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• Services are acts or performance that one party performs to provide satisfaction to customers. Essentially it is intangible and does not result in ownership of anything. -. they buy time. -. When customers buy service. H.Philip Kotler. knowledge and/or resources of service providers or suppliers.Ganguly 2 . benefits or satisfaction which are offered for sale or provided with sale of goods. skill.American Marketing Association. Presentation by Prof. • Services are activities.Nature of Services Services are intangible entities capable of providing value and satisfaction to customers.
Alternately.g. health-care. H. Services may also be explained as some thing which can be bought and sold but cannot be dropped on your foot. Presentation by Prof. hospitality. This process may or may not be tied to a physical products e.Ganguly 3 . transportation. warranty. banking.Thus Service is an act or performance offered by provider to customer. guaranty etc. Service may be described as an economic activity that creates value and provides benefit to customers at specific time and place.
more than 60% of India’s GDP came from services when it was less than 5% when India became free. Presentation by Prof.Ganguly 4 . So is a darling of politicians. In 2009. Services apart from creating wealth for nations. volume and revenue of service industries are expanding at phenomenal rate globally. creates employment leading to welfare of nations. size. H. In the process.Importance of Service Industry Scope.
Ganguly 5 .Services possess no physical attributes. therefore.Same service provided by different service providers tend to vary. So cannot be seen. H. it cannot be standardised. touched or displayed.Services cannot be separated from service providers or customers. no inventory of services may be formed. vicinity.Services are highly perishable. felt. • Inconsistency -. • Inseparability -. it is produced when customer is in Presentation by Prof. it is heterogenus.Characteristics of Services These are signified by 4 I’s of Services : • Intangibility -. Therefore services cannot be mass-produced. • Inventory -.
3.short channel.the mannequin at McDonald’s. 4.It requires Direct marketing. Presentation by Prof. interior decor at restaurants etc. 2. Tangiblising the intangible -. H. franchising or licensing -.Implication of Characteristics 1. Perishability requires immediate production & consumption -.Visuals of operation theatres. sophisticated equipments. Heterogenus quality of service -.Distribution channels and logistics decisions are different . Inseparability from service providers & customers -. cleanliness etc. impress customers of hospitals’ service quality.Ganguly 6 .
H.Phenomenal Growth of Services Service sector is growing very fast nationally and internationally mainly because of • Rapid increase in per capita income • Increase in leisure • Increased life-expectancy life-style and mindset – emphasis on consumption compared to saving • Increased complexities of life • Changed • Specialisation in profession and business • Double income families Presentation by Prof.Ganguly 7 .
1 73.6 8 .7 68. U. Presentation by Prof.S.Ganguly Service contributes 40.4 78.0% of GDP 54.0 60.K.Contribution of Services to GDP -. H.Generally contribution of Service to Gross Domestic Product of a nation increases as its economy develops Country China Brazil India Canada Japan U.5 73.
nursing -. -. catering.Ganguly 9 . H.Non-regulated like domestic-help.Professional -.Limited regulations like health-care.Non-professional • By degree of regulation -.Classification of Services • By Market Segmentation -. hair-cut etc.Highly regulated like banking.Business services • By skills -. railways etc. Presentation by Prof.Consumer services -.
Ganguly 10 .Profit-making -. doctors etc. airlines.• By Goal of service -.High contact like education service. -.Low contact like security services. • By Customer contact Services that call for interaction between serviceproviders and customers -.Labour intensive like plumbers.Non-profit making • By Intensiveness -. -. automated repairs Presentation by Prof. surgeons etc. H. cooks. computers etc.Equipment based like ATMs.
H. vary greatly with time and days 3. Delivery of service consistently of same quality -. public transport etc. Wide fluctuation in demand of service -. tables at restaurant. Designing of new services --Identifying precisely what is wanted by customers is complex.And services cannot be mass-produced -.So delivery of high quality service becomes costlier.Major Challenges in Service Marketing 1.Demand for hotel rooms.Because services produced by providers are not consistent -. Presentation by Prof.Ganguly 11 . requires intensive market research. 2.
Ganguly 12 .Today’s employee / franchisee may become tomorrow’s competitor.Services are mostly delivered by service providers when in close proximity of customers. ----- Presentation by Prof. Role of Service-providers -.Attrition rate is high in service industry particularly among skilled service-providers. training and motivation of service-providers is essential. 5. therefore right selection. H. Wider Competition -. -.4.