Definitions of MARKETING

The performance of business activities that direct the flow of goods and services from producer to consumer.

Getting the right goods , to the right people in the right place , at the right time , at the right price , with the right level of communication profitably.

Identifying the needs, wants , desires of consumers and fulfilling them in such a way that the customer is delighted and the company objectives are met profitably.

Solving customer problems profitably.

Difference Between Marketing & Sales

Marketing Sales• Focus on customer Focus on seller (product)• Is about profit this year is about revenue this week• Delighting the customer converting product into cash• Both new and repeat New customers is a priority,

customers important not bothered much about

with focus on repeat customers repeat customers.

5. Long term vision Short Term Outlook (week/

month)

Services MarketingServices Marketing

Defn: A service is any act or performance that one party canDefn: A service is any act or performance that one party canoffer to another that is essentially intangible and doesn't result inoffer to another that is essentially intangible and doesn't result inthe ownership of anything . Its production may or may not bethe ownership of anything . Its production may or may not betied to a physical product.tied to a physical product.

E.g : Airlines, hotels,banks,insurance,brokers , real estate E.g : Airlines, hotels,banks,insurance,brokers , real estatecompanies, police,post office, colleges,hospitals.companies, police,post office, colleges,hospitals.

Reasons for growth in service industry

Changing lifestyle Increase in affluency Increase in leisure time women in working places

Changing world Increased life expectancy Increased complexities in life

Changing economies GlobalisationPrivatisation/deregulation

Changing technology Range of new products Range of complex products

A Partial List of services

Transportation servicesRailways,Airlines,Local/Interstate Passenger Transportation, Road transportation, Helicopter services, Private aircraft services, water transport

Public utilities serviceswater supply , electric supply,gas supply.

CommunicationTelephone,mobile, postal and courier, radio/TV broadcasting/satellite, tele-conferencing

Trading serviceswholesaling/retailing

Financial and Insurance ServicesBanking, Leasing, Security , Brokerage, Investment/retail Banking,Insurance , credit reporting

A Partial list of services

Real Estate ServicesRenting, Investment consultants, Property consultants, Building and real estate management.

Marketing related servicesMarketing consultancy, Advertising, PR, Tele-marketing,

Marketing research, event management. Government Provided services

Defence, Police, Transport, Broadcasting, education , medical, infrastructural etc.

Hospitality servicesHotels and restaurants,catering, home delivery

Entertainment servicesmotion pictures, video parlour, game parlours, theme parks,

discos, bowling alleys, clubs etc.

A Partial List of Services

Business & Professional Services Management Consultancy, Legal, Accounting(C.A)

Other servicesSecurity, Lawn care, pet care, printing , data

processing , internet café, training (software, airhostess, public speaking etc.), educational, travel and tourism , health and hospital, creche services, equipment rental , interior designing , laundry and cleaning , computer programming , BPO (CALL CENTERS etc.) , old age homes, warehousing , annual repairs and maintenance ,brand consultants etc.

GOODS & SERVICES Good is a set of tangible physical attributes assembled in an identifiable

form to provide want satisfaction to consumers. Goods can be durable or non durable. Non -durable goods are those which are made of material other then

metal, hard plastic or wood and become dated or out of fashion . They need to be bought and consumed quickly

Service is an identifiable , intangible activity that is main object of transaction designed to provide want satisfaction to consumer.

Service marketing encompasses the rental goods, alteration/maintenance/repair of goods owned by consumers and personal services

Rental goods services : computer on hire, rent-a -car, equipment leasing own good services : computer maintenance, A/C repair and dry cleaning non-goods services: consultancy services, training etc.

GOODS-SERVICES CONTINUUM

PURE GOODS GoodsRelated

ServiceRelated

Pure Services

TelevisionsLipstickovencar

Pizza-FoodserviceBus-Transportequipment -leasingHotel room- Lodging

Financing-carWarranty-mixerService contract-computer

BankingLegal ServicesImage ConsultingHairstyling

Differences between Goods and services

Goods services Tangible Intangible Homogeneous

Variable/heterogeneousProduction and distribution Production, distribution and

are separated from consumption consumption are simultaneous processes.

