1. Services Marketing
It is the part of the product or the full
product for which the customer is willing
to see value and pay for it.
2. Definition
A service is any act or performance
that one party can offer to another
that is essentially intangible and
doesn't result in the ownership of
anything. It may or may not be tied
to a physical product
3. “There are no such thing as service
industries. There are only industries
whose service components are
greater or less than those of other
industries. Everybody is in service.”
4. Physical goods Services
Tangible Intangible
Homogeneous Heterogeneous
Production and distribution are
separated from consumption
Production, distribution and
consumption are simultaneous
processes
A thing An activity or process
Core value processed in factory Core value produced in the buyer-
seller interaction
Customers do not participate in the
production process
Customers participate in production
Can be kept in stock Cannot be kept in stock
Transfer of ownership No transfer of ownership
8. Means of classifying
service products
• Level of Tangibility.
• The demand fluctuations.
• Degree of involvement of people
• Level of customisation.
• Depending on Segment
• Depending on Expertise
• Formal and informal relationship with
customer
11. Growth in Service Sector
• The services sector has been growing at a
rate of 8% per annum in recent years
• More than half of our GDP is accounted
for from the services sector
• This sector dominates with the best jobs,
best talent and best incomes
12. Reasons of Growth
• Changing lifestyle
• Technological Advances
• Globalisation
• Deregulation
• Competition
• Increasing % of working woman
• Urbanisation
• Increased complexity
13. Chapter1: Introduction to Services Marketing
I Objective Questions
A. State true or false
1 .Marketing of services is same as marketing of goods.
2 .services are homogeneous
3. Increasing % of working women is one of the reasons for
growth of service industry
B. Define Services
C. Differentiate between
1. Goods and services
2. Consumer and industrial services
D. Give the Classification the services
E. What are the reasons that have stimulated the growth
of services?
F. Explain the characteristics of services
14. II. Situational Analysis
1. Collect secondary data for the following services for the past
10 years and present a growth trend
Airline, Tourism, Entertainment
2. The more tangible are the products, the easier it for
consumer to evaluate it in terms of quality and its suitability and
vice versa. Comment with giving example.
3. Explain how Advertising Agency can overcome the marketing
problems caused by unique characteristics of services.
4. On good services continuum, map the following products and
services and give reasons for placing them on a particular
position
Automobiles, food stuffs, education, computer hardware,
financial services, Entertainment-.
