1. Abhishek Singh 12PGP004
Arnab Roy 12PGP011
Bir Bahadur Singh 12PGP014
Harsh Vardhan 12PGP017
Mahesh Kumar 12PGP025
2. What is a Service?
Categories of Service Mix
Characteristics of Services
◦ Marketing Challenges
◦ Marketing Strategies
Seven Ps of Service Marketing.
Gaps in the Service Marketing
Service Marketing as a Differentiating
Strategies
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Raipur 12/6/2012 2
3. A service is any act of performance that one party can offer
another that 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 & Wong
(1999)
All economic activities that create value and provide benefit for
customers at specific times and place as a result of bringing
about a desired change in or on behalf of – the recipient of the
service.
- Christopher Lovelock
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Raipur 12/6/2012 3
4. Objects of transaction offered by firms and institutions that
generally offer services or that consider themselves as a
service organ.
- Gronroos
…services…anything that cannot be dropped on your foot.
- The Economist
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Raipur 12/6/2012 4
5. Service dominates most economies and are
growing rapidly
Services accounts for 64% of world GDP
Most new employment is provided by services
Strongest growth area of marketing
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Raipur 12/6/2012 5
6. Pure tangible good: - Tangible Good
Tangible good with service: - Tangible Good
+ Services
Hybrid: - Tangible Good + Services
Major service with minor goods: - Tangible Good +
Services
Pure service: - Services
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Raipur 12/6/2012 6
7. Search Qualities
◦ Attributes that can be determined prior to
purchase of a product.
Experience Qualities
◦ Attributes that can be determined after
purchase (or during consumption) of a product
Credence Qualities
◦ characteristics that may be impossible to
evaluate even after purchase and consumption
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Raipur 12/6/2012 7
8. Most Most
Goods Services
Easy to evaluate
Difficult to evaluate
High in search High in experienceHigh in credence
qualities qualities Institute of Management
Indian
qualities
Raipur 12/6/2012 8
9. GOODS SERVICES
Tangible Intangible
Standardized Heterogeneous
Production is separate from Simultaneous production and
Consumption consumption
Non perishable Perishable
10. Intangibility
Inseparability
Variability
Perishability
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11. Intangibility: - Services cannot be seen, tasted, heard or
smelled before they are bought.
Example: - A person going for a hair cut can not see the
results before buying the service but he can see the result
after the purchase
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Raipur 12/6/2012 11
12. Services cannot be stored.
Services cannot be patented.
Cannot readily display or communicate services.
Prices are difficult to set.
Stress tangible cues.
Simulate or stimulate word of mouth communications.
Engage in post-purchase communication.
Create strong Organization image.
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Raipur 12/6/2012 12
14. Place
People
Equipment
Communication material
Symbols
Price
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Raipur 12/6/2012 14
15. Inseparability: - Unlike physical tangible goods services
are generally produced and consumed simultaneously and
in case of entertainment and professional services the
specific provider of the service has to be present
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Raipur 12/6/2012 15
16. Consumer involved in production.
Other Consumer involved in production.
Centralized mass production is difficult.
Problem in Market Expansion.
Use multisite communications.
Work in larger group.
Innovative techniques of indirect communication.
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Raipur 12/6/2012 16
17. Mission:- Providing a
high quality education to
anyone, anywhere
Website supplies a free
online collection of more
than 3,600 micro
lectures via video
tutorials
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Raipur 12/6/2012 17
18. SBI has 21000+ ATMs to
facilitate money
transactions. The reach
of ATM is from the
metro to very rural
areas of India.
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Raipur 12/6/2012 18
19. Variability: - Quality of service is variable as it is
dependent on provider of the service, time of providing,
place of providing the service.
Example: - The quality of hair cut depends on the barber’s
skills.
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Raipur 12/6/2012 19
20. Difficult to achieve Standardization.
Customize service.
Industrialize Service
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Raipur 12/6/2012 20
21. •India’s biggest e-
commerce site.
• The website recorded an
average of 4.47 lakh e-
tickets per day
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Raipur 12/6/2012 21
22. McDonald
•McDonald quickly adjusted to
Indian sensibilities and
introduced a tailored menu for
India, adding chicken, lamb and
fish. Today, 70% of McDonald’s
menu is Indianized and McAloo
Tikki burger is their highest
selling product.
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Raipur 12/6/2012 22
23. Perishability: - As services cannot be stored, there is a
chance that the service can be perished when demand
fluctuates.
Example: - A person going for hair cut has to get the hair cut
done in the shop itself.
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Raipur 12/6/2012 23
24. Services cannot be inventoried.
Part time employees
Part time efficiency
Increased Consumer participation.
