SERVICES MARKETING

Introduction to Service marketing

(DR.SELVAMOHANA.K)
• Definition
• Service Economy
• Evolution and Growth of Service Sector
• Nature and Scope of Services
• Unique Characteristics of Services
• Challenges and Issues in Services Marketing
• Classification of Services
• 7 P’s of service marketing.
 Definition-Services marketing
• The American Marketing Association defines
services marketing as “an organizational
function and a set of processes for identifying
or creating, communicating, and delivering
value to customers and for managing customer
relationship in a way that benefit the
organisation and stake-holders”.
• Services are (usually) intangible economic
activities offered by one party to another.
 Services marketing-Meaning
• Services marketing is a specialized branch of marketing
emerged in the early 1980s, following the recognition that
the unique characteristics of services required different
strategies compared with the marketing of physical goods.
• Services marketing typically refers to both business to
consumer (B2C) and business-to-business (B2B) services,
and includes marketing of services such
as telecommunications services, financial services, all
types of hospitality, tourism leisure and entertainment
services, car rental services, health care services
and professional services and trade services.
• Service marketers often use an expanded marketing
mix which consists of the seven Ps: product, price, place,
promotion, people, physical evidence and process.
 Service Economy
• Service economy can refer to one or both of two recent economic
developments:
• The increased importance of the service sector in industrialized economies.
• The current list of Fortune 500 companies contains more service companies
and fewer manufacturers than in previous decades.
• The service economy in developing countries is mostly concentrated
in financial services, hospitality, retail, health, human services, information
technology and education.
• Products today have a higher service component than in previous decades.
In the management literature this is referred to as the servitization of
products or a product-service system.
• Virtually every product today has a service component to it.
• Many products are being transformed into services.
• For example, IBM treats its business as a service business. Although it still
manufactures computers, it sees the physical goods as a small part of the
"business solutions" industry. They have found that the price elasticity of
demand for "business solutions" is much less than for hardware.
 Evolution and Growth of Service
Sector
Introduction
• The services sector is not only the dominant sector in
India’s GDP, but has also attracted significant foreign
investment, has contributed significantly to export and
has provided large-scale employment.
• India’s services sector covers a wide variety of
activities such as trade, hotel and restaurants, transport,
storage and communication, financing, insurance, real
estate, business services, community, social and
personal services, and services associated with
construction.
Service Industry developments
• The Indian healthcare industry is expected to shift digitally enabled remote
consultations via tele consultation.
• The telemedicine market in India is expected to increase at 31% from 2020
to 2025.
• In August 2020, Rs. 35 billion (US$ 476.11 million) under the Official
Development Assistance for the health sector to fight the COVID-19 crisis
in India and improve resilience of India’s health systems against infectious
diseases.
• In September 2020, LinkedIn and NSDC collaborated to accelerate digital
skills training for the Indian youth.
• In September 2020, NASSCOM Future Skills and Microsoft collaborated
to launch a nationwide AI skilling initiative to train 1 million students in AI
by 2021.
• In September 2020, Byju's acquires 3D virtual lab startup LabInApp to
strengthen its edtech presence.
• In October 2020, Bharti Airtel entered cloud communications market with
the launch of business-centric ‘Airtel IQ’.
• Services sector is the largest recipient of FDI in India with inflow of US$
84.25 billion between April 2000 and September 2020.
• In June 2020, Jio Platforms Ltd. sold 22.38% stake worth Rs. 1.04
trillion (US$ 14.75 billion) to ten global investors in a span of eight
weeks under separate deals, involving Facebook, Silver Lake,
Vista, General Atlantic, Mubadala, Abu Dhabi Investment
Authority (ADIA), TPG Capital and L. Catterton. This is the
largest continuous fundraise by any company in the world.
• In December 2020, Gamma Skills Automation Training introduced
a unique robotics & automation career launch programme for
engineers, an ‘Industry 4.0 Hands-on Skill Learning Centre’
located at IMT Manesar, Gurgaon in Haryana.
• In December 2020, the 'IGnITE’ programme was initiated by
Siemens, BMZ and MSDE to encourage high-quality training and
technical education. 'IGnITE' aims to develop highly trained
technicians, with an emphasis on getting them ready for the
industry and future, based on the German Dual Vocational
Educational Training (DVET) model.
• By 2024, this programme aims to upskill ~40,000 employees.
Government Initiatives
• On November 4, 2020, The Union Cabinet, chaired by the Prime Minister,
Mr. Narendra Modi, approved to sign a memorandum of understanding
(MoU) between the Ministry of Communication and Information
Technology and the Department of Digital, Culture, Media and Sports
(DCMS) of United Kingdom Government to cooperate in the field of
telecommunications/information and communication technologies (ICTs).
• In October 2020, the government selected Hughes Communications India
to connect 5,000 village panchayats in border and naxal-affected states and
island territories with satellite broadband under BharatNet project by
March 2021.
• In September 2020, the government announced that it may infuse Rs. 200
billion (US$ 2.72 billion) in public sector banks through recapitalization of
bonds.
• In the next five years, the Ministry of Electronics and Information
Technology is working to increase the contribution of the digital economy
to 20% of GDP.
• The government is working to build cloud-based infrastructure for
collaborative networks that can be used for the creation of innovative
solutions by AI entrepreneurs and startups.
• On Independence Day 2020, Prime Minister Mr. Narendra
Modi announced the National Digital Health Mission
(NDHM) to provide a unique health ID to every Indian and
revolutionize the healthcare industry by making it easily
accessible to everyone in the country.
• The policy draft is under ‘public consultation’ until
September 21, 2020.
• In September 2020, the Government of Tamil Nadu
announced a new electronics & hardware manufacturing
policy aligned with the old policy to increase the state's
electronics output to US$ 100 billion by 2025.
• The Cabinet Committee on Economic Affairs has given its
approval for continuation of the process of recapitalization
of Regional Rural Banks (RRBs) by providing minimum
regulatory capital to RRBs for another year beyond 2019-20.
• Government of India has launched the National Broadband
Mission with an aim to provide Broadband access to all
villages by 2022.
• Under the Mid-Term Review of Foreign Trade Policy
(2015-20), the Central Government increased incentives
provided under Services Exports from India Scheme (SEIS)
by 2%.
• By 2023, healthcare industry is expected to reach US$ 132
billion. India’s digital economy is estimated to reach US$ 1
trillion by 2025. By end of 2023, India’s IT and business
services sector is expected to reach US$ 14.3 billion with
8% growth.
• The implementation of the Goods and Services Tax (GST)
has created a common national market and reduced the
overall tax burden on goods. It is expected to reduce costs in
the long run on account of availability of GST input credit,
which will result in the reduction in prices of services.
 Nature of Services
• The definition of service is “any intangible product,
which is essentially a transaction and is transferred
from the buyer to the seller in exchange for some
consideration (or no consideration). Let us take a look
at some of the characteristics of a service.
• Intangibility: A service is not a physical product that
you can touch or see. A service can be experienced by
the buyer or the receiver. Also, we can not judge the
quality of the service before consumption.
• Inconsistency: There can be no perfect standardization
of services. Even if the service provider remains the
same, the quality of the service may differ from time to
time.
• Inseparability: One unique characteristic of
services is that the service and the service
provider cannot be separated.
• Unlike goods/products the manufacturing and
the consumption of services cannot be
separated by storage.
• Storage: The production and consumption of
services are not inseparable because storage of
services is not possible. Being an intangible
transaction there can never be an inventory of
services.
 Scope of Services

