Marketing of Services

About Service Industry
‡ ‡ An industry that provides services rather than tangible objects The tertiary sector of economy (also known as the service sector or the service industry) is one of the three economic sectors, the others being the secondary sector (approximately manufacturing) and the primary sector (extraction such as mining, agriculture and fishing) Businesses in the Service industry are primarily concerned with providing services for the benefit of the consumer and/or other businesses This is an industry where a service is provided. It includes cleaners, shop and office workers, police, doctors and train drivers

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Service Sector in India
‡ Service Sector in India today accounts for more than half of India's GDP. According to data for the financial year 2006-2007, the share of services, industry, and agriculture in India's GDP is 55.1 per cent, 26.4 per cent, and 18.5 per cent respectively. The fact that the service sector now accounts for more than half the GDP marks a watershed in the evolution of the Indian economy and takes it closer to the fundamentals of a developed economy. Services or the "tertiary sector" of the economy covers a wide gamut of activities like trading, banking & finance, infotainment, real estate, transportation, security, management & technical consultancy among several others. The various sectors that combine together to constitute service industry in India are:

Characteristics of Services
‡ ‡ Intangibility difficult to sample and to evaluate Intangibility: Inseparability: difficult to separate services from the service Inseparability: provider; mainly direct sales; staff are essential to the delivery of quality services Heterogeneity: Heterogeneity virtually every service is different; very difficult to standardize quality Perishability: Perishability: those not sold can not be stored Fluctuating demand: demand for some services fluctuates by demand: season, or even by time of day

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Four Is of service
‡ ‡ ‡ ‡ Intangibility Inconsistency Inseparability Inventory

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Trade Hotels and Restaurants Railways Other Transport & Storage Communication (Post, Telecom) ‡ Banking ‡ Insurance ‡ Dwellings, Real Estate

‡ Business Services ‡ Public Administration; Defense ‡ Personal Services ‡ Community Services ‡ Other Services ‡ Entertainment ‡ Advertisement ‡ Healthcare

The Nature of Services
‡ Regardless of the ³product´, there is a services component to the offerings of all firms ‡ in some cases, a service is the principal purpose of the transaction, as in the rental of a car, a haircut, or legal services -- we refer to this as the core service ‡ in others, service is performed in support of the sale of a tangible product -- these are referred to as supplementary services

The product-service Continuum
‡ Any offer which includes both tangible goods and accompanying services either in minor form or major form is called The Product-Service Continuum

Services

Tangible Goods

Goods and Services Continuum
‡ There are two classes of services. ± Services that are the main purpose of a transaction ² renting a truck to move. ± Services that supplement the sale of a tangible good ² for example, an information hotline for computer software. ‡ The focus here is primarily on identifiable, intangible services that are the main object of a transaction designed to provide want-satisfaction to customers; supplementary services growing in importance, however.

Examples
‡ Automobile :- Tangible Good (Major) + After Sales Services (Minor) ‡ Air Travel :- Services (Major) + Tangible Goods (Minor) ‡ Hotel Stay :- Services (Major) + Tangible Goods (Minor) ‡ Banking :- Services (Major) + Tangible Peripherals (Micro)

Canned Ready- AutoDraperies, Rest- Repairs: Air foods made mobiles Carpets aurant auto, house, travel clothes meals landscaping

Insurance, Consulting, Teaching

MOSTLY GOODS

MOSTLY SERVICES

The Nature of Services Marketing
A Different Approach For Marketing Services ‡ ‡ ‡ ‡ ‡ ‡ Narrow Definitions of Marketing Lack of Appreciation for Marketing Skills Different Organizational Structures Problems in Determining Costs for Pricing Constraints and Opportunities for Not-for-Profit Organizations Other Challenges

The Nature of Services Marketing
Key Marketing Issues Before A service Organization ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Managing Differentiation Service premises Packaging Service Personnel Tools and Equipment Used Customers Convenience Name of the service establishment Managing Productivity Managing Service Quality

Managing Differentiation

Service premises

Packaging

Service Personnel

Tools and Equipment Used

Customers

Convenience

Name of the service establishment

Managing Productivity

Managing Service Quality

7 Ps of Services Marketing
‡ ‡ ‡ ‡ Product Place Price Promotion

‡ People ‡ Process ‡ Physical Evidence

Classification of Services
‡ ‡ ‡ ‡ ‡ ‡ ‡ By Market Segment Degree of tangibility Skill of Service provider Purpose of services Government Regulation Human Labor Involvement Costumer Interaction

By Market Segment

Degree of Tangibility

Skill of Service provider

Purpose of services

Some Charitable Non-Profit Organization

Government Regulation

Human Labor Involvement

Costumer Interaction

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