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[TYPE THE COMPANY NAME]

MARKETING OF SERVICES
THE INSIGHT INTO THE SERVICE MARKETING
SAURABH GUPTA

2013

6 [TYPE THE COMPANY ADDRESS]

Marketing of Services (MKO1)

Unit 1
Introduction The world economy nowadays is increasingly characterized as a service economy. This is primarily due to the increasing importance and share of the service sector in the economies of most developed and developing countries. In fact, the growth of the service sector has long been considered as indicative of a countrys economic progress. Economic history tells us that all developing nations have invariably experienced a shift from agriculture to industry and then to the service sector as the main stay of the economy. This shift has also brought about a change in the definition of goods and services themselves. No longer are goods considered separate from services. Rather, services now increasingly represent an integral part of the product and this interconnectedness of goods and services is represented on a goods-services continuum. Definition and characteristics of Services The American Marketing Association defines services as - Activities, benefits and satisfactions which are offered for sale or are provided in connection with the sale of goods. The defining characteristics of a service are: Intangibility: Services are intangible and do not have a physical existence. Hence services cannot be touched, held, tasted or smelt. This is most defining feature of a service and that which primarily differentiates it from a product. Also, it poses a unique challenge to those engaged in marketing a service as they need to attach tangible attributes to an otherwise intangible offering. 1. Heterogeneity/Variability: Given the very nature of services, each service offering is unique and cannot be exactly repeated even by the same service provider. While products can be mass produced and be homogenous the same is not true of services. eg: All burgers of a particular flavor at McDonalds are almost identical. However, the same is not true of the service rendered by the same counter staff consecutively to two customers. 2. Perishability: Services cannot be stored, saved, returned or resold once they have been used. Once rendered to a customer the service is completely consumed and cannot be delivered to another customer. eg: A customer dissatisfied with the services of a barber cannot return the service of the haircut that was rendered to him. At the most he may decide not to visit that particular barber in the future. 3. Inseparability/Simultaneity of production and consumption: This refers to the fact that services are generated and consumed within the same time frame. Eg: a haircut is delivered to and consumed by a customer simultaneously unlike, say, a takeaway burger which the customer may consume even after a few hours of purchase. Moreover, it is very difficult to separate a service from the service provider. Eg: the barber is necessarily a part of the service of a haircut that he is delivering to his customer. Types of Services 1. Core Services: A service that is the primary purpose of the transaction. Eg: a haircut or the services of lawyer or teacher. 2. Supplementary Services: Services that are rendered as a corollary to the sale of a tangible product. Eg: Home delivery options offered by restaurants above a minimum bill value. Difference between Goods and Services Given below are the fundamental differences between physical goods and services:

Goods

Services

A physical commodity

A process or activity

Tangible

Intangible

Homogenous

Heterogeneous

Production and distribution are separation from their consumption

Production, distribution and consumption are simultaneou

Can be stored

Cannot be stored

Transfer of ownership is possible

Transfer of ownership is not possible

DIFFERENCE BETWEN PRODUCT AND SERVICE MARKETING :

The whole product versus service marketing topic is nothing new to marketers all over the world. Google the term and you will find more than enough material on topics such as the tangibility versus intangibility and how product marketing is relatively easier as compared to services marketing. I have collaborated with both software services and software product marketing teams over the years and the experience has been very different. A key point that marketers have to remember is that the customer is the best advertiser, be it a product or a service. It is basic human nature to go for the tried, tested and validated products/services. This comes from our innate nature of not wanting to take too many risks. The primary reason product and services marketing differ based on this innate human nature. Products are described as tangible, which can be touched, felt or experienced. A software product can be downloaded and a trial version could be installed in your system. Consider the 8

average user of smart phones. It is highly likely that a majority of these users has never read the user manual unless they encounter some serious problems. Then, how is it that they are quite efficient at operating it? It is because they learn by experimentation. This experimentation is possible because the product is tangible. Repeated experimentation is possible when it comes to products and it is these experimentations that decide if the product sells itself or not. The risk level has been lowered since the experience of the product is tested beforehand and the customer is secure in the knowledge that the test product and final one delivered are not radically different from one another. Services on the other hand are a different game altogether. Consider a beauty salon that offers haircuts and spa treatments. Each hairdresser and spa specialist differs from the other. They have their own unique skills and levels of experience. A hairdresser might have years of experience and very good skills but if at the end of it all, the customer does not like the haircut they got, they are less likely to recommend them to others. When it comes to service marketing, the experience of the customer is what counts the most and it is also the hardest part to market. Even if the salon decides to give free facials or haircuts as a part of brand promotion, repeated experiences are rare and hence the user always has a sense of caution. This is because a service rendered depends also on the moods of the customer at that particular time. These factors make services marketing highly challenging. A major part of service marketing depends on the relationship the marketer/ seller is able to establish with the customer. Studies have proven that it is difficult for people to be highly negative towards someone who is very positive in their behavior towards the said person. Their trust level is also higher in people they are familiar with. Marketers have to remember this and always create good relationships with their customers. When it comes to marketing of services, do remember that it is all about customer relationships. An example I can give is that of a Southwest Airlines case. A customer who was a vegetarian was mistakenly given a non-vegetarian meal and he when complained, the air hostess found out that a vegetarian meal was not available. She gave him some fruits she had with her instead, profusely apologizing for the mistake. Once the airplane landed, the captain personally escorted the passenger to the executive lounge where a special meal was arranged. They then proceeded to give the passenger a complimentary car ride from the airport to the hotel. The passenger was so highly impressed with the staff that he decided that he would always travel with them whenever he had to travel. This earned Southwest Airlines a lifetime customer! Similarly, Compassites prides itself in the customer relationships that it has fostered over the past 7 years of operations. Some might argue that to understand each and every customers psyche is impossible when a business might have hundreds of customers, but one has to remember that most of human behavior is quite similar in nature irrespective of their race, age etc. The solution to having a huge amount of customers is creating a demographic of similarly behaving individuals, understanding the demographic and catering to their needs.

That said, neither product nor services marketing would produce great results if the underlying product or service is of poor standards. It is highly critical to maintain quality in terms of product and service for it to be a success

Characteristics of Services: There are several characteristics which differentiate a service from a product. These are Perishability, Heterogeneity, Intangibility and ownership. Here we discuss further 7 characteristics which are critical and help you understand a service product better. 1) Services are sold exclusively on the basis of benefits they offer Why is it that Accenture has such a high brand equity? This is because of one single thing which they have commanded over time Trust. Thus this is one benefit to the service of Accenture which other companies can hardly give. Therefore, word of mouth publicity and a good reputation are some benefits which are critical to make a service brand over time. The first restaurant you try, is one recommended by your friend. 2) Services cannot be made available in advance If you were running a restaurant, can you make all the dishes one day in advance and then serve the customer when he comes? No you cant. All you can do is make the ingredients. Even fast food restaurants take care that the food is replenished every single day. The simple reason behind this is that services cannot be stored. They cannot be given in advance. They can be given only when a purchase of the services has been made. 3) Time utility is critical If you were a doctor, and you gave half an hour to each patient, talking idle talks just to make him comfortable, you will probably lose the 10 customers sitting in your lobby. In services, you charge by the amount of time a person consumes. Thus the way you utilise your time is critical to the profitability of your business. A restaurant which does not have any customers today, will have lost a lot of money in keeping the restaurant open, in labour charges etc. 4) Services cannot be transferred Outsourcing is the best example of non transference of services. If you wanted to outsource your calls, can you bring the call centre to your country? You cant. Because again the costing will go high. That is why call centres are in cheaper countries. You cannot separate the process from the source. You will have to keep the call centre services in one place and provide these services in another. 5) Services perish The point is similar to perish ability of services marketing. The concept is simple if you do not watch the movie now, you wont get a refund of the ticket. If you do not board your plane or your train, you cannot ask back for the charges of the ticket. A service once order, perishes, if it is left unused.
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6) A service once consumed cannot be returned You pay a doctor for consultation and medicines. But your illness does not get cured or he is unable to find the source. Can you ask your money back? You cannot. He gave you the service which you asked for. He might not ask for money anymore or you can return the medicines and receive the money for the medicines. Medicines are not a service. They are a product. The bottomline you cannot return a service once it has been consumed. In restaurants, you can return the dish if you dont like it, and ask for another same one. But you cannot walk out of the restaurant without paying for the services. 7) Controlling the quality of services is difficult My local auto service centre has one rule for loyal customers Do not give your bikes on weekends. The reason is quite simple. He has a heavy workload on weekends as a result of which the quality of service is low. This is human factor and the owner can hardly do anything. Even in a restaurant, the quality of food served or the service given will vary during peak hours. Furthermore, as services are intangible, it is not possible to measure the quality of service given. Thus controlling the quality of services over time is very difficult as long as the human element is involved.

