Introduction to Service

Marketing
Prof. Komal Suryavanshi
 Service and Service Marketing
● Services are non-physical items that can be provided
by businesses and paid for by consumers.
● Services include but are not limited to banking,
communication, education, medical treatments,
beauty treatments, transportation, tourism, and
insurance.
● Selling a service is very different from selling a product.
● Service marketing is the process of bringing a
service to market
● Service marketing is the marketing and
selling of intangible products (non-physical
products).
● Purpose of service marketing is to utilize the
effective method of communication like
advertisement, promotional deals or offers to
create demand for service among customers.

P. Kotler suggested that ”service is any 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”.
Some Examples of Services
Characteristics of Services
• Intangibility – Services are cannot be touched or hold, they are intangible in nature. For
example – you can touch your Smartphone. But, you cannot hold or touch the services of your
telecom service provider.

• Inseparability – Services cannot be separated from the service provider. In case of services the
production, distribution, and consumption takes place simultaneously. These three functions
cannot be separated.

• Variability – It is impossible to provide similar service every time. You’ll experience some
change every time you buy a particular service from a particular service provider. For example –
Yesterday you had a coffee at CCD. Today, you are again at CCD to have a coffee, but you have got
different place to sit today; the person served you coffee is different today; other people having
coffee are also different today. Hence, your experience of having coffee today is different as
compared to yesterday.
 Characteristics of Services
• Perish-ability – You can store goods, but it is not so in the case of services. Services
get perished immediately. Example- Transportation Service, Hospital service, etc

• Participation of customer – Customer is co-producer in production of services. For

delivery customer involvement is as important as is of the service provider. For
example – if you went to a parlour for haircut, how it cannot be possible without
your presence and involvement.

• No ownership – In the sale of services, transfer of ownership not take place. It

means to say that consumer never own the services.
Differentiating Services from Goods
A different marketing approach is necessary for services marketing, because services differ from goods in many
respects.

Basis Services Goods

Tangibility Services are intangible in nature. They cannot Goods are tangible in nature. They can be touched
be touched or hold. and hold.

Separability Services are inseparable in nature. Production, Function of distribution and consumption of
distribution, and consumption of service take goods can be separated from the function of
place simultaneously. production.

Ownership Services cannot be owned. They can be hired Goods can be owned.
for a specific time period.

Perish-ability Services get perished after a specific time Goods can be stored for future use.
period. It cannot be stored for future use.

Heterogeneity Services are more heterogeneous. It is very Goods are less heterogeneous. It is possible to
difficult to make each service identical. make each goods identical.
Example Scenario:
Sarah, a 32-year-old professional, joins FitHub with a goal to improve her overall
fitness and stamina. During her initial consultation, she discusses her busy
schedule and previous fitness experiences. FitHub assigns her a personal trainer
named Alex, who designs a workout routine tailored to Sarah's needs. Alex also
provides nutritional guidance to complement her workouts.
Throughout her fitness journey, Sarah receives regular encouragement from
Alex, helping her stay motivated. FitHub sends her personalized emails with
workout tips and healthy recipes based on her preferences. As Sarah progresses
and achieves her milestones, FitHub shares her success story on their social
media platforms, showcasing their commitment to their clients' achievements.
● Conclusion: This service marketing example highlights how FitHub's
personalized approach to fitness training creates a unique value
proposition for their customers. By targeting specific segments,
promoting through digital and local channels, emphasizing
personalization and customer experience, and continuously seeking
feedback, FitHub successfully differentiates itself in the competitive
fitness industry and fosters lasting customer relationships.
Service Marketing Example: Personal Fitness Training

● Service: Personal Fitness Training

● Description: Imagine a local fitness center named "FitHub" that offers personalized fitness training services. FitHub's
target audience consists of individuals seeking to achieve specific health and fitness goals under the guidance of
experienced trainers.
● Key Elements of Service Marketing:
1. Service Offering: FitHub offers one-on-one personal fitness training sessions. Each session is designed to cater to the individual's unique goals,
fitness level, and preferences. Trainers create customized workout plans, provide nutritional guidance, and offer motivation to clients.
2. Segmentation and Targeting: FitHub segments its target audience based on fitness goals, such as weight loss, muscle gain, or overall health
improvement. They also consider demographics like age and fitness level. By targeting these specific segments, FitHub ensures that its marketing
efforts are relevant and appealing to potential clients.
3. Promotion: FitHub promotes its services through a combination of digital marketing and local outreach. They maintain an active presence on social
media platforms, sharing success stories, workout tips, and client testimonials. Additionally, they collaborate with local health fairs and events to
introduce their services to the community.
4. Personalization: The essence of FitHub's service lies in personalization. Trainers spend time understanding each client's goals, limitations, and
preferences before creating a tailored fitness plan. This personal touch sets FitHub apart from generic workout programs and attracts clients
seeking individualized attention.
5. Customer Experience: FitHub emphasizes creating a positive and supportive environment. Trainers offer encouragement and celebrate clients'
milestones, fostering a sense of achievement. The facility is designed to be clean, welcoming, and equipped with modern fitness equipment to
enhance the overall experience.
6. Feedback and Continuous Improvement: FitHub actively seeks feedback from clients after each session to understand their satisfaction levels and
gather insights for improvement. This feedback loop helps them refine their services and adapt to changing client needs.
Reason for the Growth in the Service Sector

Intermediate Demand from Firms

● Outsourcing Services
● Retaining Core Competence
● Professional Service at low prices
Reason for the Growth in the Service Sector
● Increased Affluence
Final Demand from
● More Leisure Time

● Increased percentage of Working Women

Customers

● Growth in the Population of DINKs

● Greater Life Expectancy

● Greater Complexity of Products

Reason for the Growth in the Service Sector

Final Demand from ● Greater Complexity in Life

● Greater concern for Resource Scarcity

● Greater concern for Ecology

Customers

● Increasing Number of New Products

● The Young
Practical 1 Skills: 1
● Beauty Care by Marico : Identify the Services offered
Kaya Skin Clinics by KAYA Skin Clinics

Identify characteristics of the

services offered by KAYA Skin
Clinics and describe them.