BANKING INTRODUCTION: The banking sector in India has been widening its scope due to liberalization.

Banks today are not mere suppliers of money. They have become providers of services such as selling insurance, mutual funds, investment opportunities, etc. In the past, the banks did not find any attraction in the Indian Economy because of the low level of economic activities and few business prospects. Today we find positive changes in the National Business Development Policy. The private sector banks failed in serving the society. This resulted in the nationalization of 14 commercial banks in 1969. Nationalization of commercial banks paved the way for the development of Indian economy and canalized financial resources for the upliftment of weaker sections of the society. The involvement of Public Sector banks transformed the Indian economy. It was felt that bankers review their services not only as financial intermediary but also as a pacesetter. Adequate financial resources are required for completing welfare projects. The entrepreneurs need large-scale credit facilities on liberal terms and conditions. Individuals have developed new hopes and aspirations from banks and the rural population and backward regions strongly claim their right for a sound and balanced development. BANKING MARKETING: The banking industry is undergoing a revolution caused by deregulation. This scenario is reflected in the evolution of bank marketing. Banking systems may vary in different parts of the world, the reasons for the variation maybe due to features like social banking, low degree of technological sophistication and cumbersome legal systems. Marketing of banking services is concerned with product, place, distribution, pricing and promotion decisions in the changing socio-economic and business environment. The users of banking services or the prospects play a very significant role in the formulation of overall marketing strategies. The bank marketing activities are concerned with the designing of product strategies keeping in view the needs and requirements of prospects. The causes of Bank Marketing can be seen as:  Rising customer needs and expectations due to improvements in general standard of living.  Entry of foreign and private sector banks in India.  Economic liberalization of Indian economy.  Phenomenal growth of competition due to economic liberalization.  Rise in the Indian middle class with considerable resources.

 Government intervention in protecting the interests of consumers. A comprehensive definition of bank marketing by Deryk Weyer of Barclay’s bank states that: “It consists of identifying the most profitable market now and in future by assessing the present and future needs of the customer. This is done by setting business development goals, making plans to meet them, managing and promoting the various services to achieve these goals. Bank marketing is not just advertising and promotion campaigns but a managerial process by which services are matched with markets. This indicates evolving a suitable marketing strategy which suits the need of the customer.” BANKING STRUCTURE IN INDIA

SOCIO-ECONOMIC FACTORS AFFECTING SAVINGS: The social and economic factors have a far-reaching impact on the behaviour of customers. This is due to the fact that human beings are directly influenced by the socio-economic consideration. SOCIAL FACTORS a) Group of family, b) Family life-cycle, c) Family decisions, and d) Role of opinion leaders. ECONOMIC FACTORS a) b) Disposable income, Price Index,

c) d)

Stages of economic transformation, Global economic co-operation.

MARKET SEGMENTATION In Banking services, the banks are expected to satisfy rural customers, urban customers, and high-earning and low-earning customers, small-scale and largescale entrepreneurs and so on. IMPORTANCE OF SEGMENTATION IN BANKING SERVICES: Since the banks have to deal with different types of customers from different fields and localities, banking services need segmentation. The purchasing power of potential customers is different. In respect of term deposits of different maturities or deposit schemes, the potential customers are required to be influenced. These potential customers may be located in various pockets of urban areas. In the Indian setting, we find the emergence of a wide rural market. Here, it is necessary that the segmentation be done in tune with the changing socio-economic conditions of the rural customers. Thus, market segmentation is important not only from the perspective of expanding the market but also with the motto of satisfying the client. If the marketing decisions of the banks are on the basis of micro-level market segment, only then a fine blend of service and profit elements is possible. MARKETING MIX PRODUCT BANKS PRODUCTS: (A) DEPOSITS: Savings, Current, Fixed etc. (B) ADVANCES: (1) a) b) c) d) e) f) g) a) Fund Oriented: Term Loan, Clean Loan, Bills Discounting, Advances, Pre-shipment Finance, Post-shipment finance, Secured and Unsecured lines of credit. (2) Non-fund oriented:

Guarantees, and b) Letter of Credit.

(C) INTERNATIONAL BANKING: a) Letter of Credit, and b) Foreign Currency. (D) CONSULTANCY: a) Investment Counselling, b) Project Counselling, c) Merchant Banking, and d) Tax Consultancy. (E) a) b) c) d) e) f) MISCELLANEOUS: Traveller Cheques, Credit card, Remittances, Collections, Sale of Drafts, Standing instructions, and g) Trusteeship. In the banking the products are services. Services cannot be seen or protected like goods. The potential buyer of the services can form an opinion about the services offered. The changing trends in the non-banking investments compel certain modifications to be made in the existing product line. The product should suit the market needs. Bank services are viewed in terms of the satisfaction they deliver and not just the things that are created with value. For instance, a bank account is seen in terms of customer satisfaction such as safety, convenience of paying dues, keeping records, transferring funds, status, and pride in one’s bank. The various deposits, loans and advances, consultancy services, international banking, safe deposits, credit cards, etc. are the products sold by the bank. Bankers need to identify their core and supplementary product services as it has more marketing implication. The banker should offer an optimum mix of the core and augmented products. • CORE PRODUCT: It is the fundamental benefit the customer buys from the bank. They define what kind of business the firm does, for example, the business of commercial bank. But customers do not buy the core product, they only buy the benefit. The role of the bank marketer is to convert the core products into a generic product, which satisfies the needs of the customer. • AUGMENTED PRODUCT: This is the basic product with some ancillary attached to it. For example, when one opens a Suvidha Account with Citibank, he gets an ATM Card free. The bank marketer must offer a multidimensional product or what is called a ‘product package’. The product related strategy includes:  Introduction of new schemes- EXAMPLE: DEMAT ACCOUNT.

 Modification of the product offered by incorporating technological development – EXAMPLE: Telebanking, Online Banking, etc.  Change in the product line or package – EXAMPLE: From Corporate Banking to Personal Banking; or even deleting an existing service line. PRICE Pricing in Banking relates to the interest rates paid by the banker on deposits, interest charged by the banker on loans and demand drafts, charges for various types of transactions and fees for certain services. In India, banks adopt administered pricing structure to some extent as the deposit and lending rates are prescribed by RBI. The charges for banking services are agreed upon by Indian Banks Association. Pricing policy of a bank is considered important for raising the number of actual customers. But even in this regulated pricing environment, pricing can be used as a tool in their marketing strategy. The specific pricing methods that can be adopted in deregulated environments are:  Cost plus pricing which calls for a detailed analysis of cost structure of various bank products and services.  Market Oriented Approach which indicates what the market can bear or accept as in the case of a corporate client who may not be price sensitive as against an individual client.  Competition related Approach, where the price is decided based on the competitor’s price. In this case, the ‘value’ like high return, convenience, and speedy service must be highlighted. The banks are required to frame two-fold strategies. Strategies concerned with interest and commissions to be paid to the customers and interest and commissions to be paid by the customer for different types of services. PROMOTION The objects of a promotion programme are to inform about the new service product, to persuade the customer, to remind the customer, build image of the bank, etc. Banking services can be promoted in two ways: 1. Personal promotion: The bank marketer gets the best opportunity to tangibilise the product through personal selling; persuasion is more effective with direct contact. It helps in creating impulse buying. 2. Impersonal Promotion: i.e. advertising, publicity and sales promotion measures. An advertisement in banking is a promise- a promise of satisfaction to prospects who buy the service offered by the bank. Banks use all types of

Automation of transactions. as banking services are narrated by customers themselves. PROCESS It involves all activities right from the product conception stage. sales promotion devices such as Point of Purchase material. Publicity is a major strength as a promotion tool than advertising as customers tend to believe a news item rather than an advertisement. The corporate mission should be communicated repeatedly and effectively to all employees by the top management. as well as process reengineering has helped reduce delays in processing transactions. telebanking. PLACE The place decision mainly deals with selection of a suitable location for the branch. television. Sound location decisions help in activating the business. etc. etc. Banks should adopt internal marketing in order to make the whole business customeroriented. The bank products should be marketed to the employees first before they are marketed to customers.advertisement such as newspaper. This is essentially due to the technological advances. The placement policy should emphasize that the recruits should not only be conversant with all aspects of banking business but also have the skill for social interaction and tolerance for interpersonal contact. inadequacy of the traditional channel to serve all customer segments have brought bout ATM. brochures and advertisement specialties like ball pens. Banks which were more focused or activity-oriented have shifted to customer-oriented service delivery. PHYSICAL EVIDENCE .example: Loan applications. Technological developments. as Social Welfare and Corporate Social Responsibility are considered to be an important part of banking services. radio. Also. diaries. Word of promotion is yet another important promotion tool as it is a better persuader and convincer than advertising and personal selling. increased customer satisfaction. PEOPLE Banking products cannot be separated from the person (banker) who markets them. calendars. Besides. accounting procedures. Another significant development is a strategic alliance set up by the private banks to overcome the handicap of limited branch network. Internet banking and now SMS Banking. In such alliances the branch network of one branch will be used by the other for selected transactions like bill collection. home banking. magazines and hoardings. etc. data handling. the publicity measures need due care. electricity and other necessary facilities for the smooth functioning of the bank. communication. cheque collection. to product designing and development down to its marketing at the branch level. The product and the seller together constitute the banking product. clearing cheques. The location should have adequate availability of transportation.

Improving productivity keeps cost in control. too. an extension counter as well as offsite ATMs. Banks have improve productivity through computerization. by changing transaction systems – like the new banks do not have pass books – they only send quarterly statements. However.000 ATMS – roughly half the number of its branches. symbols. LATEST DEVELOPMENTS ATMs MAY BE TREATED AT PAR WITH BANK BRANCHES: The spreading ATM culture looks set to get hard knock with the Reserve Bank of India planning to treat them at par with bank branches. have sizable number of offsite ATMs. The State Bank of India has over 7. For the purpose of authorization. banks could set up ATMs on their own and keep the local RBI offices informed at the time of operationalising them. ICICI Bank has about 2. UTI Bank and HDFC Bank. etc. Attractive brand names. So far. The environment of banks is changing. Automatic withdrawals and transmission of cash balance data and other information about an account is another facility that is offered by banks in a consolidated form through fax or telex.000 throughout the country. logos. etc. the RBI said a “branch” would include a full-fledged branch.Banking products are intangible and physical evidence focuses the banker’s attention on this aspect. the specimen signatures are also checked through the computers. Some banks have also adopted the use of E-mail service for data and information transmission. Most private and foreign banks like ICICI. Some banks like SBI. . and HDFC portray a new welcoming and friendly look to the customers rather than drudgery banking counters.000 ATMs. TELEBANKING AND ELECTRONIC BANKING: A customer can access information about his/her account through a telephone call and by giving the coded Personal Identification Number (PIN) to the bank by Telebanking. Citibank. have made this facility available to some branches. call centers have been kept out of it. four times its branch network. The total number of ATMs could be 18. a satellite office. Andhra Bank. add to the customer’s perception of service quality. The RBI on Saturday sent a draft circular on a branch authorization policy to all the banks. This means that the banks will need the RBI’s advance approval for setting up as well as closing down ATMs. It is becoming friendlier with attractive layouts and décor. PRODUCTIVITY Productivity relates to how inputs are transformed into outputs that are valued by customers.

etc. Inseparability The degree of inseparability depends upon the type of service and the actual supplier. Teller machines are being installed in the banks for the Electronic banking facility. net banking etc. Many everyday transactions are carried out now via automated servicesthe automated teller machines (ATMs). download statements and open fixed deposits over the net. These mobile phones will be equipped with smart cards that are embedded with banking and other information. Banks may soon allow zero balance savings accounts through Internet facility only. drafts. CHARACTERISTICS OF SERVICES – with reference to Banking Intangibility Financial services are generally intangible. brand name and value serve to reassure the consumer and help the organisations positioning. CELL PHONE BANKING AND INERNET BANKING: Through Inter-net banking one can visit the web-site of each bank by entering his password and know the account balance and even pass his own credit and debit entries. and insurance policies are all examples of the way in which the financial services are presented to customers. This means that we can do our banking through our personal computer sitting at home.Banks have also started with the Electronic display of information through Satellite Communication System and transfer of funds through the same channel for inter branch and inter-bank adjustment and clearance of cheques. So visiting a bank would become needless. They will soon be able to carry out all their transactions over the net. ‘gold’ credit cards. Time to come. but the service providers go to considerable lengths to ‘tangibilise’ the service for customers. Physical reminders of the service product. Customers can now make balance enquiries. Banking will be on wheels and mobile by the use of smart banking. Regular bank statements. This mobile phone banking facility is yet to come but the mechanics of linking the banking with the cell phone is being sorted out. They can enhance the image of the service and the provider can even bestow status or implied benefits upon the user as with a gold card. . Mobile phones will drive banking transactions. The use of e-mail for banking will open up new avenues for Internet banking.

