Define service? Explain concept of service?

A service tends to be an experience that is consumed at the point where it is purchased, and
cannot be owned since it quickly perishes. A person could go to a cafe one day and have
excellent service, and then return the next day and have a poor experience. A service is an
activity which has some element of intangibility associated with it, which involves some
interaction with customers or with property in their possession, and does not result in a
transfer of ownership.

Philip Kotler defines a service as, “Any act or performance that one party offers to another
that is essentially intangible and does not result in the ownership of anything. Its production
may or may not be tied to the physical product.”

The American Marketing Association defines services in the following way, “Services are
activities, benefits or satisfaction which are offered for sale and are provided in connection
with the sale of goods.” This definition makes it clear that services are activities, benefits or
satisfaction and we find their uses for selling products which may be tangible or even
intangible.
In common parlance, the term can’t be only personal services like auto repairing, haircutting,
services of dentists, legal consultants and so on. The marketing experts view the problem in a
bit different way. They feel that the contents of services are much more-wider. There is no
doubt in it that a number of experts have attempted to define the services but no single
definition has been accepted universally. It is quite natural that as and when we attempt to
clarify the perception, a number of comments crop up.
According to US Government’s Standard Industrial Classification, “Establishments primarily
providing a wide variety of services for individuals, business and government establishments
and other organisations, hotels and other lodging places, establishments providing personal
services, repair and amusement services, educational institutions, membership organisations
and other miscellaneous services are included.”

On the basis of the classification made by the Standard Industrial Classification, it is clear
that different types of services are an important base for the service establishments offering
services to both categories of customers, the individuals as well as the organisations.

“Services refer to social efforts which include even the government to fight five giant evils,
e.g., want, disease, ignorance, squalor and illness in the society.”
This opinion focuses on the organisations offering social services where hospitals or
medicare or health centres, communication organisations, educational institutions are found
important. Thus, the social efforts and the organisations taking part in the process are
supposed to be studied in the very context.
Explain the four I’s of Services?
Intangibility: Unlike products, services cannot be held, touched, or seen before the purchase
decision therefore, they should be made tangible to a certain extent. Marketers should
“tangibilize the intangible” to communicate service nature and quality. Insurance is a
guarantee against risk and neither the risk nor the guarantee is tangible. Insurance rightly
comes under services, which are intangible. Efforts have been made by the insurance
companies to make insurance tangible to some extent by including letters and forms
Inconsistency: Service quality is often inconsistent. This is because service personnel have
different capabilities, which vary in performance from day to day. This problem of
inconsistency in service quality can be reduced through standardization, training and
mechanization.
In the insurance sector, all agents should be trained to bring about consistency in providing
service or, the insurance process should be mechanized to a certain extent. Eg: the customers
can be reminded about the payment of premium through e-mails instead of agents.
Inseparability: Services are produced and consumed simultaneously. Consumers cannot and
do not separate the deliverer of the service from the service itself. Interaction between
consumer and the service provider varies based on whether the consumer must be physically
present to receive the service. In the insurance sector too, the service is produced when the
agent convinces the consumer to buy the policy and it is said to be consumed when the claim
is settled and the policyholder gets the money. In both the above cases, it is essential for the
service provider (agent) and the consumer (policy holder) to be present.
Inventory: No inventory can be maintained for services. Inventory carrying costs are more
subjective and lead to idle production capacity. When the service is available but there is no
demand, cost rises as, cost of paying the people and overhead remains constant even though
the people are not required to provide services due to lack of demand.
In the insurance sector however, commission is paid to the agents on each policy that they
sell. Hence, not much inventory cost is wasted on idle inventory. As the cost of agents is
directly proportional to the policy sold.
Define service marketing. Explain the importance of service marketing?
Marketing is an effective tool that helps businesses increase revenue, but the type of
marketing required depends on the type of business and what it's selling. While companies
that provide tangible products rely on product marketing, intangible products use service
marketing to attract customers. Service marketing is simply the process of promoting and
selling a service or an intangible good to a specific group of people. It is a new way of
marketing that has become very popular and helps companies all over the world promote
their services. It looks at how a certain kind of service is advertised in the market. Though
service marketing is a unique idea, it needs a way to represent goods that can’t be seen
(services). Service marketing is different from product marketing, which involves promoting
a product that can be seen. Instead, service marketing involves promoting a service that can’t
be seen but is still sold to customers. Services are just things that are given to customers as a
commodity. Customers can choose from a wide range of services.
Importance of Service Marketing
Because services can’t be seen or touched, marketing them is a difficult but very important
job.
1. A key differentiator:
As products become more similar, the services that go along with them are becoming a key
differentiator in the minds of consumers. For example, Pizza Hut and Domino’s both serve
pizza, but they are different from each other more because of the quality of their service than
because of the pizza itself. So, marketers can use the services they offer to set themselves
apart from the competition and draw in customers.
2. Helps in Building Relationships: 
Service marketing results in building long-term relationships with the target customers. As
there is no tangible product with service marketers to offer, they rely on understanding the
customers’ needs and demands and fulfilling them through concerned service offerings in the
most effective way. In this way, trust and loyalty are developed within the customers for the
service organization, resulting in long-term relationships with them. These relationships help
in generating repeat purchases as well as word of mouth promotion.
3. Assists in Affecting Customers’ Perception: 
Several interaction points are designed for the target customers while offering the services.
The customer’s overall buying process is influenced by the cumulative effect of these
interaction points, i.e., people involved in delivering the services, the process and
methodologies used by such people, and the surrounding physical evidence. These interaction
points help in affecting the perception of the target customers.
4. Involves Customers’ Feedback: 
The marketing approach of services is quite different from that of tangible products, as
consumers play a significant role in the marketing process. Here, the customer’s feedback is
invited and studied to improve the efficiency of service marketing.
5. Offers Higher Customer Retention: 
In today’s world of cut-throat competition, the marketers are to fish out the limited
customers. In such a scenario, it becomes more important to retain customers instead of
attracting new ones.

In service marketing, the customers’ needs and feedback are analyzed to deliver the desired
services. Therefore, customers are satisfied by offering customized services, and it results in
higher customer retention.
What are the characteristics of service?

Intangibility:
Intangibility is an important consideration that complicates the functional responsibility of a
marketing manager, especially while influencing and motivating the prospects/customers.
The goods of tangible nature can be displayed, the prospects or buyers can have a view and
they can even test and make a trial before making the buying decisions. The selling processes
are thus found easier. We are aware of the fact that services are of intangible nature and it is
intangibility that complicates the task of decision-makers.
 
Perishability: Another point complicating the task of a professional is the nature of
perishability that we find in the services. The goods if not sold today can be stored, preserved
for further selling. Thus, the risk element is here in a different form. But in the context of
services, if we fail to sell the services, it is lost not only for today but even for the future. If
labour stops working, if a seat in the aircraft remains unsold, if a bedroom in a hotel remains
unbooked, a chair in a cinema hall remains vacant; we find the business non-existent and the
opportunities are lost and lost forever. The services can’t be stored or preserved.

Inseparability: This is also a feature that complicates the task of professionals while
marketing the services. The inseparability focuses on the fact that the services are not of
separable nature. Generally, the services are created and supplied simultaneously. Like the
dancers, musicians, dentists and other professionals create and offer services at the same
time. In other words, the services and their providers are the same. Donald Cowell says,
“Goods are produced, sold and then consumed whereas the services are sold and then
produced and consumed.”

 
Heterogeneity: Another feature is heterogeneity which makes it difficult to establish a
standard. The quality of services can’t be standardized. The prices charged may be too high
or too low. In the case of entertainment and sports, we find the same thing. The same type of
services can’t be sold to all the customers even if they pay the same price.
 
Ownership: It is also ownership that makes it significant to market the services in a bit
different way. The goods sold are transferred from one place to another, the ownership is also
transferred and this provides to the buyers an opportunity to resell. In the case of services, we
don’t find the same thing. The users have just an access to the service. As for example, a
consumer can use personal care services or Medicare services or can use a hotel room or
swimming pool, however the ownership rests with the providers.
 
Simultaneity: Services can’t be delivered to customers or users. Services don’t move through
the channel of distribution. For availing the services, it is essential that the users are brought
to the providers or the providers go to the users. It is right to say that the services have limited
geographical areas.
 
