Introduction of Services Marketing • Services Marketing Concept, Distinctive Characteristics of Services, Services Marketing Triangle, Purchase Process for Services, Marketing Challenges of Services • Role of Services in Modern Economy, Services Marketing Environment • Goods vs Services Marketing, Goods Services Continuum • Consumer Behaviour, Positioning a Service in the Market Place • Variations in Customer Involvement, Impact of Service Recovery Efforts on Consumer Loyalty • Type of Contact: High Contact Services and Low Contact Services • Sensitivity to Customers’ Reluctance to Change

1. SERVICE MARKETING

2. SERVICE
A service business is one in which the perceived
value of the offering to the buyer is determined
largely by the services provided to him than the
products offered.
Although according to Philip Kotler, besides goods
and services, a marketer also markets eight other
entities like Events, Experiences, Persons, Places,
Properties, Organizations, Information and Ideas;
yet it is generally clubbed together and is widely
known as goods and services.

3. Goods are physical, tangible articles, while
Services are nonphysical and intangible in
nature and can also satisfy a need like
goods.
Financial services – Banking, Telecom, DTH,
Courier, Hotel, Airline, Multiplex, Train,
Doctors, Lawyers, Healthcare and
Management Consultancy are all examples
of services.

4. DEFINITION
‘A service is any activity or
benefit that one party can
offer to another, which is
essentially intangible and
does not result in the
ownership of anything. Its
production may or may not
be tied to a physical
product.’ – Kotler,
Armstrong, Saunders and
Wong

5. • ACCORDING TO PHILIP KOTLER:
• “A service is any activity or benefit that
are being an offer to another that is
essentially intangible and does not result
in the ownership of anything.”

6. DISTINCTIVE
CHARACTERISTICS
Intangibility refers to the fact that a large
component of many service offers is
immaterial or intangible and cannot be
presented in a concrete manner to
consumers prior to purchase.
For example, a customer cannot touch the
aerobics class prior to attending the class
neither can assess the quality without
attending the class.

7. Inseparability refers to the
notion that, in much service
operation the production and
consumption cannot be
separated, that is, a service is
to great extent consumed at
the same time as it is produced.
For example, a hairdresser may
prepare in advance to carry out
the service, but most of the
hairdressing service is
produced simultaneously as the
customer consumes the
service.

8. • Heterogeneity is closely related
inseparability as it is very difficult to
apply quality standards to services to
ensure an identical service output,
when so much depends on the
cooperation and participation of
individual customers.

9. Perishability refers to the fact that
unlike physical goods, services
cannot be stored.
An appointment with the dentist, in
contrast, at a given time on a given
day, cannot be stored and offered
again to the customer.

10. • Variability:An unavoidable
consequence of simultaneous
production and consumption is
variability in performance of a service.
• The quality of a service may vary
depending upon who provides it as
well when and how it is provided, e.g.,
an airline company provides on time
services to and fro, whereas some
other airline provides though regular
service but not on time.
• Within a service provider one
employee may be courteous and
helpful others might be inefficient as
well as rude.

11. • Perishability: Services cannot be stormed for
later sale or use, e.g., hotel rooms not
occupied, airline seats not purchased and
college places not filled cannot be reclaimed
since services are performances, they cannot
be stored.
• If demand exceeds supply it cannot be met as
things cannot be taken out from warehouse.
Even if capacity exceeds demands the
revenue value of the service is lost.

12. • Lack of Ownership is the basic difference between a service
industry and a product industry as a customer gets an access for a
service after paying for it but not owns it, e.g., hotel rooms,
hospitals beds, etc.
• So, service industry should put a stress on easier payment terms in
order to facilitate better growth of service sector.
• Ownership relates to the notion that the consumers of services do
not own them overall, but only have temporary access to them.

13. NATURE OF SERVICE MARKETING
1. It is a
dynamic
process.
2. It is customer
oriented.
3. It is creative.
4. It is
intangible.
5. Transfer of
ownership is
not possible.
6. It is
heterogeneous.
7. It has zero
shelf life.
8. Services are
production is
inseparable.
9. It is
perishable.
10. It is a social
process.
11. It is an
economic
function.
12. It involves
customer
participation.

14. ROLE OF SERVICE MARKETING:
1. Reduced
operating
expenses.
2. Competitive
differentiation.
3. Enhanced
quality.
4. Enhanced
efficiency.
5. Enhanced
responsiveness.
6. Enhanced
market Share.
7. Enhanced
customer
loyalty.
8. Enhanced
Competition.
9.
Manufacturing
Support.
10. Makes
Economic
Sense.

15. SERVICES
MARKETING
TRIANGLE
As we know, relationships are most important in the services sector.
The service triangle outlines all the relationships that exist between the company,
the employees and the customers. Furthermore, it also outlines the importance of
systems in a services industry and how these systems help achieve customer
satisfaction.
As the name suggests, the service marketing triangle can also be used
to market the service to consumers.
The marketing completely depends on the interaction going on between the
customer and the service provider.
We will look at each of these interactions in detail, and read on how to market to
your customer based on the interaction.

