This document provides an overview of services and service marketing presented by a group consisting of Satish, Ashish, Aayush, Sapan, and Chhitiz. It defines services, lists examples, and discusses the contributions of services to the world economy. It also outlines the key characteristics of services, differences between services and goods, elements of the service marketing mix including the traditional and extended "7Ps", and challenges faced by service marketers.

1. A Group Presentation on
Chapter 1
Service Providers

2. Group Members
Satish Ashish Aayush
Sapan
Chhitiz

3. Introduction
 Any act or performance that one party can offer to
another that is essentially intangible and does not
result in ownership of anything.
 E.g. if we subscribe NTC Internet we don’t become its
owner we just use the service.
 “ Service are deeds, process and performances. ”

4. Examples of Services
 Professional service- accounting, legal
authorities, architecture
 Health care- hospital, eye care, dentistry
 Financial services-
banking, insurance, advising, brokerage
fires
 Hospitality services- restaurant, hotels
 Travel services- airlines, buses, agencies
 Other services-
electrician, plumbing, health
club, counseling services

5. Service - Contribution In World
Economy
Sector World economy Nepal (2010)
(2004)
Agriculture 4% 35%
Industry 32% 16%
Services 62% 49%

6. Service - Contribution In World
Economy

7. Service - Contribution In World
Economy

8. Characteristics of Services
 Intangibility
 Heterogeneity
 Simultaneous production and consumption
 Perishability

9. Differences Between Services And Goods
Goods Services
Goods are tangible. Services are intangible.
Goods are homogeneous. Services are heterogeneity.
Goods are non perishable. Services are perishable.
In case of goods, the consumption In case of services, production ,
consumption and distribution goes
simultaneously,
Trade marks/ Patent rights can be No such rights are there in services.
gained in goods.
Brand loyalty can be found in case of Brand loyalty cannot be found in case
goods, of services.

10. Differences Between Services And Goods
Goods Services
Standard can be setup in goods, It is difficult to set up the standard in
services.
Demand and supply for the goods can In services, the firm cannot match
be in equilibrium. demand and supply.;
Goods are measured in terms of Services are measured in terms of
quantity. quality.
Goods can be stored for consumption Services cannot be
in future. stored/inventoried for future
The pricing of goods is easier due to As actual cost of production is hard
availability about actual cost of to determine, the pricing is difficult
production of goods. in services.

11. Service Marketing Mix
 Compilation of different factors that helps in selling a
product.
Service
Marketing Mix
Traditional Extended
Price Promotional People Process
Product Place Physical
evidence

12. Traditional “4” P’s
Product Price Promotion Place
• Physical good • Flexibility • Promotion on • Channel type
features • Price level blend • Exposure
• Accessories • Terms • Sales people • Intermediately
• Packing • Differentiation • Adverting • Outlet
• Branding • Allowances • Sales location
• Product lines • discount promotion • Transportation
• durability • publicity • storage

13. Extended “3” P’s
Physical
People Process
evidence
• People • Signage • Flow of activates
• Equipment • Number of steps
• Employee dress • Level of customer
• Customer Employees involvement
• Other tangible
• Communicating
cultures and
values
• research

14. Challenges of Service Marketers
 How would you define and improve service quality- exact definition not there
Eg. Services provided by a dentist is difficult to define. Likewise, it is difficult to
compare services provided by two different doctors.
 How would you design new service and how can one test when it is not there.
Eg. The high price at KFC might not attract general income earners although it is a
multinational company.
 One can’t store and one cant always match demand and supply and bring it in
equilibrium
 How can one set up price when it is difficult to determine the actual cost of
production
Eg. It takes years and years, huge amount of money to be a dentist. If the dentist
charges Rs.5000 to his/her patients, then people might not visit him/her
because it is too expensive. But for dentist, it might be a fair price as he/she has
completed dentistry devoting his/her time and huge amount of money.

15. Challenges of Service Marketers
 Service can’t be patented
 One cannot communicate your service
 It is always difficult to motivate and select right worker
 How would you set up standard
 One cannot expect services to be good all time

16. Service Marketing Triangle
Company
Internal Marketing External Marketing
“Enable The
“Setting Promise”
Promise”
Employee Customer
Interactive Marketing
“ Deliver The Promise ”

17. Company
Employee Customer

18. Cycle Chain
Employee Satisfaction
Customer Satisfaction
Profit

19. Service Profit Chain
Employee Satisfaction
Employees retention Employees productivity
External Service Value
Customer Satisfaction
Gain Loyalty
Revenue growth Profit