SERVICE MARKETING

IMPLICATIONS
BBA, BCOM

KUSUMITA BANERJEE
SERVICE DEFINITION
A service is an intangible benefit, activity or
item offered to the customer. Services are
non-physical in nature and are provided by
service providers such as hotels and banks.
An example is hotel services.
What is Service Marketing?
Service marketing is simply the process of promoting and
selling a service or an intangible good to a specific group of
people. It is a new way of marketing that has become very
popular and helps companies all over the world promote
their services.
It looks at how a certain kind of service is advertised in the
market. Though service marketing is a unique idea, it needs
a way to represent goods that can’t be seen (services).
Service marketing is different from product marketing,
which involves promoting a product that can be seen.
Instead, service marketing involves promoting a service
that can’t be seen but is still sold to customers. Services are
just things that are given to customers as a commodity.
Customers can choose from a wide range of services.
Eventually, the global sphere has become a service hub that
offers many services to customers all over the world.
SERVICE MARKETING EXAMPLES
1. Healthcare industry
Doctors, nurses, surgeons, and other people who work in
hospitals are great examples they sell their health services
by seeing and taking care of their patients.
2. Hospitality industry
The hospitality industry is made up of places like hotels and
restaurants that serve food, rent rooms, give massages, and
do other things for their customers.
3. Professionals services
Accountants, lawyers, teachers, writers, masons, carpenters,
chefs, electricians, and plumbers are all examples of service-
based jobs. Depending on the job, they may offer more than
one service to their clients.
CHARACTERISTICS OF SERVICE
MARKETING
 . Intangibility
 Services cannot be touched, tasted, or seen like physical products. This
intangibility makes it challenging for customers to evaluate the service
before purchasing, leading to greater reliance on reputation, reviews, and
word of mouth.
 2. Inseparability
 Unlike products that can be manufactured and consumed later, services
are typically produced and consumed simultaneously. This means the
service provider’s interaction with the customer is crucial to the overall
experience.
 3. Variability
 The quality of services can vary greatly depending on who provides them,
where, when, and how. Factors such as the service provider’s skill level,
mood, and environment can impact the service experience.
 4. Perishability
 Services cannot be stored or saved for later use. For example, an empty
seat on a flight cannot be stored and sold later, leading to potential
revenue loss if the service isn’t utilised at the time.
5. Lack of Ownership
Customers do not own the service they
purchase; they merely experience it. This
contrasts with products, where ownership is
transferred upon purchase.
6. Customer Participation
Services often require active participation
from the customer. For example, in a haircut,
the customer must be present and
communicate their preferences for the
service to be satisfactory.
IMPORTANCE OF SERVICE
MARKETING
 1. A key differentiator:
 As products become more similar, the services that go along with
them are becoming a key differentiator in the minds of consumers.
For example, Pizza Hut and Domino’s both serve pizza, but they are
different from each other more because of the quality of their
service than because of the pizza itself. So, marketers can use the
services they offer to set themselves apart from the competition and
draw in customers.
 2. Importance of relationships:
 Relationships are a key part of marketing services, so it’s important
to keep them in good shape. Since the services can’t be seen or
touched, a lot of the customer’s decision to buy will depend on how
much he trusts the seller. So, it’s important to listen to what the
customer wants, meet those needs with the right service, and build
a long-term relationship that will lead to repeat sales and good
word of mouth.
3. Customer retention:
In today’s highly competitive market, where
many companies compete for a small number
of customers, keeping customers is even
more important than getting new ones. Since
services are usually made and used at the
same time, the customer is actually involved
in the process by taking his needs and
feedback into account. So, they give
customers more options for customisation
based on their needs, making them happier
and more likely to stick with the company.
TYPES OF SERVICE MARKETING
1. B2C Service Marketing
This involves marketing services directly to
consumers. Examples include healthcare, hospitality,
banking, and personal care services. The focus is on
building relationships, customer satisfaction, and
repeat business.
2. B2B Service Marketing
This involves marketing services to other businesses.
Examples include IT services, consulting, legal
services, and logistics. The emphasis is on building
long-term relationships, demonstrating expertise,
and offering tailored solutions.
3. Non-Profit Service Marketing
Non-profit organisations also engage in service
marketing to promote their causes and services. This
type of marketing often involves raising awareness,
attracting volunteers, and encouraging donations.
4. Internal Service Marketing
This type focuses on marketing within an organisation
to ensure that employees are engaged, motivated, and
aligned with the company’s goals. It’s essential for
delivering high-quality external services.
5. Social Service Marketing
This involves promoting services that benefit society
at large, such as health campaigns, environmental
initiatives, or public safety programs. The goal is to
drive positive behavioural change in the community.
SERVICE MARKETING MIX
 1. Product
 The product-service marketing mix is not something that can be seen
or touched. Service products can’t be measured in the same way that
soap or detergent can’t be. A good example would be the tourism or
education industries. Service products are also different, change over
time, and can’t be owned.
 So, care needs to go into making the service product. Blueprinting is
usually used to define the service product. For example, before starting
a restaurant business, a blueprint will be made. This service blueprint
shows exactly how the product (in this case, the restaurant) will be.
 2. Place
 In the case of services, the place will decide where the service product
will be. The best places to put gas stations are on highways or in cities.
A place with little traffic is not a good place to start a gas station. In
the same way, a software company will do better in an area with a lot
of other businesses than in a town or the middle of nowhere.
 . Promotion
 Promotions have become an important part of the service
marketing mix. Services are easy to copy, so the brand is
usually what makes one service different from another. A lot of
banks and phone companies work hard to get their names out
there.
 What is that? Because there is usually a lot of competition in
the service industry, you need promotions to stay in business.
So, advertising and promotions help banks, IT companies, and
dotcoms stand out from the rest.
 4. Price
 Putting a price on a service is a lot harder than putting a price
on a product. If you run a restaurant, you could only charge
people for the food you serve. But then, who will pay for the
nice atmosphere you’ve made for your customers? Who will
pay for the music group you have?
 So, these things have to be taken into account when pricing.
When pricing a service, labour, materials, and overhead costs
are usually taken into account. When you add a profit markup,
you get the final price for your service.
 5. People
 One part of the service marketing mix is the people. People define a
service. If you run an IT business, your software engineers are what
make you who you are. If you own a restaurant, your chef and service
staff defines you. Additionally, if you work in banking, your employees
and how they treat customers show what kind of banker you are. In
service marketing, it’s the people who can make or break a business.
 So, many companies today are putting extra effort into training their
staff in people skills and customer service with the goal of making
customers happy. In fact, many companies have to go through
accreditation to prove that their employees are the best. In the case
of services, this is a USP for sure.
 6. Process
 The service process is how a service is given to the end customer.
Let’s look at two great companies as an example: McDonald’s and
FedEx. Both companies do well because they offer fast service, which
they can do because they trust their processes.
 On top of that, these services are in such high demand that they have
to deliver at their best without sacrificing quality. So, a service
company’s process for delivering its product is very important. It is
also a key part of the service blueprint, which is what the company
uses to figure out how the service product will get to the end
customer before it starts the service.
7. Physical evidence
A very important part of the service
marketing mix is the last one. As we already
said, services are not physical things. But to
give the customer a better experience,
tangible things are also sent along with the
service. Take a restaurant with just chairs
and tables and good food as an example. Or,
take a restaurant with good lighting, nice
music, and comfortable seating that also
serves good food. Which one do you like
better? The one with a nice feel to it. That is
physical evidence. In service marketing,
physical evidence is often used as a way to
stand out.
THE GAPS MODEL
THE GAPS MODEL OF SERVICE
QUALITY
 The gaps are:
 Gap 1—knowledge gap: the difference between customer
expectations and what managers think they expect
 Gap 2—policy gap: the difference between management’s
understanding of the customer’s needs and how they translate
that understanding into service delivery policies and standards
for employees
 Gap 3—delivery gap: the difference between the experience
specification and the actual results of the service
 Gap 4—communication gap: the difference between the delivery
of the customer experience and what is communicated to the
customer
 Gap 5—customer gap: the difference between the customer’s
expectations of the service or experience and their perception of
the experience
THANK YOU