Chap 2 second lecture(2.34 to end)


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  • Intangible products include: Marketing of ideas Marketing of people Marketing of charities and causes. Marketing of organizations
  • Chap 2 second lecture(2.34 to end)

    1. 1. What areServices?Chapter # 2 contd Unit no 2.34 to end 1
    2. 2. Marketing Approaches to Services:Definition Of ServicesCharacteristics Of ServicesClassification Of ServicesFunctional Differences Unit no 2.34 to end 2
    3. 3. Classification of Services:Different methods to classify services:Sellerrelated methodBuyer related methodService related method Unit no 2.34 to end 3
    4. 4. A. Seller related methodServices are to be sold by private or public sector orfor commercial sector or for non profit concern. Unit no 2.34 to end 4
    5. 5. ServiceIndustry IncomeCommunication SourceConsulting From marketEducation From donationsFinancial From taxHealth &Insurance Unit no 2.34 to end 5
    6. 6. B.. Buyer related method:It is related with markets eitherconsumer or industrial. The wayservice is bought depends upon theconvenience,shopping,speciality or unsought service or for the motive to make purchase only. Unit no 2.34 to end 6
    7. 7. Market Type of MotivesIndustry service Intangible,Consumer Convenience mental andIndustrial service emotional Shopping depend uponGovt service nature ofAgriculture Specialty service service. Unsought service Unit no 2.34 to end 7
    8. 8. We can also classifyservices on the basis of theirfunctions and their source ofincome that from where they are earning from marketsources or from donations. Unit no 2.34 to end 8
    9. 9. C.. Service related method:According to Swan and Pruden: Service is a mean to an end or an expressive form that is an end in itself. These are human based or equipment based or may involve high levels of personal contact or low levels of personal contact. Unit no 2.34 to end 9
    10. 10. Mode ofService serviceForm Nature of High level Service of personal Uniform Humanly contact services based Low level Bespoke Machine of personal service based contact Unit no 2.34 to end 10
    11. 11. Summary of above classification:a. Variation in customer behavior cannot determine the classification of service.b. Rational and emotional motives can change the nature and status of service. Like low urgency or high urgency.c. Consumer attitude is different in measuring service either for general use or for organization’s use. Unit no 2.34 to end 11
    12. 12. 1. Functional Approach to redefine Services2. Conceptual Approaches Unit no 2.34 to end 12
    13. 13. A. Functional Approach to redefine ServicesThis approach depends upon the relationship between the product marketing and service marketing:1. Services cannot be stocked2. Lack of patents for services which reduces the size of distribution.3. No Precise standards.4. Services lack use of package. Unit no 2.34 to end 13
    14. 14. CONTD..5. Services lack use of package.6. Can’t be sampled.7. Intangible nature can’t maintain balance between demand and supply.8. No possession to the service used . Unit no 2.34 to end 14
    15. 15. Problem with thisapproach confines the definition of services so once again economist need to work on it further. Unit no 2.34 to end 15
    16. 16. B. Conceptual Approach to redefine ServicesFollowing Economists contributed for understanding the above mentioned criteria: Eiglier and Langeard Gronroos Shostack Unit no 2.34 to end 16
    17. 17. 1. Eiglier and Langeard:They worked on THREE fundamental aspects of Characteristics of services:IntangibilityDirect Organization---------- client/customer relationshipConsumer participation in production process. Unit no 2.34 to end 17
    18. 18. They further give their comments onthe above conditions depending uponthe following factors:1. Dependent upon enterprise2. Dependent upon client3. From public feedback Unit no 2.34 to end 18
    19. 19. Have a LOOKONExperimental Anal Ana Unit no 2.34 to end 19
    20. 20. 2. Gronroos:He also narrated services as a combination of three fundamentals : Intangibility A service is a pure activity rather than a thing Production and consumption are to some extent simultaneous activities. . Unit no 2.34 to end 20
    21. 21. He defined services on the basisof their functions in the market. He further narrated that the service organization has two marketing Functions: 1.The traditional marketing function--------- Buyer Seller Relationship 2. The interactive marketing Unit no 2.34 to end 21
    22. 22. He worked on the framework of Eiglier andLangeard and developed a model which divides service organization into TWO parts: Unit no 2.34 to end 22
    23. 23. SERVICE ORGANIZATIONVisible Part Invisible Part All types ofInternal Physical i nteractiveOrganization services EnvtSystem Contact with Personnel Unit no 2.34 to end 23
    24. 24. Invisible part to the customer is theinternal envt of the firm which consist ofphysical strength and mangt support tothe people working with customer.Visible part consists of THREE main resources:• The physical envt where the services is consumed• The contact personnel• Consumer who takes part in the production Unit no 2.34 to end 24 process.
    25. 25. Gronroos developed theabove model and SuggestFIVE variable which ensures that interactive marketing functions are handled by customer orientation. Unit no 2.34 to end 25
    26. 26. The variables are:1. Service concept2. Auxiliary services3. Accessibility of the service4. Interactive personnel/customer communication5. Consumer Influence Unit no 2.34 to end 26
    27. 27. Conclusion: Interactive marketing and traditionalmarketing function play a vital role in purchasingand consumption process. Unit no 2.34 to end 27
    28. 28. 3. Shostack:She worked on following aspects: Intangibility as fundamental characteristic of services. Marketing is that an organization is offering to the marketplace which consists of goods, services or both. Unit no 2.34 to end 28
    29. 29. Four categoriesTo identify the status of services more:1. A pure tangible can’t be a service.An offer which consists of a good with noexplicit service but the target is to salegood so services are minimized in thissituation.2. A tangible good with accompanyingservices. Unit no 2.34 to end 29
    30. 30. CONTD Four categoriesTo identify the status of services more:3. A service with accompanyinggoods and services. The object ofsales is intangible.4. A pure service. Unit no 2.34 to end 30
    31. 31. Conclusion:She suggests that marketing itemsare combination of discreteelements tangible and intangibleand the above mentionedcategories link the attributes of“pure service” with “pure product”in service economy. Unit no 2.34 to end 31
    32. 32. Limitations of Services:After discussing all the aspects ofservices we can make favors withMarshall Opinion that bothmanufacturers and tradersproduced utilities whether theywere formed from tangible orintangible components. Unit no 2.34 to end 32
    33. 33. From Marketing POINT OFVIEW: Both goods and services provide benefits and satisfaction whichsummarize that goods and services are products. Unit no 2.34 to end 33
    34. 34. •Limited concept states that product is a set of tangible and intangible, physical and chemical attributes assembled in a particular form.•Broader concept states that a product is a set of tangible and intangible attributes which buyer may accept as offering satisfaction of needs and wants. Unit no 2.34 to end 34
    35. 35. AS A RESULT : Everyproduct has intangible Unit no 2.34 to end 35
    36. 36. Time FOR ANOTHERASSIGNMENT!!! Unit no 2.34 to end 36