SERVICE MARKETING ENVIRONMENT

1. Service marketing Environment
All organizations operate within the marketing
environment. The marketing environment is
made up of two parts:-
1) Macro environment
2) Micro environment
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2. The macro environment represents all the
outside influences which have impact on an
organizations' marketing or business activity.
 It includes economic and political factors and
socio-cultural trends,
for example the external environment influences
will effect all organizations within a sector to a
greater or lesser degree.
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3. The factors to be analysed in the internal
environment will include the following:
Company management structure, Customers,
Suppliers, Channel members, Competitors, Other
publics which may include Government and political
bodies, Pressure groups, financial institutions and
shareholders.
In effect any person or organization which can
influence the company’s marketing activities and
marketing success in way should be included here.
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4. The political legal, economic, social and technological
forces exert the same type of services as they do on
products; however certain environment features have
a greater impact on service.
 These environmental factors are:-
 Political – legal environment
 Economic environment
Socio-cultural environment
Technological environment
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5. Political-legal environment
There is considerable influence of the political-
legal environment on service marketing.
Service industries are often more closely
regulated than most other forms of private
enterprise.
 Many service firms are being subject to
government regulations in addition to the usual
taxes and legislation.
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6. Regulation generally influences service
business in four ways:-
 1) Regulation generally influences the range and type of competition
 2) Regulation reduces the marketer’s array of options and
introduces certain rigidities into the marketing process.
 3) Decision of the regulatory agencies being the binding part of the
marketing decision-making process must be focused at
understanding and predicting those agencies action.
 4) Pressure groups may be established to lobby and effect change
or modify the directions being taken by the regulatory bodies.
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7. ECONOMIC ENVIRONMENT
 In economic environment changing life style, changing
world, changing economies and changing technological
advances and changing consumer needs have contributed
to increase spending on consumer services.
The demographic shift towards an older population in some
countries has resulted in new service demands such as
better healthcare, convenience products etc. in the global
environment, due to cross country cultural issues, trade
barrier (both tariff and non-tariff) tend to become more
restrictive in marketing of services.
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8. Socio-cultural environment
Socio-cultural forces are set factors including life
style, social values and beliefs that affect the
marketing activities of an organization.
These factors have significant impact on the
marketing of services.
The marketers have found the intensive use of
consultants and counselors in their personal
family and working lives.
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9. TECHNOLOGICAL ENVIRONMENT
Technology has influenced our life
styles consumption pattern and our
economic well being tremendously.
 Just think of Internet, World Wide Web
(www), E-commerce, video
conferencing. World has become too
small and boundary less.
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10. PURPOSE OF SERVICE ENVIRONMENT
I. Message-creating medium: symbolic cues to
communicate the distinctive nature and quality of
the service experience.
II. Attention-creating medium: make service
environment stand out from competition and
attract customers from target segments.
III. Effect-creating medium: use colours, textures,
sounds, scents and spatial design to enhance
desired service experience.
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