Emerging trends in

services marketing
BY SRAVAN REDDY.
Introduction
Service sector is the backbone of social and economic
development.
 it is emerged as one of the fastest growing sectors in the world
and making higher contributions to the employment and global
output.
the growth of service sector is predominantly more than
agriculture and manufacturing sector.
India has second fastest growing sector with its compound
annual growth of 9% just below china 10.9 %.( source :
economic survey 2013-14)
 Service industry
Health Care
 Financial Services
 Hospitality
 Travel and tourism
 Warehousing
 Transportation
 Retail trade
 Communication and information technology
Service sector contribution
Service sector type Contribution

Trade , hotel , transport and 26.4

communication
Finance , insurance and real estate 20.6

Public administration and defence 13.0

Total services 60.0

Source Economic survey 2013-14

Service ???
American Marketing Association  defined services
as “activities, benefits or satisfactions which are
offered for sale or provided in connection with the sale
of goods.”

 “Any activity or benefit 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.” Kotler and
bloom
Marketing Vs Services Marketing
Marketing emphasized on:

◦Product customer need and wants

◦Price cost of the product
◦Place convenience
◦Promotion communication
Cont..
Service marketing required three additional Ps

◦People– employees represents organization to customers

◦Physical evidence –physical environment , atmosphere and

facilities helps to shape customer perceptions. it also helps in
socializing , changing impression and trust.

◦Process—it assures service availability and consistent quality.

Nature of services
Intangibility
Perishability
Relative and subjective quality dimension
Fluctuating
Variability
Heterogeneity
Inseparability
Understanding customer
It easies new customer acquisition
Drives customer loyalty
Improves retention
Increases customer satisfaction
Reduces customer switching
Creates competitive advantage
Increases revenues to meet financial goals
Helps to build strong customer relationship
Services marketing at Holiday Inn
Holiday Inn one of the fine restaurants loosing its customer for breakfast , lunch and
dinner.
Customers are preferring to have dinner at steakhouses and gas station hotels.
What did holiday inn did ???
They didn’t changed neither location or the menu or price. The hotel thought to improve
the customer experience . they defined customer experience strategy at the hotel.
It rooted that strategy into four brand attributes
Inclusiveness
Purposefulness
Social
 familiar
Cont..
They tried to create customer experience strategy by adding all the elements.
since customer is not only coming for dinner but to have fun.
They have called there restaurant as social hub , the hotel described the experience they
want to give to customer as we give guest flexible options so they can be themselves.
The activities they classified as
Eat/drink
Have fun with family and friends
Relax
Connect
Transition
All the above places are arranged with customer touchpoints.
Competition and convenience
Cash on Delivery
Wide range of products
Displaying the delivery
date of the product and
retailer. Secure, reliable,
time-definite
distribution across
26,804 locations in
India and 220
countries -
Cont..
Keep it very simple
In airlines industry
customers demand for
quality for less cost ,
indigo punctuality in service
with out any extra add on
services keeps indigo
market leader in domestic
flying.

“ on time is a great thing “

Using technology
Movie , cricket matches and other
Online bus
entertainment at across India.
ticketing ,
travelling and
hotel booking`
Discount offers ,
tour packages ,
transport
facilities

Olx and quickr both are

internet and mobile classified
advertising Companies`
Social networking
Amusement parks at kochi , banglore
and now in Hyderabad. Provides
Transport service to customers and
special offers to school children and
corporate bulk group packages.

Icicidirect provides demat services

We can share the service

experiences of service providers ,
give ratings and feedback to service
providers
Be A roman in Rome
Added Indian menu for its
stores in India. Including
vegetarian

Offers 90% locally

sourced items in there
stores. In India it offers
appx 5000 items in cash
and carry wholesale.
Fast delivery of service
ICICI BANK –Best and Fast service to the customer in retail and corporate banking
All cargo logistics- one of the best e-commerce logistics company , best in class
service with speed
Amazon India- one of the fastest delivery online shopping platform

Narayana hrudayalaya – offering medical services

Nielsan– leading global information and measurement company provides faster

marketing research surveys
Rewarding loyalty
Virgin Atlantic Flying Club

Virgin Atlantic  allows members to earn tier points.

The club inducts members at the Club Red tier, then bumps them up to Club
Silver and then Club Gold.
 Club Red members earn miles on flights and get discounts on rental cars,
airport parking, hotels, and holiday flights.
 Club Silver members earn 50% more points on flights and have access to
expedited check-in and priority stand-by seating.
 Club Gold members get double miles, priority boarding, and access to exclusive
clubhouses where they can grab a drink or get a massage before their flight.
Testimonials
Innovation
KFC plans to grow on four fronts-
geographical reach, food menu, serving
hours and customer base, with particular
focus on the Indian youth.
Adding different food products
Planning home delivery
Price starts from as low as 25 rs
Free wireless in outlets
Shift towards healthier meal
Conclusion
 Service marketing differs from product marketing due to the
fact that services are in tangible.
Quality of this service interaction becomes an important subset
of marketing strategy.
A business can be defined only in terms of customer benefits
in order to create a market-driven culture
It requires developing marketing programs which continually
create benefits and value for the customer,
It demands the offerings more tangible.