(i) Financial Services

(ii) Health Services
(iii) Tourism Services
(iv) Education Services
(v) Hospitality Services
(vi) Domestic Services
(i) Financial Services:
• The financial services such as – banking and insurance
services are an important part of an economy.
• Financial services like banking and insurance services
can be considered as a backbone of a business.
• In India, the financial system has improved in terms of
number of financial instruments, the number of active
participants in the market and the introduction of online
financial services like internet banking.
• Financial services are presented to customers in varied
forms – business loans, consumer loans, payment
merchant services, insurance services, bank lockers,
saving accounts, salary account, fix deposit schemes,
etc.
• Eg: Indian bank, muthoot fincorp etc
ii) Health Services:
• India is the major player in the world in healthcare
industry.
• Low costs combined with excellent facilities have
stimulated the development of health care service.
• Hospitals serve the masses by launching mass
awareness programmers to prevent ailment, which
will pave way for a healthy life of the people.
• The marketing principles for Medicare services
focus on distributing the services to users in a
decent way.
(iii) Tourism Services:
• The travel and tourism industry is at boom with so
many attractive offering available for the travel
lovers.
• In developing countries like India tourism has
become one of the major sectors of the economy,
contributing to a large proportion of the National
Income and generating huge employment
opportunities.
• It has become the fastest growing service industry
in the country with great potentials for its further
expansion and diversification.
(iv) Education Services:
• India will have world’s largest tertiary-age
population and second largest graduate talent
pipeline globally by the end of 2020.
• As of now the education market is worth US$
100 billion. Currently, higher education
contributes 59.7 per cent of the market size,
school education 38.1 per cent, pre-school
segment 1.6 per cent, and technology and
multi-media the remaining 0.6 per cent.
(v) Hospitality Services:
• The Indian tourism and hospitality industry has
materialized as one of the key drivers of growth among
the services sectors in India.
• It contributes to 6.23 per cent to the National GDP and
8.78 per cent of the total employment in the country.
• Constant transformation, functional growth and
improving standards have gained the hospitality
industry of India approval all over the world.
(vi) Domestic Services:
• In India the domestic service sector is a rapidly
growing sector with lots of potential of growth. The
domestic services include the housekeeping services,
security services, maids for domestic help, day care
services etc.
 Unique characteristics of services
• Intangibility
• Perishability
• In seperability
• Heterogeneity
• Simultaneity
• Fluctuating demand
• Measurability
• Pricing
1. Intangibility:
• Services are performances or actions rather than objects the
services cannot actually be seen or touched but certain
tangible components of services can be seen.
• This intangibility of presents several marketing challenges.
• Services cannot be inventoried while goods can be. As a
result fluctuations in demand are often difficult to manage.
• Services cannot be easily patented and new service concepts
can be easily copied by customers while products can be
patented so, new ideas can be copied by competitors.
• Service quality cannot be assessed by consumers as there is
no standardization in services.
• Advertising and other promotional materials are challenging
in service firms whilst easier in product firm.
2. Heterogeneity:
• No two services are alike as services are delivered by
people whose performances may differ and also from
day-to-day and hour- to-hour, e.g., a doctor can provide
different levels of diagnosis to two different people
depending upon the degree of severity of disease.
• As services are heterogeneous ensuring consistent
service quality is challenging.
• But product produced by a company is consistent in
quality in one batch of production.
• Product cannot differ according to the needs and wants
of a customer because products are standardized.
3. Simultaneity:
• Goods are produced then sold and consumed (P-S-C)but services
are sold first then produced and consumed(S-P-C)
simultaneously, e.g., an automobile is manufactured at a place,
shipped to other place and then sold after two months in another
place.
• But a restaurant services cannot be provided until sold and the
dining experience is essentially produced and consumed at the
same time.
• Because services are often produced and consumed at the same
time mass production is difficult.
• The quality of services and customer satisfaction is dependent on
interaction between the employee and the customer.
• Unlike product services cannot be centralized as services are
delivered directly to consumers in convenient locations and
significant economies of scale cannot be achieved.
4. Perishability:
• It refers to the fact that services cannot be saved, stored,
resold or returned, e.g., an airplane seat or a doctor’s
appointment cannot be reclaimed or resold at a later time.
• Perishability makes this an unlikely possibility for most
services.
• Perishability poses a major issue that marketers face due to
the inability to inventory.
• Demand forecasting and creative planning is difficult in
service unlike product.
• Strong recovery strategies are important as services cannot
be resold.
5. Inseparability
• In marketing exchanges of tangible goods, the producers
need not come in direct contact with those who buy the
goods.
• Because it is possible to separate production from
consumption in tangible product exchanges, distinct selling
and marketing departments evolved naturally to handle the
activities aimed at consummating these exchanges.
• This type of separation is often impossible in marketing
intangible services. In many cases, services are inseparable
from their producers.
• Inseparability means that producer and consumer may have
to be present in the same place at the same time for the
service transaction to occur.
• Inseparability changes the sequence of events usually
present in the exchange of a product with prospective
buyers.
6.Fluctuating demand
• Service demand has high degree of fluctuations,
change may occur weekly, daily or hourly basis.
7.Measurability
• Services cannot be measured in quantity basis
instead it is measured in terms of reliability,
responsiveness, empathy and assurance.
8.Pricing of services
• Pricing of services affected by factors like perish
ability, demand fluctuations, inseparability and
lack of standardization.
 Challenges and issues in service
marketing
• Tangibility
• Relationship and value
• One versus many
• Comparing quality
• Return factor
Tangibility
• A product is tangible, which means the
customer can touch and see the product before
deciding to make a purchase.
• Items such as packaging and presentation may
compel a customer to purchase a product.
• Services, on the other hand, are not tangible,
which can make them more difficult to
promote and sell than a product.
Relationship and Value

• Products tend to fill a customer's need or want, so

companies can use this to sell a product.
• A service is more about selling a relationship and the
value of the relationship between the buyer and seller
of the service.
• For example, a car is something a buyer can touch and
see as well as use. A service, such as lifestyle coaching,
for example, is not tangible.
• A lifestyle coach may be able to assist clients in
creating a life plan and implementing steps to
transform his life into one that the client wants to live,
but it is not something tangible that the client can place
in his home and look at every day.
One Versus Many
• Marketing products tends to involve multiple
products that make up the line.
• For example, cleaning product manufacturers tend
to market not just one cleaning product.
• Instead, they have a line of cleaning products (dish
washer, toilet cleaner, floor cleaner, car wash)to
serve the various needs of their customers.
• Services, on the other hand, typically have a single
option. It can be harder to promote and sell the
reputation of one single service over the benefits
of many different products.
Comparing Quality
• Measuring the quality of a product is easier
than measuring that of a service.
• If a customer buys a cleaning product to clean
the kitchen sink and it doesn’t do product is
zero.
• On the other hand, it is harder to measure the
quality of a service.
Return Factor
• If a customer purchases a product, if he is not
satisfied then return it for money back or at
least to receive a store credit.
• A service is consumed as it is offered, so it
lacks the return factor that a product has.
• Some service providers overcome this by
offering money-back guarantees.
 Classification of services
• Classification of services based on tangible
action
• Classification of services based on intangibility
• Classification of services based on Function
 7 P’s of service marketing.
• Product
• Price
• Place
• Promotion
• People
• Process
• Physical evidence
Product: In case of services, the ‘product’ is intangible,
heterogeneous and perishable.
• Moreover, its production and consumption are inseparable.
• Hence, there is scope for customizing the offering as per customer
requirements.
• However, too much customization would compromise the standard
delivery of the service and adversely affect its quality.
• Hence particular care has to be taken in designing the service
offering.
Pricing: Pricing of services is tougher than pricing of goods.
• While the latter can be priced easily by taking into account the raw
material costs, in case of services attendant costs - such as labor
and overhead costs - also need to be factored in.
• Thus a restaurant not only has to charge for the cost of the food
served but also has to calculate a price for the ambience provided.
• The final price for the service is then arrived at by including a mark
up for an adequate profit margin.
Promotion: Since a service offering can be easily replicated,
promotion becomes crucial in differentiating a service offering in
the mind of the consumer.
• Thus, service providers offering identical services such as airlines
or banks and insurance companies invest heavily in advertising
their services. This is crucial in attracting customers in a segment
where the services providers have nearly identical offerings.
People: People are a defining factor in a service delivery process,
since a service is inseparable from the person providing it. Thus, a
restaurant is known as much for its food as for the service provided
by its staff. customer service training for staff has become a top
priority for many organizations today.
Process: The process of service delivery is crucial since it ensures that
the same standard of service is repeatedly delivered to the
customers. Therefore, most companies have a service blue print
which provides the details of the service delivery process, often
defining the service script and the greeting phrases to be used by
the service staff.
Place: Since service delivery is concurrent with its production and
cannot be stored or transported, the location of the service product
assumes importance.
• Thus, a fine dine restaurant is better located in a busy, upscale
market as against on the outskirts of a city.
• Similarly, a holiday resort is better situated in the countryside away
from the rush and noise of a city.

