MBA 031 : SUPPLY CHAIN MANAGEMENT Max.

Hours : 40 Unit I (8 Sessions) Introduction: Basic Concept & Philosophy of Supply Chain Management; Essential features, Various flows (cash , value and information), Key Issues in SCM, benefits and case examples. Unit II (12 Sessions) Logistics Management: Logistics as part of SCM, Logistics costs, different models, logistics sub-system, inbound and outbound logistics, bullwhip effect in logistics, Distribution and warehousing management. Purchasing & Vendor management: Centralized and Decentralized purchasing, functions of purchase department and purchase policies. Use of mathematical model for vendor rating / evaluation, single vendor concept, management of stores, accounting for materials. Unit III (12 Sessions) Inventory Management: Concept, various costs associated with inventory, various EOQ models, buffer stock ( trade off between stock out / working capital cost), lead time reduction, re-order point / re-order level fixation, exercises numerical problem solving , ABC, SDE / VED Analysis, Just-In-Time & Kanban System of Inventory management . Unit IV (8 Sessions) Recent Issues in SCM: Role of Computer / IT in Supply Chain Management, CRM Vs SCM, Benchmarking concept , Features and Implementation, Outsourcing-basic concept, Value Addition in SCM-concept of demand chain management. MBA 032: STRATEGIC MANAGEMENT Max. Hours: 40 UNIT I (8 Sessions) Introduction, Strategic Management, Business Policy, Corporate Strategy, Basic Concept of Strategic Management, Mission, Vision, Objectives, Impact of globalization, Basic Model of Strategic Management, Strategic Decision Making, Impact of Internet and E-Commerce, Role of Strategic Management in Marketing, Finance , HR and Global Competitiveness.

UNIT II (10 Sessions) Environmental Scanning, Industry Analysis, Competitive Intelligence ETOP Study, OCP, SAP Scanning, Corporate Analysis, Resource based approach, Value-Chain Approach, Scanning Functional Resources, Strategic Budget and Audit. UNIT III (10 Sessions) SWOT Analysis, TOWS Matrix, Various Corporate Strategies: Growth/ Expansion, Diversification, Stability, Retrenchment & Combination Strategy. Process of Strategic Planning, Stages of corporate development, Corporate Restructuring, Mergers & Acquisitions, Strategic Alliances, Portfolio Analysis, Corporate Parenting, Functional Strategy, BCG Model, G E 9 Cell , Porters Model: 5 Force and Porters Diamond Model, Strategic Choice . UNIT IV (12 Sessions) Strategy Implementation through structure, through Human Resource Management: through values and ethics. Mc Kinseys 7S Model, Organization Life Cycle, Management and Control, Activity based Costing, Strategic Information System . MBA 033: MANAGEMENT INFORMATION SYSTEM Max. Hours: 40 Unit I (12 Sessions) Introduction: Concept of Data and Information, Information Systems, Classification, Operations Support System (OSS), Management Support System (MSS), Transaction Processing System (TPS), Process Control System (PCS), Enterprise Collaboration System (ECS), Management Information System (MIS), Decision Support System (DSS), Artificial Intelligence(AI) , Applications Of Artificial Intelligence : Neural Networks, Fuzzy Logical Control System, Virtual Reality , Expert System(ES), Executive Information System(EIS), Cross Functional Information Systems Unit II (10 Sessions) Role of MIS: Strategic Advantage with MIS, Competitive Strategy Concept, The Value Chain and Strategic IS, Using IT for Strategic Advantage: Business Process Re-engineering, Creating a Virtual Company, Improving

Business Quality: Total Quality Management, Becoming an Agile Company, Building a Knowledge Creating Company Unit III (10 Sessions) Developing MIS Systems: System Development Life Cycle. , Investigation Phase, Prototyping, Feasibility Analysis, System Analysis (DFD and ER Diagram), System Design, Implementing Business Systems, Testing, Documenting, Training, Conversion and Maintenance Unit IV (8 Sessions) Applications: Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Security and Ethical Challenges Of IT, Ethical Responsibility - Business Ethics, Technology Ethics; Cyber Crime and Privacy Issues.

MBA 034: CONSUMER BEHAVIOR & MARKETING COMMUNICATION Max. Hours: 40 UNIT I (8 Sessions) Introduction: Defining consumer Behaviour, Reasons for Studying Consumer Behaviour, Understanding Consumer and Market Segments, Environmental Influences on Consumer Behaviour: Culture, Subcultures, Social Class, Reference Group and Family Influences, Personal Influences and Diffusions of Innovations. UNIT II (8 Sessions) Individual determinants of Consumer Behaviour , Motivation, Personality and Self Concept, Consumer Perception, Consumer Learning , Consumer Attitude Formation and Change. Consumer Decision Process: Problem Recognition, Search and Evaluation, Purchasing Processes, Post Purchase Behaviour , Consumer Behaviour Models, Consumerism, Organization Buying Behaviour. UNIT III (8 Sessions) Communication, Process of Communication, Marketing Communication, Objectives of Marketing

Communication, Integrated Marketing Communication (IMC), Factors contributing to IMC, Participants in IMC, IMC Promotion Mix, IMC Management & Planning Model, Challenges in IMC, Promotion Mix, Sponsorship: POP: Supportive Communication, Role of E-Commerce in Marketing Communication.

UNIT IV (16 Sessions) Advertising Management, Overview: Meaning, Nature and Scope of Advertising, Advertising and Other Promotional Tools, Role of Advertising in Promotion Mix, Process of Advertising, Customer and Competitor Analysis, STP Strategies for Advertising. Campaign Planning: Message Creation, Copywriting. Role of Creativity in Copywriting Media Planning, Testing of Advertising Effectiveness, Preparation and Choice of Methods of Advertising Budget, Ethical and Social Issues in Advertising, Management of Advertising Agencies, Role of Advertising in Natural Development. MBA MK 01 : MARKETING OF SERVICES Max. Hours : 40 UNIT I (8 Sessions) Introduction: Difference between Product and Services Marketing, Characteristics of Services Classification of Services, Paradigms in Services Marketing, Importance of Customer Relationship Management : Specific for Service Industry. Service Marketing System: Service Quality, Understanding Customer Expectations and Zone of Tolerance, Segmentation and Zone of Tolerance, Targeting and Positioning of Services UNIT II (16 Sessions) Services Marketing Mix: Augmented Marketing Mix, Developing the Service Product/ Intangible Product, Service Product Planning, Service Pricing Strategy, Services Promotions, Services Distributions. Physical Evidence: Role of Communication in Service Marketing, People and Internal Communication, Process of Operations and Delivery of Services, Role of Technology in Services Marketing. UNIT III (8 Sessions) Marketing of Financial Services: Deciding the Service Quality, Understanding the Customer Expectations,

Segmenting, Targeting and Positioning of Financial Services, Devising Financial Services, Marketing Mix Strategies with Special Reference to Credit Cards, Home Loans, Insurance and Banking, Marketing of Telecom/ Insurance Services. UNIT IV (8 Sessions) Services in Global Perspective: International Marketing of Services Recent Trends, Principal Driving Force in Global Marketing of Services, Key Decisions in Global Marketing, Services Strategy and Organizing for Global Marketing. MBA MK 02 : MARKETING RESEARCH Max. Hours : 40 UNIT I (10 Sessions) Introduction: Definition of Marketing Research, Objective of Marketing Research, Application of Marketing Research, Limitation of Marketing Research, Marketing Research during different phases of the administrative process. Marketing Information System : Concept, Need for Marketing Information System, Process of Marketing Information System, Components of Marketing Information System. Scientific Method of Investigation : Scientific Method, Scientific Method in the Physical Sciences and Marketing, Distinction between Scientific and Non-Scientific Method, Difficulties in Applying the Scientific Method to Marketing. Marketing Research Process UNIT II (8 Sessions) Research Design: Various Method of Research Design, Important Experimental Research Designs. Primary and Secondary Data: Methods of Collecting Primary Data, Advantages & Disadvantages of Primary Data & Secondary Data, Essentials Characteristics for Selecting Secondary Data. Basic Methods of Collecting Data: Questionnaire Method / Observation Method -Advantages & Disadvantages, Methods of Observation, Precautions in Preparation of Questionnaire & Collection of Data. UNIT III (8 Sessions)

Measurement and Scaling: Types of Scales, Difficulty of Measurement, Sources of Error, Criteria for a Good Scale, Development of Marketing Measures. Attitude Scales: The Concept of Attitude, Component of Attitude, General Procedure in Attitude Scaling, Selected Attitude Scales, Rating Methods, Limitations of Attitude Measurement. Sampling: What is Sampling, Objective of Sampling, Steps in Sample Design, Various Techniques of Sampling, Advantages & Disadvantages of Different Techniques of Sampling, Difference between Probability and Non-probability Sampling, Problem Associated with Sampling, Determining Sample Size. UNIT IV (10 Sessions) Data Processing, Analysis and Estimation, Hypothesis Testing, Bi-variate Analysis: Chi square, Correlation, Rank Correlation, Regression Analysis, Analysis of Variance. UNIT V (4 Sessions) Report Preparation: Types and Layout of Research Report; Precautions in Preparing the Research Report, Bibliography and Annexure in Report, Drawing Conclusions, Giving Suggestions and Recommendation to the Concerned Persons. MBA FM 01 : MANAGEMENT OF WORKING CAPITAL Max. Hours : 40 Unit I : Introduction to Working Capital (10 Sessions) Nature, Scope and Definition of Working Capital, Working Capital Cycle, Assessment and Computation of Working Capital Requirement, ProfitabilityLiquidity trade-off, Working Capital Policy Aggressive & Defensive. Overview of Working Capital Management Unit II : Management of Cash and Marketable Securities (8 Sessions) Meaning of Cash, Motives for holding cash, objectives of cash management, factors determining cash needs, Cash Management Models, Cash Budget, Cash Management: basic strategies, techniques and processes, compensating balances ; Marketable Securities: Concept, types, reasons for holding marketable securities, alternative strategies, choice of securities; Cash Management Practices in India. Unit III: Management of Receivables & Inventory (12 Sessions)

Receivables: Nature & cost of maintaining receivables, objectives of receivables management, factors affecting size of receivables, policies for managing accounts receivables, determination of potential credit policy including credit analysis, credit standards, credit period, credit terms, etc; Collection Policies; Credit Management in India. Inventory: Need for monitoring & control of inventories, objectives of inventory management, Benefits of holding inventory, risks and costs associated with inventories, Inventory Management: Minimizing cost in inventory, Techniques of Inventory Management - Classification, order quantity, order point etc. Unit IV: Working Capital Financing (8 Sessions) Need and objectives of financing of working capital, short term credit, mechanism and cost-benefit analysis of alternative strategies for financing working capital : accrued wages and taxes, accounts payable, trade credit, bank loans, overdrafts, bill discounting, commercial papers, certificates of deposit, factoring, secured term loans, etc; Pattern and sources of Working Capital Financing in India, with reference to Government policies.

MBA FM 02 : SECURITY ANALYSIS AND INVESTMENT MANAGEMENT Max. Hours : 40 Unit I (08 Sessions) Overview of Capital Market: Market of securities, Stock Exchange and New Issue Markets - their nature, structure, functioning and limitations; Trading of securities: equity and debentures/ bonds. Regulatory Mechanism: SEBI and its guidelines; Investor Protection. Unit II (14 Sessions) Risk & Return : Concept of Risk, Measures of risk and return, calculation, trade off, systematic and unsystematic risk components. Nature of Stock Markets: EMH (Efficient Market Hypothesis) and its implications for investment decision. Valuation of Equity: Nature of equity instruments, Equity Valuation Models. Approaches to Equity Valuation: Technical Approach overview of concept & tools used and

Fundamental Approach economy, industry and company analysis Valuation of Debentures/Bonds : nature of bonds, valuation, Bond theorem, Term structure of interest rates, Duration. Valuation of Derivatives(Options and futures): concept, trading, valuation. Unit III (10 Sessions) Portfolio Analysis and Selection: Portfolio concept, Portfolio risk and return, Beta as a measure of risk, calculation of beta, Selection of Portfolio: Markowitzs Theory, Single Index Model, Capital market theorem, CAPM (Capital Asset Pricing Model) and Arbitrage Pricing Theory. Unit IV (8 Sessions) Portfolio Management and Performance Evaluation: Performance evaluation of existing portfolio, Sharpe and Treynor measures; Finding alternatives and revision of portfolio; Portfolio Management and Mutual Fund Industry .
A management information system (MIS) is a system that provides information needed to manage organizations efficiently and effectively.
[1]

Management information systems involve three primary resources: technology, information, and people. It's important to recognize that while all

three resources are key components when studying management information systems, the most important resource is people[according to whom?]. Management information systems are regarded as a subset of the overall internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. [2]Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. decision support systems, expert systems, and executive information systems.[2] Contents
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1 Overview 2 Types of information management systems 3 Advantages of information management systems 4 Enterprise applications 5 See also 6 References

7 External links

Overview

Initially in businesses and other organizations, internal reporting was made manually and only periodically, as a by-product of the accounting system and with some additional statistic(s), and gave limited and delayed information on management performance. Previously, data had to be separated individually by the people as per the requirement and necessity of the organization. Later, data was distinguished from information, and so instead of the collection of mass of data, important and to the point data that is needed by the organization was stored.

Earlier, business computers were mostly used for relatively simple operations such as tracking sales or payroll data, often without much detail. Over time, these applications became more complex and began to store increasing amount of information while also interlinking with previously separate information systems. As more and more data was stored and linked man began to analyze this information into further detail, creating entire management reports from the raw, stored data. The term "MIS" arose to describe these kinds of applications, which were developed to provide managers with information about sales, inventories, and other data that would help in managing the enterprise. Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems,resource and people management applications, enterprise resource planning (ERP), enterprise performance management (EPM), supply chain management(SCM), customer relationship management (CRM), project management and database retrieval applications.

"The five eras are general-purpose mainframe and minicomputer computing, personal computers, client/server networks, enterprise computing, and cloud computing."(Management Information Systems: Managing the Digital Firm, 11th Edition. Prentice Hall/CourseSmart, 12/30/2008. p. 164). The first era was ruled by IBM and their mainframe computers, these computers would often take up whole rooms and require teams to run them, IBM supplied the hardware and the software. As technology advanced these computers were able to handle greater capacities and therefore reduce their cost. By 1965 microprocessors began to take the market away from mainframe computers. This technology allowed small desktop computers to do the same work that it previously would have taken a room full of computers. This also decentralized computing power from large data centers to smaller offices. In the late 1970s minicomputer technology gave way to personal computers. Now for a relatively low cost anyone could have a computer in his own home. This allowed for businesses to give their employees access to computing power that 10 years before would have cost tens of thousands of dollars. This proliferation of computers also helped create a need to connect these computers together on a network giving birth to the Internet. As technology has increased and cheapened the need to share information across a large company had also grown, this gave way to the client/server era. With this era computers on a common network were able to access shared information on a server. This allows for large amounts of data to be accessed by thousands and even millions of people simultaneously. The latest evolution of Information Systems is cloud computing a recent development, cloud computing lets users access data stored on a server, where they can not only see the data but also edit, save, download or upload. This along with high speed networks has led to a much more mobile view of MIS. In cloud computing the manager does not have to be at a desk to see what their employees are working on but instead can be on a laptop, tablet pc, or even smartphone.

An 'MIS' is a planned system of the collection, processing, storage and dissemination of data in the form of information needed to carry out the management functions. In a way, it is a documented report of the activities that were planned and executed. According to Philip Kotler "A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers."[3]

The terms MIS and information system are often confused. Information systems include systems that are not intended for decision making. The area of study called MIS is sometimes referred to, in a restrictive sense, as information technology management. That area of study should not be confused

with computer science. IT service management is a practitioner-focused discipline. MIS has also some differences with ERP which incorporates elements that are not necessarily focused on decision support.

The successful MIS must support a business's Five Year Plan or its equivalent. It must provide for reports based upon performance analysis in areas critical to that plan, with feedback loops that allow for titivation of every aspect of the business, including recruitment and training regimens. In effect, MIS must not only indicate how things are going, but why they are not going as well as planned where that is the case. These reports would include performance relative to cost centers and projects that drive profit or loss, and do so in such a way that identifies individual accountability, and in virtual real-time.

Any time a business is looking at implementing a new business system it is very important to use a system development method such as system development life cycle. The life cycle includes analysis, requirements, design, development, testing and implementation.

Types of information management systems

There are many types of information management systems in the market that provide a wide range of benefits for companies.

Transaction processing systems (TPS) collect and record the routine transactions of an organization. Examples of such systems are

sales order entry, hotel reservations, payroll, employee record keeping, and shipping.

Management information systems (MIS) produce fixed, regularly scheduled reports based on data extracted and summarized from the

firms underlying transaction processing systems (TPS) to middle and operational level managers to provide answers to structured and semistructured decision problems.

Decision-support systems (DSS) are computer program applications used by middle management to compile information from a wide

range of sources to solve problems and make decisions.

Executive support systems (ESS) is a reporting tool that provides quick access to summarized reports coming from all company levels

and departments such as accounting, human resources and operations.

Advantages of information management systems

The following are some of the benefits that can be attained for different types of information management systems.[4]

The company is able to highlight their strength and weaknesses due to the presence of revenue reports, employee performance records

etc. The identification of these aspects can help the company to improve their business processes and operations.

Giving an overall picture of the company and acting as a communication and planning tool. The availability of the customer data and feedback can help the company to align their business processes according to the needs of the

customers. The effective management of customer data can help the company to perform direct marketing and promotion activities.

Information is considered to be an important asset for any company in the modern competitive world. The consumer buying trends and

behaviors can be predicted by the analysis of sales and revenue reports from each operating region of the company

Limitations on Management Information Systems

By Osmond Vitez, eHow Contributor

A Management Information System (MIS) is a valuable tool company management uses to gauge the effectiveness of their business operations. The MIS can provide detailed insight to certain portions of a company and also assist management with making critical business decisions. While the style and format of the MIS has changed over the years, its use in management decisions has increased greatly.

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The Facts
o
An MIS is one method a company uses to obtain reliable information regarding its business operations. The MIS should not be concerned with whether the information can be retrieved, but rather how and what information should be retrieved so management can make effective decisions. Once information is provided through the MIS, decisions can be made regarding the effectiveness of business operations. Limitations do exist with an MIS, such as the expense to create and implement an MIS, training time for employees, lack of flexibility and capturing wrong or incomplete information.

MIS Expense
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MIS implementation can be very expensive for companies looking to manage their operations more effectively. All divisions and processes must be reviewed when determining what information management wants extracted for decision purposes. The cost of this review followed by the installation costs can be extremely expensive for large companies. Additionally, new employee hiring or employee training related to the MIS can also add to the implementation costs.

Employee Training
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Properly trained employees are a critical part of an MIS. Employees are at the front lines of business operations and create or manage the daily activities of the company. If an MIS finds a system flaw or management decides to change a process based on the MIS information, re-training employees will usually be required. The length and depth of the training may vary, making it difficult to estimate the cost of this training. Management will also have to account for the lost productivity during this training period.

MIS Flexibility
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Once an MIS is created and installed in a company, it may prove to be an inflexible system. Making changes quickly to reflect fluctuating business operations may not be possible depending on the MIS style and functionality. While correcting policies such as internal controls or operating procedures may be easy, company-wide changes such as service changes, production enhancements or marketing strategy may not be simple. Major business changes will require major changes to the MIS, leading to increased costs and downtime of information reporting.

Information Flaws
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The MIS is designed to provide information to management so sound decisions can be made regarding company operations. The biggest flaw an MIS can have is pulling incorrect or inadequate information for management. This problem results in wasted time and money for the company, leading to another review of the MIS to correct the information flaws.