Quality Measurement: The quality of service requires another tool for measurement. We
can’t measure it in terms of service level. It is very difficult to rate or quantify the total
purchase. For example, we can quantify the food served in a hotel but the way a waiter or a
carrier serves it or the overall environment or behaviour of other staff can’t be ignored while
rating the total process. Hence, we can determine the level of satisfaction at which the users
are found satisfied. A firm sells atmosphere, conveniences, consistent quality, status, anxiety,
morals, etc.

Nature of Demand: While going through the features of services, we can’t underestimate the
factor related to the nature of demand. Generally, the services are of fluctuating nature.
Particularly during the peak season, we find an abnormal increase in the demand. For
example, the mobility of passengers is found to increase, especially during the marriage
season or during an important festival.

 
Explain the growth of services
 
High demand for service as an end product:  When businesses for communications,
advertising, computer service, and banking were outsourced to India from abroad (especially
developed countries), the services sector began to blossom. This high demand led to high
growth in the service sector.

Technological and Structural Changes: The Indian economy has gone through many
technological and structural changes. It involves a shift from primary to tertiary sectors with
respect to economic dependence. Furthermore, technological changes have resulted in a
change in outsourcing and thus ultimately the growth of the service sector.

Development of Information Technology:  With the growth and advancement in the IT

sectors, there has been a significant increase in the use of mobile phones,
telecommunications, and the Internet, which has led to an increase in electronic transactions
in the countries.

Economic Reforms in 1991:  With the introduction of economic reforms in 1991, the demand
for the manufacturing industry increased. Along with this, liberalization of the financial
sector and reforms in the infrastructure sectors are also responsible for the high growth of the
services sector.

Consumer affluence: Due to the fast rise in the income of consumers, they are attracted
towards the new areas like clubs, health clubs, domestic services, travel and tourism,
entertainment, banking, investment, retailing, insurance, repairs, etc. and these are growing
much faster than ever before.

Working women: During recent times a large number of women have come up in a variety of
professions. The work performance of women in most of services sector like banks,
insurance, airlines, etc. is highly appreciable. In short, women are getting involved in almost
all male dominated activities. 

Greater life expectancy: According to the World Development Report and World Human
Resource Index, the life expectancy of people has increased significantly all over the world
barring few developing countries. It may be due to the advancement in medical technology,
and greater awareness about health and education. Greater life expectancy invites
opportunities in services like hospitals, Nursing Homes, entertainment, leisure services,
investment banking and so on. 

Product innovations: 

In the changing time the consumers have become more conscious of quality than cost. They
need high quality goods at par with international standards. Having this in mind the
manufacturers have focused their attention on quality improvement, innovations, etc.
Describe retail financial services

https://www.princeton.edu/~ota/disk3/1984/8411/841106.PDF

The retail financial service industry consists of those organizations (e.g., banks, credit unions,
insurance companies, consumer finance companies) that deliver products to end users.
Consumers comprise the largest and most visible single group of end-users of financial
services, but business and government both have roles as customers for retail financial
services. Included among retail financial products are depository accounts, extensions of
credit, and payment services. Retail financial services, especially those offered by banks,
have been heavily regulated by both State and Federal Governments. Rates paid on deposits
have been largely deregulated, but limits on the rates charged on consumer loans remain in
force. Depository institutions are generally limited to offering prescribed products to
predefined markets. Banks, for example, are limited with regard to the geographic area
served, while credit unions are limited to serving only groups whose members share a
common bond, such as employment with a specific firm. Generally, bank holding companies
are not permitted to enter lines of commerce not closely associated with banking. Depository
institutions are examined to ensure that they are pursuing business in a manner consistent
with preserving institutional safety and soundness, and many of their business decisions (e.g.,
affecting mergers, opening branches, offering new products) are reviewed by regulators prior
to implementation. Today, insurance companies, providers of services such as credit cards
and traveller’s checks, consumer finance companies, dry goods merchants, investment
companies, and food retailers also provide retail financial services. Some, such as insurance
companies, are regulated, while others, such as providers of traveller’s checks, are virtually
unregulated. All, to an ever-increasing degree, are broadening their range of business
activities and, to some extent, are encroaching on areas previously served by others, including
those heretofore exclusively reserved to depository institutions. The financial service industry
is becoming homogenized to a significant degree, and differentiation between products has
become less apparent, particularly from the point of view of individual consumers.
Commercial banks and savings and loan associations are now permitted to serve many of the
same clientele. For example, recent legislation gave savings and loan associations the power
to make some commercial loans, a product that could not previously be offered. While
securities brokers/dealers are not permitted to offer depository accounts, they do offer shares
in money market funds that have properties very similar to deposits. Insurance companies
offer universal life policies that share many properties with self-directed investment accounts
offered by others. VISA and MasterCard are the two principal bank card products offered
nationwide. However, in addition to being offered by banks, these are now issued by such
varied organizations as the American Automobile Association and various brokerage houses
that offer them in conjunction with asset management accounts. Travel and entertainment
cards can be used with automated teller machines (ATMs) to obtain either cash or traveller’s
checks. In some cases, a plastic card is used to access a depository account (e.g., checking).
Plastic cards can also be used to draw on a line of credit either to pay for a purchase or to
obtain a cash advance. The same card can be used for both purposes. However, the finance
charges are assessed differently for the cash advance and the credit purchase. More generally,
telecommunication has been a major factor in the development of financial products in the
1980’s. Providing remote banking services has been a key area in the development of
financial services. Publishing companies are combining with financial service providers and
communication companies to deliver financial services directly to the homes of consumers.
Grocery chains are establishing networks of ATMs that compete directly with those offered
by banks. Banks offer cash management services to businesses, enabling corporate cash
managers to control funds on deposit with institutions worldwide and to manage them to the
best advantage of their employers.
What is market segmentation? Explain benefits of market segmentation?

https://www.lotame.com/what-is-market-segmentation/

https://www.techtarget.com/searchcustomerexperience/definition/market-segmentation

Market segmentation is a marketing strategy that uses well-defined criteria to divide a

brand’s total addressable market share into smaller groups. Each group, or segment, shares

common characteristics that enable the brand to create focused and targeted products, offers

and experiences. A brand's total addressable market can have a variety of needs, challenges,

preferences and buying criteria. Market segmentation carves out focused portions of a target

market in order to create messaging, products and services that are customized to those

segments. Market segmentation can be a competitive differentiator. Customers served by

market segmentation campaigns may perceive that a brand's messaging and products were

specifically tailored to them.

Benefits

Improves Campaign Performance

Create stronger marketing messages: When you know who you are targeting, you can create
strong, personalized messages that respond to the needs and wants of your target audience.
Find the ideal marketing strategies: You may not know which is the right strategy to attract
the ideal audience. Market segmentation allows you to know the audience, create a plan that
will work successfully and determine better solutions and methods to reach them.
Design targeted advertising: Market segmentation allows you to target your advertising to the
audience in a successful and effective way, knowing their age, location, buying habits,
interests, etc.
Attract potential customers: By sending direct and clear marketing messages, you attract the
right audience and are more likely to convert them into buyers.
Differentiate your brand from the competition: By creating messages specific to your value
proposition, you can stand out from the competition. Segmentation allows you to differentiate
your brand by focusing on specific customer needs and characteristics.
Identify your niche market: Market segmentation helps you discover your niche market.
Identify the niche with the broadest audience and whether it has needs that your brand can
effectively address.
Focus your efforts: Allows you to identify new marketing opportunities and avoid
distractions that take you away from your target market.
Create a customer connection: When you know what your customers want and need, you can
create effective strategies. This allows you to create strong bonds between your brand and the
customer to create brand loyalty and customer satisfaction.

Write a short note on differentiation of services?

https://www.indeed.com/career-advice/career-development/services-differentiation

Competition in the marketplace is a significant business factor for most companies. Knowing

how to best set your company apart from others is key to engaging with customers and

making sales. Service differentiation is one strategy for improving visibility in the

marketplace. Service differentiation is the specific way in which a company provides certain

services to its customers. Service differentiation is more common in industries with

significant customer-facing interaction, like travel and leisure activities, and less common in

industries that work primarily business to business or provide products rather than services.

However, even these product driven companies can employ services differentiation as a tool

to increase customer satisfaction and, potentially, sales.