Physical Evidence: Since services are intangible in nature most

service providers strive to incorporate certain tangible elements
into their offering to enhance customer experience.
• Thus, there are hair salons that have well designed waiting areas
often with magazines and plush sofas for patrons to read and relax
while they await their turn.
• Similarly, restaurants invest heavily in their interior design and
decorations to offer a tangible and unique experience to their
guests.
Services Marketing

UNIT-2
(DR.SELVAMOHANA)
• Assessing Service Market Potential
• Environment and Trends
• Customer Expectations and Perceptions
• Service Encounter
• Service Market Segmentation
• Targeting and Positioning.
 Assessing Service Market Potential
• Market potential, quite simply, is the
total demand for a product in a given
business environment.
• So if you were going to write a book on
business, you will check all the books written
on business and the sales they had. That is your
market potential. Off course, determining the
actual values are very difficult and that is
where you need to use various tips and tactics.
Benefits of Market Potential Analysis
• Understand market potential for a single store,
network of stores or a new market
• Deploy resources effectively by ranking
markets in priority order
• Forecast total opportunity in terms of number
of customers and revenue potential
• Estimate market share
1) Market Size
• Market size is the total market sales potential of all
companies put together. If a company planned on
launching a new soap or Shampoo, then all the
different companies such as HUL and P&G are the
competitors.
• And the combined sales of soaps, including
branded and non branded products is the complete
market size.
• looking at consumer level, the market size is
generally huge. Market size would be in Millions
or billions too.
2) Market growth rate

• Market growth rate can be determined by checking the

facts and figures of the last 5 years of the industry that
business is in.
• Many top websites will give such data. In fact, even
newspapers do frequent analysis of which are the
industries that are growing and at what percentage.
• Today, if a company plans to enter
the E-commerce industry, it will be a wise choice
because the industry is growing by leaps and bounds.
• However, 10 years down the line, a
new technology might be invented, which makes
E-commerce buying obsolete.
3) Profitability
Determining and forecasting profitability is important
to understand the market potential.
If the business is going to give low profitability, then
the volumes need to be high (eg – FMCG products) or
if the business is going to give low volumes, then the
profit needs to be higher (eg –
industrial goods-automobiles).
• Calculation of profitability to determine Market
potential can use three main elements
• ROI – Return on investment
• ROS – Return on sales
• RONA – Return on net assets
• ROCE – Return on capital employed
4) Competition
• When competition is low, market awareness will be low as
well.
• An example can be taken of industrial refrigeration products,
where the competition is low, but the product knowledge is
low as well. So our competitor is equally likely to influence
the potential buyer.
• Differentiation will be minimal because there is no need of
investing in differentiation.
• In such a market, the companies which actually differentiate,
literally dominate the market they are in.
• Determining market potential requires to understand the
market standing of various competitors and it also requires
to have the necessary plans to understand how to tackle these
competitors when the time comes.
5) Product and consumer type
• So how frequently is our product going to be bought
again?
• Many toothpaste companies actively push the
consumer to brush twice in a day.
• One of the reasons is that our teeth will be better. But
another reason is that the toothpaste will be consumed
faster and consumer will buy another toothpaste soon.
Hence the push for brushing twice daily!!
• Is our product completely new in the market? How
likely is the customer to accept and adopt the same and
what are the hurdles to be faced in product adoption?
forecasting them right now is mandotary. Because that
will help in determining market potential.
 Environment and Trends
• Government policies
• Social changes
• Business trends
• Advances in information technology
• Internationalization
Government Policies
• Actions by governmental agencies at regional,
national, and international levels continue to
shape the structure of the service economy and
the terms under which competition takes place.
• Traditionally, many service industries were
highly regulated. Government agencies
mandated price levels, placed geographic
constraints on distribution strategies, and, in
some instances, even defined the product
attributes.
Social Changes
• The demand for consumer services and the ways in which
people use them have been strongly influenced by a host of
social changes. More people are living alone than before and
there are more households containing two working adults as
a result, more people find themselves short on time.
• They may be obliged to hire firms or individuals to perform
tasks like childcare, housecleaning, laundry, and food
preparation that were traditionally performed by a household
member.
• Per capita income has risen significantly in real terms for
many segments of the population (although not all have
benefited from this trend).
• Increasing affluence gives people more disposable income
and there has been an observed trend from purchasing new
physical possessions to buying services and experiences.
Business Trends
• For instance, service profit centers within manufacturing firms
are transforming many well known companies in fields such as
computers, motor vehicles, and electrical and mechanical
equipment.
• Several large manufacturers (including General Electric, Ford)
have become important players in the global financial services
industry as a result of developing credit financing and leasing
divisions.
• Similarly, many manufacturers now base much of their
competitive appeal on the capabilities of their worldwide
consultation, maintenance, repair, and problem solving
services.
• In fact, service profit centers contribute a substantial
proportion of the revenues earned by such well known
"manufacturers" as IBM, Hewlett Packard and Xerox.
Advances in Information Technology
• New and improved technologies are radically altering the
ways in which many service organizations do business with
their customers, as well as altering what goes on behind the
scenes.
• Many types of technology have important implications for
service, including biotechnology, power and energy
technology, methods technology , materials technology,
physical design technology, and information technology.
• In some cases, technology enables service firms to
substitute automation for service personnel.
• Perhaps the most powerful force for change in service
businesses comes from information technology, reflecting
the integration of computers and telecommunications.
• Digitization allows text, graphics, video, and audio to be
manipulated, stored, and transmitted in the digital language
of computers.
Internationalization and Globalization
• The internationalization of service companies is readily
apparent to any tourist or business executive traveling
abroad. More and more services are being delivered through
national or global chains.
• In other instances, the creator of the original concept has
entered into partnership with outside investors. Airlines and
airfreight companies that were formerly just domestic in
scope now have extensive foreign route networks.
• Numerous financial service firms, advertising agencies, hotel
chains, fast food restaurants, car rental agencies, and
accounting firms now operate on several continents.
• A strategy of international expansion may be driven by a
search for new markets or by the need to respond to existing
customers who are traveling abroad in increasing numbers.
Managing in a Continually Changing Environment
• The willingness and ability of managers in service
firms to respond to the dramatic changes affecting the
service economy.
• It will determine whether their own organizations
survive and prosper or are defeated by more agile and
adaptive competitors.
• On the positive side, these changes are likely to
increase the demand for many services.
• In turn, more competition will stimulate innovation,
notably through the application of new and improved
technologies.
• Both singly and in combination, these developments
will require managers of service organizations to focus
more sharply on marketing strategy.
Customer Expectations and Perceptions
 SERVICE ENCOUNTER

