2. WHAT IS SERVICES
ā¢ Services include all economic activities whose
output is not a physical product or
construction, is generally consumed at the time
it is produced.
ā¢ SERVICES āServices are activities, benefits or
satisfaction which are offered for sale or
provided in connection with sale of goodsā. -
The American Marketing Association
3. SERVICE MARKETING
ā¢ Selling an experience with
promise of results
ā¢ The promotion of economic
activities offered by a business
to its clients. Service marketing
might include the process of
selling telecommunications,
health treatment, financial etc.,
4. Service sector growing very fast in India The Services Sector contributes the most to the Indian GDP.The
Sector of Services in India has the biggest share in the country's
GDP, it accounts for more than 50% contribution
5. Difference between Goods and Services
Goods Services
A physical commodity A process or activity
Tangible Intangible
Homogenous Heterogeneous
Production and distribution are separation from their
consumption
Production, distribution and consumption are
simultaneous processes
Can be stored Cannot be stored
Transfer of ownership is possible Transfer of ownership is not possible
7. INTANGIBILITY
ā¢ Product is physical, Can be felt ,seen , smelt, tested
ā¢ Service is not tangible till it is experienced or consumed.
ā¢ Different people have different expectations with regard to the same service.
ā¢ Quality of service not strictly measurable
INSEPARABILITY
ā¢ services are generated and consumed within the same time frame
8. VARIABILITY
ā¢ Each service offering is unique and cannot be exactly repeated even by the same service
provider.
ā¢ Youāll experience some change for each time of same services from same provider
PERISHABILITY
ā¢ Services cannot be stored, saved, returned or resold once they have been used.
ā¢ Once rendered to a customer the service is completely consumed and cannot be
delivered to another customer
9. ā¢ Participation of customer
Customer is co-producer in production of services. For delivery customer
involvement is as important as is of the service provider.
ā¢ No ownership
In the sale of services, transfer of ownership not take place. It means to say that
consumer never own the services.
10. BENEFITS OF SERVICE MARKETING
Recurring sales: When service marketing is
focused towards satisfying customersā
needs perfectly, it leads to repeat sales
Reviews and word-of-mouth: A happy
customer is likely to spread word about his
experience to a number of people.
Contribution to economic growth: Service
marketing is especially beneficial for
developing countries.
11. MARKETING MIX
ā¢ The 7 Ps in a Marketing Mix Traditional 4 Ps (as prevalent in manufacturing economy)
1.Product
2. Place
3. Promotion
4. Price
ā¢ Additional 3 Ps (common in service economy to account for the unique service characteristics)
5. People
6. Process
7. Physical Evidence
13. SERVICE
QUALITY
ā¢ Service quality is the delivery of excellent or superior
service relative to customer expectations.
DIMENSIONS OF SERVICE QUALITY
ļ¼Performance,
ļ¼Features,
ļ¼Reliability,
ļ¼Conformance,
ļ¼Durability
ļ¼Serviceability,
ļ¼Aesthetics, and
ļ¼Perceived quality.
14. KEY AREAS OF SERVICE QUALITY COMPONENTS OF KEY AREAS
RELIABILITY Ability to perform the service dependably and accurately
RESPONSIVENESS Willingness to help customers and provides prompt
services
ASSURANCE Employees knowledge and courtesy and their ability to
inspire trust and confidence
EMPATHY Caring, individualized attention given to customers
TANGIBLES Appearance of physical facilities, equipment, personnel
and written materials
16. GAPS DIMENSIONS OF GAPS
1 CONSUMER EXPECTATIONS AND MANAGEMENT PERCEPTION
2 MANAGEMENT PERCEPTION AND SERVICE QUALITY SPECIFICATION ADOPTED
3 SERVICE QUALITY SPECIFICATION AND SERVICE DELIVER
4 SERVICE DELIVER AND EXTERNAL COMMUNICATION TO CUSTOMERS
5 EXPECTED SERVICE AND PERCIEVED SERVICES