Types of Service Differentiation

Environment: The environment in which your customers or clients interact with your

organization is a great service differentiation opportunity. Consider the architecture, interior

design and convenience items, like pillows or access to beverages and snacks, in your space

for optimal customer comfort during their interaction with your company.

Customer service: Most companies have a customer service department to help clients solve
problems and ensure customers have a positive experience with the organization. Giving
excellent customer service that offers support and communication options beyond what your
competitors provide is an excellent way to differentiate your service in the marketplace.

Branding: Consistent and effective branding can help entice potential customers to engage
with your services or products. Branding includes elements like the colors and design you use
in your logo, documents and other marketing and customer materials. Usually, branding also
includes your slogan or tagline, which your customer service or sales team will likely use
when interfacing with customers.

Functionality: By maximizing the functionality of your product or service, you're improving

the customer experience with your company. Functionality can also apply to the ways in
which your customers communicate or interact with your organization, not just the product or
service you sell.

Features: You can use different features to improve your service options and provide
customers with choices. For example, a hotel might offer a choice of a cookie or a bottle of
water to guests checking in. This feature is relatively low cost and requires little additional
work from staff, but it provides a benefit to guests that they might view as a competitive
edge.

Reputation: Your company's reputation is a key service differentiation option. Take active
steps to not only improve, but to share your reputation broadly in the marketplace. Ask
customers for feedback and testimonials you can post on your website and social media
pages. Find ways to show your company is trustworthy and dependable to your target
demographic.

Reliability: Keep the services you offer reliable. Make plans and backup plans to address
potential problems before they happen so you can quickly resume your work as normal. For
example, ensure your website is always operational, even in the event of a massive increase
in traffic by having a backup server to support demand.
Explain Designing and Managing Service Processes

Designing -  https://www.smaply.com/blog/service-design-process
Managing -
7 Step Process for Managing Service Processes

The service process is the backbone of the business.

The basic framework for the service process is given below.
Step # 1. Flowcharting
Flowcharting refers to creating a diagram that shows the steps in a process and their relation.
The flowchart outlines all steps involved in the process.
Businesses can gain valuable insights by looking at the process from a high-level perspective
and seeing how all steps fit together. It shows where improvements can be made and help
train new employees.
Step # 2. Service Blueprinting
After creating a flowchart, a service blueprint is developed. The service blueprint shows how
the customer interacts with the service process. It includes steps in the process and shows
what happens at each step.
The service blueprint can help identify potential problems and areas where improvements can
be made. It will also help organizations understand how the customer interacts with the
process and their experience.
Step # 3. Identify Failure Points
The next step is to identify failure points in the process. A failure point is a place where
issues can occur. Failure can be caused by human error, equipment failure, etc.
Identifying failure points is key to improving the service process. It also helps in creating
contingency plans for when things go wrong. 
Examples of failure can be a lack of:

 Staff to handle customer demands

 The right tools to finish the job
 A clear understanding of the process

Step # 4. Failure Proofing

After identifying the failure points in the process, the next step is to failure proof them.
Failure proofing making changes to the process to stop failures from happening.
There are different ways to failure proof a service process. 
Some common methods include:

 Adding additional staff to handle customer demands

 Providing more training to employees
 Installing better equipment or tools
 Creating clearer instructions for the process

Step # 5. Setting Service Targets

The next step is to set service targets. Service targets are goals that businesses want to
achieve. They can be customer satisfaction, quality, speed of service, etc.
Setting service targets is important because it helps track progress and ensure that goals are
being met. It also helps to identify areas where modifications are required.
Step # 6. Service Process Redesign
Once service targets have been set, the next step is to redesign the process to meet those
targets. Here, processes are redesigned to improve quality, speed of service, customer
satisfaction, etc.
This step can change:

 The way tasks are performed

 The order of tasks
 The tools and equipment used
 The training provided to employees
 The customer interface

Step # 7. Managing Customers Effectively

When it comes to providing service, managing customers is the key. Customers can be
valuable assets or liabilities. It is important to know how to manage them effectively, so they
become an asset.
There are many ways to manage customers effectively. 
Below are steps to follow.

 Recruitment and Selection: Recruit people with the right skills and attitude
for the job. 
 Job Analysis: Understand the job and customers’ requirements.
 On-boarding: Train customers on how to use the service.
 Coaching and Feedback: Provide coaching and feedback to help customers
improve their performance. Give them opportunities to develop their skills
further.
 Motivate the Best Performer: Recognize and reward good performance. Help
them see how their efforts contribute to the company’s success.
 Appraisal: Review customer performance regularly. Take action to improve
their performance if necessary.

 
 

Explain in detail positioning in services?

https://theintactone.com/2018/07/16/sm-u3-topic-1-service-positioning/

Positioning is the means by which a brand or company presents its features and benefits to
prospective customers. It is a means of establishing identity, one that sets a business apart
from competitors. It is also determined by variables that include price, target audience, and
the area where a firm does business. A business must set itself apart from its competition. To
be successful it must identify and promote itself as the best provider of attributes that are
important to target customers. Services marketing is customer-directed communication that
promotes a service instead of a physical product, Whereas Procter & Gamble sells Tide
detergent, a law firm sells fewer tangible services, such as legal advice. Using the example of
a law firm, we can describe its positioning and infer the type of client the firm hopes to
attract. Some law firms specialize in personal injury cases, which suggests that they will
position their offerings to individuals who are likely to be sensitive to price and in the market
for a short time. Personal injury attorneys do business in specific cities, which may also
determine the nature of prospective customers. Others firms specialize in corporate law,
which might involve large businesses navigating complex transactions or highly regulated
markets. In these instances, the law firm would position itself to attract businesses with deep
pockets that need a broad range of services. The geographical coverage of these law firms
wouldn't necessarily be confined to one city as many prospective clients have offices across
the country. Another example is the specialty firm that offers a narrow range of services to a
very targeted client base. For instance, a startup company might need a firm positioned for
clients who only need to secure a patent. Operating on a shoestring budget, these sorts of
clients would be extremely sensitive to price but not constrained by geography. Service
positioning is the unique identity of a service in a competitive market. A valuable position
serves customer needs and stands out from the competition in a way that has meaning to
customers. The following are illustrative examples of service.

Convenience: Making things easy for the customer. For example, the delivery service that
keeps trying to deliver until they find that you're home.

Capabilities: Unique capabilities such as the consulting service that offers rare and in-demand
skills.

Functions & Features

Allowing customers to accomplish goals in a way that competitors can't match. For example,
the airline with the most direct flights to the American cities.

Customer service: More friendly and diligent customer service such as the telecom company
that is pleasing to do business with.

Variety: Offering more choice such as the streaming media service with the most content.
 Quality: A quality-based service position such as the media service with the best original
content.

Write a short note on Service market segmentation?

Market segmentation is the process of aggregating customers with similar wants, needs,
preferences, or buying behaviour. Market targeting involves evaluating the attractiveness of
the segments and selecting ones the firm will serve. In other words, segmentation is the
analysis conducted about customers and targeting is the managerial decision about whom to
serve. Both of these are required for effective market positioning. which involves establishing
the competitive position for the service in the mind of the customer and creating or adapting
the service mix to fit the position.

The segmentation process, shown in the following figure is concerned to divide a

heterogeneous follows four broad steps:

1)   The definition of the market to be addressed.

2)   The identification of alternative bases for segmentation

3) An examination of these bases and the choice of the best base or bases for segmentation.

4) The identification of individual market segments, an assessment of their attractiveness and the
selection of specific target segments.

Once the market segment has been selected, the process of target marketing involves
developing a positioning for the target segments selected and then developing a marketing
mix for each target market.

Definition of Relevant Market

The definition of the relevant market to be addressed involves specifying the customer group
to which the company is seeking to market its services. This can be a broad group such as
retail customers for a supermarket in a given geographic region, or a much more specific
group which can be further segmented.

Successful market segmentation means satisfying the needs of existing and potential
customers in a clearly defined market. This involves understanding customer attitudes, and
customer preferences, as well as the benefits which are sought. Definition of the target market
and its requirements is the first essential step in the segmentation process. Market segments
are formed by grouping customers who share common characteristics that are in some way
meaningful to the design, delivery, promotion, or pricing of the service.

