What is Service Marketing?

Definition: Activity or benefit that one party can offer to

another that is essentially intangible and does not result in
the ownership of anything. Its production may or may not
be tied to a physical product

Examples: Defense, Postal, Education, health, Religious

Services, Hospitals, Airlines, Hotels, Law Firms,
Entertainment, etc
 Why Services Marketing???
Services marketing is significant because:-
• Service is seen as a business imperative in
manufacturing and I.T.
• Deregulated industries and professional service
needs.
• Service marketing is different.
• Service equals profits.
• Today the economies have become service based.
 Country % of GDP Attributed to Services

US 78.6

UK 73.4

Japan 73.1

Sweden 70.9

Australia 70

Germany 70

New Zealand 68.8

Canada 68.5

Singapore 66.2

India 60.7

China 40.0

Source : the world fact book by central intelligence agency 2007

Service Categorization in 4 distinct categories

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a) Service industries

Service industries includes those industries and companies typically

classified within the service sector whose core product is service.

For e.g. TAJ PALACE HOTELS (LODGING) , Indian Airlines

(aviation)
b) Services as a product

Service as a product represents a wide range of intangible

products offering that customers value and pay for in the
market place. Service  products are sold service companies
and by non service companies such as manufacturer and
technology companies

For e.g. IBM and HP

c) Customer service

It is the service provided in support of a company’s core product.

companies generally does not charge for the customer service.

For e.g. Call centers facility

 

d) Derived services

Drawing on the work of respected economists, marketers and

philosophers the two authors suggest that the value derived form the
physical good is really  the service provided by the good.

For e.g. a razor provides barbering service , computers provide

information and data manipulation service
Tangibility Spectrum
 Characteristics of services compared to goods
 
Goods Services Result Implications

Tangible          Intangible • Services cannot be inventoried

• Services cannot be easily patented
• Services cannot be readily displayed

Standardized Heterogeneous • Service delivery and customer satisfaction depend on

employee and customer actions.
• Service quality depends on many uncontrollable
 factors
• there is no such knowledge that the services delivered
matches what was planned and promoted.
• Customers  participate and affect the transaction
Production separate Simultaneous • Customer affect each other
from consumption Production and • Employees affect the service outcome
consumption • Decentralization may be essential
• Mass production is difficult

• It is difficult to synchronize supply and demand

Non Perishable Perishable with services
• Service cannot be returned or resold.
7 P’s OF MARKETTING
 Service market strategies

• Understanding the customers

• Building the service model

• Managing the customer Interface

• Implementing Service Strategies.

 Challenges of service marketing
Relationships are Key  effective relationships in
service marketing will lead to repeat sales and
positive word-of-mouth.

Multiple Touch points

  Interactions with people + experiences that are less
tangible than when buying an actual product all impact
the consumer perspective of the purchase process.
Feedback Improves Service

           Service marketing actually involves the consumer in the

marketing process. He is engaged in the process and contributes to a
positive outcome. Hence, it is important to seek consumer feedback
and use it to improve service marketing effectiveness

Technology Impacts

        Technology can be used to streamline service activities and

provide do-it-yourself options for consumers. Internet-based
services, for instance, allow consumers to participate actively in the
service marketing process.
 THANK YOU
Ref:- Service marketing - By Jochen Wirtz and Jayanta Chatterjee
Service Marketing- By Valarie A Zeithaml and Mary Jo Bitner