Services Marketing Tps Intro.ppt - Services Marketing Thirumal Reddy The service sector The services sector has been growing at a rate of 8 per annum in

Services Marketing Tps Intro.ppt - Services Marketing...

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Services Marketing Thirumal Reddy
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The 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
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TRENDS IN SERVICES SECTOR Factors contributing to growth: 1. Government Policies Govt. regulations, Privatisation 2. Social Changes Rising customer expectations More affluence Increased desire for buying experiences vs products Majority of Indian woman started working
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TRENDS IN SERVICES SECTOR Factors contributing to growth: 3. Business trends Mfrs. Adding value through services Quality Movement Growth of franchising 4. Advances in Information Technology Growth of internet Convergence of computers & telecommunications 5. Internationalisation More cos. operating on transnational basis International mergers & aquisitions
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“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.” -Theodore Levitt-
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What is services? It is the part of the product or the full product for which the customer is willing to see value and pay for it. “Service is an act or performance offered by one party to another that is essentially intangible and does not result in the ownership of anything.”
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What is a service? It is intangible. It does not result in ownership. It may or may not be attached with a physical product
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Example 1 School Theater 500 seating capacity Actor / sports person is not performing consistent Airline travel Dr. Dilraj
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Difference between physical goods and services 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
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Most products have a service component They could be Equipment based People based – varying skill levels
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Services could meet Personal needs – haircuts, tution, massage parlours Business needs – courier services, office cleaning services, delivering fresh flowers
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Characteristics of services Intangibility Inseparability Perishability Variability
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The three additional ‘P’s of Service Marketing People Physical evidence Process
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Qualities of services Search qualities Experience qualities Credence qualities
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Differentiation in services Offering Faster and better delivery Image
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