• Service encounter is generally defined as a

consumer's direct contact with
a service provider, including both face-to-face
interaction and experience.
• Voorhees et al. defines service encounter as
“any discrete interaction between the customer
and the service provider relevant to a
core service offering”.
 TYPES OF SERVICE ENCOUNTER

• Remote counter: It can happen without any direct human

contact. Ex: ATM, Internet website, online Billing statement.
• Phone encounter: This will occur between and customer
and the firm via telecommunication. Here tone of voice,
employee knowledge, effectiveness/efficiency in handling
customer will judge the quality.
• Face-face-encounter: Direct face to face interaction
between service provider and the customer.
Eg: In a b2b setting direct encounter between the business
customer and sales people will determine the quality.
The importance of encounters:

a. If a customer is interacting with a firm for the first time, the

initial encounter will create a first impression of the
organization.

b. Even when the customer has had multiple interactions with a

firm, each individual encounter is important in creating a
image of high quality.

c. A combination of positive and negative interactions will

leave the customer confused towards the firms quality.

d. Not all encounters are important. There are certain key areas
where it is important to concentrate. Ex: In hospitals
encounters with nurse is important.
Sources of pleasure and displeasure in service encounter:

1.Recovery –employee response to service delivery system failure:

There has been a failure in service delivery system and an employee is required to handle
customer

complaints/ disappointments.

2.Adaptability- Employee response to customer needs and requests:

Here how the service firm is able to adapt its delivery system when the needs are not met.
Here the customers judge service

3.Spontaneity –unprompted and unsolicited employee action:

Employee spontaneity in delivering memorably good or poor service is the remembered

by the customers.

Ex: Being treated like royalty.; Rudeness, Stealing, discrimination, ignoring the
customers.
4.Coping- Employee response to problem customers:
 Service Market Segmentation
• Market segmentation is the process of aggregating customers
with similar wants, needs, preferences, or buying behavior.
• Market targeting involves evaluating the attractiveness of the
segments and selecting one, the firm will best serve..
• In other words, segmentation is the analysis conducted about
customers and targeting is the managerial decision about
whom to serve.
• Both of these are required for effective market positioning,
which involves establishing the competitive position for the
service in the mind of the customer and creating or adapting
the service mix to fit the position.
Basis of segmentation
Demographics and socio-economic segmentation

Demographic segmentation includes a number of factors including

sex, age, family size etc. Socio-economic variables may also be
considered here, including income education, social class and
ethnic origins. Many retail stores target different customer group.

Psychographic segmentation

This form of segmentation cannot be explained in clearly defined

quantitative measures it is concerned with people’s behavior and
ways of living..

Geographic segmentation

Geographic segmentation divides customers according to where

they live or work and correlates this with other variables.
Benefit segmentation

The segmentation variables listed above focus on the

personal attributes of the customer. Segmentation can
can also be carried out on the basis of the customer’s
response.

Usage segmentation

Usage segmentation focuses on the type and extent of

usage patterns. Consumers are typically divided into
heavy users, medium users, occasional users or
non-users of the service being considered.
Promotional response segmentation

Promotional response segmentation considers how

customers respond to a particular form of promotional
activity. This may include response to advertising, sales
promotions, in-store displays and exhibitions.

Segmentation by service

One area which has received relatively little attention is

the consideration of how customers respond to varying
service offerings..
 TARGETTING
• The second step after segmenting is targeting,
in which the company selects the segment of
customers they will focus on.
• Companies will determine this base on the
attractiveness of the segment.
• Attractiveness depends on the size,
profitability, intensity of competition, and
ability of the firm to serve the customers in the
segment.
SERVICE DESIGN AND
DEVELOPMENT
UNIT 3
DR.SELVAMOHANA.K
• New Service Development
• Service Blue Printing
• Service Scape
• GAP’s Model of Service Quality
• Measuring Service Quality using SERVQUAL
Dimensions
• Quality Function Deployment
 New Service Development

• New Service development (NSD) covers the complete

process of bringing a new service to market, renewing
an existing service or introducing a service in a new
market.
• A central aspect of NSD is service design, along with
various business considerations. New service
development is described broadly as the transformation
of a market opportunity into a service available for
sale.
• The services developed by an organisation provide the
means for it to generate income.
 New Service Characteristics
Since services are intangible, it has to have 4 basic
characteristics:

1.It must be objective, not subjective

2.It must be precise, not vague.

3.It must be fact driven, not opinion driven.

4.It must be methodological, not philosophical.

New service development process
• According to Cooper and Edgett (1999),
the new service development process could
be defined as a formal blueprint, roadmap or
thought process for driving a new
service project from the idea stage through to
market launch and beyond.
 NEW SERVICE DEVELOPMENT PROCESS/ STAGES:

I. FRONT END PLANNING

1. Business Strategy Development
2. New Service Strategy Development
3. Idea Generation
4. Service Concept development and evaluation
5. Business Analysis
II. IMPLEMENTATION
6. Service development and testing
7. Market testing
8. Commercialization
9. Post introduction evaluation
I Front End Planning:

1.Business Strategy Development

The first Step is to review the vision and mission
of the company.

2.New Service Strategy Development:

The product portfolio strategy and a defined
organizational structure for new product /
service development are critical for the foundation
of success. (Possibility in terms of markets, types
of services, time horizon, profit criteria).
• There should be formal mechanism for ensuring an
ongoing new service possibilities.
• The mechanism may include a formal new service
development department with responsibility for
generating new ideas, suggestion boxes for
employees, customers, new service development
teams to identify new services.
3. Idea Generation:
Formal brainstorming, solicitation of ideas from
employees and customers, lead-users researchers
and learning about competitors.
4.Service Concept development and evaluation:
After clear definition of the concept, it is important to
produce a description of the service that represents
its specific features and then to determine initial
customer and employee responses to the concept.

5. Business Analysis:
Assuming the service concept is favorably evaluated by
customers and employees at the concept development
stage, the next step is to determine its feasibility and
potential profit.
This stage will involve preliminary assumptions about
the costs of hiring and training personnel to determine
whether the new service idea meets the minimum
requirements.
II IMPLEMENTATION:

6. Service development and testing:

During this phase, the concept is refined to the point where a
detailed service blueprint representing the implementation
plan for the service can be produced.

