The powerpoint presentation describes about the Services as a whole and the importance of Marketing in services.

1. Importance of Marketing in
Service Industry
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Shiv S Tripathi
Assistant Professor
Calcutta Business School

2. Service
A Service is something that is essentially
intangible, and does not result into
ownership of anything.
It may or may not have an element of product.
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3. Service Tangibility Spectrum
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4. Qualities of Services
• Intangible
• Inseparable
• Variable
• Perishable
• Autonomy
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5. Services Sector includes
• IT & ITES
• Education
• Trade
• Financial Services (BFSI)
• Media
• Hospitality
• Tourism
• Transportation & Warehousing
• Public Utilities
• Real Estate & Lease
• Public Administration & Defence
• Professional Services like legal, accountancy, audit, consulting etc.
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6. Share of different services categories in GDP
SST/ IMSS/25-01-2013/Jamshedpur 6

7. Services GDP vs. Overall GDP Growth Rate
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Source: Economic Survey 2011-12

8. State-wise growth of Services sector in
2009-10
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Source: Economic Survey 2011-12

9. Evaluation of Alternatives by a
Customer
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Most
Goods
Most
Services

10. The Service Ps
• People
• Process
• Physical Evidence
Are added to the basic 4 Ps of Marketing i.e.
Product
Price
Promotion and
Physical Distribution
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11. Importance of Marketing in Services
Product
• Goods are tangible, services are intangible.
• Services impact customers more than goods
do.
• Goods’ features, ingredients, price etc. can be
highlighted while marketing, whereas service
being intangible requires credence factors
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12. Importance of Marketing in Services
Price
• Price of Goods is justified in all cases whereas it is
difficult almost everytime to justify the price of
even the smallest service as there is no standard.
• Price of goods can be increased or decreased and
can be justified by improved features or discounts
whereas if price of a service is reduced it points
out poor quality. Similarly price hikes are very
difficult to justify.
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13. Importance of Marketing in Services
Promotion
• All sorts of mass media can be used for goods
like cars, FMCG products, consumer durables
etc., whereas only specific media can be used
for promoting services.
• Word of mouth publicity (nowadays social
media marketing) is most credible vehicle for
promoting services.
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14. Importance of Marketing in Services
Physical Distribution
• The same goods can be delivered all across
the globe without any variation whereas
services are bound to differ from even shop to
shop
• The service provider needs to audit its
resources and competencies and accordingly
decide about a place
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15. Importance of Marketing in Services
People
• People are not very important in marketing
goods whereas they are most important in
services
• Due to the people element there is a
variability in service as everybody can’t have
the same talent/behaviour
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16. Importance of Marketing in Services
Process
• Process of manufacturing, distribution etc is
not important as long as the goods are
working fine. In services the process like
promptness, order/sequence, usefulness,
simplicity etc. are very important to leave a
lasting impression.
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17. Importance of Marketing in Services
Physical Evidence
• Service Quality is often judged or misjudged by
the physical setting of the place where the
service is being provided e.g. transportation,
education, hotels, restaurants etc.
• Still if physical evidence is appealing, people are
good but processes are messy, customers tend to
be dissatisfied. Similarly if physical evidence is
appealing, processes are good, people will make
a difference.
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18. Importance of Marketing in Services
Segmentation
• A broad segment can be selected to market
goods as anybody can purchase them,
whereas services cater to very specific
segments
• E.g. there are specific needs of each segment
of education viz. school, college, university,
whereas a bookseller can cater to everybody’s
needs.
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19. Importance of Marketing in Services
Target Market
• The exact idea of target market is essential
before the launch of any service whereas a
broad idea will do for goods.
• Goods can shift its customers base very easily
but in case of services it is difficult.
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20. Importance of Marketing in Services
Positioning
• Positioning of services depends upon the
people, process, physical evidence and word
of mouth.
• A failed product may still be tried by the
consumers because of other reasons but a
failed service will be tried rarely by them.
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21. THANK YOU
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