introduction to services

1. INTRODUCTION TO SERVICES
PRESENTED BY ,
NIMMY REJI MATHEW
AND
SREELEKSHMI . G
MCMAT PERUMBAVOOR

2. SERVICE DEFINITION
“ A service is an act of performance that one party
can offer to another that is essentially intangible and
does not result in the ownership of anything. Its
production may or may not be tied to a physical
product.”
- Philip Kotler

3. What is Service? Traditional View
• Service is a technical after-sale function that is provided by the
service department.
Old:
Service =
wrench time
Old view of service =
Customer Service Center

4. What is Service? The modern View
Dealers
Salespeople
Receptionist
s and
Schedulers
Management
and
Executives
Service
Employees
Billing and
Accounting
Personnel
Web site and
any e-
channel
Interaction
Customer

5. Service Can Mean all of These
• Service as a product
• Customer service
• Services as value add for
goods
• Service embedded in a
tangible product

6. Examples of Service Industries
• Health Care
– hospital, medical practice, dentistry, eye care
• Professional Services
– accounting, legal, architectural
• Financial Services
– banking, investment advising, insurance
• Hospitality
– restaurant, hotel/motel, bed & breakfast,
– ski resort, rafting
• Travel
– airlines, travel agencies, theme park

7. • Tangibility -- The quality of being
perceivable by touch.
• Intangibility--The quality of being
intangible and not perceptible by touch
7
Tangibility Spectrum

8. Tangibility Spectrum
Tangible
Dominant
Intangible
Dominant
Salt
Soft Drinks
Detergents
Automobiles
Cosmetics
Advertising
Agencies
Airlines
Investment
Management
Consulting
Teaching
Fast-food
Outlets
Fast-food
Outlets
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9. Differences Between
Goods and Services
Intangibility
Perishability
Simultaneous
Production
and
Consumption
Heterogeneity

10. 1. INTANGIBILITY
2. PERISHABILITY
3. INSEPARABILITY
4. HETEROGENEITY
5. OWNERSHIP
6. SIMULTANEITY
7. QUALITY MEASUREMENT
8. NATURE OF DEMAND
CHARACTERISTICS OF SERVICE
MARKETING

11. Mobile network providers
like Vodafone , Airtel ,
Reliance , etc.
INTANGIBILITY EXAMPLE

12. 2. PERISHABILITY

13. Taxi operator drives taxi, and the passenger uses it.
The presence of taxi driver is essential to provide the
service.
INSEPARABILITY EXAMPLE

14. Live concerts like singing ,
dancing and comedy shows ,
movies , etc.
HETEROGENEITY EXAMPLE

15. Membership of a gym
OWNERSHIP EXAMPLE

16. COST & SIMULTANEITY EXAMPLE
When the producers approach the buyer to deliver
services the cost of those services is increased. On the
other hand it cost time and money for the buyers to
come to producers directly.
A doctor’s visit to home.
Electronics service, repair & maintenance centers.

17. QUALITY MEASUREMENT EXAMPLE
We can quantify the food served in a hotel but the way
waiter serves the customer or the behaviour of the staff,
timely delivery , hygiene etc. cannot be ignored while
rating the total process.
Thus the firm sells good atmosphere, convenience of
customers, consistent quality of services, etc.

18.  Service quality level deteriorates during peak hours in
hotels, transportation etc.
 E-Retailers offering huge discounts on festive occasions
 A marketer should effectively utilize the capacity without
deteriorating the quality to meet the demand.
NATURE OF DEMAND EXAMPLE

19. Services are sold exclusively on the basis of benefits
they offer.
Services cannot be made available in advance.
Time utility is critical.
Services cannot be transferred.
A service once consumed cannot be returned.
FEW ADDITIONAL CHARECTERISTICS :

20. Classification of services

21. High
contact
services
Medium
contact
services
Low
contact
services.
21

22. High C.S.
Medium C.S.
Low C.S.
• Hair dressing
• medical services Banking,
purchase of retail goods.
• Management consulting
• Insurance
• Personal financial services.
• Radio services
• Information processing services.
• Remote fixes of software
22

23.  Consumer services
 Classification on the basis of involvement of
customer
 Possession processing
 Mental stimulus processing
 Information processing
 Classification based on service tangibility
 Classification on the business orientation
 Classification on the basis of requirement of skill and
expertise
 Classification on the basis of end user
Other types and classification of
servises includes:

24.  Pure services
 Non-good services
 Owned-good services
 Rented good services
Consumer services

25. Classification on the basis of
involvement of customer

27. Possession processing

29. Mental stimulus processing

31. Information processing

33.  Services linked to tangible goods.
 In order to experience the service customers should
first purchase the product.
 Eg alterations, warranties
Classification based on service
tangibility

34.  Service provider offer tangible goods for use
along with the services.
 Eg. Theaters offer 3d glasses along with movie
Tangible goods linked to services

35.  Non profit organisation: govt schools a social
service.
 Commercial organization.
Classification on the business
orientation

36.  Professional services
 Requires a set of qualificaion skills adequate
training etc.eg lawyer,pilot
 Non professional services
 Do not require any set of skills training.
 Eg house keeping, babysitting etc
Classification on the basis of
requirement of skill and expertise

37.  Consumer services: beauty case hair case
 Business to business services: market research and
consultancy
 Industrial services: maachine installations
Classification on the basis of end user

38. Examples of Goods Companies that are
Expanding into Services
Boeing Kodak

39. Service marketing -- system
Service marketing triangle
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40. Service marketing system for high contact service
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41. Service marketing system for Low contact service
41

42. Service product level
Core
product
Actual
product
Augmented
product
Potential
product
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43. Services Marketing Mix:
7 Ps for Services
• Traditional Marketing Mix
• Expanded Mix for Services: 7 Ps
• Building Customer Relationships Through
People, Processes, and Physical Evidence
• Ways to Use the 7 Ps

44. Traditional Marketing Mix
• All elements within the control of the firm that
communicate the firm’s capabilities and image to
customers or that influence customer satisfaction
with the firm’s product and services:
 Product
 Price
 Place
 Promotion

45. Expanded Mix for Services --
the 7 Ps
• Product
• Price
• Place
• Promotion
•People
•Process
•Physical Evidence

46. Expanded Marketing Mix for Services

47. Challenges for Services
• Defining and improving quality
• Ensuring the delivery of consistent quality
• Designing and testing new services
• Communicating and maintaining a consistent image
• Accommodating fluctuating demand
• Motivating and sustaining employee commitment
• Coordinating marketing, operations, and human resource
efforts
• Setting prices
• Finding a balance between standardization versus
customization

48. THANK YOU…………………….