ASSIGNMENT OF SERVICE MARKETING.

SUBMITTED TO: MR. YOGESH BHARDWAJ

SUBMITTED BY: GARIMA BHANU PRATAP HONEY JAIN DEEPIKA RANJEET -OF BBA(CAM)

FOUNDATION OF SERVICE MARKETING

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WHAT IS SERVICE? THE OLD 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
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WHAT IS SERVICE? THE NEW VIEW OR CONCEPT OF SERVICE.

Service includes every interaction between any customer and anyone representing the company. It is the part of the product or the full product for which the customer is willing to see value and pay for it. It is intangible. It does not result in ownership. It may or may not be attached with a physical product.

EXAMPLES OF SERVICE INDUSTRIES

Professional Services

accounting, legal, architectural banking, investment advising, insurance restaurant, hotel/motel, bed & breakfast ski resort, rafting airline, travel agency, theme park hair styling, pest control, plumbing, lawn maintenance, counseling services, health club, interior design hospital, medical practice, dentistry, eye care
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Financial Services Hospitality Travel

Others

Health Care

TANGIBILITY SPECTRUM

WHY SERVICES MATTER

Services

dominate U.S. and worldwide economies. Services are growing dramatically Service leads to customer retention and loyalty Service leads to profits Services help manufacturing companies differentiate themselves

WHY DO FIRMS FOCUS ON SERVICES?

Services can provide higher profit margins and growth potential than products Customer satisfaction and loyalty are driven by service excellence Services can be used as a differentiation strategy in competitive markets

WHY STUDY SERVICES MARKETING?

Service-based economies Service as a business imperative in manufacturing and IT Deregulated industries and professional service needs Services marketing is different

CONCEPT OF GOODS AND SERVICES

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DIFFERENTIATING GOODS FROM SERVICES

PURE TANGIBLE GOODS: These are the commodities that are identical and homogenous. Consumers do not attach any specific value to a little associated service. Agricultural and unbranded goods fall under this category.

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TANGIBLE GOODS WITH ACCOMPANYING SERVICES: The role of services under this category is to support the tangible product. Services are identical and valued only in association with tangible goods.

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HYBRID: This is a typical marketing offer where tangible goods and services may be given equal importance by customers. For example, people patronize restaurants for both food and service.

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SERVICES WITH ACCOMPANYING TANGIBLE GOODS: This is a marketing offer in which the intangible part is dominant. For example people buy mobility services from a transport organization.

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PURE SERVICE: Pure service is a marketing offer where consumers confine themselves to valuing only the service they receive and nothing else. For example services like teaching, consultancy, idea selling etc.

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DIFFERENCE BETWEEN PHYSICAL GOODS AND

SERVICES
Physical goods Services

tangible
homogeneous Production and distribution are separated from consumption

intangible
heterogeneous Production, distribution and consumption are simultaneous processes

A thing
Core value processed in factory Customers do not participate in the production process

An activity or process
Core value produced in the buyer-seller interaction Customers participate in production

Can be kept in stock Transfer of ownership

Cannot be kept in stock No transfer of ownership

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EXAMPLE OF GOODS

When people buy the food, they are purchasing goods. When people buy their groceries, they are purchasing goods. When people buy the cakes and breads, they are purchasing goods. When the children eat their lunches, they are eating goods. The food that people order from menus are goods. food server. When people buy the wool to make clothing, they are purchasing goods. The clothes that people purchase are goods. The gallons of gasoline that people purchase are called goods.
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EXAMPLE OF SERVICES

When farmers grow and harvest food, they are providing services. When grocery cashiers and baggers handle money and food for shoppers, they are providing services. When bakers make cakes and breads, they are providing services. When parents make their childrens lunches, they are providing services. When restaurant servers bring food to the table, they are providing services. When sheep farmers sheer the wool off of sheep, they are providing services. When sales people help shoppers to buy clothes, they are providing services. When gas station attendants pump gasoline for customers, they are providing services.

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SERVICE MARKETING ENVIRONMENT

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THE MARKETING ENVIRONMENT

The actors and forces outside marketing that affect marketing managements ability to build and maintain successful relationships with target customers.
The

marketing environment is made up of

Company, Customers Suppliers, Markets,

micro-environment

(The Marketing Intermediaries, Competitors, And Publics),and

macro-environment

(Demographic, Economic, Natural, Technological, Political, And Culture Forces).