Differential Pricing
Complementary Services
Reservation System
Non Peak Demand
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Raipur 12/6/2012 24
26. DIFFERENTIAL PRICING RESERVATION SYSTEMS
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Raipur 12/6/2012 26
27. Product
Price
Place
Promotion
People
Process
Physical Evidence
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Raipur 12/6/2012 27
28. People
Physical
Process
Evidence
Extended marketing mix for services
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Raipur 12/6/2012 28
29. PEOPLE PHYSICAL PROCESS
EVIDENCE
Employees Facility design Flow of activities
Customers Equipment Number of steps
Communicating Signage Level of customer
culture and values involvement
Employee research Employee dress
Other tangibles
30. • Travel website Cleartrip has introduced cab bookings for travellers
who can avail the services along with flight bookings.
• It has tied up with Meru Cabs to enable users book cabs to and from
the airport.
• These cabs will be available for booking directly through Cleartrip at
no extra charges only in Mumbai, New Delhi, Bangalore and
Hyderabad.
• Travellers can pay the cab directly at the drop off at the airport.
• The online travel portal recently introduced a one-click booking
facility called Expressway for both online and mobile booking.
• This will allow customers to store their credit, debit and payment
card details in their Cleartrip accounts, so that bookings will happen
fast.
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Raipur 12/6/2012 30
31. Free home visit
Cost estimation, color
consultancy
Professional supervision
Post paint clean up
At least one year warranty
Offers preview of home
painted in different color
schemes and texture
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Raipur 12/6/2012 31
32. Customer Gap Model
Expected
CUSTOMER Service
Customer Perceived
Gap Service
External
Service Delivery Communications
to Customers
COMPANY
GAP 3 GAP 4
GAP 1
Customer-Driven Service
Designs and Standards
GAP 2
Company Perceptions of
Consumer Expectations
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Raipur 12/6/2012 32
33. Customer Gap Model
Customer Gap:
difference between expectations and perceptions
Provider Gap 1(The Knowledge Gap)
not knowing what customers expect
Provider Gap 2(The Service Design & Standard Gap)
not having the right service designs and standards
Provider Gap 3(The Service Performance Gap)
not delivering to service standards
Provider Gap 4(The Communication Gap)
not matching performance to promises
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Raipur 12/6/2012 33
34. Customer Expectation
Inadequate marketing research
GAP
1
Lack of upward communication
Insufficient relationship focus
In adequate service recovery
Company Perception Of
Customer Expectation
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Raipur 12/6/2012 34
35. Customer Driven Service
Design & Standards
Poor service design.
GAP Absence of customer driven
2
standards.
Inappropriate physical
evidence and service gap.
Management Perception Of
Customer Expectation
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Raipur 12/6/2012 35
36. Customer Driven Service
Design & Standards
Deficiencies in human resources
policies.
GAP
3 Customer who do not fill roles.
Problem with service intermediaries.
Failure to match supply and demand.
Service Delivery
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Raipur 12/6/2012 36
37. Service Delivery
Lack of integrated services
marketing communications.
Ineffective management of customer
GAP
4 expectations.
Overpromising
External Communications to
customers
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Raipur 12/6/2012 37
38. General Electric sends out
700,000 response cards a year
asking a households to rate its
service people’s performance.
Citibank aims to answer phone calls
within 10 seconds and customer letters
within 2 days.
HP tries to respond to every e-mails
within an hour and usually within 10
minutes to ensure it meets it service-
quality standards.
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Raipur 12/6/2012 38
39. Top Management Commitment
Organizations such as Marriot, Disney, Xerox, Apollo
Hospitals, Infosys and Wipro have a thorough commitment to service
quality.
McDonalds measures each outlet on its conformance to QSCV:
Quality, Service, Cleanliness and Value. Wal-Mart requires the
following employee pledge “I solemnly swear and declare that every
customer that comes within 10 feet of me, I will smile, look them in
the eye, and greet them”.
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Raipur 12/6/2012 39
40. Customer expects primary service package
Service provider needs to add innovative features
called secondary service features
Primary Secondary
Final
service service
service
package feature
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Raipur 12/6/2012 40
41. Speed of delivery
Pickup packages
from customers’
home
Money back
guarantee
Charge a price
premium for its
services
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Raipur 12/6/2012 41
42. Delivers solely via FedEx and
hence operates across the
nation unlike other stores
Offers a wide range of
products starting from
grocery items, non-
prescription drugs to other
items
Does not charge a
membership fee for its loyalty
program
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Raipur 12/6/2012 42
43. First TV channel to
Create a daytime
lifestyle block in 2010
Celebrate life’s special
moments everyday
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Raipur 12/6/2012 43
44. THANK
YOU
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Raipur 12/6/2012 44