7.Market testing:
• The new service may be offered to employees of the
organization and their families for a time to assess their
responses to variations in marketing mix.
• At this stage, pilot study has to be done for the service,
to be sure that the operational details are functioning
smoothly.
8. Commercialization:
• At this stage, the service introduced to the market place .
The first is to build and maintain acceptance of the new
service among large numbers of service delivery personnel
who will be responsibility day-to-day for service quality.
• To monitor all aspects of the service during introduction and
through the complete service cycle.
9. Post introduction evaluation:

At this stage, the information gathered during

commercialization of the service can be viewed and
changes made to the delivery process, staffing or
marketing –mix variables on the basis of actual offering to
the market response.
 Service Blueprinting
• A service blueprint is a picture or map that
accurately portrays the service system so that
the different people can understand.
• It is useful at the design and redesign stages of
service development.
• It visually displays the service by
simultaneously depicting the process of service
delivery, the points of customer contact, the
roles of customers and employees.
 BLUEPRINTING COMPONENTS

Line of interaction:
• It represents direct interactions between the customer and
the organization.
Ex: Initial interview, intermediate meetings.
Line of visibility:
• This line separates all service activities that are visible to
the customer from those that are not visible.
Line of internal interaction:
• It separates employee activities from those of other service
support activities and people.
 BUILDING A BLUEPRINT
STEP -1
Blueprints can be developed at a variety of levels and there needs
to be agreement on the starting point. Identifying the process to
be mapped will be determined by the underlying purpose of
building the blueprint.

STEP-2
A common rationale for market segmentation is that each segments
needs are different and therefore will require variations in the
service features once any level of detail is reached, separate
blueprints should be developed to avoid confusion and
maximize their usefulness.

STEP-3
This step involves charting the choices and actions that the
customer experiences in purchasing, consuming and evaluating
the service.
STEP-4
In case of technology-delivered services, the required actions
of the technology interface will be mapped above the line of
visibility.

STEP-5:
Here the line of internal interaction can then be drawn and
linkages from contact activities to internal support
function can be identified.

STEP-6:

Finally, the evidence of service can be added to the

blueprint to illustrate what it is that the customer sees and
receives as tangible evidence of the service at each step in the
customer experience.
BENEFITS OF SERVICE BLUEPRINTING
1.It provides an overview of the service

2.It provides a basis for identifying and assessing

cost, revenue and capital invested in each
element of the service.

3.It facilitates top-down, bottom-up approach to

quality improvement.
SERVICE QUALITY
“The quality of service is the degree of conformance of
all the relevant features and characteristics of service to
all the aspects of customer needs limited by the price
and delivery he/she will accept.”
Quality may be judged from the following:

1) Design reflected through the relevant feature and

characteristics of service.

2) Satisfaction of customer needs

3) Production and delivery of service

PRINCIPLES OF SERVICE QUALITY
• S.Q is more difficult for the consumer to evaluate
than the quality of goods.

• It is based on consumer perception.

• Service quality perception result from a

comparison of what the customer expected prior to
the service and the perceived level of service
received.
 Service Scape
• Service scape is defined as the physical environment where a
service can take place. It helps to analyze and identify the impact of
a good environment on the service-based industry.
• Service scape deals in the settings where a service is consumed or
delivered and the place where both the company and customer
interactions with each other.
• It has a powerful impact on the assessment, perception, and response
of the customer.
• The important aspects of service scape are Spatial layout and
functionality, artwork, floor coverings, photographs on the wall,
color, noise, music, sound, lighting.
• The effect of the strong scent, for instance of coffee or cookies, act as
great tempting force and can easily draw people in.
 Elements of service scape
Facility Exterior
• Landscape
• Exterior design
• Surrounding environment
• Parking
• Signage
Facility Interior
• Music
• Layout
• Equipment
• Air quality temperature
• Interior design
Others
• Virtual service scape
• Brochures
• Employee dress
• Billing Statements
• Web pages
• Reports
• Stationary
• Business cards
 Types of service scape environment
The two types of service environment identified
on service scape are –
1. Lean service scape
• Designing this type of environment is
straightforward and includes fewer
interactions, elements, and spaces between
employees and customers.
• Some important examples are fast-food outlets,
vending machines.
2. Elaborate service scape
• Designing this type of service scape requires
teams that are skilled in their work and are
fully aware of the corporate vision and desired
outcome.
• The elaborate service scape includes multiple
spaces, elements, and interactions between
employees and customers.
• Some important examples include restaurants,
gym, swimming pool, bars, ocean liners,
and international hotels.
 Functions of servicescape
The functions of service scape are as follows-
1. Image, differentiation, and positioning
• Service scape is an integral part of value
proposition and service experience as it can
attract attention very easily.
• It delivers leisure as well as a contact service,
for instance, in shopping malls, the staff and
the environment jointly makes an effort to
please its customers.
2. Facilitating service encounter and
increasing productivity
• Designing plays an important part in service
scape if you want to facilitate service
encounter and maximize productivity.
• Several shopping malls have included small
playhouse type of enclosures within its
innovative design so that mothers can avail the
services, keep their child over there, and
peacefully continue with their shopping.
Measuring Service Quality using
SERVQUAL Dimensions
 GAP’s Model of Service Quality
• The Gap Model of Service Quality (the Customer
Service Gap Model or the 5 Gap Model) is a
framework which can help us to understand customer
satisfaction.
• The model shows the five major satisfaction gaps that
organizations must address when seeking to meet
customer expectations.
• In the Gap Model of Service Quality, customer
satisfaction is largely a function of perception. If the
customer perceives that the service meets their
expectations then they will be satisfied. If not,
they’ll be dissatisfied.
• If they are dissatisfied then it will be because of one of
the five customer service “gaps” shown below.
Gap 1: Knowledge Gap
• The knowledge gap is the difference between the
customer’s expectations of the service and the
company’s provision of that service.
• Essentially, this gap arises because management
doesn’t know exactly what customers expect.
There are a number of reasons this could happen,
including:
»Lack of management and customer interaction.
»Lack of communication between service employees
and management.
»Insufficient market research.
»Failure to listen to customer complaints.
Gap 2: The Policy Gap
• The policy gap is the difference between
management’s understanding of the customer
needs and the translation of that understanding
into service delivery policies and standards.
• There are a number of reasons why this gap can
occur:
»Lack of customer service standards.
Poorly defined service levels.
»Failure to regularly update service level standards.
• This gap causes customers to seek a similar service
elsewhere but with better service.
Gap 3: The Delivery Gap
• The delivery gap is the difference between
service delivery system and the actual
delivery of the service.
• This gap can occur for a number of reasons:
»Deficiencies in human resources policies.
»Failure to match supply to demand.
»Employee lack of knowledge of the product.
»Lack of cohesive teamwork to deliver the
product or service.
Gap 4: The Communication Gap
• The communication gap is the gap between what gets
promised to customers through advertising and
what gets delivered.
• Again. there are a number of reasons why this can
happen:
»Overpromising.
»Viewing external communications as separate to what’s
going on internally.
»Insufficient communications between the operations and
advertising teams.
• Communication gaps lead to customer dissatisfaction.
This happens because what they receive isn’t what
they were promised. In the worst case, it may cause
them to turn to an alternative supplier.
Gap 5: The Customer Gap
• The customer gap is the difference between customer
expectations and customer perceptions.
• This gap occurs because customers do not always
understand what the service has done for them or they
misinterpret the service quality.
• Many organizations can be completely blind to this
gap. This gap can happen because of one of the other
four gaps, or simply because the customer perceives
the quality of the service incorrectly.
• In a worst-case scenario, it could lead to a business
losing a large proportion of their customers overnight.
• Although the company thought there was no gap, the
reality was that their customers were just waiting for
someone to fill their perceived gap.
• According to the Gap Model of Service
Quality, the only way to close the customer
gap is to close the other 4 gaps in the model.
• There is no way for the company to directly
close this gap.
 Quality Function Deployment
• Quality Function Deployment, or QFD, is a
model for product development and production
popularized in Japan in the 1960’s.
• The model aids in translating customer needs
and expectations into technical requirements
by listening to the voice of customer.
• Once information about customer expectations has
been obtained, techniques such as quality function
deployment can be used to link the voice of
customer directly to internal processes.
• QFD is not only a quality tool but also an important
planning tool. It allows the consideration of the “voice
of the customer” along the service development path to
market entry.
Definition
• “Quality Function Deployment is a system with the
purpose of translating and planning the voice of
customer into the quality characteristics of products,
processes and services for reaching customer
satisfaction”
 Benefits of QFD
• Quality Function Deployment is a powerful prioritization
tool that combines several different types of matrices into
one to form a house-like structure.
• Quality Function Deployment is a customer-driven process
for planning products and services.
• It starts with the voice of the customer, which becomes the
basis for setting requirements.
• Quality Function Deployment provides documentation for
the decision-making process.
• QFD helps you to:
– Translate customer requirements into specific offering
specifications
– Prioritize possible offering specifications and make trade-off
decisions based on weighted customer requirements and ranked
competitive assessment
QFD House of Quality Matrices
• The What or Wants: Customer requirements, needs,
and priorities that form the far left-wing of the house
• The Competitive Assessment: Compares customer
priorities with appropriate marketplace offerings,
across key competitive deployments, which forms the
right-wing annex of the house
• The How: The offering’s technical design features,
functionality, and characteristics to meet the customer
requirements. This forms the attic of the house
• The Design Relationships: Describes the
interrelationship between the design features, which
form the roof of the house
• The Foundation: Uses benchmarked target values as
objective measurements to evaluate each characteristic,
forming the basement of the house
 Quality Function Deployment Process
1.Product Planning QFD. It helps identify
service offerings characteristics, that best
meet customer requirements, helps analyze
competitive opportunities, and establishes
critical target values too.
2.Component Deployment QFD. It helps
identify the critical parts and assembly
components using the prioritized offering
characteristics in QFD 1 and establishes
critical target values.
3.Process Planning QFD. It helps determine critical
process operational requirements and elements
using the prioritized components in QFD 2 and
establishes critical process parameters
4.Quality Control QFD. It helps prioritize the
process control methods and parameters and
establishes production and inspection methods that
best support the prioritized process elements of
QFD 3
SERVICE DELIVERY AND
PROMOTION
Unit-4
DR.SELVAMOHANA.K
• Delivering Services
• Service Recovery
• Service Channel
• Pricing of Services - Methods
• Service Marketing Triangle
• Integrated Service Marketing Communication.
 Delivering Services
• Service delivery is a component of business
that defines the interaction between providers
and clients
• where the provider offers a service, whether
that be information or a task, and the client
either finds value or loses value as a result.
• Good service delivery provides clients with an
increase in value
 Benefits of Delivering Excellent
Customer Service
• Repeat Business
• Business Reputation
• Combating Higher Prices(offsetting effect of
high price through best quality)
• Creating Niche(creating a sense of uniqueness
about business)
• Better Morale
 Service Recovery
• Service recovery is a company's resolution of
a problem from a dissatisfied customer,
converting them into a loyal customer.
• It is the action a service provider takes in
response to service failure.
1. Apologize
• Go beyond an apology, and ask for
forgiveness, a genuine one, that is.
• Company should be sincere in expressing
regrets for the inconvenience, so scripted,
templated, and impersonal sorries won’t do.
• The customer should feel that company
acknowledge mistake, that corrective actions
will definitely follow.
2. Review
• Before solving the problem, company should make
a collaborative review of it with the help of the
complainant.
• Company need to ask the customer to explain in
detail what has gone wrong from his perspective.
• This also provides the opportunity to learn more
about how the issue came to be, including potential
causes and the responsible personnel.
• This helps devise possible solutions and perhaps
strategies that the company may need to
implement to prevent the issue from repeating in
the future.
3. Fix and follow up
• This crucial step is where the action really
starts to take place.
• Company come up with an effective solution
but it shouldn’t be the end of it.
• need to make follow-ups to explain progress
and update the customer about the necessary
processes that he needs to know.
• Following up also shows that company want to
assure that the issue has been resolved and that
the customer is truly satisfied with the fix.
4.Document
• Once things have been settled, there is a need to make
thorough documentation of what occurred—its causes,
factors, people or departments involved, solutions, dates,
durations, and every detail that matters.
• Doing so enables to spot possible trends or patterns that can
be anticipated in the future. It’s also a way of pointing out
what really went wrong.
• For instance, if the last five records say that errors happened
at a similar hour each day, company might want to look who
are on duty during those times.
• Nobody wants to experience breakdowns, but they re
inevitable in any field or industry.
• The only good thing about them is that they give you an
opportunity to learn, improve, and prove that you can exceed
yourself in the future.
 Service Channel