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MICRO-ENVIRONMENT
The actors close to the company that affect its ability to serve its customer the company, suppliers, marketing intermediaries, customers markets, competitors, and publics.
Marketing intermediaries customers

suppliers

competitors

The company

Marketing

publics 21

MICROENVIRONMENT
Actors
1

Marketing

The company Suppliers

Marketing intermediaries

2
3 4 5 6

must consider other parts of the organization including finance, R&D, purchasing, operations and accounting
decisions must relate to broader company goals and strategies
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Marketing

Customers
Competitors

Publics

MICROENVIRONMENT
Actors
1

Marketers

The company Suppliers

Marketing intermediaries

2
3 4 5 6

Customers
Competitors

must watch supply availability and pricing Effective partnership relationship management with suppliers is essential

Publics

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MICROENVIRONMENT
Actors
1

The company Suppliers

Marketing intermediaries

Help to promote, sell and distribute goods to final buyers Include

2
3 4 5 6

resellers,
physical distribution firms, marketing services agencies, and financial intermediaries

Customers

Competitors

Publics

Effective partner relationship management 24 is essential

MICROENVIRONMENT
Actors
1

The

five types of customer markets

The company Suppliers

Marketing intermediaries

2
3 4 5 6

Consumer Business Reseller Government International

Customers
Competitors

Publics

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MICROENVIRONMENT
Actors
1

Conducting

The company Suppliers

Marketing intermediaries

2
3 4 5 6

competitor analysis is critical for success of the firm

A marketer

must

Customers
Competitors

Publics

monitor its competitors offerings to create strategic advantage26

MICROENVIRONMENT
Actors
1

A group

The company Suppliers

Marketing intermediaries

that has an actual or potential interest in or impact on an organization

publics include:
Financial Media Government Citizen-action Local General Internal

2
3 4 5 6

Seven

Customers
Competitors

Publics

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MACRO-ENVIRONMENT
The larger social forces that affect the micro-environment demographic, economic, natural, technological, political, and culture forces.

Technological forces

Economic forces

Political forces

Demographic forces

Marketing

Cultural forces 28

MACRO-ENVIRONMENT

Demographic environment

The study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics

Age structure of the population

0-14 years: 32.6% (male 13,172,641; female 12,548,346) 15-64 years: 62.9% (male 25,102,754; female 24,519,698) 65 years and over: 4.5% (male 1,510,280; female 2,033,288)

(2006 est.)

Geographic shifts in population

people move to the cities in search of employment and a higher standard of living

Education (a better-educated, more whit-collar, more professional population)

Changing in marital states (more single people)

The changing Egyptian family Sub-cultures
Egyptians 94%, Nubians, Berbers, Bedouin Arabs 4%, Other 2%
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MACRO-ENVIRONMENT

Economic environment
Value Marketing has become the watchword for many marketers. They are looking for

Factors that affect consumer buying power and spending patterns

ways to offer todays more financially cautious buyers greater value.

Marketers should pay attention to income distribution as well as average income.

Upper-class consumers, whose spending patterns are not affected by current economic events.

The middle class is somewhat careful about its spending, but can still afford the good life some of the time.
The working class must stick close to the basics of food, clothing, and shelter. The underclass must count their pennies when making even the most basic purchases.

Consumers at different income levels have different spending patterns.

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MACRO-ENVIRONMENT

Technological environment

Forces that create new technologies, creating new products and market opportunities

The most dramatic force shaping our destiny New technologies create new markets and opportunities. However, every new technology replaces on older technology. Marketers should watch the technological environment closely.

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MACRO-ENVIRONMENT Political environment

Consists of laws, government agencies and pressure groups that influence or limit various organizations and individuals in a given society

Legislation affecting businesses worldwide has increased Laws protect companies, consumers and the interests of society Increased emphasis on socially responsible actions

Cause-Related Marketing

Marketers create link between brand and charitable organization and worthwhile cause. Demonstrates social responsibility Helps build positive brand image
32 Cause-related marketing has become a primary form of corporate giving. It lets companies do well by doing good

MACRO-ENVIRONMENT

Cultural Environment

Made up of institutions and other forces that affect a societys basic values, perceptions, preferences and behaviors.

Core beliefs

values are passed on from parents to children and are reinforced by schools, religion, business, and government.

Secondary beliefs
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are more open to change.(Example: marriage)

MACRO-ENVIRONMENT

Cultural Environment Includes peoples views of

Themselves

Identify with brands for self-expression

Others Recent shift from me to we society Organizations Trend of decline in trust and loyalty to companies Society Patriotism on the rise

Nature
lifestyles of health and sustainability Universe Includes religion and spirituality

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RESPONDING TO THE MARKETING ENVIRONMENT

Many

companies view the marketing environment as an uncontrollable element in which they must react and adapt. They passively accept the marketing environment and do not try to change it.

Other

companies take a proactive stance toward the marketing environment. (Example: Cathay Pacific Airlines)

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