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Course Introduction
Course Code: MKT 6404
Course Title: Service Marketing
Course Teacher:
S.M. Monirul Islam
Lecturer in Marketing
Phone: (041) 813844 (Office)
E-mail: smoni_nub@yahoo.com
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Course Definition
Service marketing is the
advance level course for
marketing professional which
make the marketing practices
different from goods marketing
and focus on how to design the
service marketing mix.
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1. Make understanding the differences between
goods and services.
2. Realize how marketing task of services
create more challenges than goods marketing
3.Acheive skill to develop the marketing mix
strategies for service product.
4.Know the service gap recovery system and
manage service customer.
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Interactive lectures on recommended
topics

Multimedia visualization

Group work, presentation,
Assignment/project.
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Class attendance
Class test
Assignment/project
Class performance & Presentation
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Text & Reference
Essentials of Service Marketing
-- Hoffman & Bateson




Ref:
The marketing of Services Cowell, D.
Service Marketing --- Lovelock, C. & Wirtz, J.
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Defining Service
work done by one person or group that
benefits another
Service is deeds, efforts, performance of human
which satisfy the demands of another. It is
invisible and untouchable which make it different
from physical goods.
A service is the non-material equivalent of a
good. A service provision is an economic
activity that does not result in ownership,
and this is what differentiates it from
providing physical goods.
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A conceptual model of the relationship
between tangible and intangible
components of a firms operation.
The servuction Model
A model used to illustrate the factors that
influence the service experience, including those
are visible to the consumer and those are not.

Customer A
Customer B
Bundle of service
benefits received by
customer A
Invisible Visible
Organizational
system
Inanimate environment
Contact Personnel
Service Provider
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Inanimate environment:
All the nonliving features that present during
the service encounter, like furniture, interior
design, music, wall hangings etc.
Contact personnel:
Employees other than the primary service
providers who briefly interact with the
customers.
Service provider:
Who provides the core services to the
customers with direct interaction with them.
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Customer A:
The recipient of the bundle of service
benefits provided by the marketer.
Customer B:
Other customers whose service
experience influence the customer A.
Organizational system:
The rules, regulations, processes on which the
organization is based.
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Differences Between
Goods and Services
Intangibility:
A distinguishing characteristics of services
that makes them unable to be touched or
sensed as like goods.
Inseparability:
It reflects the interconnection among the
service provider, service receiver and other
customer during delivering the service.
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Heterogeneity:
The variation in consistency from one service
transaction to the next.
Perishability:
Service is perishable over the passage of
time. It cannot be saved, stored or inventoried
the unused capacity.
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Marketing problem caused
by intangibility
Lack of ability to be stored
Lack of protection by patent
Difficulty in Displaying or communicating
Difficulty in pricing
Possible Solutions
Use of tangible clues
Use of personal sources of information
Creation of strong organizational image
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Marketing problem
caused by Inseparability
Physical connection of service provider
to the service
Involvement of the customer in the
production process
Involvement of other customer in the
production process
Special challenges in mass production
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Possible solutions:
Emphasize on selection and training the
contact personnel and service providers
Consumer management
Use of multisite location
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Marketing problem caused
by Heterogeneity
Difficult to standardize and quality
control
Possible Solutions:
Customization
Standardization
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Marketing problem
caused by Perishability
Higher demand than Maximum available
supply level
Higher demand than optimal supply
level
Lower demand than optimal supply level
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Possible solutions:
1. Demand strategy:
Creative pricing
Reservation system
Development of complementary
services
Development of nonpeak demand


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2. Supply strategy
Part-time employment
Capacity sharing
Advance preparation for expansion
Utilization of third parties
Increase customer participation
Possible solutions: