Question 1 what are services?

Ans) Services are economic activities offered by one party to another, most commonly employing timebased performances to bring about desired results in recipients themselves or in objects or other assets for which purchasers have responsibility. Question 2 Service Categorization in 4 distinct categories

a) service industries includes those industries and companies typically classified within the service sector whose core product is service. e.g. TAJ PALACE HOTELS (LODGING) , Indian Airlines (aviation) b) services as a product represents a wide range of intangible products offering that customers value and pay for in the market place. service products are sold service companies and by non service companies such as manufacturer and technology companies e.g. IBM and HP c) customer service it is the service provided in support of a companys core product. companies generally does not charge for the customer service. e.g. Call centers facility d) derived services drawing on the work of respected economists, marketers and philosophers the two authors suggest that the value derived form the physical good is really the service provided by the good. e.g. a razor provides barbering service. , computers provide information and data manipulation service Question 3 Tangibility Spectrum Question 4) characteristics of services compared to goods Ans) 1. Lack of ownership 2. Intangibility 3. Inseparability 4. Perishibility 5. Hetrogenity

Goods Tangible

services Intangible

Result Implications Services cannot be inventoried Services cannot be easily patented Services cannot be readily displayed

Standardized

Heterogeneous

Service delivery and customer satisfaction depend on employee and customer actions. service quality depends on many uncontrollable factors there is no such knowledge that the service delivered matches what was planned and promoted. Customers participate and affect the transaction Customer affect each other Employees affect the service outcome Decentralization may be essential Mass production is difficult

Production separate from consumption

Simultaneous Production and consumption

Non Perishable

it is difficult to synchronize supply and demand with services. Service cannot be returned or resold. ======================================================================= SERVICE MARKETING MIX 7 P of marketing Ques) Ans) 1. 2. 3. 4. Service market strategies Understanding the customer Building the service model Managing the customer Interface Implementing Service Strategies.

Perishable

IMPORTANCE OF SERVICE MARKETING

Relationships are Key

In service marketing, because there is no tangible product, relationships are key. Service marketers must understand the importance of listening to and understanding the needs of customers and prospective customers to build loyalty and trust. Ultimately, effective relationships in service marketing will lead to repeat sales and positive word-of-mouth.

Multiple Touchpoints

Service marketing involves many touchpoints for the consumer. Interactions with multiple people and experiences that are less tangible than when buying an actual product all impact the consumer perspective of the purchase process. Each of these touchpoints work together to establish a perception in the consumer's mind.

Services Proliferate
Consumers have many service options to choose from, and because the product is intangible, the challenge for the service marketer is to somehow make her services stand out from the crowd. Because service marketing is so prolific, marketers must think of ways to communicate the benefits of the service they offer in language that reflects consumer need and value.

Feedback Improves Service

Unlike the marketing process for a tangible product, service marketing actually involves the consumer in the marketing process. He is engaged in the process and contributes to a positive outcome. For this reason, it is important to seek consumer feedback and use that feedback to improve service marketing effectiveness.

Technology Impacts
Technology is having a major impact on the service economy. You can use technology to streamline service activities and provide do-it-yourself options for consumers. Internet-based services, for instance, allow consumers to participate actively in the service marketing process, often never involving contact with another human being.