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 Contact Details
Name: Md Borak Ali, PhD
E-mail: [email protected]
Contact: via e-mail (Allow 24 hrs to answer you query)
Consultation: by appointment

Cell phone: 01717248845

Let’s form Groups
 Introduction to Services
Services are everywhere-
Services are everywhere-
• Visit to a Doctor
• Visit to a mosque / church / temple etc.
• Go to a restaurant
• A day at school
• Trip in an airline or bus or train
If one studies world economy, it can be easily observed that
service sector is dominating almost all economies that
indicate global service economy is booming. Service
industries vary greatly. Government offers services through
various Department, such as courts, hospitals, police, fire service,
postal service, etc.
Private non-profit organizations offer services through museums,
charities, churches, colleges, hospitals, etc.
Business organizations offer services such as airlines, banks,
hotels, insurance firms, consulting firms, medical & law
practices, advertising & research agencies, etc.
 Introduction to Services
The growth of service sector does not lie within-
Traditional service industries, that is-
• Health care
• Financial services
• Insurance etc.
But traditional goods producers such as-
• Automotive
• Computer, and
• Numerous other manufacturers
Are now turning to service aspects to their operations
such as customer care point, financial assistance,
training, etc.
 Definition of Service and Service marketing
Goods versus Service
• A pure goods, or (goods need service)
• A pure service (services need goods)
Difference is not clear?
Goods: Goods can be defined as objects, devices or things that
posses certain utility to the customers.
Service: Services can be defined as any activity or benefit that
one party can offer to another that is essentially intangible
and does not result in the ownership of anything. Services
may be deeds, efforts or performances.
Services are intangible things and that
cannot be touched, seen or felt.
Product: Product may be either goods or services.
 Definition of Service and Service marketing
Service marketing includes all those activities relating to the
delivery of services from service provider to service
receiver for satisfying the customer.
The American Marketing Association defines services
marketing as an organizational function and a set of
processes for identifying or creating, communicating, and
delivering value to customers and for managing
customer relationship in a way that benefit the organisation
and stake-holders. Services are (usually) intangible
economic activities offered by one party to another.
 The Scale of Market Entities
The scale that displays a range of products along a
continuum based on their tangibility. This is also
called Tangibility Spectrum
Soft Drink

Automobiles
Detergent
Salt

Cosmetics

Fast food
outlets

Investment
Fast food

Huatmlut mgt.
Advertise
outlets

agency

Airlines

Consulting

Teaching
Mgt.
Figure: Scale of Market
 The Scale of Market Entities
Pure goods are tangible dominant whereas, pure
services are intangible dominant.
Tangible dominant: Products that possess physical properties
propertie
that can be felt , tasted and seen prior to the consumer’s
consumer’
purchase decision.
Intangible dominant: Products that lack the physical properties
propertie
that can be sensed by consumer’s prior to the purchase
decision.
According to the scale of market entities, goods are tangible
dominant. In contrast to goods, service lack the physica
properties. As a result, a number of marketing challenges become
becom
evident. For example, 1) Advertising a service that no one can see
2) Price of service that has no cost of goods sold, 3) Inventory a
service that cannot be stored, 4) Mass-merchandise a service tha
needs to be performed by an individual (e.g., Dentist, Lawyer
 Why study Service Marketing?
1.A service based economy: Service marketing concept has
developed in relation to service industries.
In US economy, service sectors contributed 78% of GDP in
2017. Service sectors significantly contribute to both
employment creation and GDP earning of almost every
economy. Below indicates the role of service sectors of a highly
developed and extreme developing country’s picture in 2017
United States Bangladesh
GDP Employment GDP Employment
Agriculture – 00.9 00.6 19.0 63
Industry - 20.5 20.6 28.7 11
Service - 78.5 78.8 56.5 26
100 100 100 100
Service sector boomed up globally. It contributes much into the
country economy as compared to other sectors with
comparatively lower rate of labor engaged.
 Why study Service Marketing?
2. A tremendous growth in service sector
employment -
See the information/chart given under the point (1)
in this text.
3. Service as a business imperative in
manufacturing & IT–
Traditional – Banking, Health care.
Introduction of technology recognized the
necessity of service sides like, automobile & IT
and other manufacturing goods.
 Why study Service Marketing?
4. The impact of deregulation– During 1980 deregulation
forced many American service industries, such as– Airline,
Telecommunication.
Because of deregulation, many service industries are counting
to compete. The open up of many economies develops a
tremendous increase in service sectors around the globe.
5. The services revolution change in perspective
Many feel that the management model currently in place, the
Industrial Management Model (IMM) needs to be replaced by
a Market-focused Management Model (MMM) if service
companies are to service. Knowledgeable marketing
professionals need to make necessary changes.
a. IMM– An approach to organizing a firm that focuses on revenues
and operating cost and ignores the personnel who play roles in
generating customer satisfaction and sustainable profit.
b. MMM – An approach that focuses on the components of the firm
that facilitate the firm’s service delivery system.