Marketing 01
Improve

1) Marketing Definition MARKETING includes identifying unmet needs; producing products and services to meet those needs: and pricing, distributing, and promoting those products and services to produce a profit. Marketing is an integrated communications-based process through which individuals and communities discover that existing and newlyidentified needs and wants may be satisfied by the products and services of others. Marketing is defined by the American Marketing Association as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. [1] The term developed from the original meaning which referred literally to going to market, as in shopping, or going to a market to buy or sell goods or services. The Chartered Institute of Marketing defines marketing as "The management process responsible for identifying, anticipating and satisfying customer requirements profitably."[2] Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and selling. Four Factors That Distinguish Services Marketing It's been called "selling the invisible"-delivering intangible services as a core "product" offering. But invisibility, or intangibility, is just one factor that distinguishes services marketing from product marketing. Along with inseparability, variability, and perishability, these four characteristics affect the way clients behave during the buying process and the way organizations must interact with them. Differences between service marketing and product marketing 1. When you are marketing a service, you are really marketing relationship and value. This relationship and value needs to be marketed differently than if you are marketing actual products. 2. Another major difference between marketing services and marketing products is that when a buyer purchases a service, the buyer is purchasing something that is intangible, instead of a tangible product, like a computer or a sprinkler system or a web page. 3. Consumers' concept of a service is often times based on just the reputation of only one single person. Instead of building a reputation based on the quality of a number of different products, a service is built on how well a particular person delivers on a service, such as how well a stock advisor does with your stock portfolio. 4. It is pretty easy to compare the quality of different products. It's easy for you to see if one computer works more quickly than another computer, or if one TV has a better picture than another picture, or if your child can break a toy more easily than another toy. However, it is much more difficult to compare the quality of similar services that are provided. 5. Products are returnable. However, services are not returnable. How to market services Generally speaking, marketing a product requires what are known as the "4 P's": Product, Price, Place, and Promotion. Marketing a service adds three more "P's" to the traditional "4 P's": People, Physical evidence, and Process. Service marketing also includes marketing what is known as the servicescape, which is the aesthetics of your business place: the outside of your business building, the inside of your business building, and the way that the employees look. OR Services marketing Services marketing is marketing based on relationship and value. It may be used to market a service or a product. Marketing a service-base business is different from marketing a goods-base business. There are several major differences, including:

1. 2. 3. 4.

The buyer purchases are intangible. The service may be based on the reputation of a single person. It's more difficult to compare the quality of similar services.

The buyer cannot return the service. The major difference in the education of services marketing versus regular marketing is that instead of the traditional "4 P's," Product, Price, Place, Promotion, there are three additional "P's" consisting of People, Physical evidence, and Process.[1] Service marketing also includes the servicewomen referring to but not limited to the aesthetic appearance of the business from the outside, the inside, and the general appearance of the employees themselves. Service Marketing has been relatively gaining ground in the overall spectrum of educational marketing as developed economies move farther away from industrial importance to service oriented economies. What is marketing? Marketing is the flow of goods and services from the producer to consumer. It is based on relationship and value. In common parlance it is the distribution and sale of goods and services. Marketing can be differentiated as:

Marketing of products Marketing of services.

Marketing includes the services of all those indulged may it be then the wholesaler retailer, Warehouse keeper, transport etc. In this modern age of competition marketing of a product or service plays a key role. It is estimated that almost 50% of the price paid for a commodity goes to the marketing of the product in US. Marketing is now said to be a term which has no particular definition as the definitions change everyday. Product marketing Product marketing deals with the first of the "4P"'s of marketing, which are Product, Pricing, Place, and Promotion. Product marketing, as opposed to product management, deals with more outbound marketing tasks. For example, product management deals with the nuts and bolts of product development within a firm, whereas product marketing deals with marketing the product to prospects, customers, and others. Product marketing, as a job function within a firm, also differs from other marketing jobs such as Marcom or marketing communications, online marketing, advertising, marketing strategy, etc.

A Product Market is something that is referred to when pitching a new product to the general public. The people you are trying to make your product appeal to is your consumer market. For example: If you were pitching a new video game console game to the public, your consumer market would probably be the adult male Video Game market (depending on the type of game). Thus you would carry out market research to find out how best to release the game. Likewise, a massage chair would probably not appeal to younger children, so you would market your product to an older generation

The Characteristics of a service that are: (1) Lack of ownership (2) Intangibility (3) Inseparability (4) Perishability (5) Heterogeneity.
Service characteristics
Services can be paraphrased in terms of their generic key characteristics.

