Services: The Concept

CHAPTER 1

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Learning
Objectives

To understand the concept, nature

and types of services
To understand the difference between
goods and services
To understand the role of services in
an economy the vision and long term
direction

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Philip Kotler defines a service as any

act or performance that one party can
offer to another that is essentially
intangible and does not result in
ownership of anything. Its production
may or may not be tied to a physical
product.

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The definition suggests that there is

a continuum with a pure service and
a tangible good at the two ends.

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Classification of
Services
1.
2.
3.
4.

End-User
Service tangibility
People-based services
Expertise

5. Profit orientation

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Goods And Services :

A Comparative Analysis
1.
2.
3.
4.
5.

Tangibility
Transferability
Existence
Heterogeneity
Re-selling

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Nature and Characteristics of

Services
I n ta n g ib ility

I n s e p a r a b ility

T he
S e rv ic e

H e te r o g e n e ity

P e r is h a b ility

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7-S Framework
S tr a te g y

S y ste m

S h a re d
V a lu e

S ty le

S ta ff

S k ill

T h e 7 -S

fra m e w o rk

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MARKETING: The Concept

S e llin g C o n c e p t

M a r k e tin g C o n c e p t

P ro d u c e w h a t m a n u fa c tu re r
fe e ls a p p ro p ria te

Id e n tify in g C o n s u m e r n e e d s

S e llin g E m p h a s is is o n ly o n
H ig h e r s a le s v o lu m e
C o n s u m p tio n
(b y e n d -u se r)

MARKETING OF SERVICE

D e v e lo p in g a n a p p ro p ria te
p ro d u c t/S e rv ic e to a tta in
C o n s u m e r s a tis fa c tio n
A c c o m p lis h o rg a n is a tio n a l
g o a ls th ro u g h In te g ra te d
M a rk e tin g A p p ro a c h .

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P ro d u c tio n
M a r k e tin g

(a)
M a rk e tin g a s a n
e q u a l fu n c tio n

(b )
M a rk e tin g a s a m o re
im p o rta n t fu n c tio n
F in a n c e
M a rk e tin g

F in a n c e
C u s to m b e r
M a rk e tin g

(c)
(d )
M a rk e tin g a s th e
T h e C u s t o m e r a s t 10
h e C o n tro llin g F u n c tio n
OF a SERVICE
m a j o r f u MARKETING
n c tio n
n d M a r k e t i n g a s t h e I n02/06/15
te g ra tiv e F u n c tio n

Marketing Service
Mix
P ro d u c t

P r ic e

P e o p le

P h y s ic a l
e v id e n c e

P la c e

S e rv ic e M a rk e tin g M ix

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Reasons For Growth Of Services

(i) Consumer affluence
(ii) Working women
(iii) Double income no kids (DINK)
(iv) Leisure time
(v) Greater life expectancy
(vi) Product innovations
(vii) Product complexity
(viii) Complexity of life
(ix) New young youth
(x) Resource scarcity and ecology
(xi) Corporate crowd

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