IT IS ABOUT SERVICES MARKETING. IT IS A SUBJECT IN mba MARKETING RELATED TO GOODS AND SERVICES.IT IS THE PART OF PRODUCT OR THE FULL PRODUCT FOR WHICH CUSTOMER SEES VALUE OR PAYS FOR IT.SERVICE IS A FORM OF PRODUCT THAT CONSISTS OF ACTIVITIES,BENEFITS OR SATISFACTION.

1. Services Marketing
Dr. Atish A. Chintamani

2. What is a service?
 It is the part of the product or the full
product for which the customer sees
value and pays for it.

3. What is a service?
 A service is a performance
 It is intangible.
 It does not result in ownership transfer.
 It may or may not be attached with a
physical product

4. Services
 A Service is a form of product that consist of
activities, benefits, or satisfactions offered for
sale that are essentially intangible and do not
result in the ownership of anything.
 Examples include:
 Banking
 Hotels
 Tax Preparation
 Home Repair Services
 Telecom

5. The service sector
 The services sector has been growing at
a rate of around 10% 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.

6. Difference between physical
goods and services
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

7. Products, Services, and
Experiences
Pure
Tangible
Good
Pure
Service
Soap
Tangible Good
With
Accompanying
Services
Auto With
Accompanying
Repair
Services
Hybrid
Offer
Restaurant
Service
With
Accompanying
Minor Goods
Airline Trip
With
Accompanying
Snacks
Doctor’s
Exam

8. Intangibility
Inseparability
Variability
Perishability
Can’t be seen, tasted, felt, heard,
or smelled before purchase.
Can’t be separated from service
providers.
Quality depends on who provides
them and when, where and how.
Can’t be stored for later sale or
use.
Nature and Characteristic of a
Service

9. Tasks in Service Marketing
 Understanding the nature of Service.
 Understanding the customer expectations.
 Developing the Service.
 Organizing Service Delivery systems.
 Pricing & Promotions.
 Harnessing the Service elements.
 Service Differentiation.
 Measuring Service Quality.
 Monitoring Service Quality.

10. Understanding the Nature of
Service
 Service Direction (people or goods)
 Service Frequency
 Location (single or multiple)
 Approach (provider or receiver)
 Service Dependency (people or equipment)
 Study of Service Process

11. Understanding the Customer
Expectations
 Customer Analysis
 Exit Response from the Customer
 Consumer Care panels

12. Developing the Service
 Service Benefits
 Service Expectations
 Service Offer & elements
 Service Quality

13. Organizing Service Delivery
systems
 Location Design
 Decision on use of channel partners
 Franchising

14. Pricing & Promotions
 Pricing Strategy
 Promotion Strategy

15. Harnessing the Service elements
 People
 Physical Evidence
 Process

16. Service Differentiation
 Differentiating the Offer
 Differentiating the actual performance
of the service
 Differentiating the Image

17. Measuring & Monitoring
Service Quality
 The ServQual Model
 The TQM Concept

18. Expected service
Management perceptions
of consumer expectations
Marketer
Consumer
Gap 1
Service delivery (including
pre- and post-contacts)
Gap 3
Translation of perceptions
to service-quality specifications
Gap 2
Gap 5
Perceived service
External
communi-
cations to
consumers
Gap 4
Personal needs Past experience
Word-of-mouth
communications