Introduction to Services

Marketing
Session-01&2

Prof. Suvendu Pratihari

spratihari@imis.ac.in
suvendupratihari@gmail.com

Prof. Suvendu Kr. Pratihari 1

Tangibility Spectrum

Prof. Suvendu Kr. Pratihari 2

“A service is an act of performance offered by one
party to another. Although the process may be tied to
a physical product, but the performance is transitory,
often intangible in nature and does not normally
result in ownership of any of the factors of products.”
- By Lovelock and Wirtz

Prof. Suvendu Kr. Pratihari 3

Classification of Services
How services are classified and the benefits of classifying the
services is demonstrated as given by Colorado-based
American Events and Promotions. This Classification has
been highlighted to develop marketing strategies for services.
This Classification has been made with six levels as given
below.
 Nature of Organization

 Nature of Services

 Customer Relationship

 Nature of Demand

 Service Package

 Delivery Method
Level-1: Nature of Organization

Category Option Professional Santa Claus Pizza Hut

School
Purpose(Satisfy Individual Purpose of satisfy needs of Purpose to satisfy
needs of) Business both Business and the needs of
Both individual Individual Only
Structure Profit Profit organization Profit organization
Non Profit
Type Public Private Organization Public Organization
Private
Level-2: Nature of Service

Category Option Professional Santa Pizza Hut

Claus School
Degree of Embodied Degree of Degree of
Tradability Service Tradability is Pure Tradability is
Pure Service Service Embodied service
Service directed Individuals Service is directed Service is directed
Towards Things towards Individual towards Individual
Degree of High Degree of Degree of
Merchantability Medium Merchantability is Merchantability is
Low Low Medium
Level-3: Customer Relationship

Category Option Professional Santa Pizza Hut

Claus School
Type of Formal Type of Type of relationship
Relationship Informal Relationship is is Informal
Both Informal
Degree of Customer must be Degree of DP For Delivery and
Participation present participation is the Carry-our service is
(DP) Customer must start Customer must be customer must start
and finish the service present and finish the service
Customer has to start DP for Dine-In
the service Service if Customer
Customer has to finish must be present
the service
Level-4: Nature of Demand

Category Option Professional Pizza Hut

Santa Claus
School
Level of Demand Exceeds Level of Level of demand
Demand Capacity Demand exceeds exceeds capacity
Demand Does not Capacity
exceeds capacity
Degree of Wide Degree of Degree of
Fluctuation Narrow Fluctuation is Fluctuation is
Variable Wide Variable
No Fluctuation
Level-5: Service package
Category Option Professional Pizza Hut
Santa Claus
School
Number of One Service Multiple Number of services
Services and One Service-One Good Service Exists and goods is multiple
Goods One Service-Multiple services and multiple
Goods goods
Multiple Services
Multiple Services-One
Good
Multiple Services-Multiple
Goods

Units of Defined by situation Units of Units of service is

Service Defined by time service is defined by situation
Both defined by
both time and
situation
Level-5: Service package…Coned.

Category Option Professional Santa Pizza Hut

Claus School
Degree of High Degree of Degree of
Equipments Medium Equipment base is equipment base is
base Low Low low
Degree of High Degree of Degree of
Customization Medium Customization is Customization of
Low medium Low
Degree of High Degree of durability Degree of
Durability Medium is High durability is low
Low
Relative to Customer
Cannot be Defined
Level-6: Delivery Method
Category Option Professional Santa Claus Pizza Hut
School
Availability of One Site Availability of service is Availability of
Service Multiple Site One site Service id
multiple site
Nature of Continuous Nature of Delivery is Nature of
Delivery Discrete Discrete Delivery is
Both Discrete
Type of Independent Type of Consumption is Type of
Consumption Collective collective consumption is
Both both collective
and independent
Allocation of Reservation Allocation of capacity is Allocation of
Capacity Order-of-arrival by reservation only capacity is by
Preferential Order-of-Arrival
Reservation and order-of- and reservation
arrival
Reservation and Preferential
Order-of Arrival and
Preferential
All
Review Questions
 Cite Examples of the Difference between marketing products and
marketing Services
 What are the basic Characteristics of Services vs. Goods? What are the
implication of these characteristics for a Retail Format?
 Why Time is So Important in Services?
 List the Reasons for the Growth of the Service Sector.
 Identify the Seven Elements of the Services Marketing Mix and Explain
How each is Different than that of the marketing of Goods.
 Briefly Outline the marketing Mix for Pizza Hut, Apollo Hospital,
Naukri.com, Pantaloon, etc.

Prof. Suvendu Kr. Pratihari 12

Assignment:
Classify the Following Service Providers according to the Service
Classification Scheme
 Blue Dirt Express Limited  Xerox Corporation
 Pantaloon  Mindtree Consulting Private
 Kingfisher Airlines Limited
 Hotel Mayfair Lagoon  DLF Home Developers
 Kidzee School  Reliance Communication Limited
 E-Bay.com  Tata Sky DTH India
 ICICI Bank  Mudra India
 Reliance Fresh  Indian Tourism Development
 Apollo Hospital Corporation
 The Nielsen Company
 NIIT
 Quick Heal Anti Virus
 Star Cruise
 Ferns and Petals  Naukri.com
 PVR  Wipro BPO

Prof. Suvendu Kr. Pratihari 13

 Thank You

Prof. Suvendu Kr. Pratihari

Feel Free to Write your Queries Doubts
At
suvendupratihari@gmail.com
Prof. Suvendu Kr. Pratihari 14