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Case: IBM
Deals in hardware, middleware & software (Provides
hosting & consulting services in areas ranging from
mainframe computers to nanotechnology).
Is a major record holder for maximum patents.
Its inventions includes, ATM, PC, floppy disc, hard
disc, magnetic strip card, the relational database,
SQL programming language, UPC barcode.
Spinning off its printer manufacturer Lexmark in
1991 & selling off its PC, x86- based server
businesses to Lenovo(2005 & 2014).
Acquired Cos. Like PwC Consulting (2002), SPSS
(2009), The Weather Co. (2016).

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 Services Marketing
“Deeds, Processes & Performances
provided or co-produced by one entity or
performed for another entity or person.”
All economic activities whose output is not
a physical product or construction, is
generally consumed at the time it is
produced, & provided added value in forms
(such as convenience, amusement,
timeliness, comfort, or health) that are
essentially intangible concerns of its first
purchaser.
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 Services Marketing
  Covers activities such as:
 Trade
 Hotel and Restaurants
 Transport
 Storage and Communication
 Financing
 Insurance
 Real estate
 Business Services
 Community
 Social and Personal services & services associated
with construction.

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 Services Marketing (Market Size,
India)
The sector contributed around 53.8 per cent of its Gross Value Added in 2016-17 and
employed 28.6 per cent of the total population.
Net services exports from India reached US$ 67.5 billion in 2016-17 while the sector
attracted 60.7 per cent of India’s total FDI inflows.
India's score in the Nikkei/IHS Market Services Purchasing Managers Index reached an
eight month high of 53.1 in June, 2017, supported by the rise in new business orders,
and heavy growth in the private sector output.
The Central Statistics Office’s (CSO) provisional estimates of Gross Value Added (GVA)
in FY 2016-17 (PE) indicate that the service sector grew 7.74 per cent year-on-year to
Rs 21.43 trillion (US$ 332.74 billion)
According to a report called ‘The India Opportunity’ by leading research firm Market
Research Store, the Indian mobile services market is expected to reach $37 billion in
2017 and grow by 10.3 per cent year-on-year to reach US$ 103.9 billion by 2020.
Out of overall services sector, the sub-sector comprising financial services, real estate
and professional services contributed US$ 305.8 billion or 20.5 per cent to the GDP.
The sub-sector of community, social and personal services contributed US$ 188.2
billion or 12.6 per cent to the GDP.
The Indian services sector which includes financial, banking, insurance, non-
financial/business, outsourcing, research and development, courier and technical test
analysis, has attracted FDI equity inflows in the period April 2000-June 2017,
amounting to about US$ 61.36 billion which is about 17.92 per cent of the total foreign
DeepakKaushal@GEU
5inflows, according to the Department of Industrial Policy and Promotion (DIPP).7/26/19
 Powerful Forces Transforming Service Markets

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 Basic Difference b/w Goods & Services
posing distinctive Marketing Challenges
 Most service products cannot be inventoried.
 Intangible elements usually dominate value creat
ion.
 Services are often difficult to visualize &
understand.
 Customers may be involved in co-production.
 People may be part of the service experience.
 Operational inputs & outputs tend to vary more
widely.
 The time factor often assumes great importance.
 Distribution may take place through nonphysical
channels.
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 Four Broad Categories of
Services

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