Service

Marketing
( INTRODUCTION, CLASSIFICATION, CONSUMER BEHAVIOR ETC.
)

Presented to:Vivek Sir

Presented
Presented by:by:Mohit
Mohit Patodiya
Patodiya
rd sem
Mba
Mba 3
3rd
sem

What is Service
Marketing?
Activity or benefit that one party can
offer to another that is essentially
intangible and does not result in the
ownership of anything. Its production
may or may not be tied to a physical
product
Examples: Defense, Postal, Education, health, Religious
Services, Hospitals, Airlines, Hotels, Law Firms,
Entertainment, etc

Examples
:-

Health Care
hospital, medical practice, dentistry, eye care

Professional Services
accounting, legal, architectural

Financial Services
banking, investment advising, insurance

Hospitality
restaurant, hotel/motel, bed & breakfast
ski resort, rafting

Travel
airline, travel agency, theme park

Others
hair styling, pest control, plumbing, lawn maintenance,
counseling services, health club, interior design

Tangibility Spectrum

What is Service? The Old

View
Service is a technical after-sale function that is provided by the service
department.

Old view of service = Customer Service

Center

Old:
Service = wrench time

What is Service? The New

View
Service includes every interaction between any customer and
anyone representing the company, including:

Nature
of
Marketing

Service

1.INTANGIBILITY

.Services are intangible we cannot touch them as they are not physical objects.

.A consumer feels that he has the right and opportunity tosee,touch, hear, smell
or taste the goods before they buy them but his is not applicable to services.

.The services are not known to the customer before they take them .

EXAMPLE
Mobile network providers
like Vodafone , Airtel ,
Reliance , etc

2. PERISHABILITY
Value of service exists at the point when it is required.

Services perish as soon as they are used.

Services last for a specific time and cannot be stored like a product for
later use.

EXAMPLE

3. INSEPARABILITY

Services cannot be separated from the service provider.

Thus, the service provider would become a part of a service.

Production and consumption of services go hand in hand.

EXAMPLE

Taxi operator drives taxi, and the passenger uses it.

The presence of taxi driver is essential to provide the service.

4. HETEROGENEITY

The quality of services cannot be standardized.

Systems and procedures are put into place to make sure the service
provided is consistent.
The service firms should make an effort to deliver high and
consistent quality by selecting good and qualified personnel for
rendering the service

EXAMPLE

Live concerts like

singing , dancing and
comedy shows , movies ,
etc.

Classification of service
Consumer services

Pure services : Activities performed that do not include a tangible product.

Non-good services - Personal/professional service for a fee.

Example: tax preparation.

Owned-good services - Activities that alter, improve, or repair products already

owned.

Example: dry cleaning, appliance repair service.

Rented good services - Provide a product to use for a brief period for a fee.
Example: carpet cleaners, movie rental.

Classification on the basis of

involvement of customer
People processing
Level of involvement can vary.

Managers must think about processes / outputs in terms

of what happens to customers or what benefits are
created.

Identify non-financial costs, time, mental and physical

effort, fear, and pain etc.
Example : healthcare, beauty saloon, dentist, spa, tourism,
transportation, restaurant, lodging

Possession processing
Working to tight deadlines to restore customers
possessions to good working order.
People are less physically involved and usually, no real
need for them to enter the service; often limited to
requesting the service; explaining the problem or paying
the bill only.
Eg : post office /currier, laundry, ATM, warehousing,
landscaping, gardening, office cleaning, repair and
maintenance, freight transportation

Classification on the basis of

requirement of skill and expertise

Professional services
Requires a set of qualificaion skills
adequate training etc.eg lawyer, pilot
Non professional services
Do not require any set of skills training.
Eg house keeping, babysitting etc

Classification on the basis of end user

Consumer services: beauty case hair case
Business to business services: market research
and consultancy
Industrial services: maachine installations

Consumer behavior in service marketing

. ?
Consumer behavior is the study of how people make
decisions about what they buy, want, need, or act in regards
to a product, service, or company. It is critical to understand
consumer behavior to know how potential customers will
respond to a new product or service. It also helps companies
identify opportunities that are not currently met.

The Three Factors

Psychological Factors
In daily life, consumers are being affected by
many issues that are unique to their thought
process. Psychological factors can include
perception of a need or situation, the
person's ability to learn or understand
information, and an individual's attitude.
Each person will respond to a marketing
message based on their perceptions and
attitudes. Therefore, marketers must take
these psychological factors into account
when creating campaigns, ensuring that
their campaign will appeal to their target
audience.

Personal Factors
Personal factors are characteristics that are specific to a person and may
not relate to other people within the same group. These characteristics
may include how a person makes decisions, their unique habits and
interests, and opinions. When considering personal factors, decisions are
also influenced by age, gender, background, culture, and other personal
issues.
For example, an older person will likely exhibit different consumer
behaviors than a younger person, meaning they will choose products
differently and spent their money on items that may not interest a
younger
generation.
Social
Factors
The third factor that has a significant impact on consumer behavior is
social characteristics. Social influencers are quite diverse and can include
a person's family, social interaction, work or school communities, or any
group of people a person affiliates with. It can also include a person's
social class, which involves income, living conditions, and education
level. The social factors are very diverse and can be difficult to analyze
when developing marketing plans.

THANK YOU