• Service channel is related to distribution of

services.
• It is the availability of and accessibility of a
service to consumers.
• Two types of service channels includes direct
and indirect service channels
1. Direct channel/Company owned channel
There are some services which are distributed directly
from provider to customer.
Ex: Doctors, Hairstylists.
Pros:
1.Complete control over the outlets.
2.Consistency can be maintained
3.Standards can be established and monitored
4.Company can own customer relationships.
Cons:
1.It has to undergo financial risk
2.They may not be aware of the markets.
2. Indirect service channels/intermediary involved channel
✔ The focus in service distribution is on identifying ways to bring
the customer and principal and representatives together through
intermediary.
✔ The options available are
• 1.Franchisees

• 2.Agents

• 3.Brokers

• 4.Electronic channels.(Electronic channels in action/innovative application of

the web, internet and other electronic channels.)
ADVANTAGES OF INDIRECT CHANNEL
1. Huge geographical/Market coverage
2. Financial stability
3. High profit
4. Good brand image
 Common issues involving intermediaries

a. Channel conflict over objectives and performance:

• The conflict occurs because the service principal and
its intermediaries are too dependent on each other.
• The conflict may occur between the service provider
and service intermediary in the types of channels.
b. Channel conflict over costs and rewards:
• The conflict may arise in monetary arrangement
between those who create the service and those who
deliver the service.
c. Difficulty controlling quality and consistency
across outlets:
It results in inconsistency and lack of uniform quality
that results when multiple outlets deliver services,
here the service provider suffers because the entire
brand and reputation are jeopardized.
d. Tension between empowerment and control:
If the services are to be delivered by the franchisees,
their independent ideas must be integrated according
to the standards.
e. Channel ambiguity:
• Who will undertake market research to identify
customer requirement the company or
intermediary?
• Who determines the standards for service
delivery, the franchiser or the franchisee will
be a question in intermediary involved service
marketing channel.
 Pricing of Services - Methods

