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What is service ?INTRODUCTION:- SERVICE IS ANY ACT OR PERFORMANCE THAT ONE PARTY CAN OFFER TO ANOTHER THAT IS ESSENTIALLY INTANGIBLE AND DOES NOT RESULT IN ANY OWNERSHIP -PHILIP KOTLER 2
In simple terms Services are the deeds, processes and performances.Contribution to india’s GDP and labour force by sector GDP% (2006-2007) labour (2003)Agriculture 18.5 60Industry 26.6 12Service 54.9 28
As we begin our discussions of service marketing andmanagement, it is important to draw distinction betweenservice industry and company, services asproducts, customer service and derived service.In normal circumstances whenever we talk about servicewe talk about consumer services only but services can bedivided into four distinct categories.
Service industry and companies:- includes those companies and industries typically classified within the service sector whose core product is service. E.g. Taj palace hotels, indian airlines, fortis. Services as products:- represents a wide range of intangible product offerings that customers value and pay for in the market place. E.g. IBM provides information technology consulting services to market place.
Customer service:- customer service is the service provided in support of a company’s core product. Derived service:- the value derived from the service is really the service provided by good not the good itself. For example, pharmaceutical provides medical services, a razor provides barbering services.
Why service marketingService marketing is very important now a days, as in most of the economies whether developed, underdeveloped or developing the service sector is contributing a lot and it is shown by the data belowUnited states: 78.6 Sweden 70.9France : 77.2 Australia 70Netherlands: 73.9 Germany 70United kingdom: 73.4Japan: 73.1
Characteristic of ServiceIntangibilityInseparabilityHeterogeneityPerishabilityOwnership 8
7 P’s OF SERVICE MARKETING PRICE PLACE PRODUCT PROMOTION PHYSICAL EVIDENCE PROCESS PEOPLE 9
People Physical evidence processEmployees Facility design Flow of activitiesRecruiting Equipment StandardizedTraining Signage CustomizedMotivation Employee dress No. of stepsRewards Other tangibles SimplexTeamwork Reports ComplexCustomers Business cards Customer involvementEducation Statementstraining Guarantees
Challenges and questions forservice marketersHow can service quality be defined and improved when the product is intangible andstandardized?How can new services be designed and tested effectively when the service isessentially an intangible process?How can the firm be certain it is communicating a consistent and relevant imagewhen so many elements of the marketing mix communicate to customers and someof these elements are the service providers themselves?How does the firm accommodate fluctuating demand when capacity is fixed and theservice itself is perishable?
How can the firm best motivate and select service employees who, becausethe service is delivered in real time, become a critical part of the productitself?How should prices be set when it is difficult to determine actual costs ofproduction and prices may be inextricably intertwined with perceptions ofquality?How should the firm be organized so that good strategic and tacticaldecisions are made when a decision in any of functional areas of marketing,operations, and human resources may have significant impact on the othertwo areas?
How can the balance between standardization andpersonalization be determined to maximize both the efficiencyof the organization and the satisfaction of its customers?How can the organization protect new service concepts fromcompetitors when services processes cannot be readilypatented?How does the firm communicate quality and value toconsumers when the offering is intangible and cannot bereadily tried or displayed?
How can the organization ensurethe delivery of consistent qualityservice when both theorganization’s employees and thecustomers themselves can affectthe service outcome?