MARKETING OF SERVICES

Code: RMB MK 04
Course Credits: 3
Teaching Hours: 36 Hrs
COURSE OBJECTIVES
To develop an understanding of the basic concepts and issues in service marketing.
To build a working service marketing vocabulary so as to understand and discuss marketing
concepts in business settings.
To learn about key characteristics of service and service processes, customer service
experiences, the role of internal stakeholders in service delivery, and organizational challenges of
managing service.
To strengthen the ability to justify and support decisions through information acquisition and
management.
To provide an understanding of how service customers determine value in a service exchange
and how this translates into a satisfied customer base.

UNIT- 1 INTRODUCTION TO SERVICES MARKETING (8 hrs)

Introduction: Definition, Characteristics and Classification of Services, Difference between
Product and Services Marketing, Paradigms in Services Marketing, Present Marketing
Environment, Services Marketing Mix: Understanding the 7 P’s, Strategies for Services
Marketing: Segmentation, Targeting & Positioning, Differentiation.

UNIT- 2 UNDERSTANDING CONSUMER BEHAVIOR AND SERVICE DESIGN (7 hrs)

Understanding Consumer Behavior: Services vis-à-vis goods, Consumer Behavior in Services,
Customer Expectations and Perceptions of Services – Evaluation of services. Service
Development Design & Standards: New Service Development Process –Basic service to
potential service, Customer Defined Service Standards, Demand and Capacity Management.

UNIT- 3 DELIVERING, PRICING AND MANAGING SERVICE PROMISE (7 hrs)

Delivering Services: Role of Employees and Customers in service delivery; Role of
Intermediaries, Service process – Blue printing– Physical evidence. Pricing of Services: Pricing
Considerations and Strategies, Revenue Management. Managing Service Promise: Role of
Advertising, Personal Selling, Sales Promotion, Publicity and Public Relations.

UNIT- 4 SERVICE PERFORMANCE (7 hrs)

Evaluating Success of Service Offering: Service quality and measurement, Complaint handling,
Recovery management, Service Guarantees. Role of CRM, The Gaps Model Of Service Quality.

UNIT – 5 OVERVIEW OF CURRENT TRENDS IN SERVICE INDUSTRIES (7 hrs)

Understanding of Current Trends in Service Industries: Financial, Hospitality, Health, Telecom,
Consultancy, Logistics, Education, NGO, Public Utilities, ITES (IT enabled Services), Travel &
Tourism, e-Services and Professional Services.
Text Book
1.Services Marketing, Zeithaml Valerie and Mary Jo Bitner, Gremler & Pandit, Tata McGraw
Hill.
Reference Books
1.Services Marketing, Lovelock, Christopher. PrenticeHall.
2.Services Marketing, Nargundkar, Rajendra. Tata McGraw Hill.
3.The Essence of Services Marketing, Adrian Payne. PHI.
4.Services Marketing, Ravi Shankar. Excel Publishing
COURSE Outcome
Understand and explain the nature and scope of services marketing;
Use critical analysis to perceive service shortcomings in reference to ingredients to create
service excellence;
Be able to identify critical issues related to service design, such as identifying and managing
customer service experience, expectations, perceptions and outcomes
Provide a theoretical and practical basis for assessing service performance using company
examples;
Identify and discuss characteristics and challenges of managing service firms in the modern
world
Discuss key linkages between marketing and other business functions in the context of
designing and operating an effective service system.

EMPLOYABLE SKI
LLS
Skill
Measurement tool
Understanding of
Presentations, Quiz
fundamentals of services
Understanding of consumer
Role Play followed by discussion
behavior in services
Designing and delivering
Group assignment, Case study analysis
Services
Service quality measurement
Group project, presentations
Service performance analysis
Quiz, Debate, Case study analysis
 QUESTION BANK

1.“Classification of services into various categories will provide an insight to

managers to deal with diversity of services.”Write about the various ways in which
services can be classified?
2. Discuss about the services in modern economy?
3. What are the strategic responses to the inseparability of Service performances?
b). “Relationship marketing emphasizes on enhancing the customer satisfaction.”
Explain?
4. “Grouping of buyers or segmenting the market is described as market
segmentation.”What are the steps involved in market segmentation for services?
5. “Targeting follows market segmentation as a natural step.”What is the basis of
targeting the identified segments?
6. What are the various approaches to positioning of service offerings?
7. Write about various steps involved in new service development process?
8. What are the factors affecting the pricing policy of services?
9. Write about the factors to be considered by the service marketers while they
design and implement a pricing strategy?
10. What are the various types of marketing communication in services marketing?
11. Briefly write about marketing communication mix elements?
12.“Physical evidence management is important for success in a service
business.”Briefly write about the elements of physical evidence?
13. Briefly discuss about the role of intermediaries in service delivery?

