Service marketing refers to the application of a different set of strategies to expect the consumer’s

need for an intangible product and consumer meet their requirements accordingly, to create maximum
value for them from their purchase. Example :- food services, Hotel services, airline services, personal
care services, entertainment services etc

Service as an act or performance that one party can offer to another that is essentially intangible and
does not result in the ownership of anything. Its production may or may not be tied to a physical
product. ( Philip Kotler)

Elements of service are :-

 Lack of physical output or construction

 Benefit to the receiver from the service rather than the product offered
 The intangible nature of services
 The possible combination of a service with the production of goods
 Marketing of an idea or a concept.

Characteristics of Service Marketing :-

. Intangibility: Services are intangible and it cannot be touched, handled, smelt or tasted (physical
senses). This is because service itself is an activity. A service can only experienced not stored for future.
A service also gives satisfaction and there is no ownership created in case of services. A service can only
be generated and used and can never be owned.

2. Perishability: A service has to be consumed commonly with its production. A service cannot be stored
like a tangible commodity. Services are perishable in terms of delivery and time. An empty seat on a
plane never can be utilized and charged after departure. Revenue once lost is lost forever.Example –
after the passenger has been transported to the destination, he cannot be transported again to the
previous location at the previous point of time.

3. Inseparability: Seasonal goods once produced and can be sold at a later point of time but in case of
services it is not possible. Examples:- A doctor to his patient, teacher to his student, the simultaneous
presence of both-the producer of the service and the consumer of the service at that point of time is
absolutely necessary.Therefore, the service itself, producer and consumer are inseparable.

4. Simultaneity: Services are generated and consumed during the same period of time. As soon as
delivery of the particular service must be generated from scratch without any delay. The service
consumer instantaneously consumes the rendered benefits to satisfy his wants. Therefore the
production and consumption of services are always simultaneous.

5. Variability: Each service is unique. Services lack uniformity. Example – a doctor treats two patients
with similar ailments on the same day. The level of satisfaction in the minds of patients are not same.
The difference is caused by factors such as the mood of the doctor, the fatigue level of the doctor, the
way the service is perceived by the individual patient etc
6. Ownership: No ownership is created in case of services. At the time of creating a service or delivering
a service, the service provider does not own the service. He only owns the physical infrastructure
necessary to create the service. Consumer only consumes the services.

Classifications of Service marketing:-

1. On the Basis of End User:

i. Consumer services – Hair dressing, laundry, package holiday, counseling etc.

ii. Business to business services – consultancy, marketing research, advertising etc.

2. On the Basis of Tangibility:

i. Tangible services – televisions, laptops, cars, watches etc.

ii. Intangible services – consultancy, services at a spa and massage centres.

3. On the Basis of Specialization:

i. Professional services – counseling, audit, legal services, health care etc.

ii. Nonprofessional services – domestic servants, gardening, painting etc.

4. On the Basis of Profit Orientation:

i. Commercial services –private banking, beauty parlors etc.

ii. Social services – services rendered by orphanages, charitable trusts etc.

5. On the Basis of Labor Intensiveness:

i. People based services – repairs of auto mobiles, catering, event management, security services etc.

ii. Equipment based services – vending machines, ATMs, self-activating machines.

6. On the Basis of Contact between the Service Provider and the Service Consumer:

i. High contact services – Psychiatric counseling, surgery etc.

ii. Low contact services – tailoring, diagnostic services etc

* Importance of Service Marketing:-

1. Support to Primary and Secondary Sector of the business market.

2 Creates Employment Avenues:- It creates employment opportunities in various sectors like BPOs,
hospitality, retail, tourism, entertainment, brokerages etc

3. Contribution to National Income.

4. Provision for Basic Services :- like hospitality, transport, educational institutions, courts etc.

5. Adds to Comforts and Leisure.

6. Improvement in India’s Image.