Classification of Services : Classification of services: There are a number of ways in which services
can be classified. Some of them are mentioned here. 1.On the basis of the END USER the services can be classified into following categories: Consumer : leisure, hairdressing, personal finance and package holidays Business to Business: advertising agencies, printing, accountancy, Consultancy Industrial: Plant Maintenance and repair, work wear and hygiene ,installation and project management. 2.The DEGREE OF TANGIBILITY can be used to classify a service. Highly tangible: car rental, vending machines, telecommunications Service linked to tangible goods: domestic appliance repair, car service. Highly tangible: psychotherapy, Consultancy , legal services. 3.Services can be broken down into LABOR INTENSIVE (PEOPLE based) and EQUIPMENT based services. This can also be represented by degree of contact. People based services: high contact : education, dental care ,restaurants and medical services Equipment based: low contact: automatic car wash, launderette, vending machine, cinema. 4.The EXPERTISE and SKILLS of the service provider can be broken down into the following categories : Professional: medical services, legal services, accountancy, tutoring Non Professional: babysitting, care taking, and casual labor.

5 The overall Business Orientation(Profit) is a recognised means of classification: Not for profit : charities , public sector Commercial : Bank , airlines etc .
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Paradigm in service Marketing : Marketing strategies and paradigms for service professionals
are about attracting more and better clients. There are significant differences between the strategies and paradigms for service professionals and those commonly used by businesses that provide more standard products and common services.

Marketing Paradigms for Standard Products and Common Services

One common marketing paradigm, or model, for businesses that provide products is what might be called the prospecting model. Like prospectors searching for elusive gold nuggets, this approach involves methodically hunting for whatever signs indicate the presence of gold. Once satisfied of potential payoff, the prospector devotes time, effort and money to finding and converting gold into a revenue-producing asset. From a marketing perspective, this is similar to devoting resources to finding prospective customers for whatever products are offered for sale. Once these prospects have been identified, more resources are devoted to trying to convince these prospects to make a purchase. Instead of searching for prospective clients, its more effective to attract ideal clients. The best way to attract ideal clients is to offer them a compelling reason for choosing you instead of the competition. By basing your marketing strategies and paradigms on these concepts you can position yourself to attract more and better clients. As part of identifying your ideal clients, you will also identify their specific needs and wants. Once you have identified these needs and wants, you can determine how to apply your resources to satisfy these clients. Your combination of resources is unique to you. No one else possesses the exact same collection of skills, talents, expertise and experience as you do. This means that no one else serves clients exactly the same way as you. Your distinctiveness contributes to the compelling reason for prospective clients choosing you instead of the competition. Thats the good news. The bad news is that many of your ideal clients are unaware that you even exist, let alone understanding how you an help them. Instead of promoting how good you areor think you aredemonstrate your profes sional knowledge and expertise.

Importance of Customer Relationship Management :Special Reference to service marketing : Customer Relationship Management (CRM): A Process implemented by a company to handle
its contact with its customers by storing information on current and prospective customers. Used by business to

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improve services provided directly to customers and to use the information in the system for targeted marketing and sales purposes. What is detailed & achieved through CRM:

All sales or service related interaction a company has with each individual customer. Track and detail personal customization for company and online experience to improve the relationship. Work flow automation and a well documented service history for customer support.

Issues and areas addressed:

Front office department support to areas such as sales, service, and marketing. Readily accessible and available customer information. Save customer from having to repeat contact and previous history with company helping to improve the customer to company relationship. Creating a customer-centric approach for a company. Because of the company-wide size and scope of many CRM implementations, significant pre-planning is essential for a smooth roll-out of the CRM software as well as an equally important role of employee adoption and training of the system

customer service solutions allow you to drive customer satisfaction and constantly improve the quality of your customer support. As a combination of help desk software and knowledge management software it enables your team to handle more customers with an integrated view of their diverse information. Our social CRM tools, contact management software, automated responses using templates and self service customer portals increase overall effectiveness with minimal human intervention translating into heightened brand loyalty and better revenues Service marketing System : Service system" is a term very frequently used in the service management, service operations, services marketing, service engineering, and service design literature. While the term frequently appears, it is rarely defined. One recent definition of a service system is a value coproduction configuration of people, technology, internal and external service systems connected via value propositions, and shared information (language, laws, measures, etc.). The smallest service system is a single person and the largest service system is the world economy. The external service system of the global economy is considered to be ecosystem services. Service systems can be characterized by the value that results from interaction between service systems, whether the interactions are between people, businesses, or nations. Most service system interactions aspire to be win-win, non-coercive, and non-intrusive. However, some service systems may perform coercive service activities. For example, agents of the state may use coercion in accordance with laws of the land. A service system worldview is a system of systems that interact via value propositions. Design of service systems Marketing, operations, and global environment considerations have significant implications for the design of a service system. Three criteria used to classify service systems include:

customer contact, capital intensity, and

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level of customer involvement.

Properly designed service systems employ technology or organizational networks that can allow relatively inexperienced people to perform very sophisticated tasks quickly vaulting them over normal learning curve delays. Ideally, empowerment of both service provider employees and customers (often via self service) results from well designed service systems. Types of service design Service systems range from an individual person equipped with tools of the trade (e.g., architect, entrepreneur) to a portion of a government agency or business (e.g., branch office of a post office or bank) to complete multinational corporations and their information systems (e.g., Domino's Pizza, Federal Express). Hospitals, universities, cities, and national governments are designed service systems. Every service system is both a service provider and a customer of multiple types of services. Because service systems are designed both in how they provision and consume services, services systems are often linked into a complex service value chain or value network where each link is a value proposition. Service systems may be nested inside of service systems (e.g., staff and operating room unit inside a hospital that is part of a nationwide healthcare provider network). For example, a national service system may be designed with policies that enable more citizens (the customers of the nation) to become an entrepreneur, and thereby create more innovation and wealth for the nation. Service systems may include payment mechanisms for selecting a level of service to be provided (upfront or one time payment) or payment based on downstream value sharing or taxation derived from customers who received the benefit of the service (downstream or ongoing payment). Payments may also be in the form of credit (creative arts) or other types of intangible value. Service Quality : Some of the service quality are as follows : Quality Dimension Tangibles: Appearance of physical facilities, equipment, personnel, printed and visual materials

Samples of questions to ask Are facilities attractive? Are staff dressed appropriately? Are written materials easy to understand? Does technology look modern? If a response is promised in a certain time, does it happen? Are exact specifications of client followed? Are statements or reports free of error? Is service performed right the first time? Is level of service same at all times of day and for all members of staff? When there is a problem, does organization

Reliability: Ability to perform promised service dependably and accurately

Responsiveness:

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Willingness to help customers to provide prompt service

respond to it quickly? Are staff willing to answer client questions? Are specific times for service accomplishments given to client? Are public situations treated with care and seriousness? Can staff provide service without fumbling around? Are materials provided appropriate and up to date? Can staff use the technology quickly and skillfully? Does staff appear to know what they are doing? Does staff member have a pleasant demeanor? Does staff refrain from acting busy or being rude when clients ask questions? Are those who answer the telephone considerate and polite? Do staff observe consideration of the property and values of clients? Does service organization have a good reputation? Do staff members refrain from pressuring the client? Are responses given accurate and consistent with other reliable sources? Does the organization guarantee its services? Is it safe to enter the premises and to use the equipment? Are documents and other information provided for the client held securely? Are use records of clients safe from unauthorized use? Can client be confident that service provided was done correctly? How easy is it to talk to knowledgeable staff member when client has a problem? Is it easy to reach the appropriate staff

Competence: Possession of required skill and knowledge to perform servide

Courtesy: Politeness, respect, consideration and friendliness of contact personnel

Credibility: Trustworthiness, believability, honesty of the service provider

Security: Freedom from danger, risk, or doubt

Access: Approachability and ease of contact.

