SUDHIR KR SINHA KV SEONI MALWA SYRUPInterview PUBLIC UTILITIES ACCOUNTING FIRMS LAW FIRMS HOSPITALITYINSURANCEHOSPITALAIRLINES HOTELS MARKETING OF SERVICES HOTELS LAW FIRMS

One of the megatrends of recent times has been the phenomenal growth of services. In India, services today account for 53% of GDP. The service industries are quiet varied and are found in the government sector, private non-profit sector, business sector and even in the manufacturing sector. They vary from the purely intangible services such as legal, counseling and consulting, to hybrid services which include some physical tangible elements. SALIENT FEATURES Characteristics Inseparability Variability Perishability IntangibilitySYRUPInterview AIRLINES HOSPITALINSURANCEHOSPITALITY HOTELS LAW FIRMS ACCOUNTING FIRMS PUBLIC UTILITIES HOTELS LAW FIRMS

Services are the intangible products; the products here being the experience and outcome of using a service. Several implication of intangibility are element of risk and uncertainty; assessment of quality; cannot be patented; cannot be displayed or sampled etc. The challenge is to ‘tangibilise the intangible’ For instance for a fast food restaurant place; service personnel; equipments; communication materials & products etc. has to be tangibilised. SALIENT FEATURES Characteristics Inseparability Variability Perishability IntangibilitySYRUPInterview AIRLINES HOSPITALINSURANCEHOSPITALITY HOTELS LAW FIRMS ACCOUNTING FIRMS PUBLIC UTILITIES HOTELS

Services are simultaneously produced and consumed. The interaction between the service provider and customer produces a service outcome. The implications for the service marketer are  Several ‘moments of truth’  Service provider employees affect the encounter  Customer participate and affect the transaction SALIENT FEATURES Characteristics Inseparability Variability PerishabilitySYRUPInterview AIRLINES HOSPITALINSURANCEHOSPITALITY HOTELS LAW FIRMS ACCOUNTING FIRMS PUBLIC UTILITIES HOTELS LAW FIRMS

Every time a customer uses a service, he may not experience the identical service outcome as the previous encounter; moreover the same service availed of in a different location or with a different service employee may create a different service encounter. Variability of the service encounter is a natural outcome of the simultaneous production and consumption. To address such issues service standards and systems and processes must be taken care off. SALIENT FEATURES Characteristics Inseparability Variability PerishabilitySYRUPInterview AIRLINES HOSPITALINSURANCEHOSPITALITY HOTELS LAW FIRMS ACCOUNTING FIRMS PUBLIC UTILITIES HOTELS LAW FIRMS

Since services are simultaneously produced and consumed, they cannot be inventoried and therefore highly perishable. Perishability of services creates a unique challenge for service marketers and that is the mismatch between the demand and supply. To overcome these unique challenge service marketers use the following strategies  On the demand side: differentiated pricing; cultivate non peak demand; charging for non-utilization  On the supply side: ‘temps’ may be hired; self service technologies; peak time efficiency routines can be introduced. SALIENT FEATURES Characteristics Inseparability PerishabilitySYRUPInterview AIRLINES HOSPITALINSURANCEHOSPITALITY HOTELS LAW FIRMS ACCOUNTING FIRMS PUBLIC UTILITIES

SALIENT FEATURES MARKETING MIX PRICING PLACING PROMOTION PRODUCTSYRUPInterview AIRLINES HOSPITALINSURANCEHOSPITALITY HOTELS LAW FIRMS ACCOUNTING FIRMS PUBLIC UTILITIES PROCESSES PHYSICAL EVIDENCE PEOPLE

SALIENT FEATURES MARKETING MIX PRICING PLACING PROMOTION PRODUCTSYRUPInterview AIRLINES HOSPITALINSURANCEHOSPITALITY HOTELS LAW FIRMS ACCOUNTING FIRMS PUBLIC UTILITIES PROCESSES PHYSICAL EVIDENCE PEOPLE The important aspect to consider in marketing service as a product is understanding what benefits and satisfaction the consumer is seeking from the service. Service as a product should be a match between the customer’s view point and the supplier’s viewpoint. Family in restaurant outingatmosphere relaxation status

SALIENT FEATURES MARKETING MIX PRICING PLACING PROMOTION PRODUCTSYRUPInterview AIRLINES HOSPITALINSURANCEHOSPITALITY HOTELS LAW FIRMS ACCOUNTING FIRMS PUBLIC UTILITIES PROCESSES PHYSICAL EVIDENCE PEOPLE Unlike products, different terms are used for different services. Brokers charges commission, transporters charges fare, fee is paid for legal services etc. The pricing strategy for services has to consider differential or flexible pricing, discount pricing, loss leader pricing, and off set pricing.

