Services Marketing It is the part of the product or the full

product for which the customer is willing to see value and pay for it.

Definition A service is any act or performance

that one party can offer to another that is essentially intangible and doesn't result in the ownership of anything. It may or may not be tied to a physical product

“There are no such thing as service industries. There are only industries whose service components are greater or less than those of other industries. Everybody is in service.”

Physical goods Services

Tangible Intangible

Homogeneous Heterogeneous

Production and distribution are separated from consumption

Production, distribution and consumption are simultaneous processes

A thing An activity or process

Core value processed in factory Core value produced in the buyer-seller interaction

Customers do not participate in the production process

Customers participate in production

Can be kept in stock Cannot be kept in stock

Transfer of ownership No transfer of ownership

Classifying services The product - service

continuum

Characteristics of services

Means of classifying service products

• Level of Tangibility. • The demand fluctuations. • Degree of involvement of people • Level of customisation. • Depending on Segment • Depending on Expertise • Formal and informal relationship with

customer

Qualities of services • Search qualities

• Experience qualities

• Credence qualities

Growth in Service Sector • The services sector has been growing at a

rate of 8% per annum in recent years

• More than half of our GDP is accounted for from the services sector

• This sector dominates with the best jobs, best talent and best incomes

Reasons of Growth

• Changing lifestyle • Technological Advances • Globalisation • Deregulation • Competition • Increasing % of working woman • Urbanisation • Increased complexity

Chapter1: Introduction to Services Marketing I Objective Questions A. State true or false 1 .Marketing of services is same as marketing of goods.

2 .services are homogeneous 3. Increasing % of working women is one of the reasons for growth of service industry B. Define Services C. Differentiate between 1. Goods and services 2. Consumer and industrial services D. Give the Classification the services E. What are the reasons that have stimulated the growth of services? F. Explain the characteristics of services

II. Situational Analysis 1. Collect secondary data for the following services for the past 10 years and present a growth trend Airline, Tourism, Entertainment 2. The more tangible are the products, the easier it for consumer to evaluate it in terms of quality and its suitability and vice versa. Comment with giving example.

3. Explain how Advertising Agency can overcome the marketing

problems caused by unique characteristics of services. 4. On good services continuum, map the following products and services and give reasons for placing them on a particular position

Automobiles, food stuffs, education, computer hardware,

financial services, Entertainment-.