An introduction to services marketing

• 1. An Introduction to services marketing and why it matters to India Dr Vikram Venkateswaran (Doc)

2. SERVICES As an actor we are just like workers in a factory, we provide our services to directors Chow Yun-Fat, Actor 3. What are Services? Defined as As act or performance offered by one party to another Tertiary sector- Has been in existence for thousands of years. Came into prominence around 1910s India- Services dominated economy 55% of Indias GDP, amounting to almost $ 1 Trillion. 4. Reasons for growth of the services industry New Trade policies Privatization Changes in regulations Customer Protections Government Policies Rising Customer expectations Value for experience rather than just owning Lack of time for most people Growth of the internet Social Media Smart Phones Social changes & Technology International nature of business Emphasis on cost saving & productivity Innovative hiring practices Manufacturers adding value through services Mergers and Acquisitions Franchisee Models Relaxation of standards Globalization 5. Key elements of services Customers have no ownership Services cannot be inventoried Mostly intangible elements Customers maybe involved in creation of services Difficult to evaluate Time is of essence Distribution channels become very important 6. CUSTOMERS What's in a name? That which we call a rose By any other name would smell as sweet. Romeo & Juliet William Shakespeare 7. Customer involvement in services Arrive Check in Sleep / Spend time in the room Breakfast Check out How were you treated on arrival? How was the check in process? How was the service? 8. Levels of customer contact with services organizations Nursing home Train Travel Advertising Firms Internet Banking Equipment Low Contact High Contact People 9. Purchase Process for services Awareness of need Information search Evaluation of Alternate Service Suppliers Request for serviceService delivery Evaluation of service performance If favorable then repeat purchase Otherwise back to evaluation of Alternate suppliers 10. Types of risks- Determines the purchase decision Functional- will a mass Com degree help me? Financial- Will I lose money? Temporal- Will the service in the restaurant be slow? Physical- Will I get hurt while bungee Jumping? Psychological- Will the plane crash ? Social- What will people think of me? Sensory- Will the coffee at the caf taste bad? 11. Evaluation of services Goods (Search) Eg Automobiles Services (credence) Eg Mass Communication Degree Experience Eg Hotels Easy to evaluate Difficult to evaluate 12. Services Ecosystem Services Ecosystem Services Operations Services Marketing Services Delivery 13. SERVICES MARKETS To win a thousand battles without having to fight a single one is the hallmark of a great general Sun Tzu , 300 BC 14. Robert Johnsons Services Matrix Services Focused Unfocused Highly Focused Market Focused Many Few Narrow Wide Breadth of services offered Number of Markets Served 15. Developing a market positioning strategy Market Analysis Internal Analysis Competitor Analysis 16. An example of positioning- Fashion Industry Expensive Less Expensive High Service Moderate Service Zara Ritu Kumar Neighbor hood tailor Levis Neeta Lulla Mango Amrapali Fab India 17. THANK YOU