Demographics and socio-economic segmentation

Demographic segmentation includes a number of factors including sex, age, family size etc.
Socio-economic variables may also be considered here, including income education. social
class and ethnic origins. Many retail stores target different customer groups.
Psychographic segmentation

This form of segmentation cannot be explained in clearly defined quantitative measures; it is

concerned with people's behaviour and ways of living.

Geographic segmentation

Geographic segmentation divides customers according to where they live or work and
correlates this with other variables.
Explain positioning in services?

Positioning is the process of creating a distinct mental position or image of a product or a

service in the mind of the customers as compared to other brands in the market. Positioning
helps to create a unique image of the brand and the product in the mind of the consumers in
comparison with other products or brands which are already existing in the market. Every
marketer considers brand positioning as one of the most important aspects of overall brand
creation. People have different perceptions about a brand based on how the brand was
positioned in the market.

Importance of Positioning

In marketing, the positioning concept is followed after the market segmentation where the
market is broken down and a target group for their product is identified using targeting
strategy, which is collectively known as STP marketing strategy. After selecting a niche
market, it helps to create an impression in the customer’s mind. Companies create a
positioning statement for their brand, product or service which helps customers identify with
the business.

Positioning is broadly classified into three types:

1. Functional
This is used when the brand or products provide solutions to problems and provide benefits to
customers. It focuses on the function, benefit or utility that it gives to the customer.
2. Symbolic
This is useful for creating a brand image which helps create brand equity, a sense of social
belongingness and ego-identification. It is when a customer has an affection, social
connection, ego identification etc. with the product.
3. Experiential
This creates sensory and cognitive simulation in the minds of the customer. It is one of the
basis of the experiences which a customer can relate to.
Companies use a positioning process, which is stepwise method to place the product or
service in the right way in the consumer's mind. If a company decides to change the way
people perceive a brand, then they revamp the logo, slogan etc. of that brand. This process is
known as repositioning of the brand, which helps create a different image of the brand.
Key Factors of Positioning Strategy
1. Product Features
Positioning can be done on how the product looks, feels, appears etc. The main features of
the products can be used to highlight the value and create the positioning around it.
2. Utility & Benefits
It takes into account the value which a product gives and which needs are solved. It should
show the clear benefit in terms of dollar value or number
E.g., 50% savings in electricity expenses can be a clear benefit to a customer.
3. Use Categories
This defines how the product can be used. All the different use cases and scenarios can be
used to create a compelling positioning.
4. Occasion
The time, event or the occasion when the product can be used. Association with an event like
New Year can lead to strong positioning in the minds of customers.
5. Competitive Comparison
Positioning can be done when compared to a competitive offering. This is done by a lot of
companies to use existing competitive positioning and make it better using points of parity or
points of differentiation to create a better positioning.
What are the 7Ps of marketing?
https://www.onlinemanipal.com/blogs/what-are-the-seven-ps-of-marketing#:~:text=The
%207Ps%20of%20marketing%20are,evidence%2C%20people%2C%20and
%20processes.
The marketing mix is one of the marketing strategies organizations have traditionally used to
sell their product. To lay the groundwork, the marketing mix is defined as a collection of
marketing techniques that a firm uses to promote its brand or product in the marketplace. The
approach was typically structured around the four pillars of marketing: product, price,
location, and promotion. However, as marketing became more sophisticated, so have the
approaches.  Later, it was expanded to 7Ps of marketing with the inclusion of People,
Process, and Physical Evidence.
 
PRODUCT: It goes without saying that the service or product you’re selling should be at the
centre of every element of the marketing mix. Fundamentally, it allows you to address the
questions key to sales conversion: what problem or issue does the product solve for
customers? Why is your product the best one to solve it?
The digital marketing mix is perfect for showcasing your products, through SEO, blogs or
articles, paid advertising, influencer marketing, and viral video campaigns, for example.
 
PRICE: The strategy behind the pricing of your product needs to be based on what your
customers are prepared to pay, costs such as retail mark-up and manufacturing, as well as
other considerations.
Your marketing mix can include subscription and membership discounting programs, or
email marketing of promotions and sales.
 
PROMOTION: Successful marketing strategies include all the promotional activities across
the marketing mix, including advertising, direct marketing, and in-store promotional
activities.
The possibilities of digital promotion are limited only by your imagination and can include
online events, chats, social media groups, and livestreams.
 
PLACE: Where and how your product is displayed and sold should be directly informed by
your customers.
A deep understanding of their purchasing patterns – and targeting them at the right stage in
their buying cycle – will make it clear where you should promote and sell your products and
how that fits into your online and real-world marketing mix.
 
PEOPLE: Excellent customer service not only converts to sales, but can increase your
customer base by referrals. Acquiring these referrals by people who love your brand can also
be a great example of how your marketing efforts can support your sales process.
It’s important that everyone who represents your brand or deals with customers – including
the non-human chat bot variety! – are fully trained sales professionals with an intimate
knowledge of your product and how it will improve the lives or solve the problems of your
customers.
 
PROCESS: The process of delivering your product to the consumer should be designed for
maximum efficiency and reliability, but may also include features that are in line with your
brand, such as being environmentally or sustainably focused.
With the rise in online shopping, digital partnerships and logistics have become an essential
part of the marketing mix.
 
PHYSICAL EVIDENCE: Physical evidence incorporates aspects that proves your brand
exists and that a purchase took place.
Examples of proof that your brand exists can include things like a physical store or office for
your business, a website if your business operates solely online, and printed business cards
that you exchange when meeting people. Examples of proof of purchases can include
physical or digital receipts, invoices, or follow-up email newsletters that you send to
customers as a retention exercise.
What is a service blueprint? Discuss in detail.
 
Service blueprint is a diagram that visualizes the relationships between different service

components — people, props (physical or digital evidence), and processes — that are directly

tied to touchpoints in a specific customer journey. Think of service blueprints as a part two to

customer journey maps. Similar to customer-journey maps, blueprints are instrumental in

complex scenarios spanning many service-related offerings. Blueprinting is an ideal approach

to experiences that are omnichannel, involve multiple touchpoints, or require a cross

functional effort (that is, coordination of multiple departments). A service blueprint

corresponds to a specific customer journey and the specific user goals associated to that

journey. This journey can vary in scope. Thus, for the same service, you may have multiple

blueprints if there are several different scenarios that it can accommodate. For example, with

a restaurant business, you may have separate service blueprints for the tasks of ordering food

for takeout versus dining in the restaurant. Service blueprints should always align to a

business goal: reducing redundancies, improving the employee experience, or converging

siloed processes.

Benefits of Service Blueprinting

Service blueprints give an organization a comprehensive understanding of its service and the

underlying resources and processes seen and unseen to the user that make it possible.

Focusing on this larger understanding (alongside more typical usability aspects and

individual touchpoint design) provides strategic benefits for the business. Blueprints are

treasure maps that help businesses discover weaknesses. Poor user experiences are often due
to an internal organizational shortcoming or a weak link in the ecosystem. While we can

quickly understand what may be wrong in a user interface (bad design or a broken button),

determining the root cause of a systemic issue (such as corrupted data or long wait times) is

much more difficult. Blueprinting exposes the big picture and offers a map of dependencies,

thus allowing a business to discover a weak leak at its roots. In this same way, blueprints help

identify opportunities for optimization. The visualization of relationships in blueprints

uncovers potential improvements and ways to eliminate redundancy. For example,

information gathered early on in the customer’s journey could possibly be repurposed later on

backstage. This approach has three positive effects:

(1) customers are delighted when they are recognized the second time the service feels

personal and they save time and effort;

(2) employee time and effort are not wasted regathering information;

(3) no risk of inconsistent data when the same question isn’t asked twice.

Blueprinting is most useful when coordinating complex services because it bridges cross

department efforts. Often, a department’s success is measured by the touchpoint it owns.

However, users encounter many touch points throughout one journey and don’t know which

department owns which touchpoint. While a department could meet its goal, the big-picture,

organization-level objectives may not be reached. Blueprinting forces businesses to capture

what occurs internally throughout the totality of the customer journey giving them insight to

overlaps and dependencies that departments alone could not see.