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person in person? by telephone? by email? Are service access points conveniently located? When client contacts service point, will staff person listen to their problem and demonstrate understanding and concern? Can staff explain clearly the various options available to a particular query? Do staff avoid using technical jargon when speaking with clients? Does staff member call if a scheduled appointment will be missed? Does someone on staff recognize each regular client and address them by name? Do staff try to determine what client's specific objectives are? Is level of service and cost of service consistent with what client requires and can afford? Are service providers flexible enough to accommodate to client's schedule?
o o o

Communication: Listening to customers and acknowledging their comments; Keeping customers informed in a language they can understand.

Understanding the Customer: Making the effort to know customers and their needs.

Understanding Customer Expectation & Zone Of Tolerance : UNDERSTANDING CUSTOMER expectations is a prerequisite for delivering superior service; customers compare perceptions with expectations when judging a firms service.1 However, the nature of customer service expectations and how they are formed has remained ambiguous. Researchers have defined customer service expectations in a variety of ways but with no conceptual framework to link different types of expectations or indicate their interactions in influencing perceptions of service performance.2 Motivated by the pivotal role of customer expectations in service quality assessments, and by the limited knowledge about their structure and formation, we have undertaken a study designed to answer several fundamental questions:

What is the nature of customers service expectations? Are there different types of expectations? What factors influence the formation of these expectations? How stable are the expectations? Do they change over time? Do they vary across service situations and across customers? How can companies manage expectations to enhance customers perceptions of service? What can companies do to exceed customers expectations? 16

Zone Of Tolerance : It seems that customers have two levels of expectation:

adequate - what they find acceptable desired -what they hope to receive.

The distance between the adequate and the desired levels is known as the 'zone of tolerance' (figure below, Parasuraman et al. 1991, p. 42) .

The two levels may vary from customer to customer, and from one situation to another for the same customer. You can probably remember situations in which you have accepted services or products that, in other circumstances, you would have refused or been disappointed by. Segmentation and Zone of Tolerance Targeting a segment of the market can be a powerful strategy. Its
the concentration of marketing effort to dominate a market niche. Market segmentation is the process of identifying and targeting groups of individuals who are similar to one another. Markets can be segmented in many different ways: by product or service needs, by sensitivity to price, by geographic area, by demographic segment, or by psychographics and lifestyles. Factor Segmentation. Factor Segmentation begins with factor analysis (hence, the name). The model segments the respondents on a mutually exclusive basis (i.e., each respondent is assigned to one segment only) and may be followed by segmenting on a nonmutually exclusive basis to examine the overlap among segments. Factor Segmentation yields coherent clusters of respondents with very similar attitudes and perceptions, and is an important technique in developing targeting, positioning, and marketing strategies. K-Means Cluster Analysis. K-means cluster analysis attempts to identify relatively similar groups of respondents based on selected characteristics, using an algorithm that can handle large numbers of respondents. This procedure attempts to identify similar groups of respondents based on selected characteristics. TwoStep Cluster Analysis. This procedure is relatively new. It uses hierarchical cluster analysis and is designed to handle very large data sets. The algorithm employed by this procedure has several desirable features that differentiate it from traditional k-means clustering techniques: the handling of categorical and continuous variables, and automatic selection of the number of clusters. By comparing the values of a model-choice criterion across different clustering solutions, the procedure can automatically determine the optimal number of clusters.

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Latent Class Cluster Analysis. Latent class cluster analysis produces an objective segmentation solution that optimizes the number of clusters and the fit of the segmentation model to the data. This model can predict patterns in multiple dependent variables (such as attitudes, needs, and behaviors) as a function of segment membership. It easily incorporates data from different types of questions and different types of scales (e.g., yes/no answers, multiple choice questions, various rating scales, and even volumetric data) without the need for rescaling or normalizing the data. Latent class cluster analysis can introduce secondary variables (brand usage, demographics, etc.) as covariates that correspond with needs, attitudes, and behaviors. Respondents are assigned to the cluster to which they have the highest probability of belonging. Latent Class Choice Modeling. Survey respondents select their most and least preferred sets of product benefits and rate the influence of these benefits on the purchase decision. Latent class choice modeling classifies customers into segments based on their preferred product benefits. This type of segmentation is ideal for customizing product offerings or bundles to match segment preferences, enabling the firm to maximize business performance.

The zone of acceptable or expected outcomes in a service experience. Uses the zone of tolerance to explore the relationships between customers' satisfaction with individual transactions, or service encounters, and their satisfaction with the overall service. Provides nine propositions which identify how customers' perceptions of the quality of a service can be influenced and how the thresholds of the zone of tolerance can be adjusted during the process of service delivery. Also considers some of the design implications of the propositions.

Targeting and Positioning of Services: The essence of the marketing concept is the idea of
placing customer needs at the centre of the organizations decision-making. The need to adopt this approach stems from a number of factors, including increased competition, better-informed andeducated customers and, most importantly, changing patterns of demand. Primarily it is this change in patterns of demand that has given rise to the need to segment markets. This stems from the fact that higher standards of living and a trend towards individualism has meant that consumers are now more able to exercise their choice in the market place. Market segmentation can be defined as the process of breaking down the total market for a product or service into distinct sub-groups or segments where each segment may conceivably represent a separate target market to be reached with a distinctive marketing mix. Segmentation and the subsequent strategies of targeting and positioning start by recognizing that increasingly, within the total demand/market for a product, specific tastes, needs and demand may differ. It breaks down the total market for a product or service into individual clusters of customers, or segments. Here, customers who share similar demand preferences are grouped together within each segment. 2 Targeted marketing efforts Most companies realise that they cannot effectively serve all the segments in a market, and must instead target their marketing efforts. For example, in developing a new car, the manufacturing firm will have to make a decision on many issues, such as should it be a two-, four-, or five-seater model, with a 1000, 2000 or 3000cc engine? Should it have leather, fabric or vinyl seats? The over-riding factor when deciding these issues is customer demand. Some customers (segments) may want a fiveseater 2000cc model with leather upholstery, while others may prefer a four-seater with a 1000cc engine and fabric seats. A solution would be to compromise and produce a four-seater 1500cc model with leather seats and fabric trim. Clearly, such a model would go some way to meeting the requirements of both groups of buyers, but there is a danger that because the needs of neither market segment are precisely met, most potential customers would purchase from other suppliers who could cater for their specific requirements. Ironically, one of the biggest post-war car failures was the much heralded and much hyped American Ford Edsel car. Target marketing is thus defined as the identification of the market segments that are identified as being the most likely purchasers of a companys products. 18

Specifically, the advantages of target marketing are: 1. Marketing opportunities and unfilled gaps in a market may be more accurately appraised and identified. Such gaps can be real (e.g. sweet, strong, harsh or mild) or they can be illusionary in terms of the way people want to view the product (e.g. happy, aloof, silly or moody). In the case of the former, product attributes can fulfil these criteria whereas for the latter these attributes might well have to be implanted in the minds of customers through an appropriate advertising message. 2. Market and product appeals through manipulation of the marketing mix can be more delicately tuned to the needs of the potential customer. 3. Marketing effort can be concentrated on the market segment(s) which offer the greatest potential for the company to achieve its goals - be they goals to maximise profit potential or to secure the best long-term position for the product or any other appropriate goal.

Unit 2
Services Marketing Mix: The marketing mix for marketing a service is different to the marketing mix for products. Just like the marketing mix of a product the service marketing mix comprises of Product, Price, Place and Promotion. How ever as a service is not tangible the marketing mix for a service has three additional elements: People, Process and Physical Evidence.

