of marketing: Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably. SERVICES CONCEPT 1. A service is an act or performance offered by one party to another. 2. Is a economic activity that creates value & provides benefit for customers at specific times & place. 3. Listening with empathy to customers when they have problem. 4. Basic needs to be fulfilled like Friendliness Understanding

Fairness Control Options & alternatives Information Eg: Trip to Disneyland

5. Differences of Services & Goods Customers do not obtain ownership of services. Service products are ephemeral (last for short period). FEATURES OF SERVICES 1. Intangibility - Cannot be seen, tasted or felt. - Services not known before they take. - Service Provider has to follow certain things to improve confidence of the client. Eg.: Motor Insurance may have a certificate but cannot be touched. - Highly Intangible while others are low. Eg.: Teaching nil tangible & Restaurants.

2. Inseparability- Typically produced & consumed simultaneously. - E.g. Presence of taxi driver is essential to provide the service. - Physical presence of customer is essential. 3. Perishability services cannot be stored - Value of services exists at the point. e.g. service quality deteriorates during peak hrs. 4. Variability- depends on service provider. - Selecting qualified personnel to deliver high & consistent quality. e.g. going to the same service provider shows customer satisfaction or speediness of work. Service Marketing: 1. Selling tangible products is less difficult than selling services. 2. Services is intangible 3. Services cannot be Mass- produced 4. Service is perishable 5. Service is difficult to standardise

6. Service is difficult to price 7. Services cannot be owned Need for marketing: 1. Intangibility 2. Inseparability 3. Variability 4. Perishability Services Marketing mix:
Organisation Internal Marketing enabling the promise External Marketing setting the promise

Satisfaction, Quality, Brand Loyalty

Employees Interactive Marketing delivering the promise

Source: Zeitaml and Bitner (1996, p. 23

Customers

EXTERNAL MARKETING: SETTING THE PROMISE Marketing to End-Users.

Involves pricing stratergy, promotional activities, and communication with customers. Performed to capture the attention of the market, and arouse interest in the service. INTERNAL MARKETING: ENABLING THE PROMISE Marketing to EMPLOYEES. Involves training, motivational and teamwork programs Performed to enable employees to perform INTERACTIVE MARKETING: SERVICE ENCOUNTER Decisive moment of interaction between the front-office employees and customers. FINANCIAL PRODUCTS Indian Financial Market: Primary market, FDIs, alternative investment options, banking and insurance and the pension sectors, asset management segment as well.

One of the Oldest across the globe and history spans back 200 years, the end of the 18th century, India was under the rule of the East India Company, Initially developed around Mumbai with around 200 to 250 securities brokers participating in active trade during the second half of 19th century.

Corporate Banking: The Marketing of bank products to corporate customers is Corporate Banking. On the basis of sales volume and / or capital employed, banks may classify corporate customers into three segments large corporations, mid-size companies and small and medium business enterprises (SMEs). Banks develop long-term relationships with their corporate customers. Relationships between the banks and their corporate customers are influenced by three groups of factors the

external environment, the atmosphere of the interactions, and the interaction process. The Partnership Relationship Lifecycle Model maturing to become a mutually beneficial partnership relationship between the client and the bank. Banking products are broadly classified into fund based products and fee based services. New product development and innovation are to address the changing requirements of their clients through new product development. The pricing of banking products directly impacts customer retention and customer acquisition Personal selling is the most important component of the promotional mix for corporate banking. To reduce the overall cost of personal selling, banks may use direct-response advertising or telemarketing