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Services Marketing
By Himanshu Upadhyay
MBA/BBA-Specialization
MBM3/BBM2
Why Service Marketing?
1. Service Based Economies
-Developed in response to the tremendous
growth of service industries, resulting
in their increased importance to the U.S.
and world economies.
-In 2003 the service sector represented just
over 80% of total employment.
Why Service Marketing? Cont..
-Trade in service is growing worldwide.
-American Express, McDonald’s, and
Marriott Hotels, together with many small
service companies, are exporting
information, knowledge, creativity, and
technology that the world badly needs.
Why Service Marketing? Cont..
2. Service as a Business Imperative in
Manufacturing and IT
-As banking, transportation, and health
care industries evolve and become more
competitive, the need for effective services
management and marketing strategies
continues.
Why Service Marketing? Cont..
-Manufacturing and technology industries
such as automobiles, computers, and
software are also recognizing the need to
provide quality service and revenue
producing service in order to compete
world-wide.
-Example: General Electric and IBM
Why Service Marketing? Cont..
3. Deregulated Industries and Professional
Service Needs
-Specific demand for service marketing
concepts has come from the deregulated
industries and professional services.
-Large service industries, including
airlines, banking, telecommunications have
been deregulated by the U.S. government.
Why Service Marketing? Cont..
-Professionals like physicians, lawyers,
accountants, engineers and architects have
also demanded new concepts and
approaches for their business as these
industries have become increasingly
competitive.
Why Service Marketing? Cont..
4. Service Marketing is Different
5. Service Equals Profits
-Through the 1980s and early 1990s many
firms jumped on the service bandwagon,
investing in service initiatives and
promoting service quality as ways to
differentiate themselves and create
competitive advantage.
Why Service Marketing? Cont..
-Investments were based on faith and
intuition by managers who believed in
serving customers well and who believed
in their hearts that quality service made
good business sense.
Why Service Marketing? Cont..
-Marketing Science Institute suggest that
corporate strategies focused on customer
satisfaction, revenue generation, and
service quality may actually be more
profitable than cost cutting strategies.

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Services marketing hu-unit-1-part-2

  • 1. Services Marketing By Himanshu Upadhyay MBA/BBA-Specialization MBM3/BBM2
  • 2. Why Service Marketing? 1. Service Based Economies -Developed in response to the tremendous growth of service industries, resulting in their increased importance to the U.S. and world economies. -In 2003 the service sector represented just over 80% of total employment.
  • 3. Why Service Marketing? Cont.. -Trade in service is growing worldwide. -American Express, McDonald’s, and Marriott Hotels, together with many small service companies, are exporting information, knowledge, creativity, and technology that the world badly needs.
  • 4.
  • 5. Why Service Marketing? Cont.. 2. Service as a Business Imperative in Manufacturing and IT -As banking, transportation, and health care industries evolve and become more competitive, the need for effective services management and marketing strategies continues.
  • 6. Why Service Marketing? Cont.. -Manufacturing and technology industries such as automobiles, computers, and software are also recognizing the need to provide quality service and revenue producing service in order to compete world-wide. -Example: General Electric and IBM
  • 7. Why Service Marketing? Cont.. 3. Deregulated Industries and Professional Service Needs -Specific demand for service marketing concepts has come from the deregulated industries and professional services. -Large service industries, including airlines, banking, telecommunications have been deregulated by the U.S. government.
  • 8. Why Service Marketing? Cont.. -Professionals like physicians, lawyers, accountants, engineers and architects have also demanded new concepts and approaches for their business as these industries have become increasingly competitive.
  • 9. Why Service Marketing? Cont.. 4. Service Marketing is Different 5. Service Equals Profits -Through the 1980s and early 1990s many firms jumped on the service bandwagon, investing in service initiatives and promoting service quality as ways to differentiate themselves and create competitive advantage.
  • 10. Why Service Marketing? Cont.. -Investments were based on faith and intuition by managers who believed in serving customers well and who believed in their hearts that quality service made good business sense.
  • 11. Why Service Marketing? Cont.. -Marketing Science Institute suggest that corporate strategies focused on customer satisfaction, revenue generation, and service quality may actually be more profitable than cost cutting strategies.