ln18CuuC1lCn 1C SL8vlCLS

Meanlng And ueflnlLlon Cf Servlces

A servlce ls Lhe nonmaLerlal equlvalenL of a good A servlce provlslon ls an economlc
acLlvlLy LhaL does noL resulL ln ownershlp and Lhls ls dlfferenLlaLes lL from provldlng physlcal
goods
ln common way Lhe Lerm cannoL be applled Lo only personal servlces llke auLo
repalrlng halrcuLLlng servlces of denLlsLs legal consulLanLs and so on 1he markeLlng
experLs vlew Lhe problem ln a blL dlfferenL way 1he experL feels LhaL Lhe conLenLs of
servlces are much wlder
ueflnlLlon
A servlce an acLlvlLy or performance LhaL one parLy can offer Lo anoLher LhaL
essenLlally lnLanglble and does noL resulL ln Lhe ownershlp of anyLhlng lLs producLlon
may noL be Lled Lo a physlcal producL"
PlLl kC1LL8

Why Servlce MarkeLlng
' Why servlces markeLlng ' represenLs varlous facLors Lhrough whlch Lhe need of
servlces markeLlng came lnLo force 1he dlfferenL facLors responslble for Lhe
emerglng need for servlces markeLlng are as follows

1upward Lrend ln Lhe dlsposable lncome
ln pasL 10 years Lhe dlsposable lncome of
lndlan consumer has been found movlng upward 1hls Lrend ls found even ln Lhe
developlng counLles llke lndla where Lhe developmenLorlenLed secLor has opened
new [ob opporLunlLles and Lhe llberallzaLlon of economy ls openlng new vlsLas for
developmenL or corporaLe secLor makes ways for Lhe LransformaLlon of lndusLrlal
economy

2lncreaslng speclallzaLlon
eople are llvlng ln an age lf speclallzaLlon ln whlch only perfecLlon ls Lo be
rewarded sulLably More and more sophlsLlcaLlon ln Lhe process of economlc LransformaLlon
Changlng llfesLyle
WlLh Lhe developmenL of corporaLe culLure and Lhe emergence of a well
esLabllshed servlces secLor Lhere would be a baslc change ln Lhe llfesLyle
4 lncreaslng llLeracy raLe
uue Lo educaLlon mlsslon of governmenL of lndla now Lhe average llLeracy raLe ln
lndla ls lncreaslng naLlonwlde especlally ln backward reglon of lndlan sLaLes
3 rofesslonallsm ln educaLlon
1he developmenL of human resources would be glven a LranscendenLal prlorlLy by
almosL all Lhe organlzaLlons elLher produclng goods or generaLlng servlces
6 lnformaLlon exploslon
1he developed counLrles have been found maklng slncere efforLs Lo bulld a
superhlghway for communlcaLlons
7 SophlsLlcaLlon ln markeL
WlLh Lhe developmenL of communlcaLlon servlces lL us naLural LhaL one flnds
sophlsLlcaLlon ln Lhe markeL where cusLomers expecLaLlons would be found hlgh
8lncreaslng governmenLal acLlvlLles
1he expandlng governmenLal acLlvlLles due malnly Lo Lhe parLlclpaLlon of sLaLe ln
almosL all secLors of Lhe economy would also make ways for Lhe developmenL of servlces
secLor
1he governmenL plans and pollcles llke 3 year developmenL plans Mn8LCA 81l AcL
CAA81 eLc
ulfference beLween goods and servlces ln markeLlng
8asls of dlfference Coods Servlces

1anglblllLy Coods are Langlble slnce
people can Louch see or buy
lLgoods are paLenLed
Servlces are lnLanglble
because people cannoL
Louch or cuL lL Servlces
cannoL be paLenLed
8eselllng 8eselllng ls posslble ln case
Cf goods
8eselllng ls noL posslble ln
servlces
MarkeLlng mlx 1radlLlonal 4 ps of markeLlng
mlx
AugmenLed or exLended 7 ps
of markeLlng mlx
roducLlon Mass producLlon ls easy Mass producLlon ls dlfflculL

MyLhs AbouL servlces
MarkeLlng was orlglnally bullL on a goodscenLered manufacLurlngbased model of
economlc exchange developed durlng Lhe lndusLrlal revoluLlonslnce lLs beglnnlng markeLlng
has been broadenlng lLs perspecLlve Lo lnclude Lhe exchange of more Lhan manufacLured
goods
Some of Lhe myLhs perLalnlng Lo servlces are dlscussed below
1 Lower value mlsconcepLlon
1he lower value mlsconcepLlon regrds servlces as somehow less lmporLanL Lhan
producLs
Lxample
An auLomoblle dellvers flexlble LransporLaLlon or a personal lmage boLh
servlces
2 Low caplLal lnLenslLy
1he low caplLal lnLenslLy percepLlon asserLs LhaL servlce lndusLrles are
much less caplLal lnLenslve and Lechnologlcal LhaL manufacLurlng
Small scale mlsconcepLlon
1he mlsconcepLlon abouL small kscale vlew Lhe servlce secLor as Loo small and
dlffuse Lo buy ma[or Lechnologlcal sysLems
4 Servlces cannoL provlde wealLh
1haL servlces cannoL provlde wealLh ls myLh based on Lhe vlew LhaL wealLh has
been Lhe hallmark of Lhe lndusLrlal



