This slide is on Marketing of Services

1. SERVICE MARKETING
Deep J. Gurung
Assistant Professor
Department of Commerce
CHRIST (Deemed to be University)
Main Campus, Bengaluru

2. Any act or performance one party offers
to another which is intangible and does
not result in ownership of anything.
WHAT IS SERVICE?

3. Economists have divided all industrial and
economic activities into three main groups:
primary, secondary, and tertiary.
Primary activities include agriculture, fishing
and forestry.
Secondary activities cover manufacturing and
construction
Tertiary activities refer to the services and
distribution.
HERE IS THE STORY

4. USA
African and many Asian
countries
India
IS THE STORY SAME?

5. SERVICE MIX

7.  HYBRID

8. MAJOR SERVICE WITH minor
goods

10.  Intangibility
 Implications:
 Difficulty in sampling, judge quality and value in advance.
 Solutions: Physical evidence
 Inseparability (or simultaneous production and
consumption)
 Implications:
 Requires presence of producer/performer. Limited scale of
operations
 Solutions: Increase number of trained service provider
CHARACTERISTICS OF SERVICES

11. Variability (or heterogeneity)
Implications: Difficulty to standardize quality
Solution: Careful selection & training of personnel,
standardize procedure, automation of operations
Perishability
Implications: Cannot be stored
Solutions: Match supply & demand
**Source: Cowell, Donald, ‘The Marketing of Services’.
Heinemann, London.

12. Increasing affluence:
Greater demand for services (activities which
consumers used to perform themselves) such as
interior decoration, laundry, care of household
products such as carpets, care of garden etc.
More leisure time:
Greater demand for recreation and entertainment
facilities, travel resorts, and self-improvement
courses.
REASONS OF GROWTH IN SERVICE
INDUSTRY

13. Higher percentage of women in labour
force:
Greater demand for crèches, baby sitting,
household domestic help
Greater life expectancy:
Greater demand for nursing homes and health
care services

14. Greater Complexity of products:
Increased demand for skilled specialists to
provide maintenance for complex products
such as air conditioners, cars, home
computers.
Increasing complexity of life:
Increased demand for specialists in income-
tax, labor laws, legal affairs, marriage
counselling, employment services.

15. Increasing number of new products:
The computer-sparked development of such service
industries as programming, repair and time sharing.
Greater concern about ecology and resource
scarcity:
Greater demand for purchased or leased services, car
rental, travel, resort to time sharing rather than
ownership basis.

16. evidence

17. MARKETING MIX OF SERVICE

18. A service is a bundle of features and
benefits that can have relevance for a
specific target market
CORE: What customers are really buying?
PRODUCT

19. Auxiliary/ Periphery/ Facilitating Service:
The services required to provide the core service
meaningfully
Bed with bed sheet, Lighting, Bathroom etc.
Supporting Services:
Does not facilitate the consumption of core service
but increase the value of core services.
Cleanliness, Ambience, Help desk etc.

20. Augmented Services:
Services to exceed the customer’s
expectation and have leverage in
competition
Courteous staff, complementary services
etc.

21. PERISHABILITY of the product
Differential Pricing
PRICING

22. INSEPERABILITY
Direct sales
Limited intermediaries
PLACE/ PHYSICAL DISTRIBUTION

23. Encourage the consumption:
Package, discounts etc.
Encourage the employees: Enhance
feedback etc.
PROMOTION

24.  All human actors who play a part in service delivery
and thus influence the buyer’s perceptions; namely,
the firm’s personnel, the customer, and other
customers in the service environment
 Training
 Commitment
 Incentives
 Appearance
 Inter-personal behaviour
 Attitudes
 Degree of involvement
PEOPLE

25. The environment in which the service is
delivered and where the firm and customer
interact, and any tangible components that
facilitate performance or communication of
the service.
Environment
Furnishings
Colour
Layout
Facilitating goods
Tangible clues
PHYSICAL EVIDENCE

26. PROCESS

28. The actual procedures, mechanisms and flow
of activities by which the service is delivered –
the service delivery and operating system
Polices
Procedures
Mechanisation
Employee
Customer involvement
Flow of activities
**Source: Booms, B.H. and Bitner, M.J, Marketing Strategies and
Organisation Structure for Services Firms, in Donnelly J and George W.R.
(eds), Marketing of Services, AMA, 1981

29. SERVICE QUALITY
* * S O U R C E : B e r r y, P a r s u r a m a n & Z e i t h a m l