A bank branch. the greater the degree of standardization. Services are frequently handled by agents are credit card and other currency/travelers cheque encashment. Perishability The degree of Perishability depends on the type of service. If a cheque needs to be cleared by a certain date and the system causes delay then the benefits to the consumer are lost so the service could be said to be perishable.Additionally. If a bank’s reserves are not fully utilized profitably through lending or investment they will still retain their worth and may be utilized again at a later date. PEST Analysis for financial services Political/ Legal Influences which have an impact on financial services and consumer confidence include the following: • State provision of pensions • Government encouragement of savings and investment (for e. Heterogeneity/variability The complexity of the service transaction process will determine the extent of variability and this can differ to a large extent between institutions and even with one institution. satisfying the customer and profiting from charges applying to the account. many financial services are sold by brokers and agents of various kinds. A friendly greeting or being addressed by name can enhance service delivery and while an ATM cannot arrange an emergency overdraft facility when funds are low. The greater the degree of automation within any transaction process. By and large. money and financial services are enduring in nature. which does not have any customers at all on a particular day. Total standardization is not necessarily desirable from the consumer’s point of view. Thus simple transactions may be carried out via ATMs and completely standardized or via branch counter where they might be fairly standardized but subject to some variation in quality.g. may actually gain rather than lose profit as staff may be able to use the peace and quite to catch up on other work. branch staff can look at the standing of individual customers and make arrangements when appropriate. via tax benefits) • Regulatory control and protection (to prevent the collapse of financial institutions and protect investors money) Economic .

deposits and instant statements are widely used. Telephone Banking and insurance services are now being used in place of the traditional branch-based service process. . The main technological developments fall within these categories. From the customers’ viewpoint. As income levels grow. bringing about far greater efficiency through computerized records and transaction systems and also in business development. The level of consumer activity is governed by income levels and personal wealth. savings will take priority over loans and other forms of expenditure. if lean times are foreseen ahead.Economic factors are key variables which have an impact on the activity in the financial services sector. ATM services which not only provide cash but also allow for bill payments. through the setting up of detailed customer databases for effective segmentation and targeting. Automated queuing systems have made visits to the bank easier and more convenient. more discretionary income is available to spend on financial services. The main economic factors that should be monitored with regard to fianacial services marketing are as follows: • • • • • • • • Personal and household disposable income Discretionary income levels Employment levels The rate of inflation Income tax levels and taxation structures Savings and investment levels and trends Stock market performance Consumer spending & Consumer credit Socio-cultural Many demographic factors have an important bearing on financial services markets. technology has played a major role in the development of the process whereby the service is delivered. Consumers may also seek easy access savings and be willing to tie up their money for longer periods with potentially more attractive investments. Consumer confidence in the economy and in job security also has a major impact. • Changing attitude towards consumer credit and debt • Changing employment patterns • Numbers of working women • The ageing population • Marriage/divorce/birth rates • Consumption trends Technological Technology has a major impact on many industries including financial services and banking in particular. Technology has also played a major role within organizations.

Thus mutual funds will diversify your portfolio over a variety of investment vehicles. Franklin Templeton etc are international AMC’s. Consultants or Advisers to the Issue: Portfolio Management: Advisory Service Relating to Mergers and Takeovers: Off Shore Finance: Loan Syndication: Corporate Counseling: MUTUAL FUND INTRODUCTION: A mutual fund is an investment vehicle where a number of investors come together to pool their money with common investment goal. private companies or international firms. counseling. insurance. bonds. banks. portfolio management. Each mutual fund is managed by qualified professional man. BENEFITS OF INVESTING IN MUTUAL FUND: Mutual funds offer several benefits to an investor that unmatched by the other investment options. An investor can invest his money in one or more schemes of a mutual fund according to his choice and becomes the unit holder of the scheme. "any person who is engaged in the business of issue management either by making arrangements regarding selling. The biggest Indian AMC is UTI while Alliance.• Process developments • Information storage and handling • Database system MERCHANT BANKING Merchant banking may be defined as an institution. the other benefits in investing in mutual funds are: Professional management: . etc. money – market instrument or combination of all. consultant. who uses this money to create a portfolio which includes stock and shares. Mutual fund schemes are managed by respective asset management company (AMC) sponsored by financial institution. buying or subscribing to the securities as managers. adviser or rendering corporate advisory service in relation to such issue management" Services of Merchant Banks:           The services of merchant bankers are described in detail in the following way: Project Counseling: Issue Management: Underwriting of Public Issue: Managers. acceptance credit. The major benefits are good post – tax returns and reasonable safety. The notification of the Ministry of Finance defines a merchant banker as. gilt. which covers a wide range of activities such as management of customer services. credit syndication.

In close – ended schemes. HOSPITAL INDUSTRY INTRODUCTION Hospitals are not for profit making. WHO states . the units can be sold on a stock exchange at the prevailing market price. Today it is a place of diagnosis and treatment of human ills. regular withdrawal plans and dividend reinvestment plans enabling systematic investment or withdrawal of funds. and SEBI acts a watchdog. so the mutual funds are well regulated. for the training research.Mutual funds employ the services of experienced and skilled professional and dedicated investment research team. Transparency: Mutual funds have to disclose their holding. An investor through mutual funds can be benefited from a portfolio including of high priced stock. Well regulated: All mutual funds are registered with SEBI (Securities and Exchange Board of India). The whole team analyses the performance and balance sheet of companies and selects them to achieve the objectives of the scheme. Potential return: Mutual funds have the potential to provide a higher return to an investor than any other option over a reasonable period of time. Previously hospitals were set up as charitable institutions to take care of the sick and poor. Diversification: Mutual funds invest in a number of companies across a wide cross section of industries and sectors. they are social institutions to make available to society the required Medicare services. promoting health care activities and to some extent a center helping biosocial research. Flexibility: Investment in mutual funds offers a lot of flexibility with features of schemes such as regular investment plan. investment pattern and the necessary information before all investors under a regulation framework. Affordability: Small investors with low investment fund are unable to high – grade or blue chip stocks. Liquidity: The investor can get the money promptly at the net asset value related prices from the mutual funds open – ended schemes.

Wockhardt 5. Apollo 2.S. 2. 4. patient services and training of health workers in biosocial research.that hospitals are socio-medical organization whose functions are: curative. preventive. MAJOR INPUTS OF HEALTH CARE INDUSTRIES 1. Fortes health care 4. Massachusetts general-U. Mayo-U. A. Health care services are provided at state level with the help of central government.S.A 6. Apollo hospital (Chennai) All India institute of medical sciences (AIIMS) CLASSIFICATION OF HOSPITALS There are different types of hospitals as there is a distinction in their structure and performance. “HEALTH CARE INDUSTRY” Health care-a wide and intensive form of services.A 7. Today it also acts as an institution that provides accommodation to patients for medical nursing and care.S. 3. Apollo hospital (Hyderabad) 3. Indira Prastha hospital (Delhi) 2. Sloan Kettering-U. Max India ltd 3. Health is a social sector. Hospitals Medical insurance Medical software Health equipments MAJOR PLAYERS 1.A Apollo currently has 3 big hospitals as follows: 1. HOSPITALS Teaching-cum Research Hospitals On the basis of objective General Hospitals Special Hospitals .

They are found engaged in promoting the research activities and training medical students. General hospitals: . D. The main objective is to provide specialized medical services.The main objective of these hospitals is to provide medical care. B.These hospitals concentrate on a particular organ of the body or a particular disease. managed and controlled by the government whereas the semi-government hospitals are autonomous body. HOSPITALS Ayurvedic Hospitals Homeopathic Hospitals Unani Hospitals On the basis of ownership Government Private Hospitals Charitable Hospitals Semi-government Hospitals Voluntary Agencies Hospitals The government hospitals are owned. Special hospitals: . The voluntary agencies hospitals are owned and managed by voluntary organizations whereas the private parties own and manage private charitable hospitals. Health care is their secondary objective. HOSPITALS On the basis of medicine Allopathic Other Hospitals Hospitals C.Teaching cum research hospitals: . All India medical institute New Delhi and post graduate medical education and research institute Chandigarh is good examples.These hospitals are teaching based. On the basis of size HOSPITALS . They also offer teaching and research facilities but these are secondary objectives.

training and research facilities and some hospitals also educate and train paramedical officers. It covers issues such as service package. The district hospital generally has two hundred beds. which can be increased up to the hundred depending on the population. The product component of marketing mix deals with the variety of issues related to development.Teaching Primary Hospitals Health Hospitals District Hospitals Center Tehsil/Taluka Sub-divisional The teaching hospital generally has five hundred beds. which can be increased according to the number of students. In addition to medical care. nurses and other technical staff. The primary health center generally has six beds that can be raised to ten beds. The services rendered by hospitals or public health centers occupy a place of significance. core services and peripherals. some hospitals also impart education. presentation and management of the product.A product is a set of attributes assembled in an identifiable form. especially while designing the product mix. It is thus clear that the nature of the hospital governs the designing of product mix Medical services can further be classified as follows: ♦ ♦ ♦ ♦ ♦ Emergency Out-Patient In-Patient Intensive Care Operation . 8 P’S OF HOSPITALS 1. The main product in a hospital maybe any of the following: • • • • Medical Services Medical Training Medical Education Medical Research The main products of hospitals are medical services. The product is the central component of any marketing mix. which is to be offered to the market place. managing services offering and developing service offering. Product: .

