Over-the-top (OTT) Media Service

Subscription-Based Video-on-Demand (SVoD)

Ex: Netflix
An over-the-top (OTT) media service is a streaming media service offered directly to viewers via the Internet. OTT bypasses
cable, broadcast, and satellite television platforms, the companies that traditionally act as a controller or distributor of such
content.[1] It has also been used to describe no-carrier cellphones, where all communications are charged as data,[2] avoiding
monopolistic competition, or apps for phones that transmit data in this manner, including both those that replace other call
methods[3][4] and those that update software.[4][5]

The term is most synonymous with subscription-based video-on-demand (SVoD) services that offer access to film and television
content (including existing series acquired from other producers, as well as original content produced specifically for the service).

OTT also encompasses a wave of "skinny" television services that offer access to live streams of linear specialty channels,
similar to a traditional satellite or cable TV provider, but streamed over the public Internet, rather than a closed, private network
with proprietary equipment such as set-top boxes.

Over-the-top services are typically accessed via websites on personal computers, as well as via apps on mobile devices (such
as smartphones and tablets), digital media players (including video game consoles), or televisions with integrated Smart TV
platforms.
 Chapter#1
Introduction to
Services
Contents………
• What are services?
• Why services marketing?
• Service & Technology
• Unique characteristics of services;
Services Compared to Goods
• Services Marketing Mix
 What is a Service?

Services are
deeds, process, & performances
Provided/coproduced
by one entity/person
for another entity/person

A service is any act of performance that one party

can offer 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 of Service Industries
• Health Care
– hospital, medical practice, dentistry, eye care
• Professional Services
– accounting, legal, architectural
• Financial Services
– banking, investment advising, insurance
• Hospitality
– restaurant, hotel/motel, bed & breakfast
– ski resort, rafting
• Travel
– airline, travel agency, theme park
• Others
– hair styling, pest control, plumbing, lawn
maintenance, counseling services, health club,
 Service Categories

• Service Industries & Companies [united hospital]

• Services as products [For example, IBM and Hewlett-Packard offer

information technology consulting services to the marketplace]

• Customer Services

• Derived Service
 Tangibility Spectrum
# The broad definition of service implies that intangibility is a key determinant of whether an offering is a service. Although
this is true, it is also true that very few products are purely intangible or totally tangible.

# Instead, services tend to be more intangible than manufactured products, and manufactured products tend to be more
tangible than services.

# For example, the fast-food industry, while classified as a service,

also has many tangible components such as the food, the packaging, and so on.
 Why study Services Marketing?
• Service-based economies

• Service as a business imperative/unavoidable in

manufacturing and IT
– First, the commoditization of products in many industries has resulted in price and margin pressures on many
physical goods. Services can help firms to customize their offerings, adding value for customers.

– Second, customers are demanding services and solutions, especially in business-to-business markets. In many
situations, customers demand a solution to their problem or challenge that involves multiple
products and services. They look to their providers to create and deliver these product service solutions.

– Third, services often have higher profit margins than products and can thus provide platforms for firm
profitability.

– Finally, many industries are highly competitive today and service can be a differentiator in a
crowded market.
Why study Services Marketing?
Contributions of Service
Industries to US GDP

Source: Inside Sam’s $100 Billion Growth Machine, by David Kirkpatrick, Fortune, June 14, 2004, p 86.
% of U.S. GDP by Industry
80
70
60

Percent of GDP
50
40
30
20
10
0  Services
1948 1959 1967 1977 1987 1999  Manufacturing
Year  Mining & Agriculture

Source: Survey of Current Business, August 1996, Table 11, April 1998, Table B.3; Eli Ginzberg and George J.
Vojta, “The Service Sector of the U.S. Economy,” Scientific American, 244,3 (1981): 31-39.
27 -27
28
29
 Gross Domestic Product of Bangladesh at Current Prices 2008-2009 %
(Million Tk.)  

