This document provides an introduction to services marketing. It defines a service as an act or performance offered by one party to another that is intangible and does not result in ownership. It discusses the growth of the service economy in developing countries like India concentrated in sectors like financial services, health, and education. Key factors contributing to growth of the service sector include government policies, social changes, business trends, advances in technology, and globalization. The nature and scope of services pose different challenges for managers due to services being determined more by the service rendered than products offered. Characteristics of services that impact marketing include intangibility, heterogeneity, simultaneous production and consumption, perishability, and challenges relating to tangibility, relationships and value,

1. SERVICES MARKETING
UNIT – I – INTRODUCTION
SEMESTER – III
MBA – II | VCEW

2. SYLLABUS
UNIT – I – INTRODUCTION
Definition – Service Economy – Evolution and growth of
service sector – Nature and Scope of Services – Unique
characteristics of services - Challenges and issues in
Services Marketing.

3. DEFINITION FOR SERVICE
Service is an act or performance offered by one party to
another that essentially intangible and does not normally
result in ownership of anything. Its product may or may not
be tied the physical product.
– Philip Kotler

4. SERVICE ECONOMY

5. SERVICE ECONOMY
MEANING OF SERVICE ECONOMY
The size of the service sector is increasing in virtually all countries
around the world. In emerging economies, the service output is growing
rapidly and often represents at least half of the GDP. Thus, Service
economy is growing. As a national economy develops, the relative share
of employment between agriculture, industry (including manufacturing
and mining).The service economy in developing countries like India is
mostly concentrated in financial services, health, and education.

6. FACTORS CONTRIBUTING TO THE GROWTH
OF SERVICE SECTOR

7. FACTORS CONTRIBUTING TO THE GROWTH OF
SERVICE SECTOR
 Government Policies
 Social Changes
 Business Trends
 Advances in It
 Internationalisation And Globalization

8. NATURE AND SCOPE OF SERVICES

9. NATURE AND SCOPE OF SERVICES
A service business is one where the perceived value of the
offering to the buyer is determined more by the service
rendered than the product offered. In this way the nature
and scope of services pose different challenges for
managers in service businesses.

10. SCOPE OF SERVICES
Service activities Service as a concept
Customer service A service organization
Service-based activities As a core product
Added value activities As an augmented product
As product support
As an act

11. CHARACTERISTICS OF SERVICE
MARKETING

12. CHARACTERISTICS OF SERVICE MARKETING
1. INTANGIBLE: Services are performance or actions rather than
objects. They cannot be seen, tasted or touched.
E.g. Surgery, Examination
2. HETROGENITY: Since services are performances produced by human
beings, no two services will be alike. (it differs from hour to hour, day
to day) customers are not same
E.g. Tax accountant may provide different service to two customers

13. 3.SIMULTANEOUS PRODUCTION AND CONSUMPTION: Services
are sold first and then produced and consumed
simultaneously.
E.g. In a restaurant the services are sold first and the dinner
experience is produced and consumed at the same time.
4. PERISHABILITY: Services referred to the fact that it cannot
be saved, Stored or returned.
E.g. A seat in an airplane

14. CHALLENGES AND ISSUES IN SERVICE
MARKETING

15. CHALLENGES AND ISSUES IN SERVICE
MARKETING
 Tangibility
 Relationship and Value
 One Versus Many
 Comparing Quality
 Return Factor

16. THANK YOU