SERVICES MARKETING

SERVICE
• Service is an intangible activity which does not
result in transfer of ownership.

• Contribute more than 50% to India’s GDP.

 Differences between products
and services
products
Tangible
Homogeneous
Produced in the factory.
Production & consumption separately
occur.
Consumers does not involve in
production process.
Can be stored.
Transfer of ownership takes place.
Services
Intangible
Hetrogeneous
Produced in buyer seller interaction.
Production, consumption occurs
simultaneously.
Consumers are co-producers.
Cannot be stored.
Transfer of ownership doesn’t takes
place.
 CHARACTERISTICS

Intangibility Variability
Customer

satisfation

No
Perishability ownership Inseparability
CLASSIFICATION OF PRODUCTS/SERVICES

Philip Kotler classified the goods and services into 4

categories based on their degree of tangibility.

• Pure tangible good.

• Tangible goods with accompanying services.

• Hybrid.

• Service with accompanying tangible goods.

• Pure service.
Tangibility Spectrum
 CLASSIFICATION OF
SERVICES
• Based on degree of involvement of customer.

• Based on service tangibility.

• Based on skills & expertise required.

• Based on the Business orientation of the

service provider.

• Based on the type of end user.

 CLASSIFICATION BASED ON THE DEGREE
OF INVOLVEMENT OF THE CUSTOMER

• People processing

• Possession processing

• Mental stimulus processing

• Information processing
 PEOPLE PROCESSING
• Customer is highly involved in
the service process.

• His presence is required.

• Example: Educational services,

beauty saloon, fitness centre etc.
 POSSESSION PROCESSING
• Customer presence is not required but has
to present the property.

• Service is directed at the possession not

the customer.

• Example: Laundry service, postal service,

car service etc.
 MENTAL STIMULUS PROCESSING

• In order to experience the service,

attention the customer is needed.

• Services is directed at the minds of the

customer.

• Example: Consultancy, counselling etc.

 INFORMATION PROCESSING

• Requires service personnel to collect

information, analyse, interpret and have
to provide advice to the client.

• Example: Insurance, accounting,

market research etc.
CLASSIFICATION BASED ON TANGIBILITY

• Highly tangible.

• Service linked to tangible goods.

• Tangible goods linked to services.

• Highly intangible.
 CLASSIFICATION BASED ON
THE SKILLS & EXPERTISE
REQUIRED
• Professional services

Example: Doctor, pilot, lawyer etc.

• Non-Professional services

Example: House keeping, baby sitting

etc.
 CLASSIFICATION BASED ON THE
BUSINESS ORIENTATION OF THE
SERVICE PROVIDER

• Not for profit organisation.

Example: Government school & social

service organisations

• Commercial organisation.

Example: Airlines & insurance firms.

 CLASSIFICATION BASED ON THE
TYPE OF END USER

• Consumer services

Example: Beauty care, hair cutting etc.

• Business to business
Example: Consultancy, advertising etc.

• Industrial services
Example: Machine installation, plant
maintenance etc.
 SERVICE MARKETING MIX
PRODUCT Physical good, quality level, packaging,
product line, branding, services line,
after sale service etc.

PRICE Flexibility, price level, terms, discounts,

allowances, commission etc.

Channel type, intermediaries, outlet locations,

PLACE
transportation, storage, managing channels,
accessibility, coverage etc.

PROMOTION Selection, training, incentives, sales people

number, advertising, targets, sales
promotion, public relations, publicity etc.
 EXTENDED SERVICE MARKETING MIX

PEOPLE Employees recruiting, training,

motivation, rewards,
teamwork etc.
Flow of activities, standardised, customised,
PROCESS
number of steps, simple & complex,
procedures, customer involvement etc.
Equipment, signage, reports, business
PHYSICAL
EVIDENCE cards, guarantees, furnishing,
colour, layout etc.

Value addition, speed of service, delivery,

PRODUCTIVITY
cost reduction, efficiency, effectiveness,
ease of availing service etc.
 SERVICE MARKETING
TRIANGLE
Company

Internal marketing External marketing

Enabling Making promises
promises

Providers Customers
Interactive marketing
Keeping promises
THANK YOU