This document provides an overview of services marketing. It begins by defining what services are and discusses the key service sectors. It then explains why services marketing is important given the growth of the service economy. The document outlines some of the key characteristics of services compared to goods, such as intangibility, inconsistency, perishability, and the simultaneous production and consumption of services. It also discusses the four factors known as the "4 Is" that distinguish services - intangibility, inconsistency, inventory, and inseparability. The document provides examples of different service industries and purchases. It examines the size and growth of various industry sectors. Finally, it discusses some of the challenges involved in services marketing and principles of service experience design.

1. -Rajlaxmi Bhosale

2. Ahsgasdjshdjksksjdklsjkfl;dskfl;sdkfsd;lf;dsf’a;df’sd;f’

3. Introduction to Services
What are services?
What are the service sectors ?
Why services marketing?
Service and Technology
Characteristics of Services Compared to Goods
Services Marketing Mix
Staying Focused on the Customer

4. What is Marketing???
Think about organizations/companies (Google, Trader
Joe’s, The San Jose Chamber of Commerce, World
Wildlife Fund) as well as individuals (politicians,
professional athletes)
 They all do marketing! How and why?

5. Marketing Definition
Marketing consists of activities
designed to generate and facilitate
exchanges intended to satisfy human
or organizational needs or wants

6. Service Sectors
 Trade
 Hospitality
 Transport
 Food & beverage
 Communication
 Social & personal services
 Insurance
 Financial services

7. Services Purchases
 Using a credit card
 Ridding a bus
 Withdrawing money
from ATM
 Booking a cruise
vacation
 Getting a financial
advise
 Enrolling in a college
 Using a library
 Student accommodation
 Fitness club
 Security
 Counseling and career
services
 Internet access
 Food counter
 Entertainment
 Getting a medical check
up
 Watching a movie

8. Service sector in India & US

9. Which Industries Created the Most Jobs?
Jobs created by industry, 2010-2013
Security 24175
Financial
Services
1929 Travel & Hospitality 3416
Human Resources 13925
Consumer
Products &
Services
1890
Business Products &
Services
2774
IT Services 5482 Energy 1822 Health 2600
Food & Beverage 4888 Media 1700 Manufacturing 2300
Retail 3969
Government
Services
1250 Education 275
Logistics &
Transportation
3742 Construction 1168 Environmental Services 236
Telecommunicatio
ns
3500 Real Estate 1138 Computer Hardware 132
Engineering 477 Insurance 971 Advertising & Marketing 700
Software 850
.

10. How Big Is Each Industry Sector?
 Engineering$1.3B
 Education$1.2B
 Computer Hardware$1.2B
 Media$1.1B
 Environmental Services$785M
 Retail$8.4B
 Manufacturing$7.5B

11. How Big Is Each Industry Sector?
Health$21.8B Business Products & Services$18.0B
IT Services$19.3B Real Estate$8.9B
Telecommunications$9.4B Security$3.3B
Construction$10.3B Travel & Hospitality$3.6B
Consumer Products & Services$10.7B Insurance$4.5B
Logistics & Transportation$11.1B Software$6.4B
Human Resources$12.3B Food & Beverage$6.5B
Financial Services$17.2B Government Services$6.5B
Energy$17.5B Advertising & Marketing$7.4B

12. Service sector in India
 Service sector comprises of almost 58 % of
the total GDP
 ITES plays an important role in this increase
with highly skilled & educated work force
with low cost

13. Factors stimulating Service Ind.
Social
Changes
Government
Policies
Business
Trends
Globalization
Advances in
Information
Technology

14. Definition of services
Services are economic activities offered
by one party to another , most
commonly employing time-based
performances to bring about desired
results in the recipients themselves or
in objects or other assets for which
purchasers have responsibility.

15. Definition of services
 Services are deeds, processes &
performances .
 Most authorities consider the service sector
to include all economic activities whose
output is not a physical product or
construction ,is generally consumed at the
same time it is produced and provides
added value in forms (such as convenience
,amusement ,timeliness ,comfort or health)

16. Tangibility Spectrum

17. Why Service Marketing
 Services dominate Indian & worldwide
economies
 Services are growing dramatically
 Service leads to customer retention and
loyalty
 Service leads to profits
 Services help manufacturing companies
differentiate themselves

18. Comparing Goods and Services

19. Why do firms focus on Services?
 Services can provide higher profit margins and growth
potential than products
 Customer satisfaction and loyalty are driven by service
excellence
 Services can be used as a differentiation strategy in
competitive markets

20. Why study Services Marketing?
 Service-based economies
 Service as a business imperative in manufacturing
and IT
 Deregulated industries and professional service
needs
 Services marketing is different
 Service equals profits

21. What is Service? The Old View
 Service is a technical after-sale function that is
provided by the service department.
Old view of service =
Customer Service center Old: Service =wrench time

22. The New View
 Service includes every interaction between any
customer and anyone representing the company,
including:
Dealers
Salespeople
Receptionists
and
Schedulers
Management
and Executives
Service
Employees
Billing and
Accounting
Personnel
Web site and
any e-channel
Interaction

23. Southwest airlines

26. Southwest Airlines: fun and Wi fi

27. Service Can Mean all of These
 Service as a product
 Customer service
 Services as value add for goods
 Service embedded in a tangible product

28. Characteristics of Services
Compared to Goods
Intangibility
Heterogeneity
Perish ability
Simultaneous
Production
and
Consumption

29. 4 Is Of Service Marketing
Intangibility
Inconsistency
Inventory
Inseparability

30. Intangibility
 What this characteristic tells us is that once a service
has been performed; there is nothing to take home. In
essence, services aren’t physical so they can’t be
owned. As services can’t be seen or touched, then
assessing their value can be quite difficult.
 But there is a way around this. Here are a few thoughts
to add the tangibility factor to your service business.