Explain the service delivery process

When providing service delivery to clients, it's beneficial to give the highest quality possible

while distinguishing yourself from the competition. By creating value and engaging with both

customers and employees, you can create a service delivery culture that does both. This may

help create a favorable brand image for your company and increase revenue. Service delivery

is a business framework that supplies services from a provider to a client. It also includes the

constant interaction between the two parties during the duration of the time in which the

provider supplies the service and the customer purchases it. Essentially, a service delivery

company provides something to a customer they can't create on their own. That service could

be anything from a task to technology or information. It can fall into two broad categories of

general reference for any service or more industry-specific models for technical service.

Service delivery processes typically aim to provide the client with increased value by setting

standards, policies, principles and constraints to guide all aspects of their business and

customer interactions. Sometimes service delivery may involve a third-party or outsourced

supplier besides the provider and the client.

The four Components of service delivery

1. Service culture

Service culture relates to the leadership principles, vision, mission, work habits and values of

a service provider company. Management controls these items, which set a basis for

operations throughout the entire organization. Maintenance and development of these

elements can develop the social processes of an organization and help serve the long-term

success of the company.

2. Employee engagement

Employee engagement focuses on those who work within an organization to provide service

delivery. Human resources and other leadership supervisors can use their influence to shape

employee attitudes, activities and purposes that align with the service culture of the

organization. This serves as the link between the service delivery design process and the

excellence model that the customer experiences.

3. Service quality

Service quality includes all strategies, performance management systems and processes

involved in service delivery. These items help define the management model that helps the

client reach their end goal within the service delivery process. This element is the foundation

of the service provider and client partnership.

4. Customer service

Customer service focuses on providing the client with both the resources and knowledge they

desire about their service delivery product. It includes items like account management,

customer intelligence and continuous improvement. This phase uses a continuous review and

collaboration process to understand how customers perceive the organization's service

delivery and what you can do to make it better. This can work most effectively when the

customer is part of the creation and delivery process.

Explain in detail Service Mapping
https://www.bmc.com/blogs/service-mapping/
 
Effective service management can never materialize if a service provider lacks a complete
grasp of all the elements that comprise the service’s functionality and functioning.
According to USM, every service consists of a facility and the support provided for the use of
the service. To gain control over a service, a smart specification of the service is required
which provides the basis for understanding by the provider and customer, thus aiding proper
definition of service level agreements (SLAs).
Service mapping is one of the techniques that can be applied in specifying the constituents of
a service in order to support the practices that manage the service.
The Microsoft Operations Framework defines a service map as a graphical display of a
service that illustrates the various components upon which successful delivery of that service
relies. These components include:

· Infrastructure
· Applications
· Dependent services
· People
· Settings

The service map serves as a communications tool. It illustrates the “what” of a service (its
components and their relationships) as a basis for managing the “how” of a service (how the
service is delivered and controlled). Thus, a service map enables the right decisions to be
made by the right people in managing that particular service.
The service map does not replace architecture diagrams or other capabilities that can display
service components such as configuration management systems or service catalogues. Rather,
it serves as a high-level reference tool that demonstrates service relationships and
dependencies across the entire spectrum of the service lifecycle.
 
For this reason, the service map uses more business than technical terms, offering a service-
centered view of the environment which facilitates better understanding for stakeholders
involved in service management.
Service mapping is therefore the practice of diagramming and documenting all of the
components needed to operate each service the organization provides, thus enabling service
management. According to Mike Bombard, this process defines hierarchical relationships that
can be displayed visually, enabling people to see:
The relationship between the service and its components
The relationships to one another
Use Cases of Service Mapping
Portfolio management
The portfolio management practice ensures that your organization has the right mix of
services to execute its business strategy within funding and resource constraints. Service
mapping can provide capability for this practice as decisions regarding service objectives,
investments, and limits can be better made by visualizing service components and
dependencies.
Relationship management
Relationship management involves communication with key stakeholders regarding service
needs, expectations, and experiences.
By providing the visual aids required to bring all parties to a common plane, a service
mapping exercise can be useful in articulating and understanding customer needs, aligning
expectations and planning value co-creation.
Business analysis
This practice identifies and justifies solutions to meet the needs of an organization and its
customers. Service mapping can facilitate the visualization of information systems and the
definition of technical requirements, both of which assist in evaluating options and
communicating recommended solutions to key stakeholders.
How should employees be managed for effective service orientation?
Employee orientation is the process of introducing new hires to their jobs, co-workers,
workplace, and responsibilities. The employee orientation provides a chance for now hires to
feel comfortable within the teams, departments, and role in the company.
To make employee orientation effective, new hires must be made aware of their company
policies and expectations, essential paperwork should be handled through streamlining, and
any questions or concerns should be addressed before they transition into their new positions.
Why is orientation important for new employees?
Onboarding is the official starting point for the employer-employee relationship. The first
few days of onboarding or employee orientation are some of the most crucial days, as the
new hires are seeking to affirm their decision to accept the organization's offer of
employment. The orientation conveys the expectations and responsibilities to the new
employees, helping them set the course for their work. By clearly communicating
responsibilities with the new employee, they can start getting productive at the earliest. An
effective employee orientation should answer questions of the new hires about their roles and
responsibilities, company policies, or any queries about the workplace.
The aim of orientation is to make employees feel welcome and gets tarted effectively. Here
are some procedures you can follow to make them feel comfortable:

1.      Ensure that the new hires get their laptops, phones, email addresses, and other
credentials on the first day itself, along with proper instructions and a demonstration,
so that they can get productive from the get go.
2.      Ensure that all paperwork is taken care of way ahead of the first day, and that
organizations have the right tools to collects the necessary signatures and documents.
3.      A welcome it with freebies such as T-shirts, mugs, notebooks and other stuff that is
useful and makes the new hires happy.
4.      Ensure that managers take the time to interact with the new hires, and give them a
helpful brief about their responsibilities and how they contribute to company goals. At
the same time, managers should ensure that they understand the employee's personal
goals, and design a lab that aligns them with the company.
Explain the process of personal selling in service marketing
https://www.economicsdiscussion.net/marketing-management/personal-selling/personal-
selling-process/31782
Personal selling is an act of convincing the prospects to buy a given product or service. It is
the most effective and costly promotional method. It is effective because there is face to face
conversation between the buyer and seller and the seller can change its promotional
techniques according to the needs of the situation. It is basically the science and art of
understanding human desires and showing the ways through which these desires could be
fulfilled. According to the American Marketing Association, “Personal selling is the oral
presentation in a conversation with one or more prospective purchasers for the purpose of
making a sale; it is the ability to persuade the people to buy goods and services at a profit to
the seller and benefit to the buyer”. Personal selling is a different form of promotion,
involving two-way face-to-face communications between the salesmen and the prospect. The
result of such interaction depends upon how deep each has gone into one another and reached
the height of the common understanding. Basically, the essence of personal selling is the
interpretation of products and services benefits and features to the buyer and persuading the
buyer to buy these products and services.
The process involves identifying the prospective buyer, establishing a contact and
relationship with the buyer, presenting the product to the buyer and demonstrating its uses
and benefits, convincing the customers about the product by efficiently handling objections
from the customers, negotiating the price and terms of payment and finally getting the orders.
1.     Identifying the Prospective Buyer (Prospecting and Qualifying):
The first stage of the personal selling process involves identifying potential customers. All
prospects identified may not turn out to be actual customers. Hence identifying the right
prospect is essential as it determines the future selling process. Marketers tap different
sources to identify the prospective customers. Marketers search for prospects in directories,
websites and contact through mail and telephone.
Marketers establish booths at trade shows and exhibitions, get the names of the prospects
from existing customers, cultivate referral sources such as – dealers, suppliers, sales
representatives, executives, bankers etc. After identifying the prospect, the sales person
qualifies the prospects on the basis of their financial ability, needs, taste and preferences.
 
2. Pre-Approach:
The next step to prospecting and qualifying is pre-approach. At this stage the salesperson
needs to decide as to how to approach the prospective customer. The salesperson may make a
personal visit, a phone call or send a letter, based on the convenience of the prospects.
3. Approach:
At this stage the salesperson should properly approach the prospects. He should properly
greet the buyer and give a good start to the conversation. The salesperson’s attitude,
appearance, way of speaking matters most at this stage.
4.    Presentation and Demonstration:
At this stage the salesperson provides detailed information about the product and benefits of
the product. The salesperson narrates the features of the product, explains the benefit and the
worth of the product in terms of money.
 