People People are an essential ingredient in service provision; recruiting and training the right staff is required to create a competitive advantage. Customers make judgments about service provision and delivery based on the people representing your organisation. This is because people are one of the few elements of the service that customers can see and interact with. The praise received by the volunteers (games makers) for the London 2012 Olympics and Paralympics demonstrates the powerful effect people can create during service delivery. Staff require appropriate interpersonal skills, aptititude, and service knowledge in order to deliver a quality service. In the UK many organisations apply for the "Investors in People" Accreditation to demonstrate that they train their staff to prescribed standards and best practices. Process
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This element of the marketing mix looks at the systems used to deliver the service. Imagine you walk into Burger King and order a Whopper Meal and you get it delivered within 2 minutes. What was the process that allowed you to obtain an efficient service delivery? Banks that send out Credit Cards automatically when their customers old one has expired again require an efficient process to identify expiry dates and renewal. An efficient service that replaces old credit cards will foster consumer loyalty and confidence in the company. All services need to be underpinned by clearly defined and efficient processes. This will avoid confusion and promote a consistent service. In other words processes mean that everybody knows what to do and how to do it. Physical Evidence (Physical Environment) Physical evidence is about where the service is being delivered from. It is particularly relevant to retailers operating out of shops. This element of the marketing mix will distinguish a company from its competitors. Physical evidence can be used to charge a premium price for a service and establish a positive experience. For example all hotels provide a bed to sleep on but one of the things affecting the price charged, is the condition of the room (physical evidence) holding the bed. Customers will make judgments about the organisation based on the physical evidence. For example if you walk into a restaurant you expect a clean and friendly environment, if the restaurant is smelly or dirty, customers are likely to walk out. This is before they have even received the service. Summary The Service Marketing Mix involves Product, Price, Place, Promotion, People, Process and Physical Evidence. Firms marketing a service need to get each of these elements correct. The marketing mix for a service has additional elements because the characteristics of a service are different to the characteristics of a product. The Characteristics of a service are: (1) Lack of ownership (2) Intangibility (3) Inseparability (4) Perishability (5) Heterogeneity. To certain extent managing services are more complicated then managing products, products can be standardised, to standardise a service is more difficult as there it can be affected by factors outside the service providers control. Augmented Marketing Mix : In case of services how ever, there are alternatives
approaches suggested by various authors. They have suggested the need of services has led to the extension of the mix to serve seven Ps. The additional three Ps listed below are known as the extended service mix. 1. People 2. Physical evidence 3. Process The process of augmented product mix is developed by Booms and Bitner. It was conducted that whist the four elements of the marketing mix provided a useful structure for marketing implementation, there is a need to strengthen the approach through the inclusion of three other elements. Physical evidence and process. 20

Developing the Service Product/ Intangible Product: Marketing a tangible product something that can be seen, touched, tasted or experienced in some way - is typically straight forward. You can show the product, demonstrate its value and benefits, perhaps give the prospect a "sample" of some sort, and so forth. But how do you sell an intangible product or service, something that can't be seen or demonstrated? Here are 5 ways to market intangibles, and help make them seem more tangible to your prospective customers:
1. Create Trust: Because your prospective customers can't take your product for a

2.

3.

4.

5.

"test drive," finding ways to create trust is especially important. An accountant, for example, can use her marketing materials to create trust by listing her credentials, sharing testimonials, explaining her methodology and demonstrating her expertise. Humanize the Benefits: Make an emotional connection by demonstrating the benefits of what you sell. A wellness coach can show how good you'll feel after completing the program. A house cleaner can show how happy a working mom feels when she comes home to a clean house. Provide Useful Tools: Help prospective customers see the value in what you offer by providing useful tools, such as an online calculator that shows people how much they need to save for retirement or a checklist that helps them compare your service to your competitors'. Keep it Simple: Intangible products and services can be perceived as being difficult to understand. Unfortunately, a person who is confused will avoid making a purchase decision. Do everything you can to make your product or service appear simple and understandable. Use Metaphors: If people do have a hard time understanding what it is that you're selling, try using a metaphor to describe your service or the problems it solves. For example, "refinancing your mortgage is like giving yourself a raise."

Service Product Planning,:Let us consider the service product planning in terms of one example : A Future Shop Product Service Plan ensures the long-lasting enjoyment of your purchase
with comprehensive coverage from the day you buy it. Some of the benefits are:

Performance Guarantee Replacement Guarantee No Lemon Guarantee Power Surge Protection Accessory Coverage Global Coverage Fully Insured 24/7 Customer Service Terms and conditions Performance Guarantee Your Product Service Plan coverage goes beyond most manufacturers warranties, guaranteeing that your product will perform to the manufacturer's specifications for the duration of the coverage. Replacement Guarantee Have peace of mind knowing that your product will be replaced if we are unable to repair it, or if the repair will take longer than 60 days.

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No Lemon Guarantee If your product requires more than three repairs, we'll provide you with a replacement product. Power Surge Protection Your product will be repaired or replaced should it be damaged by a power surge (hardware only -software and data not included). Accessory Coverage Accessories and peripheral devices that came inside your products original manufacturer packaging are also protected by your Product Service Plan. Global Coverage Your Product Service Plan provides you with global coverage. To arrange for service within Canada or the US,contact us here. Fully Insured Your Product Service Plan is fully insured by American Bankers Insurance Company of Florida so you're always protected. 24/7 Customer Service Future Shop's Customer Service representatives are available to assist you 24 hours a day, 7 days a week, 365 days a year. Contact us here. Terms and Conditions Please see Terms and Conditions for complete coverage information. In the similar way you will plan a service product for any of the product of service .

Service Pricing Strategy : Your overall pricing strategy will depend on what type of demand there is for your product or service. Understanding different pricing strategies will help you to decide which strategy - or combination of strategies - is most effective for your business.
Talk to your business adviser or accountant for help choosing a pricing strategy for your business. Factors affecting demand The demand for your products or services may be elastic or inelastic:

If the demand is elastic, a change in pricing has a significant effect on the demand (i.e. after a price rise customers may choose not to buy the product). If the demand is inelastic, a price change has little effect on demand (i.e. customers will still buy the item, regardless of the price).

Elasticity is dependent on a number of factors, including:

Is the product a necessity or a luxury? (medications vs. fine dining) Are there any substitutes available? (for example, if rice is not available, customers could buy potatoes instead) Are there any complementary products? (when the price of one product goes down, demand for another product goes up, i.e. razors and shaving cream)

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Common pricing strategies Skimming pricing

Often used for new products and services, especially technology. The initial price is set high and attracts 'early-adopters' who want the product or service now and are willing to pay. When this group has been satisfied, the price is reduced to appeal to more price-sensitive customers.

Penetration pricing

Aims for high sales through a lower price. Often used for products and services that would not attract an initial elite market. Discourages competitors because of the low profit margin. A large target market and a high volume of sales are needed to meet profit goals.

Image pricing

The perceived image is more important to a customer than the actual price (e.g. a luxury car that sells for as much as a house). Marketing should target the high end of the market and communicate the luxury on offer. Customers are willing to pay top dollar because of the value they place on the product.

Discount pricing

Aimed at the budget end of the market where customers are willing to forgo some quality or service for a lower price. Discounting is a difficult strategy to use long-term - sales volumes must be consistently high to maintain good profit levels.

Loss leaders

A product or service sold at a low price where you make little profit - or in some cases, a loss. This heavily discounted item should entice customers to visit your business. While they buy the loss leader, they may also purchase other products or services with a higher profit margin (e.g. accessories, supplementary items, impulse buys).

Services Promotions: Promotion Services has extensive experience in a broad range of marketing disciplines and we approach each situation on the following basis in order to develop strategically sound marketing solutions that work! 1. to know and understand our clients business. 2. understand the overall marketing objectives and strategies. 3. develop sales promotion objectives as a logical conclusion of a thorough situation analysis. 4. apply the most effective strategies and tactics after considering objectives, the competitive environment and the budget 5. always integrate all marketing communications and activities wherever possible for maximum synergy. 6. develop creative that communicates the core brand benefits, imagery and values. 7. ensure that our execution is timely and flawless.