31. How to add the tangibility to your
service?
 Ask for Reviews – Reviews or testimonials give great social
proof to the ability of your services. It shows that a. other people
have used your service and b. their problem was solved by using
your services. There is nothing quite like a testimonial to add
substance to your offering. Encourage reviews and ask for
testimonials from your clients.
 Give Actions – If you provide education or training, make sure
that all students have a format whereby they can take action on
your learnings. Through implementing what you taught or
explained to them, they get a sense of achievement. This leads to
a feeling of accomplishment and when someone accomplishes
something, they feel good about themselves. They start to see
that anything is possible. So you’re adding feelings and sight to
your intangible service.

32. Inconsistency
 What this characteristic informs is that everyone is
different. While you may get the same product every
time you buy it, chances are that it tastes the same,
looks the same or feels the same. It’s not quite the
same with services. Every employee is not the same as
the next person. And even though you may get the
same great person all the time, there is a 1% chance
that they may not be great.
 It’s human nature; most services’ businesses are
people-based and personal performance can vary by
workload, the time of day and just life in general.

33. How to be more consistent when
delivering your service
 Look out for signs of tiredness – Don’t wait for
complaints. If you see an employee is tired, then step
in. This is particularly relevant in a restaurant, hotel or
service based business.
 Customer care training – It is essential to do
regularly and not just at the induction of an employee.
Make sure that all staff are trained on the lifetime
value of a customer and to meet and exceed
expectations. Do refresher courses every month or
quarter.Undertake mystery shopper assessments so
that weaknesses can be identified and improved upon.

34. Inseparability
 This characteristic explains that it is impossible to
distinguish between the service and the server. The
production of the service can’t be separated from its
consumption. A good example is a hair dresser. You
can’t really separate the hair dresser from the
cut/colour/blowdry. Similarly with a lecture, you can’t
separate the lecture from the lecturer.

35. How to help separate your service
from the server
 Use copywriting – Describe in as much emotional
detail what your customer will get or how they will
benefit from using your service. That way, the benefit
of using your service becomes the primary
motivator. Highlight the individuality of each
employee, and what they bring to the service. This
again emphasizes the benefit of or the result of using
your service.

36. Inventory
This characteristic explains the last
difference between products and
services; that services can not be
stored. Unlike warehouses full of
products, service providers can’t
store services for future uses.

37. How to have stock to meet the de
mand of your service
 Be strict with your time – Learn to say no. If you trade
hours or seats or haircuts or medical appointments, then
you need to learn the fine art of saying no. If you’re under-
pressure, then by not saying no, you lend yourself to being
inconsistent (over worked and over stretched), thus leading
to giving a bad experience.
 Monitor demand – When demand fluctuates, it can be a
real challenge to keep your standards up. As a service
provider, you can’t order more of what you provide.
Monitor demand fluctuations in your business, perhaps,
they are seasonal, so take on staff or outsource as necessary.

38. Challenges for Services
 Defining and improving quality
 Ensuring the delivery of consistent quality
 Designing and testing new services
 Communicating and maintaining a consistent image
 Accommodating fluctuating demand
 Motivating and sustaining employee commitment
 Coordinating marketing, operations, and human
resource efforts
 Setting prices
 Finding a balance between standardization versus
customization

39. Business and economic class

40. Examples of Services

41. Examples of Services

42. Examples of Services

43. Examples of Services

44. Examples of Services

45. Thank you!!!

46. Stages Of Economic Development
Preindustrial
Society
Industrial
Society
Post
Industrial
Society

47. The four Realms of an experience
Entertainment
(Movie)
Education
(language)
Estheticism
(Tourist)
Escapism
(Scuba diving )
Passive Active
Absorption
Immersion
Environmental
Relationship
Customer
Participation

48. Sources Of Service Growth
• Push theory of innovation(3M post it
notes )
• Pull theory of innovation(Cash mgmt
ac/ by Merrill Lynch )
Innovation
• Nuclear families
• Two income families
• Eating out ,day care ,time saving
services, recreational activities
Social
Trends

49. Five principles of Service
Experience Design
Theme
Mix in
memor-
abilia
Eliminate
Negative
cues
Engage
all five
senses
Positive
cues

50. O-Hare Chicago Parking
Here are several parking
options at O'Hare
International Airport
ranging from valet service
adjacent to the domestic
terminals to long-
term/economy parking. As
you approach the airport,
signs on the area roadways
will guide you to the
parking lots. Each floor is
painted with distintive
colour and plays a
distinctive music like rock
,classical etc.
Impressions with Positive Cues

51. O-Hare Chicago Parking
Short-Term Parking
The Main Parking Lot at O'Hare
International Airport is
recommended for parking of short
duration (less than three hours) or
daily parking when close access to
the terminals is preferred.

52. Valet Parking
Would you like your car to be waiting for you? Valet
parking is available in the main parking garage.

53. Economy Lots-Long-Term Parking
Long Term Parking (Economy)
Economy Lots E, F and G are recommended for long-
term parking. These lots offer the least expensive
parking rates and provide free transportation to the
terminals.

54. International Lot
International Parking Lot D
Use the International Parking Lot D for all passengers
arriving from or departing to many international
destinations.

55. Forum Shops –Las Vegas
Theme the experience

56. Cinemark Theatre Eliminate Negative cues
You would find
talking trash
container which
say “Thank you
when you throw
the trash!!

57. Club Med.
Mix in Memorabilia

58. Rainforest Café
Engage all five senses

59. Rainforest Café

60. Assignment-1
Form groups of 5 each
Take any one service industry and
explain the Service experience
design of it.
Be innovative……That’s the way to
be business….

61. Thank you!!!