Services Marketing
Uploaded by
elamvenkat81Services Marketing
Uploaded by
elamvenkat81BHARATHIDASAN UNIVERSITY
Tiruchirappalli- 620024,
Tamil Nadu, India
Programme: MBA-Logistics and Supply Chain
Management
Course Title: SERVICES MARKETING
Course Code:23LSM2CC6
[Link]
Assistant Professor of Management
Centre for Distance and Online Education
Bharathidasan Univesity,
Trichy
SERVICES
• The American Marketing Association defines services in the following
way, “ Services are activities, benefits or satisfaction which are offered
for sale are provided in connection with the sale of goods.”
SERVICES MARKETING
It is the process of promoting and selling a service or an intangible
good to a specific group of people.
Eg:- Healthcare Banking
Transportation Communication etc.
CHARACTERISTICS OF SERVICES
• Intangibility
• Inseparability
• Heterogeneity
• Ownership
• Service Perishability
DIFFERENCES BETWEEN GOODS AND SERVICES
DIFFERENCES BETWEEN GOODS AND SERVICES
7 P’s of Services Marketing
• Product
• Price
• Place
• Promotion
• People
• Process
• Physical Evidence
CLASSIFICATION OF SERVICES
1. On the basis of Market Segmentation
2. On Degree of Tangibility
3. On the basis of Skills of Service Provider
4. On the basis of Goals of Service Provider
5. On the basis of Government Regulation
6. On the basis of Labour Intensiveness
7. On the basis of Customer Contact
CLASSIFICATION ON THE BASIS OF MARKET
SEGMENTATION
• Final Consumer
❖ Service is availed by the final consumer himself.
❖ Eg:- Life Insurance , Coaching
• Organisational Consumer
❖ Particular group of individuals avail the services.
❖ Eg:- Group insurance Schemes, Corporate Legal Services
CLASSIFICATION ON DEGREE OF TANGIBILITY
• Non goods services
❖ These are pure services that do not have any
kind of product associated with them.
❖ Eg:- Legal Services, Teaching
• Owned goods services
❖ The services that are offered with the product
owned by the customer.
❖Eg:- Free services that are offered with the
purchase of any vehicle.
• Rental goods services
❖ The goods are not owned but the services provided by that commodity is
purchased by the customer for a definite time period.
CLASSIFICATION ON THE BASIS OF SKILLS OF
SERVICE PROVIDER
• Professional/Highly Skilled Services
❖ Services that require the highest degree of skills
and are specialised in nature.
❖Management Consultancy, interior designing etc.
• Non-Professional /Semiskilled services
❖ Those services which do not include the high
degree of professionalism.
❖Eg:- Baby sitting, Janitorial services etc.
CLASSIFICATION ON THE BASIS OF GOALS OF
SERVICE PROVIDER
• Profit Organisation
❖ All those organisations that have profit as the
ultimate motive are included in the profit organisations.
❖Eg:- Consultancy Services
• Non Profit Organisation
❖ All those organisations that do not have profit as the ultimate motive are included in the
Non profit organisations.
❖Eg:- Indian Postal Services, Museums
CLASSIFICATION ON THE BASIS OF
GOVERNMENT REGULATION
• Highly Regulated Services
❖ Government shows strict regulations
towards these services.
❖Eg:- Airlines , Insurance , Banking etc.
• Limited Regulated Services
❖ Government shows limited intervention and
regulation towards these services.
❖Eg:- Fast food, Theme Parks
CLASSIFICATION ON THE BASIS OF LABOUR INTENSIVENESS
• EQUIPMENT BASES SERVICES
➢ Automated Services- Role of human beings in delivering the services is minimum. Eg:-
ATM machines
➢ Unskilled Automated Services- Role of humanbeings in delivering the services is limited
to an extent that unskilled workforce can handle the task easily. Eg:- Dry Cleaning, Taxi
Driving.
➢ Skilled Automated Services – Role of human beings in delivering the services is limited to
an extent that only skilled workforce can handle the task. Eg:- Airline pilots etc.