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Service Distrubitution : In all countries, distribution represents a large share of domestic production and employment. The industry is highly dynamic and changing rapidly. There is a trend towards greater concentration and the rapid development of new forms of competition for example, through electronic commerce.
Distributions services includes commission agents' services, wholesale trade services, retailing services and franchising.

Developments in the sector

The distribution sector provides the necessary link between producers and consumers, within and across borders. The efficiency of the sector is crucial to ensuring that consumers have access to a wide variety of goods at competitive prices. Failure of the distribution sector to perform its role well which can arise if government policies restrict competition can lead to a significant misallocation of resources and economic costs.

Current commitments and exemptions

As of 31 January 2009, a relatively low number of WTO members had commitments in distribution services (57 schedules of commitments covering 69 members). This contrasts with the economic importance of the sector. For consolidated information on countries commitments and exemptions on distribution services go to the services database. If you are seeking the commitments of a specific WTO member, go to Jump to a specific sector for a given Member, select distribution services from the sector dropdown list, select the Member of interest and click go. To see a table showing which Members have made commitments in distribution services choose See which Members have made commitments in a specific sector, select Distribution services and click go.

Physical Evidence: Role of Communication in Service Marketing: Business communication takes many forms. Companies communicate internal information between managers or employees, while external communication is used to inform consumers about the companys products. Marketing is an important function for a new small business. Entrepreneurs and business owners must inform consumers about the goods or services they are offering. Businesses develop marketing strategies to deliver specific messages to consumers in the economic marketplace Businesses often follow a few basic steps when creating marketing communication. These steps include creating a message, selecting a communication channel, sending the message and responding to feedback. Marketing strategies can also include an analysis of the
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economic marketplace to determine the strength of consumer demand and the supply of products by competing companies. This analysis helps businesses understand how to differentiate their communication or marketing messages from other advertisements The Marketing Communications team is responsible for managing the universitys corporate social media presences, with individuals in departments and services responsible for ensuring that their sites are compliant with the guidelines. Governance of social media will be treated in the same way as any other University communications channel. The Marketing Communications team will support colleagues in the Colleges to ensure that social media activity is meeting University objectives and ensure that the corporate channels are being used effectively to achieve wider university aims. Monitoring and reporting is via the Division
of Corporate Affairs management structure.

People and Internal Communication:

People-- its a target group to which u want dedicate product..it requires close analysis of market as in which product the customers want to buy n in which quantity n what should b its features..like a particular community of people may want a product say infants of 1 to 2 yrs..they require baby food..so, marketer needs to research on all d available products of that range in market so that he cud b able to produce a better one in all aspects...other example cud be-- like production for lipstick..this item is targeted to women..so their opinion is required for as to me product a better one... physical evidence-- a customer needs a service but this aspect is also important how d service is being made available to them..the place where pal exchange d services provision of adequate facilities bums more important as in case of hotels, airports, etc.othr thing which is to b considered is the peripherals--means service coupons, air tickets at airports, cheque books, crockery, etc.these things bring abut a go image of organisation.. process-- it means that how d customer is provided with d desired product..it comprises of many things like procedures,mechanisms,routines,etc..take an example of --a bank delivers cash service by d sequences that is an interaction between a customer n employees like enter bank,fillup cheque or withdrawal form, give cheque to concerned employee, who cud check details or ask for any other formality. Service organizations are people oriented and

people based organizations. Where the employees of a service firm, form into a major competency in undertaking the business operations. In services organization every employee is a marketing person, who undertakes either full-time or part-time service in the marketing activity. For better performance in marketing activity, service employees are to be trained and motivated. Consumers are more likely to connect with your brand if they have a good understanding of what you are about, reinforced by the experience your staff delivers. When dealing with an organization where employees truly believe the values and mission, you can feel the difference from the moment you walk through the door. When employees are on board, it translates to a better and more consistent service experience, which in turn builds trust, loyalty and business. Some ways to make internal communication better . 1. Define the Organizations Internal Culture Its hard for businesses to be consistent internally or externally if they havent fully defined who they are and how they want to evolve. Find what makes your organization unique, cultivate it and celebrate it. People can usually tell whether you are putting on an act or being genuine. Help your employees understand your businesss unique story and make it their own.
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Southwest Airlines has built its culture and reputation by starting from the inside. Its leadership team defined the organizations core values as well as its niche in the market, then maintained consistency as the airline grew by ensuring all employees understand and embody the spirit of the organization. FedEx has what it calls the purple promise, a commitment to service excellence that is part of their employee culture. Every employee is called upon to work to fulfill that promise, even those whose jobs are not customer-facing. And its not just an internal dialogue or initiative; the promise is part of their public website, with sections that highlight everyday activities by employees that fulfill that promise. 2. Tell Your Story Many organizations give new employees a standard (and usually rather dry) employee manual outlining the nuts and bolts of how business is done. But some organizations also feel it is important to share their personality with their employees in what Third Degreecalls a culture book. Rather than focusing on just rules and regulations, a culture book often dives into more of the intangibles that make an organization tick. Belvoir Federal Credit Union gave every employee a culture book when they launched a new brand identity. It explained the brand and set expectations for how every member of the team could live up to that brand promise ultimately impacting any current or potential customer the staff comes in contact with 3. Walk Your Talk Remember that actions speak louder than words. Every interaction (no matter how small) is an opportunity to affirm your brand in the eyes of your employees and customers. Your brand is a promise you make to your customers; your culture is how your employees live, breathe and deliver on that promise. These are the some ways how are you going to make your internal communication better. Process of operations and delivery of services : This volume embodies practices in the management of Service Operations. It includes guidance on achieving effectiveness and efficiency in the delivery and support of services so as to ensure value for the customer and the service provider. Strategic objectives are ultimately realized through Service Operations, therefore making it a critical capability. Guidance is provided on how to maintain stability in Service Operations, allowing for changes in design, scale, scope and service levels. Organizations are provided with detailed process guidelines, methods and tools for use in two major control perspectives: reactive and proactive. Managers and practitioners are provided with knowledge allowing them to make better decisions in areas such as managing the availability of services, controlling demand, optimizing capacity utilization, scheduling of operations and fixing problems. Guidance is provided on supporting operations through new models and architectures such as shared services, utility computing, web services and mobile commerce.
A service delivery framework (SDF) is a set of principles, standards, policies and constraints used to guide the design, development, deployment, operation and retirement of services delivered by a service provider with a view to offering a 26

consistent service experience to a specific user community in a specific business context. An SDF is the context in which a service provider'scapabilities are arranged into services The

General Agreement on Trade in Services (GATS) defines four modes of delivery of services- cross border movement of service products i.e. services supplied from one member country to another (e.g. international telephone calls); movement of consumers to the country of importation i.e. services supplied in the territory of one member to the consumers of any other (e.g. tourism); commercial presence i.e. services provided through the presence of a commercial entity of one member in the territory of any other (e.g. banking); and movement of natural persons i.e. services provided by individuals of one member in the territory of any other (e.g. consultants etc). General Agreement on Trade in Services (GATS) established a multilateral framework of rules and principles for trade in services with the view to expand such trade under conditions of transparency and progressive liberalisation. One of the most significant aspects of the GATS has been that it is designed on the modes of supply approach with movement of natural persons being one of the four modes. The other three modes are cross border, consumption abroad and commercial presence. The GATS was so structured at the instance of developing countries so as to provide a degree of symmetry in the obligations between the movement of capital and movement of labour. Role of technology in service marketing : A key post-crisis development in the
alternative fund industry, one with important ramifications for everyone from technology providers to investors, is that there is no longer a single model for relationships between fund managers and administrators. Today managers may seek anything between NAV-lite and month-end services to a complete range of front-to-back services, and administrators must respond by becoming much more flexible with their clients. At the same time, Koger is encountering increasing demand from managers looking to use our transfer agency product, NTAS, to shadow the work of administrators in shareholder servicing. The watchword today is: Trust, but verify. When service providers clients can monitor all their activities in both accounting and shareholder services, every allocation and every reconciliation, the administrator will always be on its toes and likely to perform a little better. Not all administrators are comfortable with their clients shadowing their activities, arguing that it is superfluous, but others are ready to embrace it, since it can make it easier to resolve issues between fund managers and service providers. Either way, it is an important development for software providers such as Koger, which is seeing increased demand for its products as a result. The other factor driving demand for institutional-grade software applications is that there is now little or no forgiveness of errors anywhere in the fund value chain, from brokerage and custody to accounting and transfer agency. For many investors, mistakes are now viewed as the first sign of potential fraud.This puts pressure on service providers that still use in-house systems, which may have seemed a cost-effective solution at the outset but may now be creaking and groaning under the strains of a larger business. In addition, in-house solutions tend to lack the ancillary functionality around the core shareholder registry: compliance tools such as audit reports, blacklist integration, anti-money laundering functions and document tracking, all plugged into the same system as the share registry.

