Asst. Prof Mrs.

Iram Shaikh

THE AMERICAN MARKETING ASSOCIATION:

Services are activities, benefits or satisfactions which are offered for sale or provided in connection with the goods. PHILIP KOTLER & BLOOM:

Services is any activity or benefit that one party can offer to another that is essentially intangible & does not result in ownership of anything. Its production may or may not be tied to a physical product.

 WORLD Shifts

SCENERIO:

from developing to developed- Shifts towards services. Fastest growing segment. GDP 80% Employment 83% Dominates the economy of world trade. During recession less declines Globalisation

INDIAN SCENERIO:

GDP 54% with annual growth of 8% Industrial sector and agricultural sector declined Employment 50% More Response to liberalization Technological advancement like: software, IT, health, education, etc. lower wage structure helped in development of call centres. Service tax collection is tune to 5000 crore. Export expanded. Increase in share of trade, hotels & restaurants.

1. 2. 3.

4.
5. 6. 7. 8.

Intangibility Perishability Inseparability Heterogeneity (variability) Ownership Simultaneously Quality measurement Nature of demand

 No

ownership of services Perishable & cannot be inventoried Intangible element create value creation Customers may be involved in the production process Other people are often part of the product Greater variability in inputs and outputs Difficult for customer to evaluate Time factor assumes greater importance. Distribution channels take different forms.

 Political

Legal Environment Environment

Economic Socio

Cultural Environment Environment

Technological Competitive

Environment

GOODS MARKETING
1.

SERVICES MARKETING
1.

Tangible evidence to convince

Intangible creates evidence problem

2.

Limited consumer connectivity

Only marketing departments deals with consumers directly

2.

greater consumer connectivity

Many departments deals with consumers directly

3.

3.

GOODS MARKETING
4.

SERVICES MARKETING
4.

5.

Precise standards can be formulated & communicated to consumers Marketing mix consist of 4 Ps Multiple channel options Quality problems can be detected before goods are offered to customers.

Total standardisation is not possible Marketing mix consist of 7 Ps ( physical evidence, people, process) Limited channel options Quality problems occurs mostly in presence of customers.

5.

6. 6. 7. 7.

GOODS MARKETING
8.

SERVICES MARKETING
8.

9.
10.

Quality measured on the technical features of the product Comparison is possible Employees (except of marketing departments) play a supportive and indirect role

9. 10.

Quality measured on the technical features as well as functional performance of the services Comparison is not possible Employees (of all departments) play a vital and direct role

 Means

goods & services offerings are being intermingled in an unprecedented manner, in different proportions. There can pure services but not the pure product. Companys marketing goods or products can fell into any of the following categories depending on the goods/ services mix they offer.

120%

100%
80% 60% 40% 20% services goods

0%
tangible goods tangible goods with some services goods & services services in with minor near equal goods measure pure services

Consumer behaviour is the process whereby individuals decide whether, when, where, how & from whom to purchase goods & services. CONSUMER BUYING PROCESS: Stage 1: Awareness Stage 2: Search & Comprehension Stage 3: Attitude Development Stage 4: Evaluation Of Alternatives Stage 5: Purchase Stage 6: Adoption & Post Purchase Behaviour

 PSYCHOLOGICAL 1. Motivation 2. Perception 3. Learning 4. Beliefs & Attitudes

FACTORS:

PERSONAL FACTORS: 1. Age & Life-cycle position 2. Occupation 3. Economic Situation 4. Life Style & personality

 SOCIAL

FACTORS: Role & Status Family Reference group

CULTURAL Cultural Sub-

FACTORS:

cultural Social class

Company (manage

ment)

Internal marketing

External marketing

Employees

Interactive marketing

customers

 External

marketing efforts:

(Setting the promises to the customers)

Interactive

marketing:

(Promises is delivered )
Internal

marketing :

(Enabling the promises by keeping the

employees satisfied and well trained)