A thing An activity or a process

core value produced in factory core value produced in buyer seller interactions

can be stocked cannot be stocked

Transfer of ownership no transfer of ownership

customers donot participate customers participate in the

in the production process production process

Services Marketing

Characteristics of service

Intangibility Inseparability Perishability Variability

4 Is of Service Intangibility Inconsistency Inseparability Inventory Intangibility: is characteristics of service indicating that it has no

physical attributes and as a result impossible for a customer to taste , feel, hear or smell before they buy it.Services products are mostly intangible:>>> they have to be marketed with tangible evidence :….>>>. “TANGIBILIZE THE INTANGIBLES”

A seal on the electric meter provides evidence that it has been tested by competent authority. A certificate issued by pollution control agency is a tangible evidence of pollution under control. A university degree is the tangible evidence of knowledge acquired by you.

Services Marketing

Intangibility : Cannot be seen , tasted,felt, heard or smelled before purchase.

“Tangibilize the intangible”

e.g HDFC bank

1) People : quick service,courteous,helpful

2) Machinery : state of the art ATMs, WAN network etc will connote modern and effective bank.

3) Place : Exterior, Interior ambience : should connote class.

Services Marketing

Inseparability: Services are typically produced and consumed simultaneously.

Perishability: Services cannot be stored.

Unused electric power, idle seats in bus, train represent business which is lost forever.

Variability: Services are highly variable , since they depend on who provides them and when and where they are provided.

Perishability

Empty seats in a stadium for a cricket match cannot be carried over to provide more seating in the next match.

Empty seats in a 10.30 Sahara airlines flight from Mumbai to Delhi cannot be carried over to provide more seating in next flight.

In a bank, hours on weekdays when tellers are idle cannot be stored and used for Saturday when long lines are forming

INCONSISTENCY (variability) Indian airlines doesn't give the same quality of service on its each flight. The performance of an artist in a theater is not of the dame standard in

each performance. The front office manager in a hotel doesn't provide the same quality of

service to each customer he deals.

Detailed list of characteristics of services Intangibility Perishability Inseparability Variability/heterogeneity Ownership:(consumers cannot own the services) Simultaneity: either users go to the service provider (beauty parlor) or

providers go to the users:----> channel of distribution is short Quality measurement Nature of demand : demand fluctuates considerably by season and by day

of the week and even hour of the day e.g : public transport has maximum traffic during peak morning and evening hours

Restaurant have peak lunch and dinner times Heavy rush during Diwali /april, may school holidays for trains etc.

Service marketing mix

PRODUCT PRICE PLACE PROMOTION PHYSICAL EVIDENCE PEOPLE PROCESS

Physical Evidence

Customers judge the service quality through the physical evidence defn : The environment in which the service is delivered and where the firm

and the customers interact;and any tangible commodities that facilitate performance or communicate the service.

Physical evidence enhances customer’s perception of quality. The general elements of physical evidence include

(Organisational Physical facilities)(service scape) 1) Exterior facilities Exterior design

Signage Parking Landscape

Surrounding environment

Physical evidence

2) Interior Facilities .Interior design Equipment

SignageLayout

Air quality/temperature

3) Other tangibles Business cards Stationery

Billing statements Reports

Employee dress/uniform Brochures

People

Service encounter : For service marketers, the core of the service element is the interaction between those providing services and the customer , which is known as service encounter. Carlzon(1987) described this interaction as “moment of truth “.

To achieve customer satisfaction appropriate processes are designed to ensure that the service encounter meets customer expectations.

To deliver the satisfactory services , the employees of a company have tio play an important role.

Employees must possess personal qualities , ability to understand and satisfy customer needs , flexibility , skills and knowledge.

Friendly and warm employees increase customer loyalty. The management in order to deliver satisfactory service must develop jobs

to satisfy individuals needs of employees and address following issues:---

PEOPLE

A) Employees : Recruitment Training

Motivation Team Work

B) Customers EducationTraining

C) Communicating Culture and values D) Employee Research

PROCESS

Process is the way of undertaking transaction , supplying information and providing services in a way which is acceptable to the customer and effective to the organization.

Services are rendered and experienced simultaneously.(Inseparability). It is the process through which consumers interact with service provider.

E.g Tourism : booking systems for travel and accommodation., use of credit cards for payments, design of queuing system at visitor attraction.

While designing a process , the process designer has to maintain a balance between functionality, security , aesthetics and ease of use by customer..