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Unit 3 Marketing of Financial Services : The marketing of financial services is a topic that has fascinated
marketers for decades. Scientific research and market evidence on the behavior of decision makers in financial markets has resulted in the accumulation of a wealth of knowledge with great marketing applications. The pattern of consumer decisions infinancial services has heightened the importance of establishing a universal framework for financial services marketing. Marketing Financial Services is a textbook used for the training of marketing professionals in the financial services sector around the world, and provides a scientific framework for the practice of financial services marketing. The book has been developed for use by individual readers eager to gain in-depth training on the topic on their own, and for classroom use by instructors in business schools at the MBA, undergraduate, and executive levels. Marketing Financial Services provides the reader with the foundational knowledge on how decision makers arrive at their financial decisions. Based on scientific findings in marketing, behavioral economics and psychology, effective marketing approaches are presented to the reader. The book establishes successful marketing practices for advertising, distributing, and pricing financial products and services. In addition, a strategic framework on how financial services organizations can effectively capture their full market potential is provided.

Deciding service quality : The financial service industry in india has experienced massive changes since the early 1990s. Prior to this time, banks served different customer needs, often catering to different sets of customers. Regulatory frameworks and traditional business practices meant that there was virtually no competition between types of institution. Building societies offered savings and mortgages while banks provided current accounts, loans and business finance. Insurance and investment were largely dealt with by specialist brokers. Characteristics : 1. Intangibility 2. Inseperatibility 3. Variability 4. Perish ability 5. High involvement purchases 6. High level of brand liability Deciding the service quality of Financial service : Quality of service is very important for customer satisfaction. A high level of external customer satisfaction largely depends upon the level of internal customer satisfaction and corresponding nature of service quality delivered by internal customer to the external customer in financial service industry. Customer satisfaction for financial service is also depends upon the relationship of the customer with the employee of the organization. Perspective of financial service quality : Perspective I : I. Functional Quality II. Technical Quality Perspective II : I. Reliability II. Assurance III. Tangible IV. Empathy V. Responsiveness
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Improving Financial service : 1. Assessing product and customer attributes 2. Striving the quality mission 3. Continuous quality improvement 4. Encouraging employee initiatives 5. Collecting and analyzing information 6. Training and development program me 7. Rewarding quality adherence Understanding Customer Expectation :Customer expectation understanding is must for every organization. Because customer dissatisfaction or even worse situation will create a hurdle in organization growth. So proactively conducting customer survey about their satisfaction is must for every financial organization. Tips for Understanding Customer : i) Interview customer to design a questionnaire. ii) Typical topic covered in customer satisfaction. a. Overall satisfaction b. Performance of front line staff iii) Design a feedback form and ask customer to rate service quality iv) Use a consultant to design and if necessary conduct a survey.

Segmenting financial service :1. Demographic 2. Psychographic 3. Behavioral segmenting

Targeting of Financial Services :1. Prime Customers 2. Highly Valued Customers 3. Prosperous but Mobile This group is generally aware of its prospects is not loyal and will frequently shop around for the best deal and will move readily to take advantage of the best
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offer. 4. Prime Prospects 5. Middle Majority 6. Price Shoppers 7. Tomorrows Valued Customers 8. No Frills 9. Social Responsibilities Positioning of Financial Services :Positioning presents particular challenges to the financial service industry, owing to the intangibility of its products, the absence of patent protection and the ease with which products and services can be copied to competitors. Arguably, positioning is still in its infancy in many areas of financial services around the world. Devising Financial Services :Banking Marketing : Bank marketing is the aggregate of functions, directed at providing services to satisfy customers financial needs and wants, more effectively and efficiently than the competitors keeping in the view the organizational objectives of the bank. Marketing Mix : The following form the marketing mix for services marketing, the first 4 Ps being the core and the next 3 Ps being the extended marketing mix.

Product is your core offering.This is the thing that will fulfill the needs of your customer. If your product is faulty, every thing else fails. The attributes of the product, vis-a-vis the attributes offered by competing products and substitutes, are important in estimating the competitive scenario for the marketing strategy formulation.

Price has a lot of impact on the service buyers satisfaction level. Often, paying a higher price makes a customer more satisfied. Price is often considered a proxy for quality and vice-versa. What is important to note that services being all the more intangible, the price becomes an important factor for the actual service consumption to happen, after service awareness and service acknowledgement.

Place often offers a different side of value (utility) to the customer. Who would want to travel 10 miles to have a regular dinner, even if that is priced very competitively and has a super quality? Services are often chosen for their place utility. Closer to the customer means higher probability of purchase. Place utility is important to evaluate, for strategizing on the other 6 Ps.
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Promotion plays a role in the perception the possible target audience may have about your service. There has to be a fit between the promotion and the positioning. Promotion leads to service (brand) recognition and further establishes a proxy to evaluate quality of services based by potential customers. Many different promotional tools are often used like internet advertisement, special events, endorsements which happen out of the store or in-store merchandising like plastic dump bins and digital signage.

People are crucial in service delivery. The best food may not seem equally palatable if the waitress is in a sour mood. A smile always helps. Intensive training for your human resources on how to handle customers and how to deal with contingencies, is crucial for your success.

Processes are important to deliver a quality service. Services being intangible, processes become all the more crucial to ensure standards are met with. Process mapping ensures that your service is perceived as being dependable by your target segment.

Physical evidence affects the customers satisfaction. Often, services being intangible, customers depend on other cues to judge the offering. This is where physical evidence plays a part. Would you like eating at a joint where the table is greasy or the waitresses and cooks look untidy and wear a stained apron? Surely you would evaluate the quality of your experience through proxies such as these.

Services marketing is that elusive concept which stays incomplete without a thorough understanding of 7 Ps. These form the critical success factors for any service as evaluated by a possible customer. Another P which has grown in significance in Services Marketing is the 8th P, namely Productivity and Quality, more details of which can be found in our article The 8 Ps of Services Marketing Strategies with Special Reference to Credit Cards : There are, of course, many ways to
do this some innovative, some tried and true and a lot depends on your companys corporate philosophy, structure, financials, etc. However, there are 5 tactics in particular that you would be remiss in not implementing immediately, if you havent already done so.

