Service Marketing

Group 1 Presentation
 • De Dios, Joseph Ivan Mari M.
• Dino ,Daniel
Presentor • Gomez, Bianca Jane B.
• Gonzales ,Jules
• Rubio, Renalyn R.
• Santos, Czarina Marie B.
• Simbulan ,Jerome
 The Service Sector ,
Supersectors and Ethical
Consideration
 D. Ethical
Consideration for
Service Marketing
The Service Sector ,
Supersectors and Ethical
Consideration

C. Service Sectors
B. What is the Concern
A.Introduction Service Economy ?
(The service
sector )
 A.Introduction
(The service sector )
 What is a “SERVICE”?

A service is any activity or benefit that one party can

offer to another, which 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, Armstrong, Saunders and Wong)

Services are nonphysical and intangible in

nature and can also satisfy a need just like
goods do.
 The services sector is composed of a
diverse range of industries from retail and
business services to education and health.
Services are embodied in goods production,
either as inputs (such as design & marketing)
Service Sector or as trade enablers (such as logistics services
or e- commerce platforms).
 According to the International Standard Industrial
Classification (ISIC) Revision 4, the following are
considered part of the services sector

Wholesale and retail trade; repair of motor Professional, scientific and technical activities
vehicles and motorcycles

Transportation and storage Administrative and support service activities

Public administration and defense; compulsory

Accommodation and food service activities social security Section P. Education

Information and communication Human health and social work activities

Financial and insurance activities Arts, entertainment and recreation

Real estate activities Other service activities

In 2018, services accounted for 60 percent of
Gross Domestic Product (GDP) and almost
57 percent of employment.
 Services also account for the largest
share of employment particularly in
high income countries, both for female
and male workers. In the Philippines, 3
out of every 4 female workers are
Service Sector absorbed in the services sector.
 Service Economy is system
where the primary focus is on
delivering services instead of
manufacturing physical
products

The service economy

contributes over $20 trillion to
the world's GDP and employs
more than two billion people
worldwide.

B. What is the
Service Economy ? Includes the “soft parts” of the
economy consisting of nine
industry supersector :
 Other Education
and health
Services Services
Wholesale Financial
and Retail Activities
Trade

SERVICE
ECONOMY
Transpiration
Government
and Utilities

Professional
and Leisure and
Hospitality Information
Business
Services
 Education and Health Services

Educational
Services
Subsectors
Having a total of 1,949
higher institution (PH). Provide Million
Provide Million jobs
Serving 3.5 million students jobs on three
combine private and public on three factors
institution 2020 .(DOLE) factors

University
School College &Training
Center
 Providing Health Services /Medical Care

Currently largest industry in the private

Health care and social
assistance subsectors

sector ,provide 14 million jobs

Hospital
Nursing care
facilities

Physician Office

Home health care

services
 Financial Activities

Banking-Establishments primarily
Financial Activites

engaged in protecting money and valuables

and providing loans, credit, and payment

Insurance : Firms that protect clients

against financial loss from a variety of
incidents (e.g., fire, auto accidents, theft, etc.)

Securities, Commodities, and

Other Investments: Manage the
issuance, purchase, and sale of financial
instruments
 Government

Advocacy
Three Government

Not- For Profit Grantmaking

Sectors

Federal Civil
Government organizations
local Publicly-owned establishments of federal,
governments state, and local agencies that administer,
oversee, and manage public service
 Information

Consists of establishments that produce and

distribute information and cultural products, Industry
provide the means to distribute or transmit related
these products, and/or process data

Motion Picture and

Publishing Broadcasting
Sound Recording
industries industries
Industries

Internet service
Telecommunication
providers and web Web search portals
industries
search portals

Data procession
industries
Information
services industry
 Leisure and Hospitality
(Have three sectors )

Arts, entertainment, and recreation sector-

Individual leisure activities include live
performances, exhibits, hobbies, and cultural or
historical interests.

Food services and drinking places- Includes jobs in

various dining establishments like fast-food, fine dining,
cafeterias, caterers, bars, and food service contractors.

Hotel and other accommodations- about job

serving various purposes like family visits, business
trips, and vacations
 Professional and Business
Services

Professional and Business -are intangible goods

or services that people or firms offer to consumers
to assist them in managing or improving a
Example
particular aspect of their operations.

Information Technology (IT) and Software Development

Business Process Outsourcing (BPO) and Call Centers

Banking and Finance

Agriculture and Agribusiness

Tourism and Hospitality

 Transpiration and Utilities

Transportation- It encompasses various

modes like roads, railways, air, and sea,
enabling efficient movement across
distances

Warehousing-It involves managing

inventory, organizing goods, and
ensuring their safekeeping until they are
needed for further transportation or sale.

