SERVICES MARKETING

Presented By:
Muskan Jaiswal
BBA-3rd sem
Doon Business School
What are Services?

 A type of economic activity that is intangible,

is not stored and does not result in
ownership.
 A service is consumed at the point of sale.
 Services are one of the two key components
of economics, the other being goods.
 Example: Visiting a doctor
Characterstics of Services

 Some of the important characteristics of services

are as follows:
1. Perishability
2. Fluctuating Demand
3. Intangibility
4. Inseparability
5. Heterogeneity
6. Pricing of Services
7. Service quality is not statistically measurable.
Characterstics of Services

1.Perishability: Service is highly perishable and

time element has great significance in service
marketing. Service if not used in time is lost
forever. Service cannot stored.

2. Fluctuating Demand: Service demand has

high degree of fluctuations. The changes in
demand can be seasonal or by weeks, days or
even hours. Most of the services have peak
demand in peak hours, normal demand and low
demand on off-period time.
3. Intangibility: Unlike product, service
cannot be touched or sensed, tested or felt
before they are availed. A service is an
abstract phenomenon.

4. Inseparability: Personal service cannot be

separated from the individual and some
personalised services are created and
consumed simultaneously.
5. Heterogeneity: The features of service by
a provider cannot be uniform or standardised.
A Doctor can charge much higher fee to a rich
client and take much low from a poor patient.

6. Pricing of Services:. Quality of a service

cannot be carefully standardised. Pricing of
services is dependent on demand and
competition where variable pricing may be
used.
Goods vs. Services

 The basic differences between goods and

services are mentioned below:

 Nature: Goods are the material items that the

customers are ready to purchase for a price.
Services are the amenities, benefits or facilities
provided by the other persons.

 Tangibility: Goods are tangible items i.e. they

can be seen or touched whereas services are
intangible items
 Transfer of Ownership: When the buyer
purchases the goods by paying the
consideration, the ownership of goods moves
from the seller to the buyer. Conversely, the
ownership of services is non-transferable.

 Exchange: Goods can be returned to or

exchanged with the seller, but it is not possible
to return or exchange services, once they are
provided.
 Separatability: Goods can be distinguished
from the seller. On the other hand, services
and service provider are inseparable.

 Homogeneity/Hertogeneity: A particular
product will remain same regarding physical
characteristics and specifications, but
services can never remain same.
 Storage: Goods can be stored for future use,
but services are time bound, i.e. if not availed
in the given time, then it cannot be stored.

 Time of Consumption: First of all the goods

are produced, then they are traded and finally
consumed, whereas services are produced
and consumed at the same time.
Goods-Services Conntinuum
Classification of Services

 It is possible to carry out a classification of

services on the basis of two general dimensions
such as what is being processed, whether is it a
person or an object, and how is it being
processed? In other words, what is the nature of
the process. So, Classification of services can be
done on the basis of two points. These are:
1. Tangible action
2. Intangible action
On the basis of Tangible
actions
Classification of service based
on tangible action
Wherever people or products are involved
directly, the service classification can be done
based on tangibility.
a) Services for people – Like Health care,
restaurants and saloons, where the service is
delivered by people to people.
b) Services for goods – Like transportation,
repair and maintenance and others. Where
services are given by people for objects or
goods.
Tangible service processing

 Which involves physically moving people or

objects.
 1) Service processing involving people
 2) Service processing involving objects
Service Processing involving
people
 Some of the most common types of service
processing is the one involve people. Health
care, lodging, Passenger transportation,
Fitness centres, Haircutting salon are all
examples of service processing involving
directly the end customer.
 In this type of service processing, the
customer needs to be present physically for
the service to be delivered.
Service Processing involving
objects
When the customer is not required to be present
while giving the necessary service, then it is a
type of service process involving objects.
Example: Laundry or dry cleaning are procedures
where the input is from the customer, but the
processing does not require the customer’s
presence at all.
On the basis of Intangible
actions:
Classification of services
based on intangibility
There are objects in this world which cannot
be tangibly quantified.
a) Services directed at people’s mind –
Services sold through influencing the
creativity of humans are classified on the
basis of intangibility.
b) Services directed at intangible assets –
Banking, legal services, and insurance
services are some of the services most
difficult to price and quantify.
Intangible service processing

 Intangible service processing occurs when the

net result is difficult to be compared or the
process is in general intangible in nature. The
two types of intangible service processes are
as below.
a) Mental stimulus
b) Information processing
Mental Stimulus

ln this type of service processing, there is only mental

work involved.
The customer is not required to be present at all and
not even an object of the customer is required.
He just needs to understand what is happening.
Example: Advertising, movies, religion, Education are
some of the examples which require a
mental stimulus.
Physical exchange of objects
or people is not necessary.
Information Processing

 The last type of service processing occurs

where information is being processed and
there is no other processing involved.
 Example: Banking, Legal services,
programming, website development,
Researchs, etc.
Service Marketing Mix

 The service marketing mix is also known as an

extended marketing mix and is an integral
part of a service blueprint design. The service
marketing mix consists of 7 P’s as compared
to the 4 P’s of a product marketing mix.
Simply said, the service marketing mix
assumes the service as a product itself.
Product

 The product in service marketing mix is

intangible in nature. Like physical products such
as a soap or a detergent, service products cannot
be measured.
 The service product thus has to be designed with
care. Generally service blue printing is done to
define the service product
 Example: a restaurant blue print will be
prepared before establishing a restaurant
business. This service blue print defines exactly
how the product (in this case the restaurant) is
going to be.
Place

 Place in case of services determine where is

the service product going to be located.
 Service providers have to give special thought
to where the service would be provided.
 For example: A holiday resort is better
situated in the countryside away from the
rush and noise of a city.
Promotion

 Promotions have become a critical factor in

the service marketing mix.
 Services are easy to be duplicated and hence
it is generally the brand which sets a service
apart from its counterpart.
 It is because competition in this service sector
is generally high and promotions is necessary
to survive.
 Therefore, a lot of banks and telecom
companies promote themselves rigorously.
Pricing

 Pricing of services is tougher than pricing of

goods.
 In case of services, attendant costs - such as
labour and overhead costs - also need to be
factored in.
 Thus a restaurant not only has to charge for
the cost of the food served but also has to
calculate a price for the ambience provided.
 By adding a profit mark up you get your final
service pricing.
People

 People is one of the elements of service

marketing mix. People define a service as in
delivery process, a service is inseparable from
the person providing it.
 Thus, intensive training for the human
resources on how to handle customers and
how to deal with contingencies, is crucial for
any service provider company’s success.
Process

 Service process is the way in which a service

is delivered to the end customer.
 The process of service delivery is crucial since
it ensures that the same standard of service is
repeatedly delivered to the customers
 Lets take the example of two very good
companies – Mcdonalds and Fedex. Both the
companies thrive on their quick service and
the reason they can do that is their
confidence on their processes.
Physical Evidence

 Physical evidence is used as a differentiator in

service marketing
 Tools which can be used:
 Ambiance-The look and feel of a restaurant
can be described as the ambiance.
 Layout- Especially applicable in retail, the
layout of the showroom contributes to the
role of physical evidence in marketing.
 Branding-
Ways to Differentiate Service
from Competitor
 Ordering ease
 Delivery
 Installation
 Customer Training
 Customer Consulting
 Maintenance and Repair
 Returns
Thank You!