1. The document discusses different approaches to classifying services, including seller-related, buyer-related, and service-related methods. 2. Key economists like Eiglier and Langeard, Gronroos, and Shostack contributed conceptual approaches to defining services based on their intangible nature, simultaneous production and consumption, and customer participation. 3. Gronroos developed a model dividing service organizations into visible and invisible parts interacting with customers. Shostack identified four categories to classify services based on tangibility of goods and services provided.

1. What are
Services?
Chapter # 2
contd
Unit no 2.34 to end 1

2. Marketing Approaches
to Services:
Definition Of Services
Characteristics Of
Services
Classification Of
Services
Functional Differences
Unit no 2.34 to end 2

3. Classification of Services:
Different methods to classify
services:
Sellerrelated method
Buyer related method
Service related method
Unit no 2.34 to end 3

4. A. Seller related
method
Services are to be sold by
private or public sector or
for commercial sector or for
non profit concern.
Unit no 2.34 to end 4

5. Service
Industry Income
Communication Source
Consulting From market
Education From donations
Financial From tax
Health &
Insurance
Unit no 2.34 to end 5

6. B.. Buyer related
method:
It is related with markets either
consumer or industrial. The way
service is bought depends upon
the
convenience,shopping,speciality
or unsought service or for the
motive to make purchase only.
Unit no 2.34 to end 6

7. Market Type of Motives
Industry service Intangible,
Consumer Convenience mental and
Industrial service emotional
Shopping depend upon
Govt
service nature of
Agriculture Specialty
service
service.
Unsought
service
Unit no 2.34 to end 7

8. We can also classify
services on the basis of their
functions and their source of
income that from where they
are earning from market
sources or from donations.
Unit no 2.34 to end 8

9. C.. Service related
method:
According to Swan and Pruden:
Service is a mean to an end or an
expressive form that is an end in itself.
These are human based or equipment
based or may involve high levels of
personal contact or low levels of personal
contact.
Unit no 2.34 to end 9

10. Mode of
Service service
Form Nature of High level
Service of personal
Uniform Humanly contact
services based
Low level
Bespoke Machine of personal
service based contact
Unit no 2.34 to end 10

11. Summary of above
classification:
a. Variation in customer behavior cannot
determine the classification of service.
b. Rational and emotional motives can
change the nature and status of service.
Like low urgency or high urgency.
c. Consumer attitude is different in
measuring service either for general use
or for organization’s use.
Unit no 2.34 to end 11

12. 1. Functional Approach to
redefine Services
2. Conceptual Approaches
Unit no 2.34 to end 12

13. A. Functional Approach
to redefine Services
This approach depends upon the relationship
between the product marketing and service
marketing:
1. Services cannot be stocked
2. Lack of patents for services which
reduces the size of distribution.
3. No Precise standards.
4. Services lack use of package.
Unit no 2.34 to end 13

14. CONTD..
5. Services lack use of package.
6. Can’t be sampled.
7. Intangible nature can’t
maintain balance between
demand and supply.
8. No possession to the service
used .
Unit no 2.34 to end 14

15. Problem with this
approach confines
the definition of
services so once
again economist
need to work on it
further.
Unit no 2.34 to end 15

16. B. Conceptual Approach
to redefine Services
Following Economists contributed for
understanding the above mentioned
criteria:
 Eiglier and Langeard
 Gronroos
 Shostack
Unit no 2.34 to end 16

17. 1. Eiglier and Langeard:
They worked on THREE fundamental
aspects of Characteristics of services:
Intangibility
Direct Organization----------
client/customer relationship
Consumer participation in
production process.
Unit no 2.34 to end 17

18. They further give their comments on
the above conditions depending upon
the following factors:
1. Dependent upon enterprise
2. Dependent upon client
3. From public feedback
Unit no 2.34 to end 18

19. Have a LOOK
ON
Experimental Anal
Ana
Unit no 2.34 to end 19

20. 2. Gronroos:
He also narrated services as a combination
of three fundamentals :
 Intangibility
 A service is a pure activity
rather than a thing
 Production and
consumption are to some
extent simultaneous
activities. .
Unit no 2.34 to end 20

21. He defined services on the basis
of their functions in the market. He
further narrated that the service
organization has two
marketing Functions:
1.The traditional marketing
function--------- Buyer Seller
Relationship
2. The interactive marketing
Unit no 2.34 to end 21

22. He worked on the
framework of Eiglier and
Langeard and developed a
model which divides
service organization into
TWO parts:
Unit no 2.34 to end 22

23. SERVICE ORGANIZATION
Visible Part Invisible Part All types
of
Internal Physical i nteractive
Organization services
Envt
System
Contact with
Personnel
Unit no 2.34 to end 23

24. Invisible part to the customer is the
internal envt of the firm which consist of
physical strength and mangt support to
the people working with customer.
Visible part consists of THREE main
resources:
• The physical envt where the services is
consumed
• The contact personnel
• Consumer who takes part in the production
Unit no 2.34 to end 24
process.

25. Gronroos developed the
above model and Suggest
FIVE variable which
ensures that interactive
marketing functions are
handled by customer
orientation.
Unit no 2.34 to end 25

26. The variables are:
1. Service concept
2. Auxiliary services
3. Accessibility of the service
4. Interactive personnel
/customer communication
5. Consumer Influence
Unit no 2.34 to end 26

27. Conclusion:
Interactive marketing
and traditional
marketing function play a
vital role in purchasing
and consumption process.
Unit no 2.34 to end 27

28. 3. Shostack:
She worked on following aspects:
 Intangibility as fundamental
characteristic of services.
 Marketing is that an
organization is offering to the
marketplace which consists of
goods, services or both.
Unit no 2.34 to end 28

29. Four categories
To identify the status of services more:
1. A pure tangible can’t be a service.
An offer which consists of a good with no
explicit service but the target is to sale
good so services are minimized in this
situation.
2. A tangible good with accompanying
services.
Unit no 2.34 to end 29

30. CONTD Four categories
To identify the status of services more:
3. A service with accompanying
goods and services. The object of
sales is intangible.
4. A pure service.
Unit no 2.34 to end 30

31. Conclusion:
She suggests that marketing items
are combination of discrete
elements tangible and intangible
and the above mentioned
categories link the attributes of
“pure service” with “pure product”
in service economy.
Unit no 2.34 to end 31

32. Limitations of Services:
After discussing all the aspects of
services we can make favors with
Marshall Opinion that both
manufacturers and traders
produced utilities whether they
were formed from tangible or
intangible components.
Unit no 2.34 to end 32

33. From Marketing POINT OF
VIEW:
Both goods and services provide
benefits and satisfaction which
summarize that goods and services are
products.
Unit no 2.34 to end 33

34. •Limited concept states that product
is a set of tangible and intangible,
physical and chemical attributes
assembled in a particular form.
•Broader concept states that a
product is a set of tangible and
intangible attributes which buyer may
accept as offering satisfaction of needs
and wants. Unit no 2.34 to end 34

35. AS A RESULT :
Every
product has
intangible
Unit no 2.34 to end 35

36. Time FOR
ANOTHER
ASSIGNMENT!!!
Unit no 2.34 to end 36