SALIENT FEATURES MARKETING MIX PRICING PLACING PROMOTION PRODUCTSYRUPInterview AIRLINES HOSPITALINSURANCEHOSPITALITY HOTELS LAW FIRMS ACCOUNTING FIRMS PUBLIC UTILITIES PROCESSES PHYSICAL EVIDENCE PEOPLE The importance decision in placing or distribution strategy for service is the location of service, to attract more customers. Doctors, teachers and mechanics are able to provide service only to a limited market. Similarly, the fixed location of services like restaurants and hospitals necessitates customers to go to the service location. Services like hotels, airlines, real estate property sale and lease, etc., operate through intermediaries like travel agents, brokers, and other middlemen.

SALIENT FEATURES MARKETING MIX PRICING PLACING PROMOTION PRODUCTSYRUPInterview AIRLINES HOSPITALINSURANCEHOSPITALITY HOTELS LAW FIRMS ACCOUNTING FIRMS PUBLIC UTILITIES PROCESSES PHYSICAL EVIDENCE PEOPLE Heavy advertisement is used by some services to attract customers, through newspapers, magazines, radio, TV, etc. Example: cinema, road, rail, and air transport, hotels, tourism and travel, insurance. Service providers like doctors, lawyers and dentists do not advertise but rely on word of mouth to get customers.

SALIENT FEATURES MARKETING MIX PRICING PLACING PROMOTION PRODUCTSYRUPInterview AIRLINES HOSPITALINSURANCEHOSPITALITY HOTELS LAW FIRMS ACCOUNTING FIRMS PUBLIC UTILITIES PROCESSES PHYSICAL EVIDENCE PEOPLE Because services are provided through people, the service business is a highly people intensive business. The competence and knowledge level of service personnel and their attitude will directly determine the service outcome. Companies need to take care of selection; training; compensation and motivation of the employees.

SALIENT FEATURES MARKETING MIX PRICING PLACING PROMOTION PRODUCTSYRUPInterview AIRLINES HOSPITALINSURANCEHOSPITALITY HOTELS LAW FIRMS ACCOUNTING FIRMS PUBLIC UTILITIES PROCESSES PHYSICAL EVIDENCE PEOPLE Companies must tangibilise the intangible aspects of the service by providing physical evidence of the service quality outcome. The various elements of physical evidence includes: location; service layout and ambience; uniforms; greetings; telephone handlings; signage; waiting areas.

SALIENT FEATURES MARKETING MIX PRICING PLACING PROMOTION PRODUCTSYRUPInterview AIRLINES HOSPITALINSURANCEHOSPITALITY HOTELS LAW FIRMS ACCOUNTING FIRMS PUBLIC UTILITIES PROCESSES PHYSICAL EVIDENCE PEOPLE Processes are the flow of activities through which the services are delivered, and can be considered as the lifeline of any service product. Processes need to be defined for even the simplest and the smallest tasks, to ensure there is homogeneity in the service delivery. Service employees must be communicated and trained to deal with the various situations that might arise whilst delivering a service.

SERVICE QUALITY SERVEQUAL REPSONIVENESS ASSURANCE EMPATHY RELIABILITYSYRUPInterview AIRLINES HOSPITALINSURANCEHOSPITALITY HOTELS LAW FIRMS ACCOUNTING FIRMS PUBLIC UTILITIES The service – quality model highlights the important requirements for delivering high service quality. The model identify five ‘gaps’ that causes unsuccessful delivery of service. Gap between consumer expectation and management perception Gap between management perception & service quality specification Gap between service quality specification & service delivery Gap between service delivery & external communication Gap between perceived service and expected service. TANGIBLE