Marketing in Banking & Insurance

Introduction to services and service

industry

What are services?

Comparative analysis: Product and
service
Characteristics of services
Why market services?
Contribution of services marketing
Services in developing countries
Classification of services
Concept in services marketing
 Marketing in Banking & Insurance

What are services?

• Services are activities, benefits or satisfaction which
are offered for sale, and are provided in connection
with the sale of goods – AMA

• Service is action of an organization that maintains

and improves the well being and functioning of
people

• E.g.:
Personal services - dentists, lawyers, etc
Wider aspect- airline service, hotel services.
construction services etc
 Marketing in Banking & Insurance

Comparative analysis: Product and

service
• Tangibility

• Transferability (Physical transfer)

• Existence

• Heterogeneity

• Reselling
 Marketing in Banking & Insurance

Characteristics of services

• Intangibility
• Perishability
• Inseparability/simultaneity (of creation and
delivery)
• Heterogeneity (Quality aspect)
• Ownership/Resell
• Quality measurement
• Nature of Demand (by season, by time – e.g.
peak hours)
 Marketing in Banking & Insurance

Why market services?

• Higher disposable income

• Increasing specialisation
• Growing fashion/fashion consciousness
• Professionalism in fields (E.g. education)
• Information explosion
• Increased sophistication/civilised lifestyles
• Government activities – cultural exchange
policies, trade policies, global partnerships etc
 Marketing in Banking & Insurance

Contribution of services marketing

• Creation and expansion of job opportunities

• Optimum utilisation of resources

• Accelerates capital formation

• Increases standard of living

• Investment in R & D – better technology,

increased speed, better efficiency, meeting
increased supply, up to date MIS
 Marketing in Banking & Insurance

Services in developing countries

• Huge untapped potential

• Basic services- healthcare, education not
developed
• Quality of services- low
• No service delivery standards set
• Lack of market research
• Need for government intervention
• Proper channels to human, financial and
intellectual resources needed
• Potential to contribute to country’s GDP and
economic development
 Marketing in Banking & Insurance

Classification of services

• Business and professional services – banking,

insurance, accountancy, medicine, lawyers,
advocates
• Infrastructural services – roads, railways,
motor transport, power, oil
• Public services – police, defence
• Trade services – wholesale & retail
• Personal services – education, medical,
gymnasiums, hotels, spas
• Individual & group services – beauty parlours,
medical, coaching classes (education)
 Marketing in Banking & Insurance

Concepts in services marketing

Service Firm

Employees Customers
• Internal marketing – directed towards employees

• External marketing - directed towards consumers

• Moment of truth
Marketing in Banking & Insurance