1. Intangibility

Services are intangible and insubstantial: they cannot be touched, gripped, handled, looked at, smelled, tasted or heard. Thus, there is neither potential nor need for transport, storage or stocking of services. Furthermore, a service cannot be (re)sold or owned by somebody, neither can it be turned over from the service provider to the service consumer nor returned from the service consumer to the service provider. Solely, the service delivery can be commissioned to a service provider who must generate and render the service at the distinct request of an authorized service consumer.

2. Perishability

Services are perishable in two regards

The service relevant resources, processes and systems are assigned for service delivery during a definite period in time. If the

designated or scheduled service consumer does not request and consume the service during this period, the service cannot be performed for him. From the perspective of the service provider, this is a lostbusiness opportunity as he cannot charge any service delivery; potentially, he can assign the resources, processes and systems to another service consumer who requests a service. Examples: The hair dresser serves another client when the scheduled starting time or time slot is over. An empty seat on a plane never can be utilized and charged after departure.

When the service has been completely rendered to the requesting service consumer, this particular service irreversibly vanishes as it has

been consumed by the service consumer. Example: the passenger has been transported to the destination and cannot be transported again to this location at this point in time.

3. Inseparability

The service provider is indispensable for service delivery as he must promptly generate and render the service to the requesting service consumer. In many cases the service delivery is executed automatically but the service provider must preparatorily assign resources and systems and actively keep up appropriate service delivery readiness and capabilities. Additionally, the service consumer is inseparable from service delivery because he is involved in it from requesting it up to consuming the rendered benefits. Examples: The service consumer must sit in the hair dresser's shop & chair or in the plane & seat; correspondingly, the hair dresser or the pilot must be in the same shop or plane, respectively, for delivering the service.

4. Simultaneity

Services are rendered and consumed during the same period of time. As soon as the service consumer has requested the service (delivery), the particular service must be generated from scratch without any delay and friction and the service consumer instantaneously consumes the rendered benefits for executing his upcoming activity or task.

5. Variability

Each service is unique. It is one-time generated, rendered and consumed and can never be exactly repeated as the point in time, location, circumstances, conditions, current configurations and/or assigned resources are different for the next delivery, even if the same service consumer requests the same service. Many services are regarded as heterogeneous or lacking homogeneity and are typically modified for each service consumer or each new situation (consumerised). Example: The taxi service which transports the service consumer from his home to the opera is different from the taxi service which transports the same service consumer from the opera to his home another point in time, the other direction, maybe another route, probably another taxi driver and cab.

Each of these characteristics is retractable per se and their inevitable coincidence complicates the consistent service conception and make service delivery a challenge in each and every case. Proper service marketing requires creative visualization to effectively evoke a concrete image in the service consumer's mind. From the service consumer's point of view, these characteristics make it difficult, or even impossible, to evaluate or compare services prior to experiencing the service delivery.
Service Marketing Mix
January 2, 2011 By Hitesh Bhasin 4 Comments The service marketing mix is also known as an extended marketing mix and is an integral part of a service blueprint design. The service marketing mix consists of 7 Ps as compared to the 4 Ps of a product marketing mix. Simply said, the service marketing mix assumes the service as a product itself. However it adds 3 more Ps which are required for optimum service delivery.

