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u Big population of Ahmedabad

u Many of them are big and rich people
u Don¶t have time
u Will buy and gift goods and flowers on their behalf
u Charge them for this work

u 0  





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u Major portion of any country¶s GDP comes from Service
industry
In Developed countries around 70%
Developing countries around 50%
Around 35% population is engaged in this industry

u Old history of this industry.

Servants, vaids, Pandits, Gurus

u Three Major categories

1) Pure Stand alone services like Doctors, Lawyers
2) Combination of Services and goods like restaurants, Gifting
services, Video parlors
3) Services as a component of Goods like Repairing, Plumbing,
fitting, after sales services etc..
d 
 
c
 
 

u A service is any activity or benefit that one party can

offer to another which is essentially intangible and does
not result in the ownership of anything. Its production
may or may not be tied to a physical product.
ñ Kotler, armstrong, saunders and wong
(1999)

u Services are economic acivities that create value and

provide benefits for customers at specific times and
places as a result of bringing about a desired change in-
or on behalf of - the recipient of the service.
ñ Christopher lovelock


 c


u Services have improved productivity and wealth

è Services like transportation , cold storage, trade fares, yellow
pages

u Services have a job multiplier effect

è Tourism industry
è Destination development
è Restaurants
è Transportation, Hoteliers
è Souvenir marketers

u Another example is Entertainment Industry

î
 c


u Direct correlation between growth of country and

growth of service industry. More developed countries
require more services for their businesses.
u More developed countries has more share of GDP from
service sector and more jobs in service sector
u Developed countries move their industries to developing
countries to gain cost advantage. This results into
development of those countries and growth of service
industries too.
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A. Intangibility
B. Perishability
C. Variability or Non-standardization or heterogeneity
D. Inseparability

This characteristics make service industry different from

goods industry and that¶s how marketing and
management of this industry also defers from goods
industry.
Ô 

  
è Customer can not see, touch or feel the service product
è Customer can not evaluate between the services. He can
not imagine furniture or dress on the bases of design
è Marketing and sales is difficult because nothing to
show. No tangible benefits ± Insurance or holidays
Concept selling, using images and videos, Previous customer¶s
experiences

è No Impulse purchase ± Excitement can not be built as

Customer can not touch or feel product

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Ô 

  

è Difficult to verification of features or quality

è No concept of ownership, possession or acquisition after
transaction. - No tangible form of product, car, house,
electronics
è Price sensitivity ± No goods so difficult to differentiate
è Difficult to create need in few cases like insurance,
training, entertainment etc..
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· Simultaneous production and consumption

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è Charges for the services are higher because of

inseparability of the services. Service provider can be at
one place at a time only.