SESSION 1,2 & 3 Introduction to the Course & Service Economy

By Dr. Nripendra Singh Jaypee Business School, Noida Agenda

Introduction to the Course Assessment Process Services Sector in India Different Services Assignment

Introduction to the Course

Name: Services Management Code: M2CMM03 (Core Course - Marketing)

Assessment Process
The major components of evaluation process will include: Project Work 15% Quiz 15% Mid-Term Test 30%(Short Answer Types) End-Term Exam 40% (Descriptive and Case based)

1) Use CMIE Databases to do a meaningful Research-CMIE/Industry research, 2) 2) OR, Industry Analysis on one of the sub-sectors, Analysis/Case/Paper out of 160 mentioned in GATS, It should cover atleast: Description, type of business, SWOT. Policies and restrictions for the Sub-sector. World scenario of that service Industry: leading markets/countries, size, growth rate, top players, trends, characteristic features etc. Indian scenario of that service Industry: leading market/state, size, growth rate, top players, trends, characteristic features etc. 3) OR, Develop cases on unique service business in India/world 4) OR, TWO research paper from EBSCO or Emerald online journal to be summarized with your own discussion on it. Note: Group Size 7 students, as per attendance order only. Written Proposal to be submitted on Saturday-15 Oct to CR. Final Submission on 12 Nov to CR.

CLASS COMMITTEE & CRs

The purpose of CC is to reduce gaps between faculty teaching and students understanding of the course. CC will have a minimum of 5% of the students. The task of the CC will be to keep the faculty updated with students problems and issues related to this course only. They will bring in issues for the discussion which are ONLY academic in nature. They will also take formal and informal feedback atleast twice and submit it to the faculty. They need to meet the faculty atleast once every week, preferably on Saturday evenings, and submit minutes of the meeting on every Monday.

Why do we need to study this course?

Applicability to Business, due to structural change Service Sectors contribution in GDP Limited Knowledge to Manage this Sector As a Competitive Tool, due to societal change

Dependency of Manufacturing on Services

Stages of Economic Activity

Percent Employment in Services for Selected Nations (1980-2000)

New Experience Economy

Service Sector in India

This sector has been growing at an annual growth rate of about 28% during the last 5 years. The exports have grown up from US $ 19.1 billion to US $ 73 billion in 2006. Presently services sector account for about 57% of Indias GDP. India ranks 15th in Services output and provides 23% of total workforce. Indias share in worldwide service exports is expected to almost triple itself from current 2.3 % to 6 % by 2012, if the 1-10 present annual growth rate of 28% is

 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 airlines, travel agencies, theme park Others: hair styling, pest control, plumbing, 1-11 lawn maintenance, counseling

Different types of Services

What are Services?

Adam Smith: productive-unproductive labour did not contribute to wealth. Jean Baptiste: Immaterial products simultaneous prod. & consumption. Lovelock et. al.: performances, offering desired results (expected value) to customers in exchange for their money, time and efforts. The value comes from access to a variety of valuecreating elements rather than from transfer of ownership.

Tangibility Spectrum
Salt

Soft Drinks Detergents Automobiles Cosmetics Fast-food Outlets

Intangible Dominant

Tangible Dominant

Fast-food Outlets

Advertising Agencies Airlines Investment Management Consulting

Teaching

Marketing Challenges: due to following characteristics

Intangibility Heterogeneity

Simultaneous Production Perishability and Consumption

Services are Different

Goods
Tangible

Services
Intangible

Resulting Implications
Services cannot be inventoried. Services cannot be patented. Services cannot be readily displayed or communicated. Pricing is difficult.

Standardized

Heterogeneous Service delivery and customer satisfaction depend on employee actions. Service quality depends on many uncontrollable factors. There is no sure knowledge that the service delivered matches what was planned and promoted. Simultaneous production and consumption Customers participate in and affect the transaction. Customers affect each other. Employees affect the service outcome. Decentralization may be essential. Mass production is difficult. It is difficult to synchronize supply and demand with services. Services cannot be returned or resold.

Production separate from consumption

Nonperishable Perishable

Expanded Marketing Mix for Services

PEOPLE
Employees Customers Communicating culture and values Employee research

PHYSICAL EVIDENCE
Facility design Equipment Signage Employee dress Other tangibles

PROCESS
Flow of activities Number of steps Level of customer involvement

PRODUCTIVI TY & QUALITYoffer No org. can

one in isolation of another

Reducing Cost

Customer satisfaction & Loyalty

Thank You!