• As a service-based business, it’s difficult to price

services because we need a model that is scalable
yet flexible enough to solve our customers’
problems.
• Offering a scalable, one-size-fits-all price can turn
potential customers off because their needs are
typically not like those countless other customers.
• At the same time, offering 100% custom pricing
can limit growth because of the time required to
quote every facet of services.”
 Steps in pricing services
Because there is not a set-in-stone method for
pricing services, service providers have some
flexibility. The following six steps helps to price a
service:
• Calculate total costs
• Look at the market
• Know customers ability to pay
• Consider time invested
• Come up with a fair profit margin
• Charge an hourly or per-project rate
Service marketing triangle
It shows the key marketing activities that happen
between the key actors within services businesses.
Each actor works together to develop, promote, and
deliver a company’s service.
• Company: refers to the leadership team of the
company in question.
• Employees: refers to all employees, including
subcontractors who deliver the company’s service.
• Customers: refers to all customers and potential
customers of the company.
• External Marketing: Companies use external
marketing to make promises to customers. External
marketing is any communication to customers (or
potential customers) that happens before service
delivery starts.
Forms of external marketing include:
• Advertising
• Personal selling
• Public relations (PR)
• Direct marketing
We use external marketing to achieve many aims
including:
• Creating awareness.
• Setting price expectations.
• Setting service level expectations.
• Informing customers if any prerequisites that must
be in place before they can use the service.
 • Internal Marketing
✔ Internal marketing involves motivating
employees to work as a team to make
customers satisfied.
✔ This is obviously true for customer service
representatives.
✔ It can equally be applied to all employees.
✔ This results in everyone, at all levels of the
organization, being empowered to deliver great
customer service.
Key components of internal marketing
include:
• Motivating employees
• Teaching customer satisfaction techniques
• Communicating company goals regularly
• Management of change
• Training staff on how to use the company’s
services
• Good pay and working conditions
Interactive Marketing
• Interactive marketing occurs when employees and
customers interact. It is here where the promises
made during external marketing are either kept or
broken by employees or sub-contractors.
• Each significant interaction between an employee
and a customer is known as a service encounter.
• Interactive marketing is important because it
establishes both short-term and long-term
satisfaction. That is, if the customer is satisfied
with the service they received in the short-term,
they are more likely to be satisfied over the longer
term.
 Integrated Service Marketing Communication

• Integrated marketing communication refers to integrating all

the methods of brand promotion to promote a particular
service among target customers. It includes
✔ Advertising
✔ Sales Promotion
✔ Public Relation
✔ Direct Marketing
✔ Personal Selling
✔ Social media, and so on
• In integrated marketing communication, all aspects of
marketing communication work together for increasing sales
and maximum cost effectiveness.
Components of Integrated service Marketing Communication

• The Foundation - stage involves detailed analysis

of both the product as well as target market. It is
essential for marketers to understand the brand, its
offerings and expectations of the target customers.
• The Corporate Culture - Every organization has
a vision and it’s important for the marketers to
keep in mind the same before designing services.
• Brand Focus - Brand Focus represents the
corporate identity of the brand.
• Consumer Experience - Marketers need to
focus on consumer experience which refers to
what the customers feel about the offered
service. services need to meet and exceed
customer expectations.
• Communication Tools - Communication tools
include various modes of promoting a
particular brand such as advertising, direct
selling, promoting through social media such
as face book, twitter, instagram and so on.
• Promotional Tools - Brands are promoted
through various promotional tools such as
trade promotions, personal selling and so on.
• Integration Tools - Organizations need to
keep a regular track on customer feedbacks
and reviews. which helps in measuring the
effectiveness of various integrated marketing
communications tools.
Service Strategies