AUXILIARY SERVICES Auxiliary services consist of registration and indoors case records. discharge and average stay of patients in the hospital. admission. wheelchairs and stretchers are used.SUPPORTIVE SERVICES To enrich the hospital services certain supportive services are found to be important e.g. mortuary arrangement. The patients need to be provided with disinfected and clean linen. The designing of product . Nursing services are managed by a matron who is assisted by a sister-in –charge. sterilization. The security arrangements. blood bank and pathological anatomy are important areas to streamline functional management of hospital laboratories. An official laundry is essential to provide bacteria free garments and clothes. dietary services. The hospital also needs a cold storage or mortuary for preservation of dead bodies till they are claimed by relatives or for post-mortem. engineering and maintenance service etc. supplies. The dietics department plays a vital role as it provides the hospital menu to meet the needs of patients. The engineering and maintenance services are concerned with hospital building. The services of well-qualified and trained dieticians help in providing nutritious diets. furniture and other equipment. linen stores. Clinical pathology. transport facilities etc cannot be ignored. Personnel related with defense or police should be given preference while appointing the security force. chemical stores. The radiology department should have hi-tech facilities keeping in mind patient load of the hospital. The laboratories need to be properly manned and proper diagnosis needs to be given by them to enable right medical prescription. There are different types of stores like pharmacy stores. glassware stores. stores management.g. supportive services and auxiliary services are mainly concerned with Medicare facilities available in a hospital. The catering department comprises the kitchen. bulk food stores and dining rooms and supplies meals in the hospital. surgical stores etc. The establishment of laboratories should be between the OPD and indoors so that both areas are covered without delay or disruption. A security force is essential to provide protection to the hospital property. An ideal nurse-patient ratio is 1:5 which is hardly found in Indian hospitals. For a hospital registration is a must as it helps in collecting statistics for a hospital e. Thus the line services. Pharmaceutical services also occupy a significant place as they influence the treatment programme of a hospital. materials and garments etc. For carriage of supplies and patients trolleys. Currently ultrasound scanning and CAT scanning have been found significant in improving services of the radiology department. transportation management. The nursing services are also important among supporting services. supply and maintenance of instruments. The norms accepted by the Indian Nursing Council should be followed. It is important that these services are maintained properly which would govern the successful operation of a particular department. Heated trolleys have to be used to transport meals to patients. The central store issues bulk items.

Price: .mix is meant to make suitable arrangements for improving the level of services in all concerned areas and in this context the medical education. which attends to the need of the lower classes to the deluxe suite. Various category of rooms. training and research services play a significant part. 250 for the general ward to Rs 20. 2. which attends to the need of the middle and the upper classes. The amount depends on the category of room and the treatment/surgical planned. As the service is intangible it is very hard for determining the price of the particular service rendered on admission. Price charged by the hospitals usually depends on treatment prescribed by the respective consultants and the facilities offered to the patients. The prices vary from Rs. Medical institutes and medical colleges both offer education. Price charged must be acceptable to the target customer and it should co-ordinate with other elements of the marketing mix. Other Auxiliary services provided by some hospitals include  Rehabilitation center  Physio therapy  Occupational Therapy: Occupational therapy trains individuals on activities of daily living which will allow them to return home after getting cured from long drawn diseases  Speech Therapy:  De-addiction & mental health:  Volunteer services: A few examples of areas volunteers can work include: • Community Education • Emergency Department • Environmental Services • Information Desks • Marketing and Community Relations • Medical Records • Nutritional Services • Patient Care MEDICAL EDUCATION: TRAINING AND RESEARCH The teaching hospitals are mainly engaged in offering medical education facilities. .Price is one of the most prominent elements in the marketing mix.000 for the deluxe suite. an initial deposit will be collected at the impatient billing counter. Research and training facilities are also made available in these hospitals where patients are used as inputs for teaching and research both by the teachers and by those who are taught. ranging from the general ward. training and research activities with one difference being that the institutes are specialized in a particular field and colleges are generalized.

3 = middle-income group. Cost based pricing 2. Could be offered on weekends. 4 = High-income group. it aims at providing quality for its customer at a reasonable price. Government hospitals fee/charge Free for no income group (1) Discriminatory pricing Cost + losses from 2 (Middle-income group) (3) Subsidized (for low income group) (2) Cost + surplus to make up the losses of 1 (high income group) (4) 1 = No income group. He/she earns something and so should contribute a portion of cost.A hospital does not believe in profit maximization. Competition based pricing 3. . He/she is not in a position to earn something and so free of charge services. Pricing methods in private hospitals 1. 2 = Low-income group. Free consultancy by dentist/doctors. Demand based pricing Perceived value 1) Value is low price Health spas in off-season. He/she earns more and should make up the losses on account. Differentiated as incentives. He/she earns more than low-income group and so should make up the losses on account of low-income group.

the prices differ. There is a difference between general ward and special ward where the rooms are air-conditioned and extra services are provided. INTERNALLY: -There is a price differentiation even between the 2 wards of the same hospitals. pricing differs due to the kind of the service provided pre-post operation cost is associated with the kind of service you provide & so the hospital is bound to charge the patient for it. sales promotion. Customers need to be made aware of the existence of the service provided. DIFFERENT PRICING IN THE HOSPITAL INDUSTRY HAPPENS  EXTERNALLY (BETWEEN TWO HOSPITALS) &  INTERNALLY (WITHIN A HOSPITAL) EXTERNALLY: . 3. Value is getting excellent treatment in shortest possible time. the training provider hygiene/ ambience all is other contributing factors. Hospitals conduct camps in rural areas to give medical check up at a reasonable price so that the rural people approach the hospital again in future. Promotion: .promotion function of any service organization involves the transmission of message to present. Sometime if the patient is very poor then the doctor may wave his fees. Even though the operation to be might be the same. personal selling and publicity.2) Value is everything I want in service 3) Value is everything I get for the price I pay 4) Value is all that I get For all that I give Prestige pricing (health clubs) Bombay hospitals for Arabs (Value is high quality) Market segmentation pricing based on affordability to pay. Lilavati believes that it is not only a service organization but also a business organization but Nanavati believes that providing health care service is a charity it provides 250 free beds thus differentiating it.Between 2 hospitals even to provide the same treatment. they rely a lot on favorable word of mouth. Thus the pricing would be different even the doctors visiting/consultation charges are different. They . Promotion includes advertising. Lilavati’s location. past and potential customers. Hospitals do not normally undertake aggressive promotion. To increase the clientele a hospital may continuously introduce different services like the acupressure clinic. Value is affordable quality. master health programs and diabetes health check up apart from annual health check up provided to different co-operate clients.

In an era where hospitals are experiencing a major shift in their clientele. Lately it has been felt that many Indian hospitals have a dilemma regarding the functions of marketing. In addition to the above a major factor that contributed to the acceptance of marketing in hospitals was an increase in the delivery of services. 3. to do the same. 2 Private hospitals can attract their shareholders by offering discounts. Perception of patients was another important consideration for hospitals. working in the companies of these Trustees. they are worried more about the patients’ perception of hospitals and therefore the concept of brand restructuring and brand engineering is vital. But the major argument at that time lay in understanding whether this professional orientation was really required for its viability. In order. when very few hospitals realized that it was necessary to incorporate marketing as an integral function in the hospital operations. profitability and sustainability. Some of them are listed below: 1. a special discount of 20 percent on all preventive health checks is offered to all shareholders of Apollo Hospitals Limited. Marketing hospitals Marketing in Hospitals is unethical was the frequent refrain in the eighties. marketing was accepted only by a few while others discarded the concept Hospitals who accepted marketing also carried out their function by concentrating around corporate clients. as they felt that the patients would take them as profit oriented organization rather than service-oriented organization. Hospitals started building tie-ups with corporate clients. hospital generally advertise in health and fitness magazines. Hospitals have a long-term understanding with PPO’s (Preferred Provider Organization). As hospitals spend millions of rupees in technology and infrastructure. For example. it becomes necessary. which further have understanding with corporates. Any case of sickness found in the employees of these corporates refer them to the PPO’s which further sends them to the hospital for check-ups and treatment.also sponsor frequent visits to the spastic society. This indirectly leads to increase in. as there was already an abysmal utilization of resources in the existing hospitals. apart from the ongoing mergers and acquisitions that were already taking place at that time. Besides the presence of eminent personalities creates a sense of confidence in the minds of people. that they attract patients and generate funds. . Many hospitals have eminent personalities from the industry in their Board of trustees. Ultimately. old age forms etc. inflow of patients. the hospitals follow various marketing and brand building exercises. This argument however became favorable in the late nineties as corporate companies like Wockhardt and Max India started venturing into the hospital industry.

The behavior and attitude of the personnel providing services will influence other customer’s by over all perception of the service. The two main issues considered regarding the decision of a place are accessibility and availability of the service to customer’s accessibility refers to the ease and convenience with a service can be purchased.4. This helps them to generate extra resources in form of fees using the same infrastructure. who gets the benefit of the service. 2) Providing regular on job training of employees to ensure continuous improvement in health care. For example. used or received. 6. This element in the marketing mix leads to the identification of a suitable location. Hospitals can also promote medical colleges. Place: . number and types of complaints in the region. which become a natural advantage for the hospital. which provide services. dedicated and loyal to the organization. People: -The People component reflects the important role played by individuals in the provision of services. who could in future refer complicated cases to the hospital. Availability refers to the extent to which a service is obtainable or capable of being purchased. Such successes are discussed in health magazines and newspapers. Hospitals hold seminars and conferences relating to specific diseases. 5. where they invite the doctors from all round the country. local infrastructure. 4. 3) Utilizing services of professionally competent medical consultants.based edge of the hospital over the’ competitors. reflect the technological and knowledge. Customers are a source of influencing other customers by word of mouth. Some hospitals by means of their past track record have created a niche market for themselves. People are also important element in the marketing mix. A hospital must be ideally located and must be easily accessible to all. 7. location of potentially attractive consumer segments. The success rate of crucial operations and surgeries. It is necessary that the staff in a hospital is trained to provide quality patient care with human touch using state of art technology. used and received. refers to contact point between the service provider and the customer. This makes the hospital well known amongst the doctors. Factors influencing the placing decision are market size and structure by geographical regions. Hinduja is known for its high-quality healthcare at reasonable rates. whereas Lilavati Hospital is known for its five star services. . for detailed discussion. The objective of providing quality service to the patient can be achieve by: 1) Motivating employees to be efficient. good road access facilities and public transportation network. Service personnel play an important role in an organization.

6. Processes are designed by blue prints. which sets a standard for action to take place and to implement the service. Motivation is not necessarily be giving high salaries. always wearing a smile. Process: .5) Use of latest technology. Warm ambience with cheerful and efficient staff help make the experience of the public a memorable one. the staff has to cater to the needs of sick. In a hospital. Process has only recently been given much attention in the service sector although it has been the subject to study in manufacturing for many years. There are many other ways to motivate the employees. There should be active participation of the employees in the activities of the hospital. convert it and add valve to the input and finally create an output.Process is a set of activities that take an input. free from any kind of tension. depressed and an agitated let. Concession should be given to the employees near once. the job of the staff becomes much easier. There should be regular liaison with them at all times know what the employees want. the process is divided into 3 phases: Joining phase The arrival of patient Registration Diagnosis Treatment Information about future action Discharge of the patient The intensive consumption phase Detachment Phase Payment Feedback Fill the evaluation form . where the clientele is happy. Whereas in a hospital. In a hotel. Therefore it is very important that the staff of the hospital is friendly and comforting.