CCnCL1 Cl SL8vlCL MA8kL1lnC 18AlAnCLL

Servlces markeLlng ls abouL promlsespromlses made and promlses kepL Lo
cusLomers A sLraLeglc framework known as Lhe servlces Lrlangle vlsually relnforces
Lhe lmporLance of people ln Lhe ablllLy of flrms Lo keep Lhelr promlses and succeed
ln bulldlng cusLomer relaLlonshlps 1he Lrlangle shows Lhe Lhree lnLerllnked groups
LhaL work LogeLher Lo develop promoLe and dellvery servlces

1he key players are labelled on Lhe polnLs of Lhe Lrlangle
1) 1he company
2) 1he cusLomers
) 1he provlders

Company


lnLernal markeLlng exLernal markeLlng
Lnabllng maklng promlses
romlses

rovlders cusLomers
llg servlces markeLlng Lrlangle

Servlces markeLlng mlx
MarkeLlng mlx for servlces ls an exLenslon of Lhe markeLlng mlx for producLs and goods as a
few more elemenLs are added ln addlLlon Lo Lhe 4
Lh
markeLlng mlx of Lhe producLs 1he
markeLlng mlx for servlces conslsLs of more elemenLs llke people physlcal evldence and
processes Lo caLer Lo Lhe unlque needs of servlces markeLlng Lhus Lhe markeLlng makes for
Lhe servlces ls consldered Lo conslsL of 7 p's
uef
1he markeLlng mlx refers Lo Lhe sappolnLmenL of efforLs Lhe comblnaLlons Lhe
deslgnlng and Lhe lnLegraLlon of Lhe elemenLs of markeLlng lnLo a programme are mlx
whlch on Lhe bases of an appralsal of Lhe markeL forces wlll besL achlve an enLerprlse aL a
glven Llme"

8C8uLn






9models of servlce quallLy
1he deflnlLlon of hlgh quallLy ls nelLher sLaLlc nor ldenLlcal ln every slLuaLlon ZelLhaml
berry and parasuraman ldenLlfy four poLenLlal gaps wlLhln Lhe servlce organlzaLlon LhaL
may lead Lo a flnal and mosL serlous gap 1he defference beLween whaL cusLomers expecLed
and whaL organlzaLlon percelved ls known gap ln servlce quallLy 1here are four Lypes of gap
models glven by zelLhmal berry and parasuraman whlch are as follows



CusLomer gap
cusLomer

company
gap 4
gap

gap 1


gap 2


llg Caps model of servlce quallLy

CA 1 noL knowlng whaL cusLomer expecL
1hls flrsL Lype of gap ls one LhaL exlsL beLween Lhe expecLed servlce and Lhe percepLlon ofas
lL as been seenexpecLed servlce ls Lhe hlghesL level deslred servlce exlsLlng ln Lhe mlnds of
Lhe cusLomers Company percepLlons of consumer expecLaLlons or noLhlng buL Lhe
companys and undersLandlng of whaL Lhe cusLomers wanL

LxpecLed
servlce
ercelved
servlce
Servlce dellvery
LxLernal
communlcaLlons
Lo cusLomers
CusLomerdrlven servlce and
sLandards
Company percepLlons of
consumer expecLaLlon

WhaL causes Lhls gap? 1he Lyplcal reasons are
no dlrecL lnLeracLlon wlLh cusLomers
1he servlce provlders see Lhemselves as lndlfferenL or superlor Lo cusLomers 1hls Lyplcally
happens ln governmenLrun servlces such rallway or posLal deparLmenLs where Lhey would
noL wanL abouL cusLomers deslres
unwllllngness Lo ask cusLomers abouL expecLaLlons
Servlce provlders may belleve LhaL Lhey know whaL ls besL for Lhelr cusLomers Lhls ls Lhe
paLronlzlng aLLlLude Lowards Lhe cusLomers
unpreparedness Lo address Lhe expecLaLlons
1he servlce may be aware of Lhe shorL false buL may be unprepared Lo address Lhe lssue
mlsLake bellef LhaL Lhe may be LoleranL or LhaL Lhe laps Lo resulL ln loss of cusLomer
paLronlze
Lack of markeL segmenLaLlon Lo undersLand Lhe needs for each
segmenLaLlon
SegmenLaLlon ls usually done Lo undersLand Lhe needs of cusLomer more elaboraLely or
dlsLanLly lf Lhe needs are noL preclsely undersLood due Lo lack of segmenLaLlon quallLy
percepLlon ls llkely Lo be poor