16. The services marketing triangle was created to handle
the complexity that service marketers face when dealing
with intangible products. The service marketing triangle
highlights three key players, these are;
Company: The management of a company, including
full-time marketers and sales personnel. This is enabled
through continuous development and internal
marketing with their employees.
Employees: This includes anyone that is working within
close contact of the consumer. They play an integral role
within the interactive marketing of service marketing.
Customers: Anyone that purchases the service of a
company. They are also heavily exposed to the external
marketing of a firm.

18. External Marketing — Making Promises:
Involves communication by a company towards their consumer.
This form of communication allows the company to offer their services and
set the expectation of service quality that the client can expect.
In service marketing this pays particular attention to physical evidence,
such as the appearance of the place of business or appearance of staff.

19. Interactive Marketing — Keeping Promises:
Interactive marketing is revolved around the communication that
occurs between the client and the service delivery personnel.
This is one of the most important parts of successfully utilising the
services marketing triangle, as it is the only time that the client will
have face-to-face experience with the company, via the providers.

20. Internal Marketing — Enabling Promises:
A more modern addition to the services
marketing triangle, internal marketing centres on
training employees to the highest standards so
they can deliver exceptional service.
Without internal marketing, there is a high
chance that the client will receive sub-standard
service.

21. Furthermore, the advancements in
technology are having a huge impact on
service quality and marketing frameworks.
This is because the changes in technology
are allowing companies to communicate
with customers in a non-physical
environment, such as through the internet.
This is transforming the services marketing
triangle into a services marketing pyramid,
as all three factors can be bought together
through the clever use of technology.

22. One of the most significant downfalls to the service
marketing triangle is that firms often do not implement it
as a triangle.
Instead, they will focus on one point of the triangle and
neglect the others.
This is particularly true to internal marketing, as many
organisations believe that if employees are treating
correctly, then it will naturally pass through into the
external environment.
However, the fact that all three points are woven together,
and influence by each other, does present opportunities
for organisations to conduct their marketing efficiently
and at a cheap cost.

23. CASE STUDY ON SERVICE
MARKETING TRIANGLE
• https://drive.google.com/file/d/1widAvaaGC1NLwzHFvtsR4JkhN7QeZrIy/v
iew?usp=drive_web&authuser=1

24. • GOODS & SERVICES
CONTINUM
https://keydifferences.com/difference-
between-goods-and-services.html
https://www.geeksforgeeks.org/difference-
between-goods-and-services/

25. THE CHALLENGES OF SERVICE
MARKETING MANAGEMENT
Service Marketing Management emerged as a separate field of study only in the
early 1980s, when the distinct characteristics of service marketing
management finally dawned on marketers.
The services sector includes industries like banking, insurance, communications,
consulting, non-profits, travel and transportation, and all other businesses that do
not produce tangible goods.
• INTANGIBILITY
• LACK OF OWNERSHIP
• PERISHABILITY
• HETEROGENEITY
• INTERACTIVITY
https://www.joshmeah.com/blog/service-marketing-management-5-challenges-
and-5-winning-strategies

26. STRATEGIES FOR
SERVICE MARKETING
SUCCESS
1. START WITH YOUR CUSTOMERS
Maybe it’s been stated so many times
that it’s become a cliché, but you have to
start with your customers.
There’s simply no other way to start
building a service business.

27. 2. DEFINE YOUR SERVICE CONCEPT

28. 3. CREATE YOUR SERVICE DELIVERY
PROCESS

29. • ENGAGE YOUR PEOPLE FOR SERVICE
DELIVERY

30. • TRACK THE KPIs AND IMPROVE
YOUR SERVICES

31. • Service marketing management is
different from managing tangible
product marketing in many ways.
You’re trying to sell an intangible,
perishable, interactive, and
heterogeneous product without
actually giving the buyer a right of
ownership over a thing.
• Your job is not just to bring together
the service and the buyer, but also to
manage what happens during those
crucial interactions.
• Your success lies in understanding
your customers and defining a service
concept that matches their
expectations.
• Design a service delivery process that
works like a charm and staff it with
engaged and motivated employees
• Track your performance and
continuously improve the quality of
your services. And that’s what service
marketing management is all about.

32. PURCHASE PROCESS FOR SERVICES
01
Problem
Recognition
02
Classification of
Customer’s Need
Recognition
03
Information
Search
04
Evaluation of
Alternatives
05
Purchase
Decision
Post-purchase
Evaluation
https://nationalpublicresearch.com/survey-types/stages-purchase-process/

34. ROLE OF SERVICES IN MODERN ECONOMY
• Indian service sector is popular for its competency and efficiency. In seven
decades of independence, Indian service sectors have witnessed phenomenal
growth.
• In Financial Year 2020, the contribution of service sectors in Indian GDP is
55.39%.
• India’s service sectors are not only giving an unprecedented contribution to
the growth of the Indian economy but also attracting foreign investors to
endeavour their industrialization venture.
• Hotels and restaurants, transport, storage and communication,
telecommunication, finance, insurance, real estate, business services related
to IT, community, social and personal services, etc. come under the service
sector of India.

