services marketing module 1

MBA@GIT http://www.mba.git.edu.

© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].



Services Marketing

Module 1( According to VTU Belgaum Services Marketing syllabus)



ObjectivesAfter studying this module you will be able

to1. Analyze the growth of services sector in

India.2. Differentiate between goods and

services.3. Understand the characteristics of

services.



Contd..4. Define service marketing triangle.5. Discuss service marketing mix of a

company.6. Assess Gap Model of service quality of an

enterprise.7. Evaluate challenges faced by the service

industry in India.



Services definitionServices are deeds, processes and

performances provided or coproduced by one entity or person for another entity or person.



Reasons for growth of service sector in India

1. Information technology revolution.2. Increasing purchasing power of

customers.3. Urbanization and new markets.4. Time starved consumers.5. Growth of health, retail, bank and

tourism sector.6. Source of tax for the government



Contd…7. Huge employment opportunities.8. Engineering, Management and semi

skilled sales force.9. English speaking population.10. Low cost services.11. Increased specialization and splintering (

Business standard)12. Policy liberalization ( Business standard)



Tangibility Spectrum



Characteristics of services



Extended characteristics of services



Characteristics of web services

Source: Chenhui Wu, (2004) "A readiness model for adopting Web services", Journal of Enterprise Information Management, Vol. 17 Iss: 5, pp.361 - 371



Difference between goods and servicesGoods Services Resulting ImplicationsTangible Intangible Services cannot be inventoried.

Services cannot be patented.Services cannot be readily displayed or communicated.Pricing is difficult.

Standardized Heterogeneous Service delivery and customer satisfaction depend onemployee actions.Service quality depends on many uncontrollable factors.There is no sure knowledge that the service deliveredmatches what was planned and promoted.

Productionseparate fromconsumption

Simultaneousproduction andconsumption

Customers participate in and affect the transaction.Customers affect each other.Employees affect the service outcome.Decentralization may be essential.Mass production is difficult.

Nonperishable Perishable It is difficult to synchronize supply and demand withservices.Services cannot be returned or resold.



Myths about service Marketing

Source: Journal of service research May 2004



Seven Myths about services1. Services are non-productive – they don’t create wealth 2 Essential services must remain public services 3 The expansion of services in the economy is a result of

reclassification, not substantive changes in our economy 4 Service sector jobs are low skill and low wage 5 The expansion of the service sector drives down

productivity growth 6 Service sector innovation investment is low 7 Public sector innovation can’t be measured ( Source : Andrew, Australian service roundtable)



Internal Marketing

Interactive Marketing

External Marketing

Company(Management)

CustomersEmployees

“enabling thepromise”

“delivering the promise”

“setting thepromise”

Services marketing triangle



Service Marketing Mix



Service marketing Mix



GAP model of service quality



Marketing challenges in the service industry

• Defining and improving quality• Communicating and testing new services• Communicating and maintaining a consistent

image• Motivating and sustaining employee commitment• Coordinating marketing, operations and human

resource efforts• Setting prices• Standardization versus personalization



Mini case



Service sector Snapshot



Service Marketing Snapshot



Service Marketing snapshot



Service Marketing Snapshot

services marketing module 1

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services definition

growth of services sector

services marketing module

low cost services