CA 2 lnablllLy Lo seL Lhe rlghL of sLandards
1he cusLomer may have servlce sLandards expecLaLlons LhaL may be elLher hlgher or lower
Lhan Lhe sLandards LhaL seL by Lhe company
1he followlng reasons may cause Lhls gap
Absence of cusLomer drlven sLandards of servlce dellvery
1he sLandards for quallLy lmprovemenL of plannlng should be clearly Lhose whlch are
deslred by Lhe cusLomer raLher Lhan Lhose seL bL only servlce provlder
1hus Lhe lnvolvemenL of Lhe end user /cusLomer ln Lhe goalseLLlng process cruclal
Lo lL success
Absence of formal quallLy conLrol goals
lL ls noL enough Lo say LhaL quallflcaLlon ls noL posslble and Lhereforeformal goals
cannoL be seL for servlce dellvery Lven sub[ecLlve assessmenL may be vlLal ln seLLlng Lhe
sLandards
vague or and undeflned servlce deslgn
1he servlce deslgn may have been runnlng LradlLlonally for a number of years wlLhouL any
alLernaLlon or lL may have been borrowed from some oLher concepL ueflnlng Lhe servlce
would go a long way Lowards deLermlnlng Lhe sLandards of cusLomer saLlsfacLlon

CA noL dellverlng Lo servlce sLandards
1hls ls Lhe mosL common Lype of fallure broughL abouL by Lhe dayLoday dlfflculLles ln
servlces dellvery 1he common causes for Lhls fallure are
Lack of rlghL Lype of employees or Lhelr Lralnlng ln servlce dellvery
1he fronLend employees lnvolved ln servlce dellvery requlre cerLaln quallLles LhaL enable
Lhem Lo relaLe Lo and deal wlLh cusLomer 1hey requlre Lralnlng Lo achleve Lhls
Lack of empowermenL of Lhe employees
uelayed resoluLlon of a cusLomer demand for servlce usually resulLs ln dlssaLlsfacLlon lL may
be essenLlal Lo glve more declslonmaklng powers Lo Lhe fronLend employees ln order Lo
resolve dlspuLes qulckly and amlcably


Lack of Lralnlng Lo Lhe franchlsee's sLaff
Whenever servlce ls provlded by a franchlsee ln lleu of Lhe servlce provlder Lhe fronLend
employees of Lhe franchlsee requlre elaboraLe Lralnlng Lo be able Lo cope wlLh Lhe cusLomer
demands ln a sLandardlzed and predeLermlned manner
lallure Lo predlcL/maLch supply and demand flucLuaLlons
When demand for a parLlcular servlce exceeds Lhe supply capaclLy Lhe general Lendency ls
Lo shorLen Lhe process of Lhe servlce dellvery Lo speed up Lhe process usually ln Lhls case
Lhe quallLy of Lhe servlce dellvered deLerloraLes
lnsufflclenL cusLomer educaLlon
Lhe cusLomer ls as much lnvolved ln Lhe process of servlce provlder 1herefore Lralnlng Lhe
cusLomer Lo recelve Lhe servlce Lo derlve maxlmum beneflLs ls essenLlal
CA 4mlsmaLch beLween promlses and performance
1here ls a greaL LempLaLlon Lo promlse Lhe world ln order Lo wln over cusLomers however
lL would be elLher physlcally lmposslble or flnanclally unvlable Lo provlde all LhaL was
promlsed 1hls usually resulL ln cusLomers dlsappolnLmenL
1he Lyplcal reasons for Lhls klnd of fallure are
unreallsLlc communlcaLlon Lo cusLomers
ln Lhe anxleLy Lo sLrlke a deal or markeL Lhe servlce sales personnel promlse more Lhan
whaL Lhey can ever dellver Such communlcaLlon cab be elLher formal or lnformal usually
cusLomers seL Lhe servlce expecLaLlons accordlng Lo such dellvery and prlce quoLaLlons
Cver promlslng Lhrough adverLlsemenL or personal selllng
uurlng Lhe markeLlng phase Lhe sales force may go beyond Lhe orlglnal scrlpL Lo sLrlke Lhe
deal Whlle cusLomers may be losL Lo compeLlLlon due Lo under promlslng Lhey may be losL
due Lo over promlslng as well
Lack of lnLernal communlcaLlons
lf durlng Lhe personal selllng phase a commlLmenL was made Lo sLrlke Lhe deal lL ls essenLlal
Lo convey Lhls message Lo Lhe oLher people ln Lhe organlsaLlon especlally Lhe producLlon
Leams falllng whlch Lhey may noL be able Lo keep up wlLh Lhls addlLlonal conceded
demand