5.    Overcoming Objections:
After presentation and demonstration, when customers are asked to place an order, they are
reluctant to buy and raise objections. Customers give importance to well-established brands,
show apathy, impatience, reluctance to participate in the talk etc. Customers may raise
objections with regard to price, delivery schedule; product or company characteristics, etc.
Salesperson handles such objections skillfully by clarifying their objections and convinces
the customer to make a purchase.
 
6. Closing:
After handling objections and convincing customers to buy the product, the salesperson
requests the customer to place an order. The salesperson assists the buyer to place an order.
7.     Follow-Up and Maintenance:
Immediately after closing the sale, the salesperson should take some follow up measures. The
sales person assures about delivery at the right time, proper installation, and after sales
service. This ensures customer satisfaction and repeat purchase.
 Explain the strategies of distribution unique to services
https://www.indeed.com/career-advice/career-development/distribution-strategy

Companies that make products use a distribution strategy to get them to the consumer market,
and there are several types and forms to choose from. Knowing more about distribution
strategies and the benefits of each can help you create the strategy that's right for your
business. Distribution strategy is the method used to bring products, goods and services to
customers or end-users. You often gain repeat customers by ensuring an easy and effective
way to get your goods and services to people, depending on the item and its distribution
needs. Organizations consider which distribution strategy is best while being cost-effective
and increasing overall profitability. You can even use multiple or overlapping distribution
strategies to reach target audiences and meet company goals and objectives. For example, a
product might sell better online to one demographic and via a mail-to-order catalog to another
target audience group. Consider basing distribution on your ideal customer, thinking about
where and how they buy products and what you can do to make purchasing your goods or
services easier. The item itself is often key to determining the right distribution strategy, type
and channel. For example, if your product is a high-end designer line of furniture, buying
directly from the manufacturer may be worth the customer's time. Or if your product is a
routine, everyday item like a bottle of water, buying through convenient and nearby shops
may be more appealing to the customer.

Factors to consider while planning distribution strategy: -

1.  Product type

Depending on the type of product or service you offer, your distribution strategy may vary.
For example, the distribution strategy for a luxury car brand may differ from that of a paper
towel manufacturer.

2.  Customer base

Another factor to consider is your user, or customer, base. Depending on where your
customers typically shop, your distribution strategy varies, and often advances in technology
influence distribution, too. For example, if your target customer base for your paper towel
product is a middle-aged woman buying at a grocery store, you may choose to distribute to
various brick-and-mortar storefronts, like grocery store chains and warehouse companies.

3.  Warehouse and transportation logistics

The capabilities and costs associated with running a warehouse and delivery logistics are
another consideration when building a distribution strategy. For example, it is a large
 financial investment to have a warehouse for storing goods, a fleet of transportation vehicles
like trucks and vans and personnel to staff the warehouse and deliver the items.

There are primarily two types of distribution strategies, known as direct and indirect, and
depending on the product or service, the two strategies offer different benefits and cost
savings to a company.

1.  Direct distribution strategy:

Direct distribution is when manufacturers sell and send their products directly to consumers
without the use of other parties and entities. It often requires having a warehouse to store
products and a delivery process to get them to Customers.

2.  Indirect distribution strategy:

Indirect distribution strategy is when manufacturers use intermediary businesses and entities
to help logistically get products to customers. It's often most helpful for large amounts of
routine products and can create cost savings for a company.

Within these two main types of distribution strategy are more specific options, including:

Exclusive: Exclusive distribution is when a manufacturer picks a few sales outlets to create a
level of exclusivity for an item or brand, like luxury goods or exotic vehicles.

Intensive: Intensive distribution is when a manufacturer wants to penetrate the market by

selling its goods to as many sales outlets as possible to reach customers, most often for
affordable routine items like candy bars, household products and drink items.

Selective: Selective distribution is a mix of exclusive and intensive distribution, giving you
more locations to sell a product while still being choosy in which stores or partnerships to sell
within, like a high-end rug manufacturer selecting a specific retail department store to reach
more customers.

Direct: Dual distribution combines direct and selective distribution strategies to grow market
influence and also maintain direct sales with customers

Reverse: Reverse distribution is often less common, where an item flows from the customer
back to a company, typically for recycling or refurbishing of goods, like used computers or
other electronics.
Explain various Challenges in Distribution of Services?

Inability to Customize: Some of you have experienced learning basic college courses through
large, video-transmitted courses. If you consider what you missed in learning that way
compared with learning directly from a professor, you will understand this challenge. In mass
sections, you cannot interact directly with the professor, ask questions, raise points for
clarification or experience the connection that you receive in person. In electronic classes-as
in video conferences that are springing up in many businesses-the quality of the service can
also be impeded by the way the audience reacts (or doesn't react) in those situations. People
talk among themselves, leave, laugh, and criticize, among other behaviors.

Customization: Customization can be achieved in these channels. IN college courses, small

groups of students can be led by teaching assistants to discuss the electronic lecture. Call-in
questions can simulate direct interaction. Two-way video can control the behavior of
receivers. In advertising on the Internet and other electronic channels, it is conjectured that
personalized advertising will ultimately be developed because customers will be in control.
Consumers will actively seek pertinent advertising, so marketers must develop ways to make
their advertising compelling. Ad resources will shift toward supplying information the
customer wants to know, rather than pitching what the company wants to sell.

Customer Involvement: Customer Involvement May times the customer produces the service
herself using the technology. Unless the technology is highly user-friendly, customers may be
reluctant to try it or to continue using it if it requires ongoing education.

Security: Security One issue confronting marketers using electronic channels is security of
information, particularly financial information. Many marketers who advertise on the Internet
will not accept credit-card orders because of potential security problems in the transactions.

The value delivery system:

The value delivery sequence consists of three key steps choose the value, provide the value
and communicate the value

Choose the value:

It can be argued that customers select products and services because they believe they offer
superior value. The prerequisite here is an understanding of changing customer needs in
terms of the forces driving demand as well as customer economics and the buying process
and also understanding how well the competition serves those needs particularly in terms of
the products, the service and price charged. Provide the value. The second stage, providing
the value, is concerned with developing a product/service package that creates clear and
superior value. This involves a focus on things such as product quality and performance,
service cost and responsiveness, manufacturing cost and flexibility, channel structure and
performance, and price structure.

Explain with a diagram the GAP Model of Service Quality

https://lapaas.com/gap-model-of-service-quality/

GAP MODEL OF SERVICE QUALITY

GAP 1: Gap between Management Perception and Customer Expectation
This gap arises when the management or service provider does not correctly analyze what the
customer wants or needs. It also arises due to insufficient communication between contact
employees and managers. There is a lack of market segmentation. This Gap occurs due to
insufficient market research. For Instance- A café owner may think that the consumer wants a
better ambience in the café, but the consumer is more concerned about the coffee and food
they serve.

GAP 2: Gap between Service Quality Specification and Management Perception 

This gap arises when the management or service provider might correctly comprehend what
the customer requires, but may not set a performance standard. It can be due to poor service
design, Inappropriate Physical evidence, Unsystematic new service Development process.
An example would be restaurant Managers who may tell the waiters to provide the order of
the consumer quickly, but do not specify “How Quick”.

GAP 3: Gap between Service Quality Specification and Service Delivery

This gap may arise in situations existing to the service personnel. It may occur due to
improper training, incapability or unwillingness to meet the set service standards. It can be
due to inappropriate evaluation and compensation systems. Ineffective Recruitment is the
main cause of this gap.
The failure to match the supply and demand can create this gap. There is also a lack of
empowerment, Perceived Control, and framework.  An example would be a restaurant having
very specific standards of the food communicated but the restaurant staff may not be given
proper instruction as to how to follow these standards.

GAP 4: Gap between External Communication and Service Delivery

Consumer Expectations are highly influenced by the statements made by the company
representatives and advertisements. This gap arises when these assumed expectations are not
fulfilled at the time of Delivery of Service. 
An example would be a restaurant that has printed on its menu that it serves 100% Vegetarian
Food but in reality, it serves Non-Vegetarian Food as well. In this situation, consumer
expectations are not met. 

GAP 5: Gap between Experienced Service and Expected Service

This gap arises when the consumer misunderstands the service quality. For Instance, A
Restaurant Manager may keep visiting their consumer to ensure quality check and consumer
satisfaction, but the consumer may interpret this as an indication that something is fishy or
there is something wrong in the service provided by the restaurant staff.

