This document discusses the marketing of services. It provides definitions and a brief history of services. Some key points made: - Adam Smith distinguished between productive labor that created goods and unproductive labor that created services. - Early economists like Say and Marshall referred to services as "immaterial products". - Modern definitions of services include deeds, processes, or performances provided by one entity to another and economic activities with intangible, perishable outputs. - Services marketing manages customer relationships and communicates value to benefit the organization. - Services are important as they help maintain relationships, customer satisfaction, contribute to economies, and generate employment.

1. MARKETING
OF
SERVICES
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Dr. Amitabh Mishra

2. Few Services-
• Banking
• Transportation
• Education
• Communication
• Entertainment
• Information technology
• Electricity
• Hospitals
• Etc.
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Dr. Amitabh Mishra

3. • All human being are service producer as well as service
consumer
• The concept of service is as old as humankind and begun
when humankind started serving himself (self serving).
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Dr. Amitabh Mishra

4. Services: Historical Perspective
 Attempt to describe services
go back more than 2
centuries.
 The first reference appear in
Adam Smith's work, The
Wealth of Nations (1776).
Dr. Amitabh Mishra

5.  Adam Smith distinguished between the outputs of what
he termed-
 "Productive" labor and
 "Unproductive" labor.
 The Productive labor, produced goods that could be
stored after production and subsequently exchanged for
money or other items of value.
 But Unproductive labor, however "honourable, ...useful,
or... necessary" created services that perished at the time
of production and therefore didn't contribute to wealth.
Dr. Amitabh Mishra

6.  Jean-Baptiste Say (French economist) coining the term
"immaterial products". He argued that production and
consumption were inseparable in services.
 Alfred Marshall (1920) was using the idea that services
"are immaterial products."
 John Stuart Mill (19th century) wrote that - services are
"utilities not fixed or embodied in any object, but
consisting of a mere service rendered ...without leaving a
permanent acquisition."
Dr. Amitabh Mishra

7. DEFINITION OF SERVICES
In simple terms-
“Services are deed, process and performances
provided by or co-produced by one entity or
person for other entity or person”
(Zeithmal & Jo Bitner)
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Dr. Amitabh Mishra

8. • Broader definition of services mention-
“All economic activities whose output is not a
physical product or construction, is generally
consumed at time it is produced, and provide added
value in forms (such as convenience, amusement,
timeliness, comfort or health) that are essentially
intangible concerns of its first purchaser.”
(Zeithmal & Jo Bitner)
Dr. Amitabh Mishra

9. “A service is an act or performance offered by one
party to another. Although the process may be tied
to a physical product, the performance is
transitory, often intangible in nature and does not
normally result in ownership of any factor of
production”.
(Christopher Lovelock)
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Dr. Amitabh Mishra

10. Services Marketing
Services Marketing is-
“an organisational function and a set of processes for
identifying or creating, communicating, and
delivering value to customers and for managing
customer relationship in a way that benefit the
organisation and stake-holders.
American Marketing Association
Dr. Amitabh Mishra

11. Significances/ Importance
of
Services
Dr. Amitabh Mishra

12. 1. All human being are service producer as well as
service consumer.
2. The concept of service is as old as humankind and
begun when humankind started serving himself
(self serving).
3. Due to the increasing homogeneity in product
offerings, the attached services are becoming as a
key differentiator.
Dr. Amitabh Mishra

13.  Services help in maintaining long term relationship
with the customers.
 Services help in Customer Retention and Customer
Satisfaction.
 Services contribute in the economy of country and
world.
 Services contribute in job creation and employment
generation.
Dr. Amitabh Mishra

14. DISCUSSION
Marketing of Services
and
Marketing through Services
Lovelock-15
Dr. Amitabh Mishra