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1. Focus each product on a single consumer need By focusing each credit card offer on a distinct consumer need, you garner both the ability to present more effective value propositions to consumers and a customer base that behaves as predictably as possible, thereby making it easier to forecast card profitability as well as adjust marketing strategies based on early returns. This is obviously difficult to achieve if the same card is trying to address disparate needs. For example, if a card provides lucrative rewards as well as low introductory interest rates, youll wind up with some customers who spend a lot and always pay their bills in full, some who spend and only pay the minimum, and some who transfer balances with no guarantee that they will keep their cards following the expiration of intro rates. 2. Bring together marketing and underwriting Too often the marketing and underwriting teams at credit card companies are disparate entities that have effectively little, if anything, to do with one another. You know what this leads to? Applicants that do not fit the underwriting criteria used to develop offers and underwriting conservatism that could easily be avoided. A credit cards marketing message significantly affects the type of consumer that will apply for it. And if the only direction given a marketing team is that each account cannot cost the company more than $100, for example, theyll likely meet that constraint, but in doing so may attract riskier, less profitable customers. This would, in turn, necessitate an underwriting adjustment to the point that each account could no longer cost more than $70, which would push the marketing team to rely more heavily on the lowest-hanging fruit even riskier, less profitable customers than before. The only way to break this vicious cycle is to integrate those two separate teams. 3. Offer secured cards All credit card companies should offer secured credit cards for two very simple reasons: 1) they provide profitable access to a significant consumer segment without adding any risk and 2) soliciting secured card customers who prove their creditworthiness will become one of your most efficient marketing channels. Its a cant-lose strategy made even more essential now that the CARD Act has mitigated both the profitability and popularity of unsecured credit cards for people with bad credit. 4. Appeal to former debit card users In the past, consumers have gravitated to debit cards instead of credit cards for three main reasons: 1) a desire not to have to pay bills; 2) the urban legend that debit cards provide fraud protection superior to that available via credit cards; and 3) the decreased risk of overspending. However, recent overdraft and swipe fee regulations have resulted in a mini-exodus from debit cards, driven primarily by the near-extinction of debit card rewards. This means a significant opportunity exists for credit card companies to add valuable new accounts to their rewards portfolios. The key to addressing the aforementioned consumer concerns is a combination of auto-pay plans, customizable limits, and education about the relative merits

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and risks of both credit cards and debit cards. Marketers can thereby ensure that rewards are the deciding factor in peoples minds.

5. Leave no customer empty handed When a customer comes to a bank in search of a credit card, youre seeing the fruits of a lot of time and money spent on marketing. The most irresponsible thing you can do at this juncture is turn the consumer down for whichever card they apply and offer no profitable, attainable alternative. At the very least, a secured card will be fitting, and by exhausting every opportunity to turn potential customers into customers, youll drastically increase the efficiency of marketing dollars. Home Loans, Insurance and Banking: t is important to choose a good housing
finance company which can handhold the customer right through his home buying process. Since a home loan is a long term commitment of 15-20 years, several factors like expertise, quality of service, in-depth domain knowledge and the companys level of commitment and transparency right through, the loan procedures, the fine print, quality of services offered and safe retrieval of the title deed are critical.After getting the home laon the big problem of EMI arises , let us see how to eradicate it :

1. Remember your money is bringing in an asset:First and foremost, instead of blaming yourself for having bought the house without doing the math correctly, be thankful that your monthly income is going towards servicing a loan for an asset. 2. Streamline a process: Next, look at how you can streamline a process, which you can follow while you service your home loan. You can start off by analysing where you spend your salary other than on the EMI. Look at areas where you can cut back expenses, especially on the discretionary areas. 3. Create separate accounts for loan and savings:Have separate accounts for servicing the loan and for savings. When you route all expenses through one savings bank account, it becomes difficult to keep track of the various debits in the account. Furthermore, if both you and your spouse are working, then there will be income credits in both your salary accounts. Discuss and take a joint decision before-hand on the expense heads which will be debited from your account and your spouse's account. 4. Maintain a contingency fund:You should always maintain a contingency fund which will help you pay your EMIs in case of emergencies. Remember that when you take a home loan, it is your duty to service the loan under any circumstances. A failure to service your EMIs promptly will mark you as a defaulter, and as a result cause a dip in your credit score.

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5. Use extra money to prepay your loan:If you have any excess savings during the month, invest in good quality mutual funds, which will give you good returns over the long term. If you build a healthy corpus at the end of 2 or 3 years, you can partly prepay your home loan to bring down the EMI amount or tenure. Insurance service : Insurance is the equitable transfer of the risk of a loss, from one entity
to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. Insurance regulation in the United States is at a crossroads. It used

to be a given that the insurance industry would resist efforts to move away from state-based approaches toward regulationbut no more. Some now favor a greater role for the federal government, while others oppose calls to transition to a federal system. Banking service : The banking market is increasingly more competitive, but is not without its opportunities. Accenture Banking Distribution and Marketing Services helps banks capitalize on these opportunities by leveraging our key capabilities, management services and leading-edge technology. Accenture believes that marketing, distribution and innovation will become dominant vectors for the bank of the future. Four areas are of primary interest:

Insights and Analytics. As customers demand more qualified information and expect more personalized experiences, it is critical for banks to be able to segment clients based on needs, channel propensity and potential value. Learn more about insights and analytics. Multichannel Sales and Servicing. Banks that communicate effectively and seamlessly across multiple channels not only enhance the customer experience, but also improve the efficiency of bank distribution networks. Learn more about multichannel sales and servicing. Digital Marketing Management. The bank of the future will define the digital customer experience, leveraging multiplied customer interactions to increase redemption rates and customer engagement. Learn more about digital marketing management. Growth and Innovation. By developing a sound strategy based on innovative service models and differentiated capabilities, banks can gain wallet share, decrease cost-to-serve ratios and sustain growth. Learn more about growth and innovation.
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Marketing of Telecom Services: Globally, the telecommunications industry was about a $4 trillion sector in 2010, including about $1.3 trillion in total revenues in the U.S. (These figures include equipment and related services, as well as subscriber revenues.) Handset manufacturer LM Ericsson estimates the number of mobile subscribers worldwide at 5 billion as of July 2010. This is significant growth from about 4 billion at the end of 2008 and 1.41 billion in 2003. The base of global wireless subscribers will continue to grow rapidly, as low-cost providers are making service prices low enough to be affordable for vast numbers of people in emerging nations. Inexpensive cellphones are now indispensable to consumers from Haiti to Africa to New Guinea. Telecommunications remains one of the major providers of employment in the world, with nearly 1 million employees in the U.S. alone. nsights objective in this study is to examine and quantify opportunities in vertical markets for telecom providers. More than 90 percent of wireline carrier revenue in 2001 is attributable to voice, and voice products and services are by their very nature commodity products, since they exhibit little or no customization. Moreover, telecom providers tend to be very similar to each other in their offerings. The rise of the mobile value-added services industry is already evident from the proliferation of mobile ringtones and logos and the emergence of services such as SMS breaking news from Al Jazeera TV. Figure 2 shows how a wide range of media, technology and telecom players are involved at the various stages of the value-added services value chain in order for content to eventually reach the mobile phone screen. Content supplied by the likes of Disney and Rotana is delivered by service providers using specialized IT applications via mobile operator networks to be displayed and manipulated on mobile devices. Unit 4 Services in Global Perspective As a service economy continuous to grow both in size and importance, the scale of service marketing internationally can be seen to be increasing dramatically. This increase in inevitable, if service organization are to grow and survive in todays global marketplace, they have to develop their international operations. Obviously, trends in international trade will affect all service to lesser and greater degree. Factors influencing globalization : i) Changes in Social factor ii) Changes in technology iii) Changes in political condition iv) Competition in the market v) Competitive advantage vi) Regulations in home country vii) Lack of demand in home country International Marketing of Services :Service firms are increasingly investing overseas on their own account, as they seek to serve
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new clients and exploit their own unique competitive advantage. Such advantage take several forms : 1. Producer Service 2. Consumer Service 3. Stock broking, Foreign Exchange or securities dealing 4. Outward Expansion Market environment for services : i) Protectionism ii) Trans-border Data flow iii) Competition iv) Protection of Intellectual Property v) Cultural barriers Recent trend of international marketing of services : At the reports launch, ITC Executive Director Patricia R. Francis said: Improving market access and market entry for developing countries will improve fairness in global trade because it will contribute to reducing global poverty. Developing countries need to export more in order to boost growth and reduce poverty and provide opportunities for wealth creation in their domestic markets, which are typically small. ITCs Willem van der Geest, lead author of the report, noted that:

Poverty reduction will require export development; Duties paid on imports from developing countries in developed countries markets still remain high in excess of US$ 50 billion in 2008, a sum greater than all aid-for-trade assistance; Tariff levels and structures continue to be a formidable barrier to trade in many sectors, while non-tariff measures are proliferating; and Improved trade transparency, especially about non-tariff measures and private standards, will be a major step towards greater fairness in global trade.