General process organization in a hospital Finance department Billing Purchase Patient Stores Doctors department (external 7.Physical evidence is the environment in which the service customer) is delivered with physical or tangible commodities and where the firm and the customer interact. . Ventilation is taken care of by airconditioning. This is taken care of by the housekeeping department. warm and comforting because the clientele that goes to the hospital is usually disturbed or unhappy. Physical evidence plays an important role in hospitals services. Special care should be taken to maintain hygiene. cycles. 8. Quality is the degree to which the service satisfies a customer by meeting their wants and expectations.TRUE It provides total health care. Hospitals put up boards. The staff follows a dress code to show professionalism and to maintain discipline. showing list of visiting Doctors along with their qualifications. It is necessary to be centrally air-conditioned with good lighting. GYMNASIUM IS A HEALTH CARE: . Physical evidence: . which help pump more blood into the heart steam and sauna. TRUE OR FALSE 1. which are valued by the customer. cleanliness and whole hospital must be will lit. and etc. and details other well-known hospitals they visit. A hospital has to keep in mind both the aspect of physical evidence that is essential and peripheral evidence. besides just physical fitness gyms have come up with cardio machines like tread mill. Nurses The staff is trained to be understanding. Physical evidence particularly plays an important role in the hospital where the patients are already depressed or traumatized and a good atmosphere could make all difference. PRODUCTIVITY AND QUALITY Productivity in services is how we transform the inputs into outputs. massage centers provide over all relaxation. steppers.

More training of the staff for improving their behavior and medical knowledge. d. etc.FALSE (REMEDY) ALL TYPE OF A polyclinic is a place where specialist doctors come and provide consultation for couple of hours in a day.terminal cares AIDS etc.TRUE Private hospitals are more professional and the quality of service provided is better than that in a government hospital they give you value for money even though there are more expensive however this would depend on the disposable income on an individual. f. e. POLYCLINIC IS A PANACEA ILLNESS/HEALTH PROBLEMS: . PRIVATE HOSPITAL SERVICES ARE MORE PREFERRED THAN PUBLIC/ GOVERNMENT HOSPITAL SERVICES: . nurse & staff Medical facilities & equipments & infrastructure. Medicine & drugs fraud by the menials. The patients are completely at the mercy of the doctors. The “ I DON’T CARE” attitude of the government hospitals. Hence the quality is proportionate to the cost of treatment. That means that is a day. 3. a policlinic will have different illness but still few diseases are not curable like cancer. Quality of doctors. b.TRUE Everything comes for a price and to provide better service.2. . Even organ selling by doctors to make more money. a hospital is going to charge its patients. phone lines Ambience & the general atmosphere of the hospital. Specialization Low pricing in public hospitals due to government aid. b.) c. OPPORTUNITY: a. SWOT ANALYSIS STRENGTHS: a. (Ac room. Attitude of the staff. c. 4. WEAKNESS: a. even the menials. QUALITY OF TREATMENT IN A HOSPITAL IS PROPORTIONATE TO THE COST OF TREATMENT: .

 Medical records management. emergency transport. Relative sizes of the hospitals.  Telemedicine. But health care is primarily a local market business & it very important to consider the following factors before going in for mergers: 1. b. Often a country’s medical prowess is judged by the condition of its hospitals. . In the last 5 years. thus making it impossible to cater to the poor people. by combining capacity& amalgamation of functions such as information technology.  Aromatherapy at Apollo. The government is reducing the grants given to hospitals. approximately 750 mergers acquisition have taken place in U.A hospitals major advantages of merging is more toward more integrated health-care systems.b. LATEST INNOVATIONS A hospital is a center for tertiary medical care. disrupting the functioning of the entire health care unit. THREATS: a. To became more special in various fields.  Biventricular pacing.  Virtual Hospitals THE FUTURE IS BRIGHT Health care industry is booming all over the world. & India is home to some of the largest hospitals in Asia. they can go on a strike.  Oxygen under pressure treatment at Apollo. The corporate hospitals will play a positive role in the health care sector by taking the load off government hospitals. In the U. c. consultants. database & research& development. that can achieve economies of scale. The latest treatment options should always be available at these centers as a beacon to guide the entire medical community while providing top-notch medical care to patients.  Bone bank at AIIMS. it is already the largest service sector and worldwide it is started to be a $ 4 trillion market by 2005. To increase the facilities they provide.S. whose performance hasn’t been up to the mark. Here we will discuss in brief some of the latest developments in major hospitals in India. The unions of the menials and even doctors.S.  Waste management.  Hospital administration.

There are a number of hospitals. Apollo in Chennai. the most important modes of trade of healthcare services in the short run would be the category of service providers.2.the white uniforms of the Doctors and Nurses in every hospitals 2) Symbols. yoga etc) alternative medicine centers RELATING CHARACTERSTICS OF SERVICES WITH HEALTH CARE. suppliers & investment but not necessarily on a centralized basis for example. telemedicine services are not very relevant as yet though with the increasing use of Internet.The Red Cross is the common logo with which people identify hospitals.e. Apollo Hospital 5) Tie up with other well known hospitals (Wockhardt tie up with Havard heart institute) . Thus. Scope of health care services gymnasiums  spiritual cleansing centers. Hyderabad & Delhi will be separated hospitals. Strength of ties individual hospitals & physicians. b) The association of a hospital with any well-known personality would help as a good image building exercise. Degree of unity in leadership structures of separate in The key to success appears to be a strong orientation to performance as well as standardization & integration work processes. how well maintained it is. the high-tech equipments used for treatment would help to tangibles the product. functions. information regarding health & medicines is being increasingly exchanged. It would also give the customer a certain level of confidence regarding the serviced provided in the hospital. 4. 3.g. (like reiki. but function will be centralized. which have received ISO 9000certification. More competition and therefore a more uniform pay structure there may be improvement in both quality & quantity of healthcare available in India. c) Physical Representation: Intangibility could also be overcome in case of hospital through physical representation in the form of 1) Uniforms. 4) Documentation. 3) Building. post merger. Their geographical proximity. E.In case of hospitals the external appearance of the building or the maintenance i. The service industry has the following characteristics Intangibility: a) The marketer should visualize the product/service for the patient in case of hospitals any visual of the hospital displaying the well-maintained interiors. In India.

As a result a number of patients due to geographical distances lose out on the opportunity to get themselves treated from the very best surgeons and doctors. during their course of training could also help his with the excess patients.g. A surgeon during an operation is surrounded by interns watching the operation. E.Here one experienced person can provide training to amateurs. if a doctor does not reach his dispensary on time or has his clinic locked for that particular day. Solutions.g. They could be given a chance to perform the small parts of an operation in order to gain experience 2) The doctors could be given training and could be updated with all the latest happenings in the medical field in regular intervals. Diabetic patients are trained to inject insulin on their own.g. 3) Video conferencing. an operation cannot be conducted without the doctor’s presence. Inseparability: For any service to take place it is necessary that both the service provider and the customer be present in the location at the same time. attitude etc. 1) Training of internal customer. skills. Solutions: 1) The internal customers or the fresh recruiters could be given training. Solution to the problem of perishability: a) In such a situation the doctor can appoint an assistant who could cater to the excess patients or he could have students trainee under him who. Same would be the situation faced by the hospitals.Business conferences. A situation may also arise when the doctor may be unable to attend to some of his patients due to a huge rush in such a case again the doctor could lose out on all his patients. In such a case the hospitals too may lose al the patients for that day.Psychiatrists have innovated group therapy where they call in 10+ patients together to an oval conference table and encourage them to talk about themselves and other ailments. Variability: It means that the quality of service provided to different people may not be the same irrespective of the fact that the job carried out by them is the same The service quality may differ because they may be from different backgrounds having different aptitude. b) Peak time essential service: In a rush hour situation when there are too man customers to attend to only essential services should be catered to part time volunteers for national emergencies. They could also carry out some small parts of the operation. consultancy and the Medical world only recently have instructors for operation through video conferencing been .g. he loses all his patients for that day. Training of external customers: e. 2) Innovational service. c) Patients can be asked to take prior appointments – so the demand can be spread over the time.Perishability: A service cannot be stored. E. So if the service is not consumed immediately then it loses its value e.

Telephone. 3. Again software comprises the bulk of the export.initiated but mostly video conferencing has been in the medical world as a pedagogical tool 4) Medical camps can be arranged – similarly mobile hospitals can be used. The term information technology includes computer and communication technology along with other associated software’s. 6. storage. Users of PCs and software. INFORMATION TECHNOLOGY (IT) SERVICE INTRODUCTION Information Technology (IT) is the industry which helps in spreading the knowledge through the use of computers and other supporting equipments. Software and support for office automation system such as word processing and spreadsheets as well as computers top run them. radio equipments and switches used for voice communication. EXAMPLES OF INFORMATION TECHNOLOGY: 1. gathering . 4. 2.871 cr account for only 14%. Software export of Rs 36500 cr accounts for 86% of total IT export. data and video. The growth of the sector has led to tremendous pay-off in terms of wealth creation and generation of high quality employment. In IT industry on demand side are the economic sectors and application of IT and on the supply side are computer hardware. The state radio communication network. The tasks that are handled using information technology continue to increases. 60% is accounted for by software and remaining 40% by hardware. Advancements in IT have a profound impact on the economy and the quality of human life. . process and devices that make all this possible. The phrases information technology refers to the creation. Traditional computer application that include data storage and program to input. The IT sector is one of the fastest growing segments of Indian industry. telecommunication equipment and micro electronic based industries. Hardware export of Rs 5. and delivery of information. 5. Video conferencing equipment. DEFINITION Information technology means the use of hardware. software services and supporting infrastructure to manage and deliver information using voice. process and output the data. processing . software. The IT revolution has opened up new possibilities of economic and social transformation from which both the developing and developed countries can potentially benefit.

7. TV. is being encouraged in various departments of central and states governmental. Electronic governance. The improvement in the quality of services has not taken place in a reasonable way. 3. Infrastructure and services. (a) cost of access devices (b) Installation cost (c) Provision in large parts unviable (d) Recognition of non-branded PCs (e) Use of regional language (f) Integration of services (g) Availability of bandwith (h) Procedural delay (i) Availability of data circuits Electronics governance The use of IT. The following are the major issues to be dealt with. The aspect of e. Education 4. The government and its varied agencies are the major services providers in the country. trainers and students for educational purpose. municipal services at block / panchayat level. Mass campaign for it awareness Infrastructure services: It is desirable to improve the reach of the it services to the common man as various forms of information delivery system such as radio. 2. personal computers and internet have been developed into one unified system. Telephones. district administration. especially computers. 1. newspaper. computers and network system used by teachers. It is found the most of the application of IT in govt services have been confined to back office computerization. Education Quite a good number of high quality jobs exist in the IT sector and therefore it is necessary to train the required number of personnel to take advantage of these job . MAJORE ISSUES IN INFORMATION TECHNOLOGY The working group set by the ministry of information technology has identified four categories of issues in information technology.governance needs to be altered and strengthened.

