This document discusses services and service marketing. It defines what a service is, noting that a service is intangible and does not result in ownership. It categorizes economic activities into primary, secondary, and tertiary, with services falling under tertiary activities. The characteristics of services include intangibility, inseparability, variability, and perishability. The growth of the service industry is attributed to increasing affluence, more leisure time, higher percentage of women in the workforce, greater life expectancy, and increasing complexity of products and life. The marketing mix for services includes product, price, place, promotion, people, physical evidence, process, and service quality.

1. SERVICE MARKETING
Deep J. Gurung
Assistant Professor
Department of Commerce
CHRIST (Deemed to be University)
Main Campus, Bengaluru

2. Any act or performance one party offers
to another which is intangible and does
not result in ownership of anything.
WHAT IS SERVICE?

3. Economists have divided all industrial and
economic activities into three main groups:
primary, secondary, and tertiary.
Primary activities include agriculture, fishing
and forestry.
Secondary activities cover manufacturing and
construction
Tertiary activities refer to the services and
distribution.
HERE IS THE STORY

4. USA
African and many Asian
countries
India
IS THE STORY SAME?

5. SERVICE MIX

7.  HYBRID

8. MAJOR SERVICE WITH minor
goods

10.  Intangibility
 Implications:
 Difficulty in sampling, judge quality and value in advance.
 Solutions: Physical evidence
 Inseparability (or simultaneous production and
consumption)
 Implications:
 Requires presence of producer/performer. Limited scale of
operations
 Solutions: Increase number of trained service provider
CHARACTERISTICS OF SERVICES

11. Variability (or heterogeneity)
Implications: Difficulty to standardize quality
Solution: Careful selection & training of personnel,
standardize procedure, automation of operations
Perishability
Implications: Cannot be stored
Solutions: Match supply & demand
**Source: Cowell, Donald, ‘The Marketing of Services’.
Heinemann, London.

12. Increasing affluence:
Greater demand for services (activities which
consumers used to perform themselves) such as
interior decoration, laundry, care of household
products such as carpets, care of garden etc.
More leisure time:
Greater demand for recreation and entertainment
facilities, travel resorts, and self-improvement
courses.
REASONS OF GROWTH IN SERVICE
INDUSTRY

13. Higher percentage of women in labour
force:
Greater demand for crèches, baby sitting,
household domestic help
Greater life expectancy:
Greater demand for nursing homes and health
care services

14. Greater Complexity of products:
Increased demand for skilled specialists to
provide maintenance for complex products
such as air conditioners, cars, home
computers.
Increasing complexity of life:
Increased demand for specialists in income-
tax, labor laws, legal affairs, marriage
counselling, employment services.

15. Increasing number of new products:
The computer-sparked development of such service
industries as programming, repair and time sharing.
Greater concern about ecology and resource
scarcity:
Greater demand for purchased or leased services, car
rental, travel, resort to time sharing rather than
ownership basis.

16. evidence

17. MARKETING MIX OF SERVICE

18. A service is a bundle of features and
benefits that can have relevance for a
specific target market
CORE: What customers are really buying?
PRODUCT

19. Auxiliary/ Periphery/ Facilitating Service:
The services required to provide the core service
meaningfully
Bed with bed sheet, Lighting, Bathroom etc.
Supporting Services:
Does not facilitate the consumption of core service
but increase the value of core services.
Cleanliness, Ambience, Help desk etc.

20. Augmented Services:
Services to exceed the customer’s
expectation and have leverage in
competition
Courteous staff, complementary services
etc.

21. PERISHABILITY of the product
Differential Pricing
PRICING

22. INSEPERABILITY
Direct sales
Limited intermediaries
PLACE/ PHYSICAL DISTRIBUTION

23. Encourage the consumption:
Package, discounts etc.
Encourage the employees: Enhance
feedback etc.
PROMOTION

24.  All human actors who play a part in service delivery
and thus influence the buyer’s perceptions; namely,
the firm’s personnel, the customer, and other
customers in the service environment
 Training
 Commitment
 Incentives
 Appearance
 Inter-personal behaviour
 Attitudes
 Degree of involvement
PEOPLE

25. The environment in which the service is
delivered and where the firm and customer
interact, and any tangible components that
facilitate performance or communication of
the service.
Environment
Furnishings
Colour
Layout
Facilitating goods
Tangible clues
PHYSICAL EVIDENCE

26. PROCESS

28. The actual procedures, mechanisms and flow
of activities by which the service is delivered –
the service delivery and operating system
Polices
Procedures
Mechanisation
Employee
Customer involvement
Flow of activities
**Source: Booms, B.H. and Bitner, M.J, Marketing Strategies and
Organisation Structure for Services Firms, in Donnelly J and George W.R.
(eds), Marketing of Services, AMA, 1981

29. SERVICE QUALITY
* * S O U R C E : B e r r y, P a r s u r a m a n & Z e i t h a m l