UNIT-5
DR.SELVAMOHANA.K
• Service Marketing Strategies for Health care
services
• Hospitality and Tourism services
• Financial services
• Logistics services
• Educational services
• Entertainment services
• Public Utility services
• Information Technology Services.
Service Marketing Strategies for Health
care services
1. Establish target customers
2. Study the competition
3. Internal and external evaluation {SWOT
(Strength, Weakness, Opportunity, and
Threats) analysis of business to evaluate your
internal and external environment}
4. Decide the long-term and short-term goals
5. Plan the marketing budget
• A McKinsey study found that patients have
the same expectations from healthcare
companies as they do from non-healthcare
companies. patients now want:
• great customer service
• deliverance on their expectations
• to make their life easier with the service they
buy from
• great value
Marketing strategy for Hospitality and
Tourism services
• Tourism marketing is different because the
customer purchases a series of services.
• While marketing a tourism product, the sales
or marketing person insists on the positive
facets of the following four components −
Product
• The tourism being a service sold to the
customers, tourist experience is the product,
which is intangible, and non-storable.
• The product must be designed to highlight its
features and to satisfy the tourist’s needs.
• If the product is branded, the customers find it
more reliable.
Price
Determining the price of the product requires consideration
of three key factors −
• Operating costs − Operating costs include both fixed and
variable costs. Fixed costs remain same regardless of the
sales which involve building, insurance, and equipment
costs. Variable costs include costs for wages, gas,
electricity, cleaning, etc.
• Profit Margins − This is determined by comparing the
competitors’ offers and the own product offers. Profit
margins are set without compromising the competitive
advantage.
• Commissions of Intermediaries − Working with
intermediaries incurs commissions. Commissions are the
fees paid to the intermediaries to distribute and sell your
service.
Place
• The place is where the tourists visit and stay. The potential of a tourist
destination lies in its attractiveness or aesthetic value, accessibility, and the
facilities it provides to the tourists. The tourists also seek a place highly for
the activities it offers, the amenities and skilled workforce it provides, and
its location.
Promotion
• Advertising the products on television commercials, newspapers, radio
stations, and websites.
• Distributing promotional material such as diaries, brochures, keychains,
wallets, purses, water bottles, pens, or any small gift item designed for
promoting the product.
• Setting Point of Sale (POS) displays at various places such as retail stores,
shops, malls, or petrol pumps.
• Promoting the products with their attractive features on the website of the
tourism enterprise.
• Conducting programs of sponsorships, or promoting products by offering
them as incentives.
 Service Marketing Strategies for
Financial services
The 5 Most Effective Marketing Strategies
for Financial Services
• Customer Outreach
• Self-Service and Digitalization
• Social Media
• Automation and Big-Data
• Digital Storytelling
1. Customer Outreach
• Customer outreach is quite simply the concept
of reaching out to customers to fill existing
needs surrounding education, awareness, and
help.
• This scales to a small organization in the form
of free consultations and webinars and to
larger ones in the form of financial
education such as debt management programs
or financial education in schools.
2. Self-Service and Digitization
• Setting up and promoting digitized products
and customer service or experience portals that
enable customers to sign up for
• services online,
• change products and services online,
• and view their information without going into
a branch is an effective and increasingly
necessary trend for financial organizations.
3. Social Media
• Many financial and banking organizations use
social media to connect with consumers for the
purpose of building trust.
• For example, financial organizations can
typically cut the cost of customer service by
over 70% by switching from phone to social
media.
4. Automation and Big Data
• Most financial organizations have more data than they
know what to do with, but that is quickly changing.
• Today, customer experience platforms and automation
tools make it easier than ever to utilize and apply data
as part of your marketing efforts.
• For example, big data can tell who is saving up for a
big purchase and most likely to need pre-approval for a
loan, big data can help identify and offer services
before or after they are needed,
• it can help to target specific customers for additional
customer service or education.
5. Digital Storytelling
• Storytelling is still one of the most effective
marketing mediums, whether on social media,
video, ads, or cross-channel platforms extending
into the real world.
• Here, marketing strategy should encompass telling
a story that captures interest and evokes emotion to
interest, excite, and move the viewer.
• Here, goal is to create relatable and shareable
content which can educate, entertain, or help the
reader in some way.
 Marketing Strategies for Logistics
services
• logistics companies that are responsible for
transporting goods from point A to point B,
• developing a marketing plan is also a sequential
and detailed process.
• There are many links that make up a dependable
and efficient supply chain and many obstacles that
can cause that link to severe or break.
• 6 steps that logistics companies should follow to
develop a sound marketing plan
1. Define service offer
• Do you deliver raw materials to factories or finished
products to consumers? What modes of transportation
do you use? Do you transport goods domestically or
globally? What type of technology and tracking
services do you provide?
2. Determine your primary and secondary markets
• Are you managing the logistics of physical items, such
as food, materials, electronics, equipment or liquids?
• For new companies, determining your markets will be
dictated by your capability and capacity for material
handling, production, packaging, inventory,
transportation, warehousing and security.
3. Identify your competition
• Who are the competitors? Are there certain
companies that consider to be a best practice
reference? What do you offer that your
competitors don’t? How can you offer it
differently or better?
• For example, does your competition use their
own shipping department or a commercial
carrier—and what are the benefits or
challenges of each?
4. Articulate your value proposition
• Once you evaluate the competition, determine what
makes your company stand out and articulate it in such
a way that customers will understand. Is it lower prices,
newer technology, operational efficiencies or
guarantees?
5. Allocate a marketing budget
• Determine how much money you want to spend on
marketing and how it will be segmented. Will you
disperse the budget across certain markets or will it be
spent promoting the company as a whole? Your
marketing strategy and goals depend on what your
primary marketing focus is, which is why it’s crucial
to establish a clear perspective and matching budget
early on in the process.
6. Develop a tactical marketing plan
• Once your budget is finalized, determine what
marketing channels you will use to promote
your value proposition to your target markets.
• For example, where will you advertise and
what industry tradeshows will you attend?
 Marketing Strategies for Education
services
• Education marketing is a type of marketing that
promotes valuable educational content and helps
institutions and individuals take advantage of it.
• Educational content includes everything from
courses and how-to videos to research papers and
books to software applications for desktop
computers and mobile devices.
• With the right education marketing strategy,
educational content can spread like wildfire and
ignite curious minds from all over the world.
• education marketing encompasses all marketing
activities in the education sector, including the
following:
• School marketing: There was a time when
schools didn’t need marketing because they relied
solely on their reputation and word of mouth. That
time is forever gone because millennial parents are
more tech-savvy and use the internet to support
their decision making.
• Schools that don’t actively market themselves are
destined to be ignored by many millennial parents
who would otherwise be greatly interested in what
they have to offer.
• Marketing for higher education: Education
marketing and higher education are a match made in
heaven. Colleges and universities benefit from
marketing for higher education because it helps them
elevate their brand and drives enrollment.
• Students benefit from it because higher education
marketing helps them make the right choice when
choosing their education path.
Digital marketing for the education sector: In today’s
digital world, traditional marketing strategies are no
longer suitable for targeting younger demographics.
• Educational institutions must embrace digital channels
if they want to convey their message to a large
audience in a cost-effective manner.
• Social media marketing for educational institutions:
Parents and students alike spend a lot of time on social
media sites, and educational institutions should
establish a presence on sites like Facebook, Twitter,
and Instagram to engage with them and learn more
about their wants and expectations.
• Content published on social media should be bite-sized,
captivating, and in line with the image the institution is
trying to build.
• The promotion of educational apps: The current
educational app market is so competitive that it’s no
longer enough just to have a great product—one must
also have a great educational marketing strategy that is
executed to perfection to get ahead of the competition.
 Service Marketing Strategies for
Entertainment services
• Entertainment marketing is the process of
using marketing strategies to generate interest
for an upcoming entertainment event, such as a
movie release, theatre production, TV show, or
audio launch etc.
• Basically, if the event is meant to be
"entertaining" to the public, then its promotion
probably falls under the umbrella of
entertainment marketing.
1. Need to Sell the Experience
• When it comes to the entertainment
industry, in particular, competition is fierce.
• You’re competing with a user’s attention with
other television channels, YouTube influencers,
social media content, online binging programs,
podcasts, and so much more.
• Users are increasingly wanting a relatively
immersive experience, which is essentially
content that really sucks them in.
2. Know Where Your Audience Is & How to Reach
Them
• All entertainment and media companies have regularly
subscribers, listeners, viewers, watchers, and whatever
else they’re trying to get once they’re up and running.
• These users are active and loyal subscribers, and
they’re valuable to business.
3. Video Marketing Should Be a Key Priority
• This tip is simple and straight-forward.
• Whether the business is a newspaper, publication,
streaming company, content creators, or any other field
in the media and entertainment industry, its better to
take advantage of video marketing.
4.Always Promote Transparency & Ethical
Practices
• Businesses that are transparent, authentic, and that
regularly make ethical decisions are going to gain
favor with audiences quickly.
5. Know What You Can & Can’t Promote
• This is mostly for media companies that share
news and information with their audience, but it’s
an important tip.
• You need to know what you can and can’t promote
on each individual platform, and what information
you can share.
6. Think Outside the Box
• Most media and entertainment companies
know that Facebook, Instagram, Twitter, and
YouTube are pretty standard options for
promoting the content.
• Sometimes, though, thinking outside the box
can deliver outstanding results.
Service Marketing strategies for Public
Utility services
(i) Protection of Consumers:
• Public utilities are meant for serving the
consumers. The supply of services like electricity,
water, power, transport should be adequately
maintained. Public cannot do without these
services.
(ii) Monopoly Position:
• Public utility enterprises are given monopoly in a
particular area. These undertakings are the
outcome of special legislations.
• The entry of other concerns is barred to these
fields. Monopoly position is necessary to avoid
duplication in providing these services.
(iii) Special Franchise:
• Public utility concerns are given special powers and
privileges so that regular and satisfactory supply is
maintained.
• The privileges and special status is conferred by the
legislations passed for creating those concerns.
(iv) Large Investments:
• Public utility concerns require large investments of
capital.
• The investments are more in fixed assets. In case of
railways, large amounts are spent on providing railway
lines, purchase of engines and wagons and constructing
railway stations.
(v) Public Regulations:
• Public utility undertakings are generally created by
special legislation of Parliament and state legislature.
• Indian Railways are set up under a special act of
Parliament.
• Electricity Boards are set up in different states by state
legislatures.
(vi) No Business Risks: The demand for public utility
always remains. So there is no risk on this score.
• There is no fear of competition because of
monopolistic conditions. The demand for these services
is both direct and derived.
(vii) Pricing Policies:
• The primary aim of public utility services is to
h2lp the society in getting essential services at
reasonable prices.
• The prices are also affected by the nature of
demand and laws of returns.
• These concerns operate under decreasing cost
conditions.
Marketing strategies for Information
Technology Services.
• Information technology services means the design,
development, application, implementation,
support, and management
of computer-based information systems directly
related to the tasks in the Scope of Work.
• Making a digital marketing plan for a technology
company isn’t easy, following are few ways to
build marketing strategies for IT services.
• Build a B2B buyer persona (so service provider
know whom he is targeting and how)
• Conduct keyword research (to determine how
to reach the targeted persona)
• Create a content plan (to rank for these terms
and bring people into nurture track)
• Ensure the website and articles are fully
optimized for search engines
• Build out marketing automation (with
segmentation, nurture tracks, and lead scoring)
A variety of resources are available to IT professionals to
achieve their sales objectives.
• Trade shows- Placing an ad in a trade magazine
• strategic advertising
• Informative white papers
✔ white paper as a marketing tool is one way to promote
your information technology products as solutions to
potential customers’ problems.
✔ A white paper once referred to an official government
report, but now is used by marketing firms and
departments to show the value of products.
✔ These marketing tools are often used on websites to
influence those who are looking for information
relevant to a particular issue.
 • Free product trials
✔ This marketing technique is particularly useful
in the information technology field, where
software updates can improve processes and
increase productivity.
✔ By demonstrating product value in this
manner, an information technology firm
benefits from giving a company time to
develop reliance upon its products.