Service marketing ppt

This presentation includes basics of marketing, definition of services, characteristics of services and it's marketing mix.

1. SERVICE MARKETING Group Members Kavya Puri Jaspal Singh Mohini bisht Mandeep singh 1

2. (The father of modern marketing)

3. What is a market? Marketing refers to activities a company undertakes to promote the buying or selling of a product or service. Marketing includes advertising, selling, and delivering products to consumers or other businesses. Gold market Stock market Grain market 3

4. MARKET Philip Kotler defines marketing as “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires.

5. A MARKET

6. KEY CUSTOMER MARKETS Consumer Markets Business Markets Global Markets Nonprofit and Governmental Markets

7. ON THE BASIS OF GEOGRAPHIC LOCATION Local Markets Regional Markets National Markets International Markets

8. ON THE BASIS OF TIME Short Period Market/ Perishable : Short period market is that in which slight variation can be made regarding the demand for the goods. The demand for the goods can be increased to some extent and if the demand diminishes, it can be reduced. Long Period Market/ Non- Perishable : If the period is longer, supply will be influenced by the cost of producing additional output; and the predominant influence on value will be the forces of supply. If the demand for goods increases, there is time to increase the supply. Here the price is influenced more by supply of the goods .

9. ON THE BASIS OF VOLUME Taking volume of business as a basis, there can be two types of markets namely, “Wholesale” and “Retail”. Wholesale markets are featured by large volume business and wholesalers.

10. ON THE BASIS OF NATURE OF GOODS Taking the nature of goods, there can be commodity markets, capital markets. ‘Commodity’ markets deal in favour of material, produce, manufactured goods may be consumer and industrial and bullion market dealing precious metals. ‘Capital’ market is a market for finance. These markets can be subdivided into ‘money’ market dealing in lending, and borrowing of money; ‘Securities’ market or ‘stock’ market dealing in buying and selling of shares and debentures and ‘foreign exchange’ market where it is a forex market dealing buying and selling of foreign currencies may be hard or soft. 10

11. WHAT MOTIVATES CONSUMERS TO TAKE ACTION NEEDS WANTS DEMANDS

12. RELATIONSHIP BETWEEN THE INDUSTRY AND MARKET

13. KOTLER’S 10 TYPES OF MARKETING ENTITIES Goods Services Experiences Events Persons Places Properties Organizations Information Ideas

14. UTILITY MARKETING

15. UTILITY MARKETING Utility marketing is the process by which a business communicate the value or usefulness of a product to its consumer. Utility marketing helps to convince the consumer that buying this product will provide utility to them. It is of Four types: Form Utility Time Utility Place Utility Possession Utility

16. FORM UTILITY Form utility is a concept in marketing in which finished product is more valuable to the consumer, therefore the product should be designed in a way that it will be readily available to them. It means a company should develop a product that meets the format, size, shape and scope that customers wants. The only way to do these is to assemble the product’s component together instead of just selling its part as raw-materials.

17. TIME UTILITY Time Utility is the Utility of a good or service created by its availability at a particular time. You can leverage time this in two ways and make it your business Unique Selling Proposition. It is also of Two types: Firstly by season Secondly by urgency

18. PLACE UTILITY Place utility might involve shipping a finished product to a new location that is more accessible to consumers, than the place where it was initially manufactured. Place utility addresses convenience or ease of access to your products. There are two ways to make sure your products are readily available to your consumer: Through convenience stores Through online stores or websites

19. POSSESSION UTILITY Possession utility is created when ownership of a product is transferred from the seller to the person or business that will use the good or service. In other words, the person or business who purchases the product finds it useful and satisfying only after assuming the full ownership of that product.

20. MARKETING MIX

21. EXTENDED MARKETING MIX (7P’S) The extended marketing mix is the combination of seven elements of marketing that aim to work together to achieve the objectives of marketing strategy. These Seven elements are: Product Price Place Promotion People Process Physical

22. SERVICES “Activities, benefits and satisfaction which are offered for sale or are provided in connection with the sale of goods.”

23. CHARATERISTICS OF SERVICES

24. INTANGIBILITY Cannot be seen, tasted, felt, heard or smelt before they are consumed. Consumer’s evaluation before actual purchase or consumption is not possible. Solution- Service Providers can try to increase the tangibility of services. Can emphasize on the benefits of the service. 24

25. EXAMPLE When you reserve a table in a restaurant. You don’t know how the waiter will treat you or how the food will be. That will only be possible once you purchase the service. 25

26. PERISHABILITY Consumption of services takes place simultaneously. Zero inventory Service providers faces adjustment problems when demand fluctuates. Solution- Different prices can be charged at different time. 26

27. EXAMPLE A ticket for the evening show of a movie cannot be used for watching the night show. 27

28. INSEPERABILITY Services are typically produced and consumed simultaneously. Services cannot be separated from the service provider. Physical presence of customer is essential in services. 28

29. EXAMPLE The presence of taxi driver is essential to provide the service and same goes for the passenger to avail the service. 29

30. HETEROGENEITY Each and every service is different in nature. Services are highly variable. Providers faces problem in standardizing their service. Solution- The service firms should make an effort to deliver high and consistent quality by selecting good and qualified personnel for rendering the service. 30

31. EXAMPLE A broker who gives you good stock tips today, might lose your business if he loses money continuously by giving bad tips. 31

32. LACK OF OWNERSHIP Ownership of something refers that a particular thing belongs to you. No physical possession Payment is for using or accessing the service. In the sale of goods, after the completion of process, the goods are transferred in the name of the buyer and he becomes the owner of the goods. 32

33. EXAMPLE If you buy a ticket to travel in bus to a destination, that does not mean that you own that service and now you can always travel for free. 33

34. SIMULTANEITY Services don’t move through the channel of distribution. They can’t be delivered to customers or users. They have limited geographic area. When the producers travel to the buyer, time is taken away from the production of services and the cost of those services is increased. 34

35. EXAMPLE If you book an appointment with a hairdresser for providing home services, then the service provider will charge more. 35

36. GOODS VS SERVICES Basis of Comparison Goods Services Meaning Goods are the material items that can be seen, touched or felt and are ready for sale to the customers. Services are amenities, facilities, benefits or help provided by other people. Tangibility Tangible Intangible 36

37. GOODS VS SERVICES Basis of Comparison Goods Services Perishability Durable to an extent Perishable Tangibility Tangible Intangible Time gap between production and consumption Yes No Can be returned? Yes No 37

38. GOODS VS SERVICES Basis of Comparison Goods Services Transfer of ownership Yes No Evaluation Very simple and easy Complicated Separability Yes No 38

39. Thank You 39