(c) All the govt information to be on the net. communication etc. (i) Earn marking upto 5% budget for IT induction in govt dept (j) INFORMATION TECHNOLOGY – ENABLED SERVICES IT enabled services or remote processing services are today being considered a major growth market for the Indian software and services industry and are expected to generate significant employment opportunities in the future. largely a common man is not aware about the potentials and use of IT technology in day to day life.opportunities. entertainment. (b) Results of public examination to be made available on internet. For software the country needs educational institutions which can provide training in the operation of computers to suit the needs of different vocation. (f) Compulsory IT literacy for govt recruitment. The working group has set a target of 100 Million internet connection by the year 2008 and one million internet enabled it kiosks / cybercafeto be established in the country. Following are the recommendation of the committee. . (g) No licenses and control for setting up IT infrstructure and services. (d) State govt portals to help rural artisans and entrepreneurs. (h) Promote development of Indian language content over internet. (a) for Hardware &(b) for software. manufacturing . Opportunities in major segments on IT – enabled services Call centers / customer interaction services Business process outsourcing Insurance claims processing Medical transcription Legal databases Digital content development Online education Data digitization Payroll / HR services Web services ESSENCE AND FUTURE OF INFORMATION TECHNOLOGY Information industry has pervaded a wide range if industries viz. There are two kinds of personnel needed. (a) Established IT infrastructure in 60. The ministry if information technology has set up a working group on IT for masses. trade . education. (e) Launching mass awareness campaign through IT yatras & other programmes. Mass campaign for IT awareness: In India. A mass campaign should be launched to increase IT awareness. defence.000 schools over a period of five yrs.

HOTEL INDUSTRY INTRODUCTION The concept of hotel originated in the 6th century B. (3) Income tax exemption to software and service exports (4) Zero excise and custom duty on IT software.” According to “Chamber twentieth century dictionary.” says: “It means a superior house for the accommodation of strangers” CLASSIFICATION OF HOTELS (A) Classification on the basis of nature: 1. At present we have 4% 1000. (5) Promoting e-commerce. (9) Earn marking 1%-3% budget for every ministry for IT application. similar to dormitories in the youth hostel. Hence the hotel industry has its roots in the past in almost every country.C. high quality employment and also contribute to the productivity. Internet economy has become very powerful. The major part of the IT industry is in the private sector and it accounts for 76% of its total production in electronic hardware. it is expected to grow to 10% 1000 by the end of 2000. It is now possible to download information from any particular part of the world after the introduction www. The IT industry has tremendous potential to generate foreign exchange earnings. in the form of Inns. (7) Financial package for buying computer. DEFINITION According to welester : “A building of institution providing lodging. (2) Opening of net gateway access to private net services providers. (8) Networking of all universities and research institution. The government should make adequate provision in the form of subsidies or charge different fees to enabled poor students acquire computer education. meals & service for the people. These were run by couples and provided sleeping arrangements in big rooms. (1) encouraging private software technology parks. Following are some recommendation. center duty on IT software. IT sector can benefit from international boom ana also use it in domestic economy to achieve higher level of efficiency.IT has integrated the world by use of internet. The computers have penetrated the Indian market. (6) Framing cyber laws. IT industry has a great future. It reach to 86% by end of 2002. Residential hotels .

International hotels 4. in addition to restaurants & cafeterias. Standards and controls a. Unapproved hotels a. They charge rent on monthly. Approved hotels b. Examples of international hotels are five star.. two star& one star. Places like sea . They are generally located near the sea. They focus their attentions to individual travel & are generally run by owner. swimming pool. entertainment etc have significant in resort hotel. (2)Commercial hotels: Commercial type of hotels are meant for the people who visit a place for business purpose & hence they are found at the commercial or industrial centers. self riding. [B] Classification on the basis of standards and controls:1. tourists & for those who need a change in the atmosphere mainly on health grounds. conference rooms.2. A number of commercial hotels receive the guests who are on business tours. 5. golf resorts & hill resorts. There are different types of resorts like summer resorts. mountain & other areas having a natural beauty & healthy atmosphere. half-yearly or yearly basis.S. Floating hotels (1)Residential hotels: Residential hotels are also called as the department hotels. The accommodation may be furnished or un-furnished. winter resorts . Initially the residential hotels were developed in U.A. b) They provide all facilities &services made available in a good hotel in India. Floating hotel:a) Floating hotels are located on water surface. the house bound in Kashmir are supported to be floating hotels. The development of residential hotels are found in the western countries. (4)Resort hotel: Resort hotels are meant for the holiday makers. Commercial hotels 3. boating. lake rivers are considered suitable for floating hotels. (3)International hotels: These are modern luxurious hotels. These hotels are placed in various star categories. The international hotels are placed mostly owned by public companies where management consisting board of directors is constituted for its control.) Approved hotels:- . The hotels are generally found in big cities where no meals are served to guests. four star. lounges. three star. classified on the basis of international guidelines. Resort hotels 5. Entertainment and recreation facilities like tennis courts.

A] Users of hotel industry 1] Domestic  Educationists  Sportsmen  Medical representatives  Trade representative  Officials  Pilgrims  Students 2] Foreign  film stars  cultural representative  sportsmen  Educationists  Pilgrims  Trade representative  Political representative Chains of Indian hotels 1. middle & low income group people bearing expenses on their own account prefer unapproved hotels. On the other hand unapproved hotels are not officially recognized. The Oberoi Chain 2. Even foreign tourist stay in unapproved hotels. The domestic or foreign tourists who are on official visits whose expenses are borne by the governments. The approved hotels are officially recognized &hence are reliable.These are of international where the accommodations are available as per certain criteria laid down by department of tourism. The Taj Group 4. C. classification on the basis of star:The department of tourism has classified hotels under the star system into various categories from one to five stars deluxe and heritage hotels The department also classifies these hotels after every 3 years to see that the requisites standards are maintained by them. The Ashoka Chain 3. This doesn’t mean that unapproved hotels do not maintain international standards. The Ritz Chain .

Hoteliers hence give off season rates. In particular. Perishability If the full capacities of the services are not utilized. He cannot use the services just by sitting at his residence. cooperation and so on that customers bring to the service encounter. . Unlike goods. They also try to do maintenance/ room renovation during non-peak seasons. but all interpretations point out that special operation problems exist for the firm's managers. Thus hotel industry is an inseparable service. the service becomes perishable. The danger with too much standardization is that of loosing customization and hence reducing much of their appeal. but in any event are hard to standardize. The product is perishable a room not sold tonight is lost forever. do contract bookings with large tour operators etc. many services require the participation of the customer in the production process. If a hotel having an accommodation facility of 100 rooms is able to lease out only 70 rooms a particulars day. Inseparability: This characteristic is interpreted differently by different service marketing marketers. the customer has to go to the service provider in order to avail the service. attitude. service production often requires the presence and active participation of the customer . In hotel industry. in part. the limiting characteristics inherent in hotel keeping. The hotel industry’s ability lies in their spontaneity and flexibility to address individual customer needs.and of other customers. One interpretation of this term is the inseparability of customers from the service delivery process. the results can be good or bad. which are often produced in a location far from the customer and totally under the control of the manufacturing firm. The Corporation Of India CHARACTERISTICS OF HOTEL INDUSTRY The industry’s ups and down reflect. then the remaining 30 rooms or 30% capacity gets perished a can never be reversed. A second way to deal with perceived risk from variability is to provide satisfaction guarantees or other assurances that the customer will not be stuck with a bad result. Variability The service provider must find ways to reduce the perceived risk due to variability .one method is to design services to be as uniform as possible – by training personnel to follow closely defined procedures. Depending upon the skill.5. or by automating as many aspects of the services as possible.

Intangibility: Intangible services are difficult to sell because they cannot be produced and displayed ahead of time. This is because India is an ideal destination for tourists as it is the only country with the most diverse topography. Thus the industry has to provide these tangible cues. Moreover it is very difficult to find vacant land in cities such as Mumbai and Delhi companies operating in these two cities are therefore relatively protected. Moreover the existing player have a definite edge as they enjoy a strong brand equity chain hotels such as Taj and Oberio are better equipped to cater to the tourists commercial in the tourist circuit . These tangible cues range from the firm's physical facilities to the appearance and demeanor of its staff to the letterhead on its stationery to its logo. They are therefore harder to communicate to prospective customers. travel facilities with an increase in flight seat capacity. expansion in rail and road network will commensurately increase the industry prospects. which have made these countries cheaper than India. At present India attracts approximately 2. Opportunities In the long term the hotel industry is India has latent potential for growth. Infrastructure facilities have been improved. In fact it is the 2nd largest foreign exchange earner after textiles and garments. They have been forced to offer discount on the rack rates.5 million tourists every year which is just 0. Marketers of services can reduce these risks by stressing tangible cues that will convey reassurance and quality to the prospective customers. Swot analysis (four hotel industries) Strengths Land is the single largest cost item in the construction of a hotel in India. Weaknesses In the short term the outlook for the industry appears bleak due to a significant oversupply and weak socio – economic conditions Tourist arrivals have also seen a marginal decline due to devaluation of the Asian currencies. The next two – three years is not expected to provide any succor to hotel industry due to the overall recession in India an Asia. This has resulted in most five star hotel operated at very low occupancy rates.4% of the world tourist arrivals.

lack of infrastructure has kept the foreign tourist at bay. the big five hotel majors were able to unabatedly increase their rooms’ tariffs. India has always conjured up a fascinating image in the mind of foreign tourists. Kerala and the union territory of Pondichery. As there was hereto not much competition. Tamil Nadu. which has increased the number of corporate travellers visiting India. Karnataka. Moreover. The federation of hotel and restaurant association of India has divided the country into four geographic regions viz. . The guests expectations are minutely studied and while offering service to them it is convenient to identify their preferences. developing cities have also come into the limelight and hence there has been an increase in demand for hotels in various places. Rajasthan. languages and religions. This trend has enthused many hoteliers to set up corporate hotels. This class of business travellers has reduced their dependence on seasonal tourism. western region covering Maharashtra. with the major international hotel chains having evinced interest in setting up hotel. and ITCH are better placed than single location hotel like BHL. Other than metros. The region wise segmentation makes it convenient to satisfy the customers. Gujarat. which makes it an exciting tourist destination for people all over the world. West Bengal and other eastern territories. Delhi. Diu and Daman and southern region covering Andhra Pradesh. there is bound to be price war. and other northern states.Threats Chains of hotels like IHCL. MP and Goa. However. AHL. with the attacks on the world's largest financial centre in the US. a few salient ones are listed below: Tourism: This is the primary factor for the hotel industry. Market segmentation in hotel industry There are different variables for market segmentation and the marketer has to look from the micro as well as the macro level. The industry is again headed for a hit. northern region covering UP. Earnings Sensitivity Factors Profitability in the hotel Industry is dependent on many factors. India has an advantage of having diverse cultures. EIH. Calcutta region covering Orissa. India has great potential of becoming a major stop for tourists. Though the latter have hotels at strategic location (Mumbai and Delhi) they risk associated with single location hotel is always higher. The government has been actively participating in propagating India as an oasis for global travellers. Business factor: Liberalization has brought home a new class of MNCs.

in turn. mainly during the winter months of October to March. Political scenario: In the past few years.Room occupancy: The ARR and occupancy are the other critical factors that determine profitability. Other months being off-season periods. Domestic hotel chains have a high man-room ratio as compared to their overseas counterpart. maintenance costs and overhead expenses mark the industry. mainly due to a steep fall in both business and tourist arrivals. local tourists prefer April to May and October in the second half due to summer and Diwali vacations respectively. many hotels offer heavy discounts on room tariff to ensure repeat customers such as corporates. In the first half of the year. Tax structure: This industry is one of the heavily taxed sectors of India. A high wage bill. Total Product Concept CORE PRODUCT At the very center is the core product which satisfies the basic need of the consumer. The role . the fluid political environment has also had a negative impact and foiled the dreams of the Indian hotel industry. the hotel industry has been going through a lean phase. Indian hotels are more expensive than their Asian counterparts. However. The occupancy of Indian hotels and the ARR has been on the decline for the past three to four years due to the turbulent socio-political environment in the nation and also because of the East Asian economic crisis. As a result. These. Though the exorbitant rates of five-star hotels as compared to the quality of services provided is one of the factors for the decline. The hotel industry is reeling under high variable expenses. The core product in the hotel industry is ACCOMODATION. depend on the location. State governments have levied various taxes like expenditure tax. luxury tax and sales tax. amenities and quality of service. Industry bottlenecks: Progress of the industry is held hostage to various bottlenecks existing within the industry like high variable costs. the hotel industry reported impressive earnings and revenue growth for the year ended March 2001. This is apart from the income tax levied by the central government. These taxes are as high as 30 per cent in cities like Chennai. Seasonality: India being a tropical nation witnesses an inflow of leisure tourists. star rating. while other Asian countries have a tax structure of 4 to 5 per cent. Hence the hotel industry has a better second half. Room occupancy has been on a decline. airline crewmembers and tour groups.