35. MARKET SIZE OF
SERVICE
SECTORS IN
INDIA:
From Financial Year 2016 to 2020, the Gross Value Added of service
sectors in India grew to US$ 1,064.8 billion from US$ 1,005 billion,
at the Compound Annual Growth Rate of 1.45%.
In Financial Year 2020, the total market of export from service
sector is US$ 214.14 billion and import is US$ 131.41 billion.
According to the recent economic survey, out of the overall service
sector, India’s Key services sub-sectors such as Information
Technology and Business Process Management (IT-BPM) services
reached about US$ 177 billion, and the Indian Government spent
about US$ 1.5 billion in the Space sector.
Indian Government is also taking aggressive steps to boost India’s
commercial services exports share in the global services market,
and to make India 5 Trillion- Dollar economy in the next five years.

36. SOME MAJOR
STEPS TAKEN BY
THE INDIAN
GOVERNMENT
TO PROMOTE
GROWTH IN
SERVICE SECTOR
ARE:
To facilitate broadband across all villages of the
country by 2022, the Indian Government has
launched the National Broadband Mission.
The Central Government increased incentive
by 2% under services exports from India.
To ensure easy trade in the service sector, the
Government of India is removing many trade
barriers.

37. TOP SERVICE SECTOR COMPANIES IN INDIA:
Reliance
Industries
HDFC Bank ICICI Bank
Tata
Consultancy
Services
Larsen &
Toubro
Kotak
Mahindra
Bank
Axis Bank

38. ROLE OF SERVICE SECTOR FOR THE GROWTH OF INDIAN
ECONOMY:
• Service Sector Enhances the GDP of the Country
• Creates Employment Opportunities
• Contribution to India's Service Trade
• Contribution Toward Human Development
• Growth of Agriculture
• Promotes industrialization
• Increase in the productivity of the goods
• Provides Good Quality Life
• Growth of Market
• Increase in international trade
• Removes regional disparities
http://www.globaljurix.com/blog/role-of-service-sectors-in-the-growth-of-indian-economy.php

39. SOME CONTRIBUTION OF SERVICE SECTOR IN INDIAN
ECONOMY
• Research and Development services
• Telecom services
• IT Enabled Services (ITES)
• Tourism services
https://www.geeksforgeeks.org/role-of-service-sector-in-modern-economic-development-of-india/

40. SERVICE
MARKETING
ENVIRONMENT
• All organizations operate within
the marketing environment. The
marketing environment is made
up of two parts:-
1) Macro environment
2) Micro environment

41. MICRO
ENVIRONMENT
The micro-environment represents all the internal
factors which have impact on the organizations'
marketing or business activity.
It relates to those factors which are internal to the
business and are controllable. The internal
environment exercises a significant influence on the
attitudes, behaviour and performance of people. .
The internal environment relates to a particular
organization and its publics.

42. MACRO
ENVIRONMENT The Macro environment is the external
environment of the organization.
The factors to be analysed in will
include the following: Company
management structure, Customers,
Suppliers, Channel members,
Competitors, Other publics which may
include Government and political
bodies, Pressure groups, financial
institutions and shareholders.
In effect any person or organization
which can influence the company’s
marketing activities and marketing
success in way should be included
here.
The list is not absolutely comprehensive
as individual organizations may need to
consider special influences.
The political legal, economic, social and
technological forces exert the same
type of services as they do on products;
however certain environment features
have a greater impact on service.
These environmental factors are:-
o Political – legal environment
o Economic environment
o Socio-cultural environment
o Technological environment

43. PURPOSE OF SERVICE ENVIRONMENT
• It helps companies to create distinctive image and unique positioning.
• And relate to the style and appearance of the physical surroundings and other
experimental elements encountered by the customers at service delivery site.
• Service environment affects buyer behavior in three ways:-
I. Message-creating medium: symbolic cues to communicate the distinctive nature and
quality of the service experience.
II. Attention-creating medium: make service environment stand out from competition
and attract customers from target segments.
III. Effect-creating medium: use colours, textures, sounds, scents and spatial design to
enhance desired service experience

44. IMPACT OF SERVICE RECOVERY EFFORTS ON
CUSTOMER LOYALTY
• https://indiafreenotes.com/impact-of-service-recovery-efforts-on-customer-loyalty/

45. REFERENCES
• https://www.economicsdiscussion.net/marketing-
2/service/service/32466
• https://www.mbaknol.com/services-
marketing/services-marketing-triangle/
• https://www.marketing91.com/service-triangle/
• https://www.wisdomjobs.com/e-
university/principles-of-service-marketing-
management-tutorial-310/the-purchase-process-
for-services-10430.html
• https://educatech.in/environment-of-service-
marketing/