SERVICE

MARKETING
LEARNING OBJECTIVES:
 To de fi ne a nd und er sta nd sc ope of se r v i ce s

 To de te rm in e th e c h ara c ter ist ic s of ser v i ce

 To i den ti fy s er v ic e m a rket ing t ria ng le

SERVICES
WHAT IS SERVICE?
 SE RVIC E is a n ac t of p er form a nc e tha t
on e pa r t y c a n off er t o a noth er th at i s
es se nti al ly in ta ng i ble a nd does n ot
re sul t in a ny owne rs hi p of a ny th in g .

 It ’s produ ct ion m ay or m ay not be ti ed

to p hy s ic al pr od uc ts . ( Phi li p Kotl er) .

 It i s ba se d on re la ti on sh ip an d va lu e.
Why do we need to study Service Marketing?
IMPORTANCE OF SERVICE
MARKETING
1. Res pons ib le for th e cr ea tion of jobs

2. D r ive n by a dvan ce s in te ch nol og y a nd

g loba li za ti on

3. E volv i ng c on su m er ne eds a nd
lif es ty les th e im por ta nc e of uti li zi ng
ser v i ce a s a diff e re nti al a dvan ta g e
SERVICE MARKETING
OBJECTIVES

 Attract new customers.

 Retain existing customers

and sell them upgraded
services.

 Referrals from existing

customers.

 Brand recognition.
CHARACTERISTICS OF SERVICE
MARKETING

 INTANGIBILITY

 INSEPARABILITY

 VARIABILITY

 PERISHABILITY
INTANGIBILITY

 Se r v ic es a re i nta ng i bl e m ean s it c an not be

see n, ta st ed, h ea rd or sm el le d b ef or e
pur c ha se.

 Eval ua ti on i s a ch al le ng e

 It d raws in fe ren c e a bout

Pla ce

Peopl e

C om m u ni ca ti on m a te ri al

Sy m bols

Pr ic e
INSEPARABILITY

 Services are produced and

consumed simultaneously

 Provider-client interaction
is a special feature of
service marketing
VARIABILITY

 Services are highly- variable

 It is otherwise called
heterogeneity

 The state of being variable

Eg: A car servicing

varies each time

PERISHABILITY

 PERISHABILITY is used in
marketing to describe the
way in which service
capacity cannot be stored
for sale in the future.
SOME SERVICE FIRMS

 Ins ura nc e

 B an k ing ,

 Re st a uran ts

 H ot el s

 H ea lth c ar e

 Ed uca t ion

 Profe ss iona l ( En g in ee rs, A rc hi tec t s, C PA )

 N ews an d E nte r ta in m ent

SERVICE MARKETING
SERVICE MARKETING TRIANGLE

 MA KIN G TH E PROMISE

 EN A B LI NG THE PROM ISE

 D EL IVE RIN G TH E PROM ISE

CHALLENGES FOR SERVICES

 D efi ni ng a nd i m pr ov i ng qu al it y

 C om m un ic at ing a nd m a int ai ni ng a con sis te nt

im a g e

 Set ti ng p ric e s

 Sta nda rd iz at ion ver sus pers ona li za ti on

 M otiva tin g an d s ust a in ing em p loyee c om m i tm e nt

 C oor din at in g m a r ket in g ope ra tion s an d h um a n

re sou rce e ff or ts

 C om m un ic at ing a nd te st ing ne w se r v ic es
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