Principal Driving Force in Global Marketing of Services: The important forces driving globalization are the following:Liberalization: One of the most important factors, which have given a great impetus to globalization since the 1980s is the almost universal economic policy liberalizations which are fostering a borderless business world. While a lot of the liberalizations owe it to the Global Agreement on Trade and Tariff (GATT) / World Trade Organization (WTO), substantial liberalization have been occurring outside the GATT/WTO like, for example the revolutionary economic policy changes in China and other socialist/communist nations It may be noted that it has become quite common to describe the global trend as LPG (liberalization, privatization and globalization) indicating the mutually interdependent and reinforcing nature of these forces. One of the impacts of liberalization and privatization is the surge in cross border M&A (mergers & acquisitions) and other FDI (foreign direct investment) resulting in greater global economic integration. Multinational enterprises which link their resources and objectives with world market opportunities, have been a powerful force driving globalization. Taking advantage of the liberalization trend, there has been a fast growth of the number of MNC and their global network of affiliates. The MNC
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leverage their strengths to link global resources and opportunities and thereby strengthen the globalization trend. Technology is a powerful driving force of globalization. Technological advances have tremendously fostered globalization. Several technological developments become compelling reasons for internalization. Technological break through are substantially increasing the scale economies and the market required to break even. Technological revolution In several spheres, like transport and communication, has given a great impetus to globalization by their tremendous contribution to reduce the disadvantages of natural barriers like distance and cost. The developments in the field of air cargo transportation has fostered globalization by enabling quick and safe transportation of sensitive goods like perishables and goods subject to quick changes in fashion/taste. Developments of containerization and refrigeration have also been of high significance. The steep fall in the cost of transportation and communication has considerably accelerated pace of globalization. All these have contributed to the drastic transformation of the logistical and global distribution of the value chain system. The world wide web has a stupendous impact on globalization. Global sourcing was encouraged not only by trade liberalization but also by technological developments which reduced transport costs. Advent of containerization and super tonnage cargo ships drastically reduced transport costs. The IT revolution has made an enormous contribution to the emergence of the global village. The cost of new product development is very huge in several industries such as pharmaceuticals. To recoup such high costs a global market is required. A corollary is that the fast technological changes, which hasten product obsolescence, necessitate a short pay back period, which can be realized only with a very large market. Quality and cost: The two most important determinants of demand are the quality and price of the offering. These can be better achieved when a firm is global in its operations. Rising Aspirations and Wants: Because of the increasing levels of education and exposure to the media, particularly the electronic media, aspirations of people all around the world are rising. They aspire for everything that can make life more comfortable or satisfying. If domestic firms are not able to meet the wants, they would naturally turn to foreign firms. The customer today is, by and large, global. He wants a world class product or a product of desired attributes at international price. He may desire a product available anywhere in the world. His aspirations cannot be tied down to the domestic availability. Key Decisions in Global Marketing Regardless of whether a new organization is developing a brand-new marketing plan or if an established organization is tweaking or re-creating a plan that already exists, any effective marketing plan is built on the core fundamentals. Most marketing decisions fall into one of four main categories. These categories are known as the four Ps: product, price, place and promotion. Product You should first consider what the product or products you offer or plan to offer in the near future will be. Product marketing decisions include coming up with a brand name, creating a quality product, determining the functionality of the item and making the item safe to use. When developing the product, you also must determine if there should be a warranty associated with it and what kinds of repairs or support you will offer.

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Price Most organizations sell products for different prices to different types of consumers. You need to decide what these prices will be. For example, you might sell a product on your website for a certain price. However, if a consumer is willing to buy a box or a crate of the product, you can sell the product for a lower price per unit to sell more units. Likewise, you can decrease the price per unit again if a big-box store or other large retailer wants to buy in bulk and stock the product in many stores. Place Place in the marketing sense refers to the distribution of the product. Place considerations involve decisions that affect how you will get the product where it belongs, how you will manage inventory, how warehouse operations will be carried out and if distribution centers will be established. When you consider place, you also must consider where you perceive the product will sell best. For some products this means in the store, while for other products this means online. Promotions When you make promotional decisions, you must consider what you view as the most effective means available to communicate to others about the product. For large organizations, this often means a full-out media blitz that includes television commercials, print advertisements, billboards and websites. A smaller organization can talk with local retailers about setting up displays, giving away samples and establishing a social media presence to build word-of-mouth advertising. Services Strategy and Organizing for Global Marketing: The important distinction in marketing throughout the world is that buyers differ in their needs, preferences, and priorities. Since such differences exist within a national market, the variations between countries are likely to be greater. Brands like Budweiser beer and Levis jeans have significantly different market positions in international markets compared to those they occupy in the United States. Global market targeting and positioning strategies create several marketing organizational issues. In the consumer goods sector, the growth of global retailers has been substantial. In consumer packaged goods, Ahold (Netherlands), Carrefour (France), and METRO (Germany) each operate in more than 25 countries. Aldi (Germany), Auchan (France), Rewe (Switzerland), Tesco (United Kingdom), and Wal-Mart each operate in 10 or more countries. Similar globalization trends are apparent in industries as diverse as apparel, chemicals, entertainment, financial services, and personal computers. Powerful global customers expect coverage, speed, consistent and high-quality service, and extraordinary attention from their suppliers that reflect their buying power. These expectations require suppliers to provide a single point of contact, uniform terms of trade, and worldwide standardization of products and services.54

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Global customers demand more uniform and transparent global prices from suppliers. In 2000, British supermarket Tesco acquired a small supermarket chain in Poland called Hit. Hit was obtaining better prices from its suppliers than was Tesco. The lack of a logical worldwide pricing structure allows global customers like Tesco to demand retrospective discounts when they discover anomalies CMO Global Marketing Readiness Study, a sixmonth research study of 114 CMO-level marketers, identified five significant challenges that should act as a wake-up call to global marketers: 1. Disruptive technologies. The proliferation of new technologies from social media and mobile apps to in-store digital experiences and mobile payments represents a set of obstacles for which senior marketers are ill prepared. Just 20% consider themselves very knowledgeable about technology, yet by 2017 these CMOs will purchase more technology than their CIOs, according to Gartner. The scale of these investments must be at a global level within the organization, yet be mindful of local market requirements. The challenge points to a need for a technology-savvy global CMO with a sensitivity for local-global relationships and the flexibility to adapt to and embrace disruptive technologies and social media-driven, personalized marketing. 2. Globally connected consumers. A new class of consumers, adept with and empowered by affordable ubiquitous technology, has changed the marketing rules. Our research shows that 82% of senior marketers feel that interconnected consumers have broken down the barriers between global and local marketing. Global marketings core challenge has been to deliver relevant messages to the local market, but in an age where assets designed for one country are rapidly shared around the world, the challenge is to give global consumers a delicate balance of local, regional and global campaigns simultaneously. 3. Localization revisited. Coping with the diversity of global consumers that also have strong regional subcultures is regarded as a challenge by 75% of senior marketers. A recent Millward Brown study found that of ads that tested exceptionally well in one country, just over one in 10 did equally well in another country raising real questions about the cost efficiencies of cross-border campaigns. Add to this the growing tensions between local and global roles and authority
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within the organization challenging for 82% of senior marketers and what becomes clear is the need for organizational design and digital platforms that allow for a multi-channel, multi-disciplinary mindset across the organization. 4. Multi-channel misses. A full 37% of senior marketers dont believe that their marketing activities are fully integrated across digital and traditional channels. The opportunity to grow revenues from multi-channel consumers requires investments in digital experiences that are too large for a single market, but which must provide flexibility for localization. The bottom line is that senior marketers need to adopt the global mindset that will let them displace strong organizational silos, specialized partners and a reliance on traditional single-channel campaigns in order to realize the benefits of cross-channel experiences. 5. Organizational structures. Too often, the three executive branches of CMO, CEO and CTO claim an overlapping interest in the area of digital experience, leading to a failure to organize efficiently for the new global marketing environment. Our research shows that 56% of marketers agree coordination between digital and traditional marketing teams is more challenging than five years ago silos and a lack of coordination are getting worse just as the need for collaboration is becoming greater.

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