Session 1,2&3

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SESSION 1,2 & 3

Introduction to the Course&

Service Economy

By

Dr. Nripendra Singh

Jaypee BusinessSchool, Noida

Agenda

Introduction to the Course

Assessment Process

Services Sector in India

Different Services

Assignment

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Introduction to the Course

Name: Services ManagementCode: M2CMM03(Core Course - Marketing)

Assessment ProcessThe major components of evaluation process willinclude:

Project Work 15%Quiz 15%Mid-Term Test 30%(Short Answer Types)End-Term Exam 40% (Descriptive and

Case based)

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Research-CMIE/IndustryAnalysis/Case/Paper

research,2) 2) OR, Industry Analysis on one of the sub-sectors,

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: leadingmarket/state, size, growth rate, top players, trends,characteristic features etc.

3) OR, Develop cases on unique service business inIndia/world

4) OR, TWO research paper from EBSCO or Emeraldonline journal to be summarized with your owndiscussion on it.

Note: Group Size 7 students, as per attendance order

only. Written Proposal to be submitted on Saturday-15Octto CR. Final Submission on 12 Nov to CR.

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CLASS COMMITTEE & CRs

The purpose of CC is to reduce gaps betweenfaculty teaching and students understanding of thecourse. 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 relatedto this course only. They will bring in issues for the discussion whichare ONLY academic in nature.

They will also take formal and informal feedbackatleast twice and submit it to the faculty. They need to meet the faculty atleast once everyweek, preferably on Saturday evenings, andsubmit minutes of the meeting on every Monday.

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Why do we need to study

this course?Applicability to Business, due tostructural change

Service Sectors contribution inGDP

Limited Knowledge to Managethis Sector

As a Competitive Tool, due to

societal change

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Dependency of Manufacturing onServices

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Stages of Economic Activity

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Percent Employment in Services forSelected Nations (1980-2000)

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New Experience Economy

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Service Sector in India

This sector has been growing at anannual growth rate of about 28% duringthe last 5 years. The exports have grown up from US $

19.1 billion to US $ 73 billion in 2006. Presently services sector account forabout 57% of Indias GDP.India ranks 15th in Services output andprovides 23% of total workforce. Indias share in worldwide service exportsis expected to almost triple itself from

current 2.3 % to 6 % by 2012, if theresent annual rowth rate of 28% is

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Different types of ServicesDifferent types of Services 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,lawn maintenance, counseling

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What are Services?

Adam Smith: productive-unproductive labourdid not contribute to wealth.

Jean Baptiste: Immaterial products

simultaneous prod. & consumption.Lovelock et. al.: performances, offering desired

results (expected value) to customers inexchange for their money, time and efforts. Thevalue comes from access to a variety of value-creating elements rather than from transfer ofownership.

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Tangibility Spectrum

Tangible

Dominant

Intangible

Dominant

SaltSoft Drinks

Detergents

Automobiles

Cosmetics

AdvertisingAgencies

AirlinesInvestment

ManagementConsulting

Teaching

Fast-foodOutlets

Fast-food

Outlets

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Marketing Challenges: due tofollowing characteristics

Intangibility

Perishability

SimultaneousProduction

andConsumption

Heterogeneity

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Services are DifferentGoods Services Resulting ImplicationsTangible Intangible 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 onemployee actions.Service quality depends on many uncontrollable factors.There is no sure knowledge that the service deliveredmatches what was planned and promoted.

Productionseparate fromconsumption

Simultaneousproduction andconsumption

Customers participate in and affect the transaction.Customers affect each other.Employees affect the service outcome.

Decentralization may be essential.Mass production is difficult.

Nonperishable Perishable It is difficult to synchronize supply and demand withservices.Services cannot be returned or resold.

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Expanded Marketing Mix forServices

PEOPLE PHYSICALEVIDENCE

PROCESS

Employees Facility design Flow of activities

Customers Equipment Number of steps

Communicatingculture and values

Signage Level of customerinvolvement

Employee research Employee dress

Other tangibles

PRODUCTIVITY &QUALITYNo org. can offerone in isolation of

another

Reducing Cost

Customer

satisfaction &

Loyalty

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Thank You!