that is. AUGMENTED PRODUCTS With further higher expectations of the customer. all have to be trained well to behave in a manner that pleases the customer. that is. there is a domestic currency rate for local travellers and a dollar rate applying to foreign travellers. some more features. and waiters. a hotel that provides it promptly will have a great edge over the other hotels. the reception people. the magnitude of discounts varies depending on the nature of the client location and size of the hotel. Like a bed for the night and a room with a bathroom. though the occupancy rate of these hotels increases. This means. when they order food or ask for any service. especially if it has to attract a lot of people from foreign countries where the hygiene conditions are top notch. Consumers prefer to pay more for these additions and the marketers have more to offer than the competition.again synchronized with intense competition.marketers offer more and more intangible features.of Hotel International is to provide basic accommodation facilities. Hence there is need of a common yardstick for tariff rates TOURISM . Room Service: When people go to hotels. Laundry services Food and Wine:The food should be of good quality and should be prepared in hygienic conditions. in the dual tariff rate system. Not everyone can afford a very expensive room and also not everyone will like to stay in a room that does not have some luxurious facilities. room service people. Hotel International has to provide some additional features like: Hygiene: It comes next to the basic function of accommodation. Furthermore. they would expect good and prompt room service. However. They should be civilized. Etiquettes: The people who come in contact with the customers. An unhygienic hotel will never be able to attract lot of people. All the extra things provided are service oriented. the ARR does not increase proportionally. As a result. Hygiene plays a very important role in the status of a hotel. ADD 8 Ps from Romeo Mascarenhas Differential pricing: Hotels in India typically offer discounts on published room tariffs to many clients. FORMAL PRODUCT When consumer’s expectations grows synchronized with increased competition. cultured and polite. Price: The price of the rooms should be such that both the rich and the middle class people can afford them. the marketer offers some tangibility to the existing core product.

Following are the forms of tourism. The main purpose of travel is to determine the form of tourism.It includes visitors who travel for specific purpose and objectives other than that of holiday and business. short-term movement of people to destinations outside the places where they normally live and work. It involves travels and stay for temporary period to a place distant from the residence ranging from weekend to a few weeks or months. They are as follows. The return of people to the country of their origin labeled as Ethnic Tourism also falls in this category Some Concepts : Time Sharing . c. Recreational tourism Health tourism Sports tourism Cultural tourism Business travel – e. There is a considerable cross border day traffic amongst many groups of neighboring countries. which includes several types of travel and stay depending upon the motivations that impel people to move from place to another. The Tourism Industry The tourism industry comprises of the following main and distinctive sectors:     Transportation Accommodation Tour operators Tourism Destination Operators/ Destination Management FORMS OF TOURISM Tourism is a generic term. b. Such visitors are defined as Excursionist.     d.Definition Tourism is a temporary. Domestic tourism/ Internal Tourism International tourism/ External tourism Holiday tourism-It has many forms. Common interest tourism . The temporary period should not be less than 24 hours. Introduction: Who is Tourist ? Tourist is a temporary visitor to a country other than the one. a. which he usually resides for any reason other than following an occupation remunerated within the country visited.

Travel agents offer packages for individuals and groups. . and political factors.  MARKETING MIX. The panoramic view of the location. Pilgrimage Tourism. angling. In 1998 more than 95 lakh people assembled at the Kumbh Mela. Adventure tourism India’s vast geographical diversity provides a vast potential for adventure tourism and also the prices here are very low. travel agent and hotel brokers play a dominant role. The time-share market. Orissa offers its ample golden and sunny beaches to the tourists. etc. trekking. and Radisson etc are venturing into the time-share business. economic. There are sports like skiing.Vacation property ownership without the up-front cost of owning a property year round. etc are some of the possibilities. you pay for the time you use. Reputed companies like Marriot. Lakshadweep offers a chain of coral islands and perfect beaches to the tourists. PRODUCT. Beach tourism India with its coastline of 7500 kms. Mountaineering.2 million domestic tourists travel to such places. the largest and the last of its kind in the 20th century. On the other hand. scuba driving. offers some of the most exotic beach holidays in the world. Features Of Tourism Product Are As Follows:  Each component of tourism is highly specialized and together makes the final product and cannot be provided by single enterprise. Today more than 50% of the 9. across the globe. Kovalam and Gopalpur.  Sales intermediaries like tour operators. At the tip of the Indian mainland we have Kanyakumari. There are only 45. travel to the destination. India boasts of many beaches of Goa.  Demand for tourism is highly unstable due to seasonal.It involves visiting various places of worship.000 timeshare owners in India registered with the RCI. Hyatt. wild life and bird watching. On the west coast.000 – 50. the accommodation and facility as well as entertainment at the destination all forms the tourism product. is approximately USD 6 billion industry at present and is growing at an average rate of 20 percent every year. You may use your home resort every year or trade to thousands of other affiliated resorts worldwide.

PRICE.: free entrance tickets to local attractions. swimming pool etc. music Totally customized tour packages.g. The infrastructure and equipment are the components of transportation Apart from the various components of tourist product. good food Prompt services. comfortable and convenient trip. fun. For e. BENEFIT 1. self-fulfillment etc. Augmented product: it expresses the idea of value added over and above the formal offer.: inclusion of breakfast.g. A grade service at every stage The possible evolution distinguish the offer to . For e. hotel reservation Customer friendliness. functional attributes Set of attributes/conditions the buyer normally expects That meets the customers desires beyond expectations WITH RESPECT TO THE TRAVEL AND TOURISM INDUSTRY Traveling Ticketing.: relaxation.g.Components Of Tourist Product. All these components help in identifying the images and perceptions of the tourist products as well as tourist organizations. For e. facilities like television. CORE BENEFIT 2 BASIC PRODUCT 3 EXPECTED PRODUCT 4 AUGMENT ED PRODUCT 5 POTENTIA L PRODUCT Transportation. MEANING The fundamental benefit or service that the customer is buying Basic. Tangible product: comprises of the formal offer the product as set out in the brochure. complimentary bottle of wine on arrival. spectacular sights. there are three levels of service package for tourist products and they are as follows: Core product: comprises of essential need or benefit sought by customer. Without the transportation facility the attraction is of no use.

to prevent competition. publicity. free gifts etc. Methods Of Pricing In Tourism Industry. Place or distribution management is concerned with two things – availability and accessibility. The promotion mix plays a vital role as the users of service feel a high degree of involvement and uncertainty about the product and their role in the buying process. then prices must be set very competitive to attract more customers. We also agree with this view that new generation of information technologies have simplified the task of decision makers. PROMOTION. and to take care of the price elasticity of demand. Ticket booking can be done through the internet and payment is made with credit card.  To facilitate the purchase of service in advance. However. away from the location at which services are performed or delivered. This pricing will suit to the seasonal characteristics as at peak times many leisure facilities have excess demand so firms use high price as tactic. The important aspects of promotion are advertising. the late  Best mode of reaching the tourist is through internet. incentives to be given for a short period of time like price cuts. sales support and public relations. PLACE In most of the cases the tourist destinations may be natural. The tourist products are bought by the travel agent or tour operator. communication are important for the development of a tourist center. People. and circulating brochures to the customers are also an important tool in tourism marketing.The objective of pricing is to fetch a target market share. In case of niche strategy. infrastructural facilities. Advertising the messages attractively and sales promotion activities in tourism can be effective when supplemented by publicity and personal selling. the price should portray this aspect complimented with additional benefits of the service offer. historical attractions. Demand based pricing: refers to balancing costs and revenues. The word-of-mouth promotion is an important tool in tourism marketing. . Competition based pricing: in case of new tourism product.  Different distribution strategies may be selected to reflect the company’s overall objectives. But. Apart from that.  To extend the number of sale or access. discounts. Cost based pricing: the price charged must be sufficient to cover fixed and variable cost to have a reasonable return on investment. We can’t deny the fact that sophisticated technologies have been successful in accelerating the pace of development. Organization resort to price fixation at marginal cost to attract more customers. if the strategic objective is market penetration. transportation.

Travel guides especially. In the management of people.refers to information regarding the travel is provided at a convenient location where the tourist seeks clarifications about his proposed tour. The tourism industry is an amalgam of the services of a lot of people and hence this industry cannot work efficiently if the travel agents. tour operators and travel guides lack world class professional excellence. tact to transform the occasional tourists into habitual ones. innovate and develop technologies.. PROCESS. The operation process of the tourism firm will depend on the size of the tourist firm. Technologies need due support of human resources who invent. good sense of humor. failing which even the world class services offered by the travel agents are found meaningless. The tour operators also need to manage human resources efficiently.the task of planning and costing the tour will depend on the tour selected as well as individual requirements. Employee orientation requires due weightage to efficiency generation. The travel guides need professional excellence since the projection of a positive image regarding a destination in particular requires their due cooperation. Hence it is imperative that they have to be at their best at all times. Of course the office of travel agents depends on the new technology but after all employees and the other staff contribute significantly to the process. before any form of travel is sold to a customer. The organization has to make the environmental conditions conducive and focus has to be laid on the incentives to the employees for energizing the process of performance orientation. New concepts in Tourism Industry: Eco Tourism: . The steps involved in the delivery of the tourist product are as follows:  Provision of travel information. linguistic skills etc. the related organizations are required to think in favour of developing an ongoing training program so that we find a close relation between the development of technologies and the quality of personnel who are supposed to operate and maintain the same.  Planning and costing tours. the tourism industry depends substantially on management of human is composition of series of operations that are required to plan a tour  Liaison with providers of services-contracts have to be entered with the providers of services like transportation companies. thorough knowledge of the places. hotel accommodation etc.  Preparation of itineraries. value-orientation and perfection.At the same time we also have to accept the fact that the sophisticated technologies can’t deliver goods to the development process if the employees operating and maintaining these technologies are not of world class. In the tourism industry the travel agents and the travel guides are the two most important people who speak a lot about the industry. They need a lot of credentials to fulfill the expectations of the customers. are expected to have a lot of patience. Like other industries.