Automated Services Unskilled Automated Services Skilled Automated Services
CLASSIFICATION ON THE BASIS OF LABOUR INTENSIVENESS
• PEOPLE BASED SERVICES
➢ Professionals- Highly specialised persons are required to perform this job. Eg:- Lawyers,
Accountants
➢ Skilled Labour- Services can be delivered only by the skilled individuals. Eg:- Car
Servicing, Appliance Repairing.
➢ Unskilled Labour- Services can be delivered even by the unskilled individuals. Eg:-
Household cleaning, car washing etc.
Professionals Skilled Labour Unskilled Labour
CLASSIFICATION ON THE BASIS OF CUSTOMER CONTACT
• High Contact Service
❖ Services in which the contact time of the customer with the service provider
is considerably high.
❖Eg:- Teaching, Medical Services
• Low Contact Service
❖ Services in which the contact time of the customer with the service provider
is quite less.
❖Eg:- E-Banking, Automated Services
High Contact Service Low Contact Service
SERVICE BLUEPRINT
• Service Blueprint is defined as a collaborative process that includes many
people, props, tools, and technologies.
• A service blueprint is a diagram or “blueprint” of the entire service
process.
• This map helps you visualize every step and element in the process,
including the customers and third-party vendors.
• G. Lynn Shostack introduced this tool in the Harvard Business Review, in
1984.
• A service blueprint helps a company “explore all the issues inherent in
creating or managing a service.”
• A service blueprint allows teams to visualize a customer journey flexibly,
integrating customer research into the process and effectively targeting
internal and external processes for improvement.
• This helps document and improve an existing process or helps develop an
entirely new strategy when required.
SERVICE BLUEPRINTING
PROCESS
BLUE PRINTING
BASIC STEPS IN BUILDING A SERVICE
BLUEPRINT
1. Identifying the Process
2. Identifying the Customer
3. Mapping the Process Customer’s Points
4. Map Contact Employees’ Actions
5. Link Contact Activities
6. As Evidence of Service
BASIC STEPS IN BUILDING A SERVICE
BLUEPRINT
• Identify the service or service phase to be mapped.
Eg:- Reservation, Placing an Order or
Receiving Support.
• Map the steps of the customer journey.
❖ Start by identifying the customer journey or the steps a customer
goes through when using your service.
❖ Break it down into smaller steps.
❖These steps could include activities like filling out a form, waiting for
service, or receiving a response.
BASIC STEPS IN BUILDING A SERVICE
BLUEPRINT (contn.)
• Map out the service processes
❖Identify the service processes or the underlying
activities and systems that support the
customer journey.
❖ This could include activities like order
processing, inventory management, or payment processing.
• Identify the people involved
❖Understand who is involved in delivering the service.
❖ This could include employees, third-party vendors, or partners.
BASIC STEPS IN BUILDING A SERVICE
BLUEPRINT (contn.)
• Link the steps with the service processes
❖ Connect each step in the customer journey with
the service processes that support it.
❖This will help you understand how the service
is delivered and where there may be bottlenecks
or inefficiencies.
• Analyze the service blueprint
❖ Finally, analyze the service blueprint to identify areas for improvement.
❖ Look for ways to streamline the service, improve the customer
experience, or reduce costs.
SERVICE BLUEPRINT MODEL
IMPORTANCE OF SERVICE BLUEPRINTING
• An Overview to Employees
• Helps identifying the weaknesses
• Illuminating the customer’s role
• Facilitating the rational service design
• Clarifying the interfaces across the departmental lines
• Stimulating strategic decisions
• Providing a basis for identifying and assessing cost
• Constituting a rational basis for internal and external marketing
• Facilitating approaches to quality improvement
SIGNIFICANCE /IMPORTANCE OF SERVICE
MARKETING
• Creation and Expansion of Job Opportunities
• Optimal Resources Utilisation
• Increased Standard of Living
• Technological Advancement
CHALLENGES OF SERVICE MARKETING
• Lack of Physical Character
• Perishability of Service
• Variability
• Regulatory Complexity
• Infrastructure Constraints
• Skilled Labor Shortages
• Technology Adoption
• Data Privacy and Security
• [Link]
• [Link]
india/#:~:text=Services%20sector%20continues%20to%20contribute
%20significantly%20to%20India%E2%80%99s,7.6%20per%20cent%20
in%20FY24%3A%20Eonomic%20Survey%202024