AGRICULTURE AND FORESTRY 886,015 14.41  

FISHING 218,138 3.55  
MINING AND QUARRYING 70,320 1.14  
MANUFACTURING 1,058,902 17.22  
ELECTRICITY, GAS AND WATER SUPPLY 64,520 1.05  
CONSTRUCTION 500,849 8.14  
WHOLESALE AND RETAIL TRADE 876,766 14.26  
HOTEL AND RESTAURANTS 44,372 0.72  
TRANSPORT, STORAGE & COMMUNICATION 652,500 10.61  
FINANCIAL INTERMEDIATIONS 101,721 1.65  
REAL ESTATE, RENTING AND BUSINESS ACTIVITIES 416,038 6.77  
PUBLIC ADMINISTRATION AND DEFENCE 164,203 2.67  
EDUCATION 155,871 2.53  
HEALTH AND SOCIAL WORKS 135,079 2.20  
COMMUNITY, SOCIAL AND PERSONAL SERVICES 578,778 9.41 50.82
Import duty 225,360 3.66  

  6,149,432 100.00  
27 -30
27 -31 31
27 -33
Service Marketing
is
Different

🤔
WHY “Service Stinks”
•• With more companies offering tiered service based on the calculated profitability
of different market segments, many customers are, in fact, getting less service than
they have in the past.

•• Increasing use by companies of self-service and technology-based service is perceived

as less service because no human interaction or human personalization is provided.

•• Customer expectations are higher in all industries because of the excellent service
they receive from some companies. Thus, they expect the same from all and are
frequently disappointed.

•• Organizations have cut costs to the extent that they are too lean and too understaffed
to provide quality service.

•• The competitive job market results in less-skilled people working in frontline

service jobs; talented workers soon get promoted or leave for better opportunities. 🤔
•• Many companies give lip service to customer focus and service quality, but they fail
to provide the training, compensation, and support of employees needed to actually
deliver quality service.
SERVICE & TECHNOLOGY

In molecular biology,
the term double helix
refers to the structure
formed by double-
stranded molecules
of nucleic acids such
as DNA.

IOT
Machine Learning
AI
SST
Characteristics of Services
Compared to Goods

Intangibility Heterogeneity

Simultaneous
Production
and Perishability
Consumption
(Inseparable)
 Goods versus Services

Source: A. Parasuraman, V.A. Zeithaml, and L. L. Berry, “A Conceptual Model of Service Quality and Its
Implications for Future Research,” Journal of Marketing 49 (Fall 1985), pp. 41–50.
 Tangibility Spectrum
Salt
 Soft Drinks
 Detergents
 Automobiles
 CosmeticsFast-food
 Outlets
 Intangible
Dominant

Tangible

Dominant Fast-food
Outlets 
Advertising
Agencies

Airlines 
Investment
Management 
Consulting
Teaching
 Implications of Intangibility
• Services cannot be inventoried

• Services cannot be easily patented

• Services cannot be readily displayed or communicated

• Pricing is difficult
 Implications of Heterogeneity

• Service delivery and customer satisfaction depend on

employee and customer actions

• Service quality depends on many uncontrollable factors

• There is no sure knowledge that the service delivered

matches what was planned and promoted
 Implications of Simultaneous
Production & Consumption
• Customers participate in and affect the transaction

• Customers affect each other

• Employees affect the service outcome

• Decentralization may be essential

• Mass production is difficult

 Implications of Perishability
• It is difficult to synchronize supply and demand with
services

• Services cannot be returned or resold

 Methods of classifying services

• Degree of intangibility
• Degree of customer contact required
• Degree of simultaneity
• Degree of heterogeneity
• Degree of perishability
• Degree of service customization
 Traditional Marketing Mix
• All elements within the control of the firm that
communicate the firm’s capabilities and image to
customers or that influence customer satisfaction with the
firm’s product and services:
– Product
– Price
– Place
– Promotion
Expanded Mix for Services - 7 Ps
• Product
• Price
• Place
• Promotion
• People
– All human actors who play a part in service delivery and thus
influence the buyer’s perceptions: namely, the firm’s personnel,
the customer, and other customers in the service environment.
• Physical Evidence
– The environment in which the service is delivered and where the
firm and customer interact, and any tangible components that
facilitate performance or communication of the service.
• Process
– The actual procedures, mechanisms, and flow of activities by
which the service is delivered—the service delivery and
operating systems
Expanded Marketing Mix for Services
 The company's logo is a yellow
oval with a black cat carrying her
kitten in her mouth, symbolizing
the company's promise that they
take care of items entrusted to
them as though the items were
their own family.

Takkyūbin