frequency of visit by offering new tourist products in the same country to areas. The tourist organizations bear the responsibility of informing. public relations etc. wellarranged restaurants and cafeterias. The marketers need to use the various components of promotion optimally so that they succeed in increasing the number of habitual users. Productivity and quality need to be omnipresent for the industry to complete its service obligations aptly. Only if your firm is productive and the quality meets the requirements of the customers can your performance be graded as excellent. publicity. Creation of awareness has a far-reaching impact. which are valued by the customer. Eg.  Have you found a way to fit marketing into your schedule?  Do you keep track of both your long and short-term projects (including marketing projects). Advertising is aimed at the public to create awareness of the travel offers available on a resort and its attractions to influence their business decisions. It helps in projecting the positive image of tourist organizations since the prospects trust on the news items publicized by the media people. travel editors. The publicity programme include regular publicity stories and photographs to the newspapers. Quality refers to the degree to which the service satisfies the customer by meeting their wants and expectations. and review that list daily?  Do you have a way of combating procrastination and delay?  Do you maintain the highest standards of integrity and excellence?  Are you continually working to improve your skills in all areas of your business? PROMOTION Includes advertising. Sales. Kumarakom in Kerala after Prime Minister A B Vajpayee’s visit. which hitherto have remained untapped or partially tapped. The various dimensions of tourism promotion are as follows: Advertising: Advertisement helps in furnishing important information to the actual and potential tourists. contact with magazines on stories etc. Its coverage is wide.Eco Tourism is an enlightening travels experience that contributes to the conservation of the eco system while respecting the integrity of the host communities. swimming pools etc. We can project hotel bedrooms. Here are five key things to consider when developing the performance strategy for your business. PRODUCTIVITIY /QUALITY Productivity in services refers to how you transform the inputs into outputs. persuading and sensing the potential tourists in a right fashion. There are . Publicity: It focuses attention on strengthening the public relations measures by developing a rapport with media people and getting their personalized support in publicizing the business. Intangibility can be compensated with the help of visual exposure of scenes and events. Promotion helps in maximizing the duration of stay.

wallets for tickets and Forex and covers of passport. The oral representation in conversation bears the efficacy of transforming the motivation into persuasion. shower caps and shampoo. In the tourism industry it is found that the word-of-mouth promoters play the role of a hidden sales force. The high magnitude of effectiveness of this tool of promotion is due to high credibility of the channel. which in a true sense is word-of-recommendation. a travel company offers give-always to their clients. A business travel challenge in which the details of expenditure on staff business travel booked through other agents over a 3 months period were submitted by companies to Cook. identify the vocal persons or the opinion leaders and take a special care of them so that they keep on moving the process of stimulating and creating demand. In the tourism industry. • • • • Money back guarantee to the clients who purchase the product or any tour operator known as trading charter. Further. The development of travel and tourism has been possible due to well-educated and trained sales personnel. the VIP clients also get fruits and flowers in their rooms. specially to calculate expected savings. Personal Selling: Personal Selling is based on the personal skill of an individual. The hotels offer a number of facilities like shoe shine clothes. Matching of customers need with a particular holiday known as formal guarantee. first aid sewing kits. The tool of sales promotions is designed to appeal particularly to those customers who are price-sensitive.different groups in publicity. which instrumentalize the process of selling. provided the bookings are made through them. Personal selling is the personal . Word-of-mouth Promotion: Most communication about tourism takes place by word-of-mouth information. projected publicity. The development of tourism business has been influenced by the services rendered by the travel agents and travel guides since they work as information carriers. structural publicity and personal publicity. such as flight bags. such as advertising publicity. The marketers or the tourist organizations need to keep their eyes open. Sales promotions: Sales promotion measures are the short term activities seeking to boost sales at peak demand periods to ensure that the firms obtain its market share and are used to help launch a new product or support an ailing or modified one. The travel and hotel business depend considerably on the personal selling. The sensitivity of this tool makes it clear that tourist organizations need to concentrate on the quality of services they promise and offer. especially in the eyes of the potential tourists. There are a number of techniques to promote sale and the tourist professional need to use them in the face of their requirements vis-à-vis the emerging trends in the business. Thomas Cook offered 3 tier sales promotion based on price and one more novel technique as detailed below: Cook agreed to match the price of any holiday they sold which was known as price promise. Eg.

3. which get the foreigners into the country.presentation of a tangible product or intangible services or ideas to the personal customers. Factors affecting tourism industry: 1. the personnel who attend tourists form an essential ingredient of the product. The phrase. Cross border terrorism in Jammu & Kashmir Terrorist Attack in April 1999 11th September Attack on US Gujarat riots SWOT Analysis: Strengths: . Travel mementos etc. all of them play a vital role in ensuring that the tourism products satisfy the tourists. Telemarketing: it is a method of selling in which a professionally sound telemarketer expands the business. 2. 2. It is important to mention that in the tourism industry. These facts are testimony to the proposition that the travel business is linked with the performance and behaviour of sales personnel or travel staff. innovation and imagination. No reduction in price would compensate for impolite and indecent travel guide. SOTC business improved substantially in Mumbai & Pune circles after the announcement of these separate packages. such as sales personnel are found responsible for dealing with customers behind the counter.the customer is always right applies specifically to the tourism industry. Infact. and secretaries can’t work efficiently if the telephonic services are not up to the mark. The quality of technology and the communicative ability of the telemarketers determine the magnitude of success of this component. In tourism. 4. which take the local residents out of the country The others. Major players in tourism industry: These players can be divided into 2 1. For eg: SOTC SOTC floated a new package called “Brahman Mandal” aimed at Marathi speaking population and “Vishwa Darpan” aimed at Hindi speaking population of the country. This kind of segmentation will enable the companies to target effectively to boost their revenues. PHYSICAL EVIDENCE Broachers. a solvent waiter and a surly or a haughty coach driver. personally committed sales personnel having an in-built creativity. receptionist. the travel agents. the resort representatives cater to the need of tourists when they reach the destination etc. The ones. This makes a strong advocacy in favour of recruiting a person considered to be professionally sound. offices of airways.

beaches& it has a diversity of culture i. Govt. Opportunities: Growth of domestic tourism and special packages offered. airline . For eg: for every $ spent in India by a tourist he pays as much as 27% in taxes on average with figures going upto 35% in states such as West Bengal. railways and roads. Weaknesses: Lack of adequate infrastructure & improper marketing of Indian tourism abroad.India a culmination of deserts. For eg: Thomas Cook says “Travel Now Pay Latter.” Affordable traveling at leisure. forests. Confederation Of The Indian Industry (CII) has a vision for tourism in India called “Tourism Vision 2020” CII expects to host 40 million tourists by then & the tourism economy contributing Rs. and luxury tax. Problems: 1. in promoting tourism. sales tax. plenty of job opportunities.e. Tax burden for industry leaders. 2. support & cooperation to Indian Tourism Industry. Lack of Infrastructural facilities. a blend of various civilizations & their traditions. Future scenario: The industry body. but for other major global destinations the tax burden is only in the range of 4-8% 4. hotel industry. a number of archeological sites & historical monuments. Tourism provides enormous opportunities for employment generation. tourist has to pay service tax. Singapore. Lack of reasonable priced accommodation. Aggressive strategies adopted by other countries like Australia.1tn.3 million in India for every 10 lakh invested in hotels/restaurants. Threats: Economic conditions and political turmoil in other countries affects tourism. mountains. 9. Along with expenditure tax. 3. Current scenario: Growth in domestic tourism in the country during the last one-decade 146 million tourist visits in 2000. PEST Analysis of the Industry: Environmental influences can be analysed by using the PEST analysis. Political/Legal Political factors are the main driving force of the industry.

4. in India many cruise liners have come to existence like star. This will help the commercial as well as the industrial sector. It will transport more economical. tourist operators. Downfall of tourism industry because of unconducive political environment eg Kashmir. Increase in spend has led to increase in the number of luxury hotels. As we are concentrating on the International tourists. The main feature is that it has a concept wherein a passenger can buy a single ticket and travel all over Europe without any stoppages as this railway line covers the entire Europe almost up to Russia. 3. Indian hotels charge about 40% tax compared to other Asian countries where it varies between 3% and 6%". Frequent flights.  Ring route : this is one plan in mass rapid transit system.  Cruise liners : in this era people try different forms of travel cruise is one such. & increase in air industry. Virgo etc. which is being developed in thane district to make transportation better.  Palace on wheels : This concept is very much prevalent in the state of Rajasthan where people come to experience the historical palace. Legal: Law is different for different country & is the major determinant for the industry. this has led to the tourism boom. It will be 16. in this every thing is made available in the coaches of train so as to make the trip exciting. 2. The more the tourists coming at the place the more the risk of that place loosing its identity.  .industry. It is very much necessary to have better technology to have that place on world tourist map. and every Childs dream Disney cruise. Economic: The criteria here is the more the people spend the more the industry grows. efficient and environment friendly.2 Km long. “Tax paid by tourists in India is the highest in the world. It can help the country to get connected to the world. Various innovations in the tourism Euro rail : Euro rail International is one of North America’s leading sources for European rail. Technology: 1. Better technology in cheaper cost to remote and inaccessible area. and royal way of living. Social: The general perception for tourism destruction of the social fabric of a place.

 Actual Users: They are already using the services generated by the tourist organizations  Occasional Users: They have not formed the habit of traveling  Habitual Travelers: They have formed a habit and avail of the services regularly. On an average. Foreign Kids. Blue collar Students. Teens. Youths. 2] The average duration of stay of foreign tourist in India is one of the highest in the world. Safari is generally via road. 5] There is high degree of seasonality in the foreign tourist traffic. 3] The major share of the international visitors emanates from West Europe and North America. there are several distinguishing features that would help in achieving its set goal.Safari : exploration of lesser-known area. Seniors Executives. Movie stars  Sex: Men. Artists Politicians.34% of global tourist traffic).  POTENTIAL FOR GROWTH OF TOURISM Although India is at the lowest ebb in international tourism (only 0. Poor  Profession: Executives. 6] The hotels and tourism related industry has been declared as a "High Priority Industry" for development.  General: Domestic. Artists  Occupation: White collar. .  Non-users: They lack the willingness. Illiterate  Status: Rich. Sex. Urban  Education: Literate. etc.  Potential Users: They have the willingness but the marketing resources have not been used optimally to influence their impulse. Region. it exceeds 27 days in the case of non-package tourist and is 14 days in the case of package tourist. 4] The tourists on package tours spend nearly 65 per cent of their expenditure on shopping. desire and ability (income & leisure time). Academics. Another method of classifying users of tourism services is on the basis of the frequency of usage of services. Sportsmen. Education. TYPES OF CUSTOMERS & SEGMENTATION Users Of Tourism Services The users of tourism services can be categorized in a number of ways. There is some destination where one has to go by foot long distance. One such way of classifying the users is by dividing them into categories such as General. Some of these are given below: 1] The rate of growth in tourist traffic to India has been greater than the global average. Women  Region: Rural. Tourists are more attracted towards it as this gives them adventure.

a newly married couple might prefer romantic holidays. T CONCEPT Unique Characteristics Of The Tourism Industry Inflexibility: The tourism industry is highly inflexible in terms of capacity. ♠ As the lifestyle changes. ♠ Teens and youth might prefer adventure holidays whereas senior citizens would probably prefer more relaxing vacations. ♠ The individual market consists of chairmen. transform them into actual tourists and further into habitual tourists. They are also affected by other factors such as level of income. but once they have children they would prefer family vacations where there are plenty of activities to entertain kids. In recent years. preferences and expectations. Such segmentation is useful when deciding the offerings to target a particular segment. which are the result of environmental influences. The number of beds in a hotel or seats on an airplane is fixed so it is not possible to meet sudden upsurges in demand. tourist organizations need to undertake segmentation in order to simplify their task of creating and stimulating demand. consumption of services might change. In this way they can identify the potential tourists. etc. products and brands change constantly. Segmentation Though there are a number of bases for segmentation of tourists. availability of leisure time.Need For Segmentation Consumer behavior can be defined in psychological terms as the whole range of the generation of wants and their transformation into buying or using decisions. perceptions. senior executives. For example: ♠ The mass market consists of vacationists that travel in large groups and prefer all-inclusive tours. For example. the users have become more discriminating in their using habits and therefore their needs for different services. Similarly. Users have values. hotel beds and  . one of the most important is Lifestyle. ♠ The popular market consists of smaller groups going on inclusive or semiinclusive tours. etc. This group includes pensioners and retired people. There are a number of factors that influence the behavioral profile of consumers. Traveling decisions are fantastically influenced by changing lifestyles. In a nutshell. This makes it essential that the marketers analyze their behavioral profile and undertake segmentation so that they know the level of expectations. restaurant tables. They are generally conservative.

