Service Marketing concept understanding service management

A service is action of doing something for someone. It is largely intangible service management is important role in the economic development of many countries including India. Almost all developed and developing countries emerging as services economics. An economy is called service sector to the G.D.P of the nation is more than 50%.

Ex : transportation, education, healthcare, banking, entertainment

          “ A service is an activity or benefit that one party can offers to another party. Intangible and does not result in the ownership of anything.                                                                   -Philip Kotler

Characteristics of service marketing:

                                      Intangibility                        No ownership

     

          Customer                                                                      variability

          Participation                      services

         

                   portability in separate ability

Intangibility:

          It cannot be taste, feel & smell before they are bought unlike physical product. The intangibility creates a feeling of uncertainty about the outcome of service.

In separate ability:

          Services cannot be separated from the services provided in fact the product delivers consumption of a service.

Variability:

          Services of highly variable. It is almost impossible to have the same service from the same seller the second time.

Customer participation:

          Service product is not a one side activity customer are core product of services. The product quality of services greatly depends upon the ability, skills and performance of the employees as well as the activity and performance of the customer.

No ownership:

          Service consumer will have experience but not ownership since services are intangible.

Portability:

          They cannot be stored

Servicing marketing mix:

Place

                                            Product

                                Promotion      customer            price

Place

Physical evidence                                                             process

service in modern economy in India:

i.         1950-51

                                                                                                                                70%-agriculture        20%-industries     10%-service

ii) 1990-91

iii) 2000-2001

Classification of services:

G.A.T.S- general agreement on trading services

●      Business services

●      Communication

●      Construction

●      Distribution

●      Education

●      Environment

●      Health

●      Tourism

●      Recreation

●      Transportation

Market services Vs Physical services:

Marketing services	Physical services
Intangible heterogeneous spontaneous customer participation high involvement storage/perishable	tangible homogeneous time spread customer imparticipation low involvement imperishable

Service as a system:

service operation:

●      Where by inputs or process and elements of the service product created.

●      Like a play in theatre the components of service operations can be divided in those related to the actors or service personal and those relating that stage set or physical facilities equipment & other tangibles.

Service delivery:

          Finally assembly of these elements takes place and the product is delivered to the customer.

Service delivery is concerned with

where

when

how the service product is delivered to the customer.

The interaction between services provides and their customers

Ex; atm’s, automatic fuel pumps, 24hrs a day, 7 days a week.

Service marketing systems:

          The service organizations include communication effects of the advertising & sales dept telephone calls & letters from service personal billing from the a/c ing depts. New stories and editorial in the world of mouth comments from current all formal customer and even participation in market research studies all points of contract with customers including advertising billing and market research.