1.

Define Marketing of services as given by different experts, give a comparative study of

product and service marketing with examples.

Physical goods Services

tangible intangible
homogeneous heterogeneous
Production and distribution are separated Production, distribution and consumption are
from consumption simultaneous processes
A thing An activity or process
Core value processed in factory Core value produced in the buyer-seller interaction
Customers do not participate in the production
Customers participate in production
process
Can be kept in stock Cannot be kept in stock
Transfer of ownership No transfer of ownership

Most products have a service component, they could be

 Equipment based
 People based –varying skill levels

Services could meet

Personal needs –haircuts, tution, massage parlours
Business needs –courier services, office cleaning services, delivering fresh flowers
2. How the quality of services plays a role in price decision of service marketing? How
can the quality be improved in Banking Service and tourism service?

Price quality effect - customers are less price sensitive when they perceive the product offers
high quality , prestige , or exclusiveness
 3. How personal relationship plays a role in service marketing? Describe working in
schooling industry and Tiffin service for office goers.
PEOPLE ARE THE BRAND
“People buy from people.”

Relationship marketing can be defined as “process of attracting, maintaining, and in multi service
organizations, enhancing customer relationship”

RM to improve profitability

One of the major objectives of competitive marketing strategy is to improve the long term financial
performance. Relationship marketing by working towards improving profitability based on exploiting
its relationships serves this financial performance objective of marketing strategy. In fact, RM pays
off handsomely when products or services have high switching costs e.g. office automation system.
RM is profitable when customers are willing to stay with suppliers for a long period of time.
Transaction marketing on other hand pays when there are low switching costs.

The role of Relationship Marketing in Competitive Marketing Strategy has been studied. Both
transaction theories and social exchange theories should be used dependent on context to model
relational transactions.
RM is defined as the identification, establishment, maintenance, enhancement, modification and
termination of relationships with customers / consumers to create value for customers and profit
for organization by a series of on-going exchanges that have both a history and a future. Such
exchanges are called relational exchanges.
The role of RM in CMS includes
(a) Guide moments of Truth
(b) RM to improve profitability
(c) RM builds partnering
(d) Address ‘Customer Better’
(e) Buy in of Customer attention
(f) Protect Emotional well being
(g) Understand consumer psyche
(h) Build trust with customer.
All these roles are observed empirically in the hotel industry. However the role of RM varies from
hotel to hotel, with some placing emphasis on RM practices whereas others depend on their
extraordinary operations and services to engage the customer on a continuous basis. RM practices in
hotels include loyalty programs (dedicated loyalty programs are sometimes included), frequency
Marketing, tie-up with credit card companies, database marketing (local and central databases,
Segment focus), direct marketing, guest relationship program, preferred partner programs (one
Hotel had 350 preferred partners in city), direct email, newsletter, food festivals.

4. What roles do personal selling, advertising and public relation play in attracting new
customers and retaining old customers?
 5. How a customer perception is formed for a Hospitality unit? Describe the expectation
of adequate service and desired services in a Restaurant/ Fast food Service.

6. What do you understand by Blue print for a school for tailoring in a colony for girls?
How you can improve it for a fashion designing institute for twenty seats?

a) Demand and performance in a seasonal service.

b) Conversion of seasonal service into whole year service.
c) Yield management in property dealing service.
d) Shares and financial profile service.
e) Word of mouth as promotion in service industry.

Moments of truth
 It is the customer –service encounter
 Every positive or negative experience of the consumer would have fall-out on the overall service
experience

Satisfied employees will produce satisfied customers

 Morale
 Motivation
 Mood