Assignment Marketing of

services .
 Q.1 What is Service Marketing ? Explain its
essential characteristics.
• Ans:-The world economy nowadays is increasingly characterized as a service economy. This is
primarily due to the increasing importance and share of the service sector in the economies of
most developed and developing countries. In fact, the growth of the service sector has long been
considered as indicative of a country’s economic progress.
• This shift has also brought about a change in the definition of goods and services themselves. No
longer are goods considered separate from services. Rather, services now increasingly represent an
integral part of the product and this interconnectedness of goods and services is represented on a
goods-services continuum.
•
Intangibility: Services are intangible and do not have a physical existence. Hence services cannot be
touched, held, tasted or smelt. This is most defining feature of a service and that which primarily
differentiates it from a product. Also, it poses a unique challenge to those engaged in marketing a
service as they need to attach tangible attributes to an otherwise intangible offering.

• Inseparability/Simultaneity of production and consumption: This refers to the fact that services are
generated and consumed within same time frame. Eg: a haircut is delivered to and consumed by a
customer simultaneously unlike, say, a takeaway burger which the customthe er may consume even after a
few hours of purchase. Moreover, it is very difficult to separate a service from the service provider. Eg: the
barber is necessarily a part of the service of a haircut that he is delivering to his customer.
•
Q.2 How important is it to understand consumer behavior in the
marketing of services .

• Understanding consumer behavior is essential for a company to find

success for its current products as well as new product launches.
Every consumer has a different thought process and attitude
towards buying a particular product. If a company fails to
understand the reaction of a consumer towards a product, there
are high chances of product failure.
• Due to the changing fashion, technology, trends, living style,
disposable income, and similar other factors, consumer behavior
also changes. A marketer has to understand the factors that are
changing so that the marketing efforts can be aligned accordingly.
• What is the importance of consumer buying behavior? This article
outlines several of them.
•
 1. Consumer Differentiation:
In marketing, consumer differentiation is a way to distinguish a consumer from several
other consumers. This helps to make a target group of consumers with the same or
similar behavior.
Though you have a targeted customer demographic in your business, you can still have
variations between individual customers. Each group of consumers are different and
their needs and wants differ from other groups. When a marketer is knowledgeable
about the differentiation of each group of consumers, he can design separate
marketing programs.
Q.3 What are the steps for choosing target
segmentation?
• The process of market segmentation consists of 5 steps: 1) group potential buyers into
segments; 2) group products into categories; 3) develop market-product grid and estimate
market sizes; 4) select target markets; and 5) take marketing actions to reach target markets.
•
Steps in Market Segmentation
• Identify the target market
• The first and foremost step is to identify the target market. The marketers must be very clear
about who all should be included in a common segment. Make sure the individuals have
something in common. A male and a female can’t be included in one segment as they have
different needs and expectations.
• Burberry stocks separate merchandise for both men and women. The management is very
clear on the target market and has separate strategies for product promotion amongst both
the segments.
• A Garnier men’s deodorant would obviously not sell if the company uses a female model to
create awareness.
• Segmentation helps the organizations decide on the marketing strategies and promotional
schemes.
• Understanding Market Segmentation
Companies can generally use three criteria to identify different market segments:
Homogeneity, or common needs within a segment
Distinction, or being unique from other groups
Reaction, or a similar response to the market

Benefits of Market Segmentation

• Marketing segmentation takes effort and resources to implement. However, successful
marketing segmentation campaigns can increase the long-term profitability and health of a
company. Several benefits of market segmentation include;
• Increased resource efficiency. Marketing segmentation allows management to focus on
certain demographics or customers. Instead of trying to promote products to the entire
market, marketing segmentation allows a focused, precise approach that often costs less
compared to a broad reach approach

• Stronger brand image. Marketing segment forces management to consider how it wants to be perceived
by a specific group of people. Once the market segment is identified, management must then consider
what message to craft. Because this message is directed at a target audience, a company's branding and
messaging is more likely to be very intentional. This may also have an indirect effect of causing better
customer experiences with the company.
•