Service Marketing

Environment
All organizations operate within the
marketing environment. The marketing
environment is made up of two parts
Macro environment
Micro environment
 Macro Environment
The macro environment represents all
the outside influences which have
impact on an organizations marketing
or business activity. It includes
economic and political factors and
socio-cultural trends, for example the
external environment influences will
effect all organizations within a sector
to a greater or lesser degree. The
internal environment relates to a
 Micro Environment
The micro environment is the internal
environment of the organization .The
factors to be analyzed in the internal
environment will include the following :
Company management structure
Customers
Suppliers
Channel members
 Competitors
Other publics which may include
Government and political bodies
Pressure groups
Financial institutions
Shareholders
In effect any person or organization which
can influence the companys marketing
activities and marketing success in way
should be included here. The list is not
absolutely comprehensive as individual
organizations may need to consider special
influences.
The political legal , economic , social
and technological forces exert the
same type of services as they do on
products ; however certain
environment features have a greater
impact on service These
environmental factors are :--
Political legal environment
Economic environment
Socio-cultural environment
Technological environment
 Political Legal
Environment
There is considerable influence of the
political legal environment on service
marketing . Service industries are
often more closely regulated than
most other forms of private enterprise.
Many service firms are being subject to
government regulations in addition to
the usual taxes and legislation. Service
providers must understand and
recognize the impact of such
Regulation generally influences service
business in four ways.
Regulation generally influences the range and
type of competition.
Regulation reduces the marketers array of
options and introduces certain rigidities into
the marketing process.
Decision of the regulatory agencies being the
binding part of the marketing decision
making process must be focused at
understanding and predicting those agencies
action
Pressure groups may be established to lobby
and effect change or modify , the directions
being taken by the regulatory bodies.
 Economic Environment
In economic environment changing life
style , changing world ,changing
economies and changing technological
advances and changing consumer
needs have contributed to increase
spending on consumer services.
Technological innovations have also
helped to create a higher standard of
living for a common man, who
presently spends a larger portion of his
 role of technology has also aided in
circumventing barriers to trade , especially
in its role in designing and delivering
services. The urbanization has widened
the demand for personal and public
services . The demographic shift towards
an older population in some countries has
resulted in new service demands such as
better healthcare , convenience products
etc. In the global environment , due to
cross country cultural issues , trade barrier
( both tariff and non-tariff) tend to become
more restrictive in marketing of services.
 Socio-Cultural
Environment
Socio- cultural forces are set factors
including life style , social values and
beliefs that affect the marketing
activities of an organization. These
factors have significant impact on the
marketing of services . The marketers
have found the intensive use of
consultants and counselors in their
personal family and working lives.
Health, Beauty, travel, culture, and
 symbols in the mind of many consumers .
There had been an increasing trend in the
services like security , insurance, legal, medical
and investment. Globally , the cultural
dimensions affect services in a more
pronounced manner than do goods. Due to
inseparability characteristic of services the
firms may need to adapt their offerings to suit
local taste and preferences . KFC and
McDonalds had to adapt its products in India
to suit local polates. Business negotiations are
very much subject to local norms and local
systems. Language is a major cultural influence
 Technological
Environment
Technology has influenced our life styles,
consumption pattern and our economic well
being tremendously. Just think of internet ,
worldwide web (www) , E-commerce , video
conferencing. World has become too small
and boundary less. The service economies
will be technologically driven soon. Instead of
expecting service providers to improve
results ; management must see what kind of
organizational structure , incentives ,
technology and skills can improve overall
productivity.