services marketing module 1
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MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
Services Marketing
Module 1( According to VTU Belgaum Services Marketing syllabus)
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
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.
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
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.
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
Services definitionServices are deeds, processes and
performances provided or coproduced by one entity or person for another entity or person.
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
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
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
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)
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
Tangibility Spectrum
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© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
Characteristics of services
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© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
Extended characteristics of services
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© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
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
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© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
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.
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
Myths about service Marketing
Source: Journal of service research May 2004
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
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)
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
Internal Marketing
Interactive Marketing
External Marketing
Company(Management)
CustomersEmployees
“enabling thepromise”
“delivering the promise”
“setting thepromise”
Services marketing triangle
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
Service Marketing Mix
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
Service marketing Mix
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
GAP model of service quality
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
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
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
Mini case
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© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
Service sector Snapshot
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© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
Service Marketing Snapshot
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
Service Marketing snapshot
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. pvkulkarni@git.edu.
Service Marketing Snapshot
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