Importance of marketing in service industry

The powerpoint presentation describes about the Services as a whole and the importance of Marketing in services.

1. Importance of Marketing in
Service Industry
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Shiv S Tripathi
Assistant Professor
Calcutta Business School

2. Service
A Service is something that is essentially
intangible, and does not result into
ownership of anything.

It may or may not have an element of product.
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3. Service Tangibility Spectrum
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4. Qualities of Services
•Intangible
•Inseparable
•Variable
•Perishable
•Autonomy
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5. Services Sector includes
•IT & ITES
•Education
•Trade
•Financial Services (BFSI)
•Media
•Hospitality
•Tourism
•Transportation & Warehousing
•Public Utilities
•Real Estate & Lease
•Public Administration & Defence
•Professional Services like legal, accountancy, audit, consulting etc.
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6. Share of different services categories in GDP
SST/ IMSS/25-01-2013/Jamshedpur 6

7. Services GDP vs. Overall GDP Growth Rate
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Source: Economic Survey 2011-12

8. State-wise growth of Services sector in
2009-10
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Source: Economic Survey 2011-12

9. Evaluation of Alternatives by a
Customer
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Most
Goods
Most
Services

10. The Service Ps
•People
•Process
•Physical Evidence
Are added to the basic 4 Ps of Marketing i.e.
Product
Price
Promotion and
Physical Distribution
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11. Importance of Marketing in Services
Product
•Goods are tangible, services are intangible.
•Services impact customers more than goods
do.
•Goods’ features, ingredients, price etc. can be
highlighted while marketing, whereas service
being intangible requires credence factors
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12. Importance of Marketing in Services
Price
•Price of Goods is justified in all cases whereas it is
difficult almost everytime to justify the price of
even the smallest service as there is no standard.
•Price of goods can be increased or decreased and
can be justified by improved features or discounts
whereas if price of a service is reduced it points
out poor quality. Similarly price hikes are very
difficult to justify.
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13. Importance of Marketing in Services
Promotion
•All sorts of mass media can be used for goods
like cars, FMCG products, consumer durables
etc., whereas only specific media can be used
for promoting services.
•Word of mouth publicity (nowadays social
media marketing) is most credible vehicle for
promoting services.
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14. Importance of Marketing in Services
Physical Distribution
•The same goods can be delivered all across
the globe without any variation whereas
services are bound to differ from even shop to
shop
•The service provider needs to audit its
resources and competencies and accordingly
decide about a place
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15. Importance of Marketing in Services
People
•People are not very important in marketing
goods whereas they are most important in
services
•Due to the people element there is a
variability in service as everybody can’t have
the same talent/behaviour

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16. Importance of Marketing in Services
Process
•Process of manufacturing, distribution etc is
not important as long as the goods are
working fine. In services the process like
promptness, order/sequence, usefulness,
simplicity etc. are very important to leave a
lasting impression.
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17. Importance of Marketing in Services
Physical Evidence
•Service Quality is often judged or misjudged by
the physical setting of the place where the
service is being provided e.g. transportation,
education, hotels, restaurants etc.
•Still if physical evidence is appealing, people are
good but processes are messy, customers tend to
be dissatisfied. Similarly if physical evidence is
appealing, processes are good, people will make
a difference.
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18. Importance of Marketing in Services
Segmentation
•A broad segment can be selected to market
goods as anybody can purchase them,
whereas services cater to very specific
segments
•E.g. there are specific needs of each segment
of education viz. school, college, university,
whereas a bookseller can cater to everybody’s
needs.
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19. Importance of Marketing in Services
Target Market
•The exact idea of target market is essential
before the launch of any service whereas a
broad idea will do for goods.
•Goods can shift its customers base very easily
but in case of services it is difficult.
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20. Importance of Marketing in Services
Positioning
•Positioning of services depends upon the
people, process, physical evidence and word
of mouth.
•A failed product may still be tried by the
consumers because of other reasons but a
failed service will be tried rarely by them.
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21. THANK YOU
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