The product marketing mix consists of the 4 Ps which are Product, Pricing, Promotions and Placement. These are discussed in my article on product marketing mix the 4 Ps. The extended service marketing mix places 3 further Ps which include People, Process and Physical evidence. All of these factors are necessary for optimum service delivery. Let us discuss the same in further detail. Product The product in service marketing mix is intangible in nature. Like physical products such as a soap or a detergent, service products cannot be measured. Tourism industry or the education industry can be an excellent example. At the same time service products are heterogenous, perishable and cannot be owned. The service product thus has to be designed with care. Generally service blue printing is done to define the service product. For example a restaurant blue print will be prepared before establishing a restaurant business. This service blue print defines exactly how the product (in this case the restaurant) is going to be. Place - Place in case of services determine where is the service product going to be located. The best place to open up a petrol pump is on the highway or in the city. A place where there is minimum traffic is a wrong location to start a petrol pump. Similarly a software company will be better placed in a business hub with a lot of companies nearby rather than being placed in a town or rural area. Promotion Promotions have become a critical factor in the service marketing mix. Services are easy to be duplicated and hence it is generally the brand which sets a service apart from its counterpart. You will find a lot of banks and telecom companies promoting themselves rigorously. Why is that? It is because competition in this service sector is generally high and promotions is necessary to survive. Thus banks, IT companies, and dotcoms place themselves above the rest by advertising or promotions. Pricing Pricing in case of services is rather more difficult than in case of products. If you were a restaurant owner, you can price people only for the food you are serving. But then who will pay for the nice ambience you have built up for your customers? Who will pay for the band you have for music? Thus these elements have to be taken into consideration while costing. Generally service pricing involves taking into consideration labor, material cost and overhead costs. By adding a profit mark up you get your final service pricing. You can also read about pricing strategies. Here on we start towards the extended service marketing mix. People People is one of the elements of service marketing mix. People define a service. If you have an IT company, your software engineers define you. If you have a restaurant, your chef and service staff defines you. If you are into banking, employees in your branch and their behavior towards customers defines you. In case of service marketing, people can make or break an organization. Thus many companies nowadays are involved into specially getting their staff trained in interpersonal skills and customer service with a focus towards customer satisfaction. In fact many companies have to undergo accreditation to show that their staff is better than the rest. Definitely a USP in case of services. Process Service process is the way in which a service is delivered to the end customer. Lets take the example of two very good companies Mcdonalds and Fedex. Both the companies thrive on their quick service and the reason they can do that is their confidence on their processes. On top of it, the demand of these services is such that they have to deliver optimally without a loss in quality. Thus the process of a service company in delivering its product is of utmost importance. It is also a critical component in the service blueprint, wherein before establishing the service, the company defines exactly what should be the process of the service product reaching the end customer. Physical Evidence The last element in the service marketing mix is a very important element. As said before, services are intangible in nature. However, to create a better customer experience tangible elements are also delivered with the service. Take an example of a restaurant which has only chairs and tables and good food, or a restaurant which has ambient lighting, nice music along with good seating arrangement and this also serves good food. Which one will you prefer? The one with the nice ambience. Thats physical evidence. Several times, physical evidence is used as a differentiator in service marketing. Imagine a private hospital and a government hospital. A private hospital will have plush offices and well dressed staff. Same cannot be said for a government hospital. Thus physical evidence acts as a differentiator. This is the service marketing mix (7p) which is also known as the extended marketing mix.

The Service marketing mix involves analysing the 7p of marketing involving, Product, Price, Place, Promotion, Physical Evidence, Process and People.

To certain extent managing services are more complicated then managing products, products can be standardised, to standardise a service is far more difficult as there are more input factors i.e. people, physical evidence, process to manage then with a product. .
Services marketing is a sub field of marketing, which can be split into the two main areas of goods marketing (which includes the marketing of fast moving consumer goods (FMCG) and durables) and services marketing. Services marketing typically refers to both business to consumer (B2C) and business to business (B2B) services, and includes marketing of services like telecommunications services, financial services, all types of hospitality services, car rental services, air travel, health care services and professional services. The range of approaches and expressions of a marketing idea developed with the hope that it be effective in conveying the ideas to the diverse population of people who receive it.

Services are economic activities offered by one party to another. Often time-based, performances bring about desired results to recipients, objects, or other assets for which purchasers have responsibility. In exchange for money, time, and effort, service customers expect value from access to goods, labor, professional skills, facilities, networks, and systems; but they do not normally take ownership of any of the physical elements involved.[1]

There has been a long academic debate on what makes services different from goods. The historical perspective in the late-eighteen and earlynineteenth centuries focused on creation and possession of wealth. Classical economists contended that goods were objects of value over which ownership rights could be established and exchanged. Ownership implied tangible possession of an object that had been acquired through purchase, barter or gift from the producer or previous owner and was legally identifiable as the property of the current owner.

Adam Smiths famous book, The Wealth of Nations, published in Great Britain in 1776, distinguished between the outputs of what he termed productive and unproductive labor. The former, he stated, produced goods that could be stored after production and subsequently exchanged for money or other items of value. But unproductive labor, however honorable,useful, or necessary created services that perished at the time of production and therefore didnt contribute to wealth. Building on this theme, French economist Jean-Baptiste Say argued that production and consumption were inseparable in services, coining the term immaterial products to describe them.