Utilities-typically refer to essential

public services that are necessary for the
functioning of a community or society.
Wholesale and Retail Trade

Wholesale- is a business in which

goods are sold in large quantities to the
retailers, industries and other businesses

Retail-the goods are sold to the final

consumer in small lots.
 Other Services

A myriad of
establishments that Equipment and
are in engaged in a machinery
variety of activities repair
including:

Drycleaning and
Death care
laundry service

Photofinishing
Pet care
services
1.According to the mentioned employment rates from April 2023 (95.5%) and
May 2022 (94.0%), the predicted employment rate for May 2023 was 95.7
percent. In terms of magnitude, the number of employed people was recorded at
48.26 million in May 2023, greater than the number of employed people who
were reported at 46.08 million during the same time last year.

2. The country’s unemployment rate decreased from 6.0 percent in May 2022
and 4.5 percent in April 2023 to 4.3 percent in May 2023. The unemployment
rate in May 2023, which was 4.2 percent in November 2022, was the second-
lowest since April 2005.

3.The Labor Force Participation Rate (LFPR) was recorded at 65.3%, which
was higher than the LFPRs reported in May 2022 (64.0%) and April 2023
(65.1%). In May 2023, there were 50.43 million people aged 15 and over who
were either employed or unemployed, According to Statistics.
C. Service Sectors
Concern
What is the role of service marketing?

Services marketing is a form of marketing businesses that

provide a service to their customers use to increase brand
awareness and sales.

What is the primary objective of service

marketing?

(Lovelock, 2001). The main objective of service marketers is to

create and provide service that satisfies consumer needs and
expectations, therefore achieving organizational goals.
 The core challenges for services
marketing are

Intangibility -a concept which says that services are intangible, and

they cannot be felt, smelled, tasted, seen or heard before they are
bought and experienced.

Inseparability - namely the characteristic that a service has which

renders it impossible to divorce the supply or production of the service
from its consumption

Perishability -describe the way in which service capacity cannot be

stored for sale in the future. It is a key concept of services marketing

Variability -defined as the changes in the quality of the same service

provided by different vendors.
Materialismo Snobbery

- Belief that if manufacturing

were to cease, there would be
less for people to service,
resulting in more people
available to do less work.
Dichotomization of Wealth

- The rich get richer and the

poor get poorer.

- Wages associated with service

employment.
Not Able To Set a Goal

- Without a clear objective, marketing

will lead to both unnecessary costs and
losses.

- The primary aim of marketing remains

the same but not directly.
 Ethics examines the rational
justification for our moral
judgments; it studies what is
morally right or wrong, just or
unjust. In a broader sense, ethics
reflects on human beings and their
interaction with nature and with
other humans, on freedom, on
responsibility and on justice.

D. Ethical Business ethics are the set

Consideration for of practices and policies
Service Marketing that companies use to guide
them through decisions
about finances, negotiations
and deals, corporate social
responsibility, and more
What are the ethical aspects in
service marketing?

Ethical marketing- characteristics

include transparency, customer data
protection, sustainability, human rights
compliance, and customer value
maximization.

Maintaining ethics in marketing can

allow businesses to increase sales, build
customer loyalty, attract and retain
talents, and keep stakeholders' interest.
 Ethical Marketing Principles

Transparency -An ethical marketing campaign will reveal all truths about the products to the
customer, including ingredients, components, and production processes.

Customer Data Protection -Ethical marketers don't disclose customer information without consent.
The information collected is only used to benefit the customers, e.g. recommending products that
match their previous purchases

Human Rights Compliance -Marketing campaigns should not offend certain population groups by
criticizing their mistakes or flaws.

Sustainability -With environmentalism on the rise, companies should show how their products are
sustainable and ethically produced in marketing campaigns.

Customer Value-Ethical marketing should aim to bring as much value to the customer as possible
while limiting societal risks.
 Following discussion presents a variety of Why we need ethics in
ethics related topics as they pertain
specifically to the service sector marketing?
• To develop more positive
attitudes
Factors Contributing to Consumer Vulnerability
• To develop values or trust with
key stakeholders
Few search attributes
• To build good image
Technical and specialized services that are not easily understood and or • To help to remain long time in
evaluated by costumers
business
Time lapse between performance and evaluation
Sold without guarantees and warranties
Performed by boundary personnel
Variability somewhat accepted
Outcome-based reward systems
Consumer participation in production
 The Effects of Ethical Misconduct
Controlling Ethical Decision Making

Personal Effects
Employee Socialization
Job-related tension Ineffective performance

Standards of Conduct
Frustration Turnover intentions

Corrective Control
Anxiety Lower Job Satisfaction

Ledership Training
Organizational Effects
Service /Product Knowledge

Customer Dissatisfaction
• Monitoring Employee Performance
Unfavorable word-of-mouth publicity for
the organization
Stress long Term Customer Relationship
Negative public image for the entire industry
Thanks for
listening