Presentation on:-

MARKETING OF SERVICES:
Nature and its Classifications
 Service Marketing
• A Service is a type of a product.
“… a deed performed by one party for another…”
• Service is the act of public worship following
prescribed rules.
• It is the part of the product or the full product for which
the customer is willing to see value and pay for it.
EX: McDonald’s sell physical products i.e. burgers, but
consumers are also concerned about the quality and
speed of service. Are staff cheerful, welcoming and do
they serve with a smile on their face?
 Rule of Marketing
• Know Your Business
• Know Your Customer
• Know Your Competitors
Nature and Characteristics of Service
Marketing
 Nature and Characteristics of Service
Marketing
Lack of ownership.
• You cannot own and store a service like you can a product.
Services are used or hired for a period of time.

Intangibility
• You cannot hold or touch a service unlike a product.

Inseparability
• Services cannot be separated from the service providers. A
product when produced can be taken away from the producer.
However a service is produced at or near the point of purchase.
Perishability
• Services last a specific time and cannot be stored like a product for later
use.
EX: Travelling by train, coach or air the service will only last the
duration of the journey. The service is developed and used almost
simultaneously. Again because of this time constraint consumers demand
more.

Heterogeneity
• It is very difficult to make each service experience identical.
EX: If travelling by plane the service quality may differ from the first
time you travelled by that airline to the second, because the airhostess is
more or less experienced.
 Classification of Services
• Services are classified into varies categories, few of them are:
 People processing service: It creates a new set of value in the
industry for customers.
 Product/ Possession processing service: It evaluates the
service on the basis of tangible promises being delivered
within a defined time period at a pre-negotiated price.
 Mental stimulus processing: It impacts on the consumer mind
and have the potential to shape their attitudes, behaviour and
lifestyle.
 Information processing service: Marketer should understand
that information is the most tangible and vital form of service
output.
 Developing of Marketing Services
 Meet customer expectation.
 Develop service according to its need.
 Satisfying customer complains.
 Manage quality of services.
7P’s of Service Marketing
 Three extended P’s of Service Marketing
People
• An essential ingredient to any service provision is the use of appropriate
staff and people. Consumers make judgements and deliver perceptions
of the service based on the employees they interact with. Staff should
have the appropriate interpersonal skills, aptitude, and service
knowledge to provide the service that consumers are paying for.
Process
• Refers to the systems used to assist the organisation in delivering the
service.
EX: Banks that send out Credit Cards automatically when their
customers old one has expired again require an efficient process to
identify expiry dates and renewal. An efficient service that replaces old
credit cards will foster consumer loyalty and confidence in the company.
Physical Evidence
• Where is the service being delivered? Physical Evidence is the
element of the service mix which allows the consumer again to
make judgements on the organisation.
  Physical evidence is an essential ingredient of the service mix,
consumers will make perceptions based on their sight of the
service provision which will have an impact on the
organisations perceptual plan of the service.
 Role of Communication in service
Marketing
Communication has dual role in Service Industries:
• Educate the Customer:
Customer education is one of the most important role because
the customer needs to be informed about the features and
benefits of service being offered to him.
• Build Brand Image:
An organisation must have to build its brand image in the eyes of
customers through effective Public relations and Quality
services.
 CONCLUSION
• “…Service is not just what we deliver, but how
effectively we deliver is much more important…”

• Marketing of service is not an event, but a

process…..It has a beginning , a middle, but never an
end, for it is process, you improve it , perfect it,
change it, even pause it but you never stop it
completely.
• “…a bundle of performance and symbolic attributes
designed to produce consumer want satisfaction…”