1-concept of services

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Concept of Services


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Introduction

Marketing is the process of communicating the value of a product orservice to customers.

Marketing might sometimes be interpreted as the art of selling products,

but selling is only a small fraction of marketing. As the term "Marketing" may replace "Advertising" it is the overall strategy

and function of promoting a product or service to the customer.

From a societal point of view, marketing is the link between a societysmaterial requirements and its economic patterns of response.

Marketing satisfies these needs and wants through exchange processesand building long term relationships.

The process of communicating the value of a product or service throughpositioning to customers.

Marketing can be looked at as an organizational function and a set ofprocesses for creating, delivering and communicating value to customers,and managing customer relationships in ways that benefit the organizationand its shareholders.

Marketing is the science of choosing target markets through market

analysis and market segmentation, as well as understanding consumerbuying behavior and providing superior customer value.


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Definition of Marketing

We can distinguish between a social and a managerial definition for marketing.

According to a social definition, marketing is a societal process by whichindividuals and groups obtain what they need and want through creating,

offering, and exchanging products and services of value freely with others. As a managerial definition, marketing has often been described as the art of

selling products.

But Peter Drucker, a leading management theorist, says that the aim ofmarketing is to make selling superfluous. The aim of marketing is to know andunderstand the customer so well that the product or service fits him and sellsitself. Ideally, marketing should result in a customer who is ready to buy.

The American Marketing Association offers this managerial definition :

Marketing (management) is the process of planning and executing theconception, pricing, promotion, and distribution of ideas, goods, and services tocreate exchanges that satisfy individual and organizational goals.

Coping with exchange processespart of this definitioncalls for aconsiderable amount of work and skill. We see marketing management as theart and science of applying core marketing concepts to choose target marketsand get, keep, and grow customers through creating, delivering, andcommunicating superior customer value.


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Needs, Wants & Demands

The successful marketer will try to understand the target markets needs,wants, and demands.

Needs describe basic human requirements such as food, air, water, clothing

and shelter. People also have strong needs for recreation, education, andentertainment.

These needs become wants when they are directed to specific objects thatmight satisfy the need.

An American needs food but wants a hamburger, French fries, and a soft drink.A person in Mauritius needs food but wants a mango, rice, lentils, and beans.

Clearly, wants are shaped by ones society.

Demands are wants for specific products backed by an ability to pay. Manypeople want a Mercedes but only a few are able and willing to buy one.

Companies must measure not only how many people want their product, butalso how many would actually be willing and able to buy it.

However, marketers do not create needs. Needs pre-exist marketers.

Marketers, along with other societal influences, influence wants. Marketersmight promote the idea that a Mercedes would satisfy a persons need forsocial status. They do not, however, create the need for social status.


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Meaning of Service

A service (as opposed to a good) is typically defined as follows:-

The use of it is inseparable from its purchase (ie) a service is used andconsumed simultaneously

It does not possess material form, and thus cannot be touched, seen, heard,tasted or smelled.

The use of a service is inherently subjective, meaning that several personsexperiencing a service would each experience it uniquely.

It may also be put forward as an act or performance offered by one party toanother.

Service products are often difficult to identify, because they come into existenceat the same time they are bought and consumed.

They comprise intangible elements that are inseparable; they usually involvecustomer participation in some important way; they cannot be sold in the senseof ownership transfer; and they have no title.

For example, a train ride can be deemed a service. If one buys a train ticket,the use of the train is typically experienced concurrently with the purchase ofthe ticket. Although the train is a physical object, one is not paying for thepermanent ownership of the tangible components of the train or a restaurant,

where a waiter's service is intangible, but the food is tangible.


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Basic Requirements of a Service

Marketer

Friendliness

Understanding & Empathy Fairness

Control

Options & Alternatives Information


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Features of Services

Intangibility

Inseparability Perishability

Variability

Right of Ownership


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Services V/S Tangible Products

Intangible

Cannot be mass-produced Perishable

Difficult to standardize

Difficult to price Cannot be owned


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1-concept of services

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