 Tourism Services are high contact services. This means that the level of risk and the rate of return are critically important to tourism management. A consumer can conveniently watch a Hollywood movie at the local cinema but has to be persuaded to travel to India to see the Taj Mahal. HOUSING FINANCE Over the years. In addition. various exemptions and measures have been taken by the . Perishability: Tourism services are highly perishable.  INTRODUCTION Housing is closely connected with the physical quality of the life and it is one of the community. The central Government helps the state governments in their efforts. Offering attractive and discounted prices is strategy to overcome this problem. The seasonal nature of tourism activity exacerbates this problem. Tourism services are very people-oriented services. high land prices.The total requirement dwelling units is calculating on the basis of criteria adopted by the national building organization. cost escalation in the prices of the raw material etc. The growth of urban population. This has an impact on overall industry profitability. However. rapid industrialization and regional development are the factors aggravating the housing problem in the towns and cities in Maharashtra .  Fixed location: Tourism destinations are fixed locations so effort must be concentrated in communicating the facility to the potential consumer. Therefore provision of better housing facilities is an important objective of the development efforts. and the service people are plenty and have high contact with the consumers. The consumer interacts with a myriad of service people starting from when he books his ticket and throughout the course of his holiday. the growth of the housing sector as been consistently hampered by the lack of financial resources.  Relatively Large Financial Investment: Every modern tourist establishment and facility requires large investment. the government has supported housing industry and encourages individual home ownership but providing various fiscal incentives in the union budget. Housing assumes significance in the overall socioeconomic development because its stimulate economic activity and employment. An unused hotel bed or an empty airplane seat represents an immediate loss of that service as a means of earning profit. It is the responsibility of the state government to formulate and implement the housing the programmes. as people interact with people at virtually EVERY stage of the way. Efforts to solve the problems of the housing to some extend are been made under the programmes drawn up by the government.airplane seats remain empty and unused in periods of low demand. frequently over a long time scale.

inter alias. higher disposable incomes. tax incentives massive competition by providers of housing finance has helped consumers considerably.government to make housing more affordable. healthy. The primary market for housing finance has now matured. The Act. 1987 to function as a principal agency to promote Housing Finance Institutions and to provide financial and other support to such institutions. e. NATIONAL HOUSING BANK (NHB) The National Housing Bank (NHB) was established on 9th July 1988 under an Act of the Parliament viz. The robust growth in the demand for housing finance in recent years has been remarkable. d. The implementation of housing finance policies pre-supposes efficient institutional arrangements. MSRDC add PWD were introduced further for promotion of housing industry. State or Provincial Act and engaged in slum improvement and » Formulate schemes for the purpose of mobilization of resources and extension of credit for housing OBJECTIVES OF NHB: NHB has been established to achieve. State housing boards like MHADA. there was no well-established finance systems till mid-80's in as much as it had not been integrated with the main financial system of the country. To promote a sound. viable and cost effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system. Although there were a large numbers of agencies providing direct finance to individuals for house constructions. c. the National Housing Bank Act. b. Housing finance as a financial intermediation process commenced only in 1978. Lower interest rates. the following objectives: a. empowers NHB to: » Issue directions to housing finance institutions to ensure their growth on sound lines » Make loans and advances and render any other form of financial assistance to scheduled banks and housing finance institutions or to any authority established by or under any Central. To regulate the activities of housing finance companies based on regulatory and . To augment resources for the sector and canalize them for housing.with the establishment of Housing Development Finance Cooperation (HDFC) as specialized lender to households and corporate entities specifically for housing purpose. To make housing credit more affordable. To promote a network of dedicated housing finance institutions to adequately serve various regions and different income groups. inter alias.

wholly or partly. HUDCO was an expression of the concern of the Central Government in regard to the deteriorating housing conditions in the country and a desire to assist various agencies in dealing with it in a positive manner. and Development Authorities etc. · To finance or undertake the setting up of industrial enterprise for building material. · To finance or undertake. from the Government of India and other sources as grants or otherwise for the purpose of financing or undertaking housing and urban development programmes in the country. · To administer the monies received. especially for the purpose of Housing and Urban Development programmes. g. OBJECTIVES OF HUDCO: · To provide long-term finance for construction of houses for residential purposes in urban and rural areas and finance or undertake Housing and Urban infrastructure development programmes in the country. assist. To encourage public agencies to emerge as facilitators and suppliers of serviced land. the setting up of the new or satellite towns. from time to time. Improvement Trusts. The principal mandate of HUDCO was to ameliorate the housing conditions of all groups and with a thrust to meet the needs of the low-income group (LIG) and economically weaker sections (EWS). collaborate and provide consultancy services for the projects of designing and planning of works relating to housing and Urban Development in India and abroad. To encourage augmentation of supply of build able land and also building materials for housing and to upgrade the housing stock in the country. f. · To subscribe to the debentures and bonds issued by the state Housing and Urban Development Boards.supervisory authority derived under the Act. establish. · To promote. HOUSING AND URBAN DEVELOPMENT CORPORATION (HUDCO): Incorporated on 25th April 1970. for housing. 7 Ps of service marketing  Product: • In the housing industry The core product consists of: permanent accommodation / living space .

recreational facilities. In construction and housing industry. location materials to be used • What is being agreed and paid for – whether the completion of a building or facility. e. . kitchen. cost-benefit studies. the price also makes a contribution to the fixed cost/total cost of the contracted organization. • Consultancy: a range of answers and options plus full briefing on each maintenance manuals. brand name. electricity. examples of such special treatment are: • Builders: garden layouts. availability of schools and hospitals nearby. bathroom and bedroom furnishing • Civil engineering: site refurbishment and replacement. presales and after-care agreements. utilities. quality constraints. which “delights” the consumer. after sales service. Price Agreeing the price for a piece of work seals the relationship between contractor and client.• The format product consists of: locations. carpentry and curtains. provision of landscaping / open spaces. provided all goes will. and reflects the value placed on the relationship. clean environment. early delivery and extensive customer liaison • Building products: instructions in how to use. It is the central feature. This is the marketing of the goods. volume and duration of work required and the amount of commitment entered into by each party. It is also necessary to consider charges incurred by the contractor as result of having to underwrite the project from inception to delivery and from the need to acquire any specialist equipment and expertise necessary. • The augmented product consists of: security available. reputation of the locality and the builder. giving access to schools and colleges. Pricing Considerations For the housing and construction industry. there are many considerations: • Capital projects and building activities are priced so that variable costs – the costs incurred as the result of gaining the work – are covered. amenities. etc. precise guaranteed delivery times (industrial and commercial). hiring local labor. • Architecture and design: choice of design. Special treatment This is concerned with the product delivery or project completion. Price is based on combination of: • What the market expects • What the client can afford • The nature of competition in the sector • What the contractor can afford to work for • Any specific factors concerning the particular job. It indicates strongly the quality. Ideally. or a wider process often supported by maintenance.g. time. staff training. It may also indicate a propensity to re-engage the relationship for subsequent activities and projects.

charges reflect the perceived and actual quality. planner. value. Where charges are high. volume. contractor. There is again a price. Charges also reflect the quality. Depending on the nature of the work. general presentation of information in the most advantageous way. clients expect their problems to be solved as the result of using a particular service.• Building products are priced so that an individual perception of quality. and the latter has specific regard to frequency and regularity. • Architecture and design services are priced much more specifically. quality. • Brand building and reinforcement – the creation of equivalent of brand around the name of the company in question • The promotion of the general confidence. civil engineers and subcontractors. Place Product has to reach to the ultimate buyers. a fee for a revised or final proposal. other consultant. It is also increasingly common to find differentiated pricing approaches as competitors seek real and perceived price advantages. value and service are given at a level that the size and nature of the market can sustain. There is likely to be a fee for an initial proposal. In this industry distribution is done through real estate agents. a price may be agreed with a quantity-surveying agency or directly between the quantity surveyor or purchasing officer and supplier. Marketing channel performs he work of moving the goods from the producers to the consumers. public sympathy and support for activities. time mix and again depending on the standing and reputation of the practice. scarcity and demand for its services  Promotion The construction industry is concerned with the following forms of promotion: • The promotion of its capabilities and expertise to client and potential clients • The promotion of its finished products to the community and society at large • The promotion of professions within the industry to each other promoting specific general and continuing inter-relationships and confidence between architecture. consultancy agency provisions are priced according to expectations and perceptions of nature and quality of expertise demanded by the client base and which the specialist. . • Awareness raising and image building. quality surveyor. In the housing and the construction industry. so company works with its intermediaries to bring their product to their market. constructions cannot be transferred but here intermediaries transfer information to distinct places about the availability of accommodations so that people not having any idea about these constructions get to know about it. volume and delivery methods. Building materials are priced according to quality. operator or consultant wishes to present. who act as the connecting tool between the consumer and the provider. and a fee for the proposal once accepted. • Building services. scarcity and demand for the service on offer.

Also the materials use to build houses in different regions differ because of climatic differences. in England most houses are builds of wood whereas wood is not a viable option in the tropical area. Those who develop the product They consist of location hunters’ architects and builders. which will break the tangibility factor intensive advertising to overcome the perishability factor and so on. long gestation period and a speculative tendency (irregular demand) housing and construction industry works on other people’s money. It includes the construction of a sample flat. This relates to all aspects of building and civil engineering where the creation of a particular facility is supported by project and environment management. sample houses photographs and posters of previous achievement can be displayed in construction offices or those can be shown to the customers when they come for enquiry.People The people in the housing and construction industry can be divided into two groups. In this industry tangible industry is supported by services in which the services offered enhance the client appeal for the product. i. This strongly experiences intangibility aspect of this industry. Most of the payment is made after the product has been handed over. Physical evidence A service industry can develop a more attractive service environment where a service can be delivered. Process Service Company can design a superior delivery process. so that the customer gets attracted to it. In the housing and the construction industry model of constructions. They are required to have technical skills of geological mapping soil testing building designs and so on.g. upgrading and facilities management services and for public projects sometimes also for general services to the wider community. Builders who do the final construction consist of civil engineers skilled and unskilled labor. client liaison and specialist consultancy services and sometimes through maintenance refurbishment. The marketer uses all the tools that help to overcome the unique characteristics the service industry. The possession of these skills is of utmost importance because buildings cannot be constructed all types of land. Because of heavy initial. capital investment. Those who market the product These consist of marketing people who may or may not have a civil engineering background but certainly have the skills of understanding the customer as well as the product. E. . Construction begins with advance booking and then customers are supposed to pay in installments.e.