What are the key quality dimensions for services?

https://www.indeed.com/career-advice/career-development/service-quality
https://www.yourarticlelibrary.com/company/service-management/10-original-dimensions-
of-service-quality-explained/34224 
Service quality is a measure of how an organization delivers its services compared to the
expectations of its customers. Customers purchase services as a response to specific needs.
They either consciously or unconsciously have certain standards and expectations for how a
company's delivery of services fulfills those needs. A company with high service quality
offers services that match or exceed its customers' expectations.
1. Reliability: This refers to an organization's ability and consistency in performing a certain
service in a way that satisfies its customers' needs. This process involves every step of
customer interaction, including the delivery or execution of the good or service, swift and
precise problem resolution and competitive pricing. Customers have a certain expectation of
reliability in buying a specific product, and a company's success usually depends on its ability
to meet those expectations.

2. Tangibility: This is an organization's ability to portray service quality to its customers.

There are many factors that give a company highly tangible quality, such as the appearance of
its headquarters, its employees' attire and demeanor, its marketing materials and its customer
service department.

3. Empathy: Empathy is how an organization delivers its services in a way that makes the
company seem empathetic to its customers' desires and demands. A customer who believes a
company truly cares about their well-being is likely to be more loyal to that company.

4. Responsiveness: This is a company's dedication and ability to provide customers with

prompt services. Responsiveness implies receiving, assessing and swiftly replying to
customer requests, feedback, questions and issues. A company with high service quality
always responds to customer communication as soon as possible which can often indicate the
value a company places on customer satisfaction.

5. Assurance: Assurance is the confidence and trust that customers have in a certain
organization. This is especially important with services that a customer might perceive as
being above their ability to understand and properly evaluate, meaning that there has to be a
certain element of trust in the servicing organization's ability to deliver. Company employees
need to be mindful of earning the trust of their customers if they want to retain them.

6. Communication: The clarity and understandability of the information given to the client,
e.g. Does the doctor take the time to explain in terms the patient can understand, what is
going to happen next? Does the solicitor explain clearly what the legal jargon means?

7. Credibility: The trustworthiness of the service provider, e.g. Does the newspaper reporter
report all the facts or only those which support his/her argument? Does the financial adviser
present all the options or only those which earn him/her the most commission?
8. Courtesy: The attitude of the service provider and manner adopted by the server, e.g.. Is
the receptionist friendly, helpful and polite? Does the doctor treat the patient as an inferior
being?

Explain various service quality and productivity?

https://indiafreenotes.com/improving-service-quality-and-productivity/ 
1. Customer satisfaction and customer focus:-
Many of the historic sources of company superiority-technology, innovation, economies of
scale-allowed companies to focus their efforts internally and prosper. Today, internal focus in
many companies is shifting to an external focus on the customer. Companies are
acknowledging that unless customer needs are taken into account in designing and delivering
both services and goods, all the technical superiority in the world will not bring success.
When customers become scarce in an industry and competition heats up, however, the
customer gains power. In the 1990s, when competition for master of business administration
students intensified and Business today conducted "customer surveys" of students to rank the
best business schools in India, the business school "customer" assumed a more central
position in these organizations. What students wanted in courses and experiences began to
drive curricula, content, and peripherals associated with business degrees. Business Schools
overhauled their MBA programs to make them more relevant to the students and the business
environment. 

2. Value:-
Another key competitive factor defining the way services are bought and sold is value. In the
words of the business observer, the marketing of value has "gone from a ground swell to a
tidal wave." Value reflects the growing customer concern of getting more for money, time,
and effort invested. Experts can point to many reasons why value is critical to today's
consumers: economic problems, loss of jobs due to company restructuring, and a return to the
real and practical. While the 1980s could easily have been termed the decade of
extravagance, the customer priority of the 1990s is turning out to be value. To thrive,
companies must understand the demographic and psychographic change that reflects this new
perspective.

3. Total Quality Management and Service Quality:-

Many experts considered the 1980s the decade of manufacturing quality because efforts to
improve quality-to make products that conformed to requirements-were initiated in some
form in many companies during that time. Total quality management (TQM) is the term
widely used to capture the movement, although this concept is used in a myriad of ways. In a
general sense, TQM has most often been defined as a management philosophy or way of
doing business based on continuous quality improvement. TOM has subsumed a diverse
group of quality techniques and strategies, among them statistical process control, process
management, employee participation, management commitment and leadership,
empowerment, and team building.

4. Emphasis on Service as a Key Differentiator in Manufacturing Firms:-

Competitive parity has been reached in many manufactured goods (such as personal
computers, video cassette recorders, and other electronic products, to name just a few)
meaning that product quality alone no longer differentiates one producer from another. Low
price as a differentiating strategy is also disappearing, especially as companies face the reality
that they and their competitors accomplish little more in price wars than to eliminate their
own margins. One of the few remaining strategies that can set one goods company apart from
others is customer service, broadly defined as developing strong relationships with
customers. Goods firm in industries such as automobiles; computers and most industrial firms
are heavily focusing on service.

5. New Measurement Systems that Link Customer Satisfaction with Financial Goals and
Operational Measurements:-
Before the early 1990s, few companies had measurement systems that viewed the customers
as a focus. While most companies were drowning in measurement, emphasis was typically on
short-term financial performance, productivity, and efficiency-not on long-term customer
satisfaction and value. Focusing on customers' priorities led the company to many changes,
one of the most important being a company- wide measurement effort emphasizing customer
satisfaction. When committing resources to improve service quality, company executives
want to be sure that these investments will pay off. To document the payoff, many
organizations have put in place measures that capture both the costs and gains of service
quality.

Productivity improvements in the service sector are possible and a number of ways of
improving service productivity are suggested.

1. Improving Staff:-
One way is through improving the knowledge, skills, attitudes and behaviour of existing and
new staff involved in service delivery and performance through better systems of recruitment,
training, development and motivation. Thus staff in contact with customers handling the
visible elements of the service can be trained in handling queries and complaints, in product
knowledge, in the operations of internal systems. Productivity bargaining schemes with
considered measures of output and formulae for sharing gains can be operated to provide
incentives for improved productivity. In other words, staff can be encouraged to work harder
and more skillfully.

2. Introducing Systems and Technology:-

Service organizations can reap productivity improvements if they become more systems and
technology oriented. The systems approach looks at the task as a whole. It attempts to
identify key operations to be undertaken, examines alternative ways of performing them,
devises alternative methods, removes wasteful practices and improves co-ordination within
the system as a whole. Alternative layouts, better job design and consideration of overall
costs of the system are important features of the systems approach. For example productivity
improvements in grocery retailing have been made possible by a systems approach to
physical handling of goods, layout, job design and merchandising.

3. Reducing Service Levels:-

Productivity can also be improved by reducing the quantity of service and/or the quality of
service (e.g. doctors could give less time to each patient). There are dangers in these
approaches particularly where a service organization has promised to deliver a higher level of
service in the past. Also competitors can differentiate their services by broadening and
upgrading their service quantity and quality.

4. Substituting Products for Services:-

Productivity can be improved by providing a product substitute for the service (e.g. new data
transfer technology has removed the need for the telegram service).

5. Introducing New Services:-

It is possible to design a more effective service that eliminates or reduces the need for the less
effective service. For example, transatlantic travel by air has largely replaced transatlantic
travel by sea; the credit card has replaced the former system for obtaining overdrafts.
Explain the role of IT in service marketing?

Technology is influencing the practice of services marketing. It has resulted in tremendous

potential for new service offerings. It is shaping the field of service enabling both customers
and employees to get and provide customized services. The technology has been the basic
force behind the service innovation. Automated voice mail, interactive voice response
systems, fax machines, ATMs etc., are possible only because of new technology.

Role of technology in service marketing

The role of technology and physical aids in service delivery system are summarized below:
1. Easy accessibility of service: Internet based companies find that the internet makes offers
of new services possible. The Wall Street Journal offers an interactive edition where
customers organize the newspaper’s content according to their needs. Internet based bill
paying service ensures convenience to the customers while availing services. The “connected
car” will allow people to access all kinds of services while on the road. Cars are equipped
with map and routing software which direct drivers to specific locations. Accessing the Web
via cell phones is possible nowadays. Thus, technology is a vehicle for delivering existing
services in more useful ways.

