SERVICE MARKETING

1 SERVICE SEMESTER2015 Admn Onwards( MARKETING Specialization)UNIVERSITY OF CALICUTSCHOOL OF DISTANCE EDUCATION2044 School of Distance EdcuationService MarketingPage2 CALICUT UNIVERSITYSCHOOL OF DISTANCE EDUCATIONS tudy SEMESTER( MARKETING Specialization) SERVICE MARKETINGP repared . & Lay Out By :@ SDE,Computer CellSchool of Distance EdcuationService to SERVICE and Evaluation of SERVICE of Promotion and communication MARKETING of Services MARKETING ModelsSchool of Distance EdcuationService MarketingPage4 PrefaceThis study material is prepared as a self learning key to understand the basicconcept of SERVICE MARKETING . For a detailed understanding of the topics the studentshave to refer the suggested books the names of which are given at the of Distance EdcuationService MarketingPage5 CHAPTER 1 INTRODUCTION TO SERVICE MARKETINGThe world economy nowadays is increasingly characterized as a serviceeconomy.

2 This is primarily due to the increasing importance and share of the servicesector in the economies of most developed and developing countries. In fact, thegrowth of the SERVICE sector has long been considered as indicative of a country seconomic progress. Economic history tells us that all developing nations haveinvariably experienced a shift from agriculture to industry and then to the servicesector as the main stay of the economy. This shift has also brought about a change inthe definition of goods and services themselves. Nolonger are goods consideredseparate from services. Rather, services now increasingly represent an integral part ofthe product and this interconnectedness of goods and services is represented on agoods-services SERVICE sectorDefinition of Services Activities, benefits and satisfactions, which are offered for sale or are providedin connection with the sale of goods (American MARKETING Association, Committeeof Definitions 1960).

3 Services include all economic activities whose output is not a physical productor construction, is generally consumed at the time it is produced, and provides addedvalue in forms (such as convenience, amusement, timeliness, comfort or health) thatare essentially intangible concerns of its first purchaser (Quinn, Baruch and Paquette,1987). SERVICE is the action of doing something for someone or something. It is largelyintangible not material). A product is tangible ( material) since you cantouch itand own it. A SERVICE tends to be an experience that is consumed at the point where itis purchased, and cannot be owned since is quickly perishes. A person could go to acaf one day and have excellent SERVICE , and then return the next day and have a of Distance EdcuationService MarketingPage6 The Special Characteristics of Services:- Intangibility Inseparability of production and consumption Heterogeneity PerishabilityIntangibility:-Services are activities performed by the provider, unlike physicalproducts they cannot be seen, tasted, felt, heard or smelt before they are , services are not tangibles, they do not have features that appeal to thecustomers senses, their evaluation, unlike goods, is not possible before actualpurchase and consumption.

4 Themarketer of SERVICE cannot rely on product-basedclues that the buyer generally employs in alternative evaluation prior to purchase. So,as a result of this, the services are not known to the customer before they take SERVICE provider has to follow certain things to improve the confidence of theclient. The provider can try to increase the tangibility of services. For example, bydisplaying a plastic or a clay model showing patients an expected state after a provider can emphasize on the benefits of the SERVICE rather than just describingthe features. Not all the SERVICE product has similar intangibility. Some services arehighly intangible, while the others are low the goods (or the tangible component)in the SERVICE product may vary from low to high.

5 For example: Teaching, Consulting,Legal advices are services which have almost nil tangible components; Whilerestaurants, fast food centers, hotels and hospitals offer services in which theirservices are combined with product (tangible objective) , such as food in restaurants,or medicines in hospitals :-Services are typically produced and consumed simultaneously. Incase of physical goods, they are manufactured into products, distributed throughmultiple resellers, and consumed later. But, in case of services, it cannot be separatedfrom the SERVICE provider. Thus, the SERVICE provider would become a part of aservice. For example: Taxi operator drives taxi, and the passenger uses it.

6 Thepresence of taxi driver is essential to provide the SERVICE . The services cannot beproduced now for consumption at a later stage / time. This produces a new dimensionto SERVICE MARKETING . The physical presence of customer is essential in services. ForSchool of Distance EdcuationService MarketingPage7example: to usethe services of an airline, hotel, doctor, etc a customer must bephysically :-Services are highly variable, as they depend on the SERVICE provider,and where and when they are provided. SERVICE marketers face a problem instandardizing their SERVICE , as it varies with experienced hand, customer, time andfirm. SERVICE buyers are aware of this variability.

7 So, the SERVICE firms should make aneffort to deliver high and consistent quality in their servicePerishability:-This is attained by selecting good and qualified personnel forrendering the SERVICE . Services are deeds, performance or act whose consumption takeplace simultaneously; they tend to perish me the absence of consumption. Hence,services cannot be stored. The servicesgo waste if they are not consumedsimultaneously value of SERVICE exists at the point when it is required. Theperishable character of services adds to the SERVICE marketers problems. The inabilityof SERVICE sector to regulate supply with the changesin demand; poses many qualitymanagement problems.

8 Hence, SERVICE quality level deteriorates during peak hours inrestaurants, banks, transportation etc. This is a challenge for a SERVICE , a marketer should effectively utilize the capacity without deteriorating thequality to meet the and definition of SERVICE MarketingServices MARKETING is MARKETING based on relationship and value. It may be usedto market a SERVICE or a product MARKETING a SERVICE -base business isdifferent frommarketing a product-base marketingis a sub-field ofmarketing,which can be split into the two main areas of goods MARKETING (which includes themarketing of fast-moving consumer goods (FMCG) and durables) and servicesmarketing. Services MARKETING typically refer to both business to consumer (B2C) andbusiness-to-business (B2B) services, and include MARKETING of services such astelecommunications services, financial services, all types of hospitality services, carrental services, air travel, health care services and professional MARKETING is defined as the integrated system of business activitiesdesigned to plan, price, promote and distribute appropriate services for the benefit ofSchool of Distance EdcuationService MarketingPage8existing and potential consumers to achieve organisational objectives.

9 The perceptionof services MARKETING focuses on selling the services in the best interest of thecustomers. It is a systematic and coordinated effort of a SERVICE organisation to expanditsmarket by delivering the best possible services. The objects of services marketingare the achievement of organisational goals like making profits, establishingleadership, long term survival and growth and the satisfaction of consumers byrendering excellent services. The concept of services MARKETING covers the followingaspects: selling services profitably to target consumers and prospects deliveringmaximum satisfaction to consumers of services; and positioning the SERVICE firm inthe market.

10 Marketingis thus an integral part of SERVICE management. The managerialdecisions are not found to be effective in the absence of a time bound implementationof MARKETING principles. Of late, customer satisfaction is found to be a focal point ofthe MARKETING decisions SERVICE the MARKETING process--can help in offering the rightservices to the right persons at the right time. MARKETING simplifies the process oftransforming prospects into actual customers of four primary objectives of SERVICE MARKETING : building trust, empoweringservice delivery personnel, establishing uniform processes, and promoting )Building TrustSince services are intangible, determining value and quality can be is particularlytrue for services such as insurance, which may be purchased yearsbefore any benefit other than peace of mind is realized.