Case Study:
Abstract:
With the entry of private insurance players like Tata-AIG, ICICI-Prudential and
Max-New York Life, LIC felt a need to revamp its business. Based on
recommendations of the leading consulting company Booz, Allen & Hamilton, LIC
restructured various aspects of its business. The caselet discusses LIC's measures
to train and develop competent personnel. It focuses on the customer service
initiatives of LIC by using technology and improving service delivery. Finally, the
caselet talks about the change in LIC's branding and advertising strategy.
Issues:
a. Need for training in Insurance.
b. Branding of an insurance company.
c. Use of technology in insurance services marketing.
Till the year 2000, Life Insurance Corporation (LIC) held a monopoly in the life
insurance market by virtue of being India’s only life insurance company in India.
With the opening of the insurance sector to private players, LIC’s hold on the
market was threatened. Institutional equity (Kotak Mahindra Capital Company)
and mutual funds (Kotak Mahindra Asset Management Company), has been
converted (it obtained the banking license in February 2003) into Kotak Mahindra
Bank (KMB). It launched its first branch at Nariman Point in Mumbai in March
2003. KMB has tried to differentiate its services in all aspects, starting from the
design of the bank logo to the design of its products and services...

Questions for Discussion:

a). The changing perception about a company among customers is a challenging
task for any service provider. To what extent has LIC succeeded on that front?
b). What kind of branding strategy should LIC adopt, given its increasing product
mix and the aggressive brand building measures of private insurers
14.Write an essay on the importance of marketing of services.
15.Describe the process of market segmentation in services.
16.Explain the service pricing strategies in practice.
17.What are the marketing challenges due to the intangible character of services?
18.Describe the new service development process.
19.How do you manage service delivery systems?
20.Explain the role of intermediaries in enhancing the value of services.

Case Study:
Don Horne has recently joined Marine Services Ltd.,a specialist consultancy
company providing technical advice and services to marine exploration companies.
Don’s background, somewhat unusually in this industry, is entirely in consumer
services marketing. The company has employed him for this expertise and
experience, believing that the marine exploration industry is lacking in its
knowledge and application of up-to-date marketing ideas and techniques being
used so successfully in other industries. Marketing in the past in this company has
been dominated by people with technical backgrounds and an in-depth knowledge
of marine biology, marine engineering and marine exploration. The idea to
introduce a marketing specialist to the company came from the managing director
of the company who recently attended two marketing seminars. The first of these
was on services marketing and although not exclusively concerned with technical
and consultancy services, the course had provided what the managing director felt
were useful insights into some of the additional considerations in marketing service
products, including the notion of an extended marketing mix to include People,
Processes and Physical Evidence. The managing director realized that these were
just as potentially important in the competitive world of marine exploration as they
appeared to be in the fast food and other consumer service industries. Certainly, he
felt there was food for thought as to how some of the ideas from these service
industries could be applied to the company and its markets. The second course he
attended focused on the concept of relationship marketing. The course leaders had
stressed the move towards relationship marketing in many industries and the way
that relationship marketing tools and techniques could be used to help build
customer loyalty and retain customers.

This was of particular interest to the managing director as current relationships

with customers in the industry seemed to be characterized by antagonism and lack
of co-operation between the companies in the industry and their customers
including Marine Services Ltd. Again, he felt there was potential to apply some of
the ideas about relationship marketing to the company and its markets. Having
appointed Don Horne with the specific job remit to develop and apply service and
relationship marketing concepts and techniques to the company and its marketing,
the managing director has asked Don as his first task in the company to produce a
brief written and verbal report outlining how these concepts and techniques could
be of value in the company’s future marketing. He has informed Don that he will
be presenting this report to a meeting of the company directors and senior manager
s at the next monthly meeting. He has also warned Don that he can expect some
reservations and even antagonism regarding the use of some of the more recent
marketing ideas in what is after all a very traditional and conservative company.
Question:
Prepare the outline report that Don will present to the board and senior
management
21. Briefly list out different variety of services with relevant examples
22. Differentiate between services and products
23. How do you create value in highly competitive services market like higher
education?
24. Briefly discuss different branding strategies for marketing services with
illustrations
25. “Maintaining Good Customer relationship is essential for customer satisfaction
and customer delight” why or why not? Justify your answer
26. How do you understand customer needs and expectations for different
services?
27. Define services market segmentation and explain briefly the importance of
market segmentation
28. How do you create and maintain valued customer relations if you are dealing
with insurance services?
29. Define pricing and explain briefly different pricing strategies for tourism
services
30. Discuss in nutshell foundations of pricing objectives
31. Define services marketing communications briefly and explain objectives of
services marketing communications with suitable illustrations
32. Outline a vivid ad copy for promotion of courier services
33. How does physical evidence of the service space play an important role in
promoting service like hair saloon?
34. Briefly elucidate the services marketing planning process with suitable
examples
35. Explain the nature of services.
36.What are the unique characteristics of services?
37.Give an example of expanded marketing mix.
38.What is market segmentation?
39.Outline the need of new service development.
40.What is meant by SERVQUAL?
41.Explain the need for positioning of services.
42.What is services channel?
43.Write briefly about service strategies for health.
44.Explain the need of logistics services.
45. Discuss the evolution and growth of service sector in India.
46. Explain the nature and scope of services.
47. Discuss the service marketing opportunities in hospitality and tourism sector.
48. Explain service market segmentation, targeting and positioning with a suitable
example.
49.Explain service life cycle.
50.What is service blue printing?
51. Explain GAP model of service quality.
52.Discuss the need for measuring service quality.
53. Why most of the corporate prefer integrated service marketing communication?
Discuss.
54. How does the corporate are designing service delivery system? Explain with
suitable case.
55. Discuss how the service strategies vary sectorwise? Why there is variation?
56. Explain the service strategies for financial and entertainment sector.
57. Discuss the major issues and challenges of service marketing in India.
58. Explain various methods for Pricing of services.