2. New ways to deliver service: In addition to providing new service offerings, technology
has introduced new ways of delivering service. It is providing vehicles for delivering existing
services in more convenient ways. It is true to say that technology facilitates basic customer
service functions like bill paying, checking accounts records, tracking orders, seeking
information, etc. The face of customer service has changed with the influx of technology.
Before the development of technology every customer service was provided face-to-face
through direct personal interaction between employees and customers. Nowadays, large
organizations centralize their customer service functions. It is possible by establishing a few
large call centres that could be located anywhere in the world. IBM’s customer service calls
are typical examples for consolidating call centres by large organizations. Introduction of an
automated voice response system has improved customer service in telecommunications.
Ford Motor company’s technology allows customers to set their own service appointments
and monitor the status of their vehicles online. Also, a good number of websites offer health
related information.

3. Close link with customers: Financial service companies achieve a close link with their
customers by employing the latest technology. Computers are linked into clients’ information
systems. Companies engaged in goods distribution install order terminals, inventory control
terminals of other equipment at their customers’ premises.
This provides the client with better service by facilitating an integrated client relationship.
Financial companies provide online financial services. They provide various types of services
on the basis of online orders which go directly into the information management system
without human intervention.

4. Higher level of service: Technology enables both customers and employees to be more
effective in receiving and providing service respectively. Self-service technologies enable
customers to serve access to their accounts, check balances, apply for a loan, transfer money
among various accounts. Computer information systems allow banks and insurance
companies to furnish data to their customers without delay. By having immediate access to
information about their service offerings, the employees are able to serve their customers
well. This allows employees to customize their services to fit the customer’s needs.
Technology provides tremendous support in making the employees more efficient in
delivering service. Customer relationship management and sales support software aid
frontline employees in providing better service.

5. Global reach of service: Infusion of technology in the service industry offers enormous
scope for reaching out to customers around the globe. The internet is just one big service
which knows no boundaries. Information, customer service and transactions can move across
countries. The service provider can reach any customer who has access to the web.
Technology allows employees of international companies to share information. Technology-
based service can be extended to the customers living around the globe.

6. Cost rationalization: Customer expectations are high because of the excellent service they
receive from some companies. They expect high quality of service at reasonable cost. Just as
in the manufacturing sector, technology can be used in the service industries. It can replace
less skilled people working in frontline service jobs. This substitution reduces the costs of
services. For example, automatic car wash and automatic cash dispensers are desired by the
customers for their promptness in work. Websites providing answers to specific disease, drug
and treatment details are another standing example for cost rationalization.
Explain Service Encounter.
https://www.brainkart.com/article/Service-Encounters_6007/ 

When the customer interacts with the service firm, it is called moments of truth. Every
service encounter is an opportunity to build satisfaction.
 
The importance of encounters: 
a. If a customer is interacting with a firm for the first time, the initial encounter will create a
first impression of the organization.
b. Even when the customer has had multiple interactions with a firm, each individual
encounter is important in creating an image of high quality.
c. A combination of positive and negative interactions will leave the customer confused
towards the firm's quality.
d. Not all encounters are important. There are certain key areas where it is important to
concentrate. Ex: In hotel-early encounter with visitors. In hospitals encounters with nurses are
important.

Types of service encounters:

 
1. Remote counter:
It can happen without any direct human contact. Ex: ATM, Internet website, Billing
statement. Although there is no direct human contact, each represents an opportunity for the
firm to reinforce/establish quality perceptions in the customer. Here, tangible evidence,
quality of technical processes will determine the quality.
 
2. Phone encounter:
This will occur between a customer and the firm. Organizations such as insurance, telecom
department will use this. 
Ex: Enquiry
Here the tone of voice, employee knowledge, effectiveness/efficiency in handling customer
will judge the quality.

3.Face-face-encounter:
Determining and understanding service quality issues in face-face to contexts is most
complex of all; verbal and nonverbal behaviours are important determinants of quality. 
EX: In a b2b setting direct encounters between the business customer and sales people will
determine the quality.

Sources of pleasurable and displeasure in service encounter:

1.Recovery –employee response to service delivery system failure:
There has been a failure in the service delivery system and an employee is required to handle
customer complaints/ disappointments.
 
2.Adaptability- Employee response to customer needs and requests:
Here how the service firm is able to adapt its delivery system when the needs are not met.
Here the customers judge service
 
3.Spontaneity –unprompted and unsolicited employee action: 
Employee spontaneity in delivering memorably good or poor service is remembered by the
customers. 
Ex: Being treated like royalty.; Rudeness, Stealing, discrimination, ignoring the customers.

4.Coping- Employee response to problem customers:

In some cases, customers were basically uncooperative providers. In such cases how the
service provider copes with the situation is challenging.
Explain Ethics in service marketing?

https://www.indeed.com/career-advice/career-development/marketing-ethics 

Establishing a philosophy of marketing ethics can help a company honor the rights of
consumers and gain many other benefits. While people may believe in varying ethical
principles, they usually promote the importance of honest communication and safety. If
you're interested in excelling in an advertising role, you could benefit from learning about
this essential marketing topic. In this article, we discuss the definition and importance of
marketing ethics, explain the various principles of this type of advertising and provide
examples of ethical marketing to guide your efforts.

Marketing ethics are a set of moral principles that guide a company's promotional activities.
Organizations that establish and implement marketing ethics are typically trying to respect
the rights, desires and expectations of consumers. While business leaders seek to generate
operational revenue and earn profits, they may also prioritize the goals of practicing integrity,
honesty and fairness. A company's philosophy of ethics often relates to its organizational
mission. Usually, C-level executives, directors and high-level managers are responsible for
creating and enforcing these guidelines. The idea of marketing ethics is similar to the concept
of corporate social responsibility (CSR). This term refers to the notion that businesses have
certain obligations to fulfil in regards to the public and the company's stakeholders. CSR
typically emphasizes the importance of integrating social and environmental concerns into
business goals and practices. For example, organizations practicing CSR may highlight their
commitment to the following types of activities:

 Treating and paying employees fairly

 Sourcing sustainable materials
 Caring for the environment
 Making charitable donations
 Addressing social issues

Marketing ethics are important because they help a business to support the rights and lives of
consumers. This subject is an essential part of many marketing team conversations, planning
meetings and strategies. Practicing ethical marketing allows businesses to reach the following
goals:

 Protect the well-being of consumers: Ethical marketing often involves informing

consumers about the risks of products and services and protecting the physical and
mental health of everyone. This goal is especially important for organizations that sell
products with potential side effects or dangers.
 Support the well-being of employees: While many marketers focus their ethical
strategies on consumers, it's also important for them to support the well-being of
marketing and other business employees. This may involve providing adequate
compensation for labor and offering reasonable work schedules.
 Act as a good model for other companies: By practicing ethical marketing, companies
can foster a good reputation, build a positive work culture for employees and
consumers and encourage other businesses to practice ethical marketing. Businesses
and consumers throughout the world can work together to support each other and
solve social issues.
  Attract and maintain customers: Conducting ethical marketing methods and showing
care for the quality and value of goods can be an effective form of advertising and can
help build a sense of trust with consumers. This can then help companies to attract
and maintain customers, increase customer satisfaction and loyalty and generate
essential revenue for the organization.

Principles of ethical marketing are:-

Honesty:-

One of the most important components of ethical marketing is the idea of full honesty in
marketing communications. It's critical for business leaders and marketers to convey the truth
about a company's products and services in order to protect the health, well-being and rights
of consumers. 

Transparency:-

A concept very similar to honesty, transparency in marketing ethics is the idea of disclosing
the details behind company processes and behavior. It also refers to the process of having
open and honest discussions about ethics. Being upfront and straightforward about company
history, current practices and future goals can help to keep an organization accountable to its
customers and stakeholders.

Health and safety:-

The physical safety of customers is one of the top priorities for ethical businesses and
marketing teams. Marketers can uphold this principle by educating, protecting the privacy of
and respecting the civil and human rights of consumers.

Legality:-

Part of ethical marketing is complying with all governmental and environmental regulations
and industry standards. This proves to consumers that a business is serious about developing
excellent quality and services.