-
VK Mehta
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What is this service in your subject title?
Why another separate subject on marketing?
Why everyone is talking about SERVICES?
What makes marketing of Services so different from marketing
we
know?
What can be done to market services more efficiently and
effectively?
Marketing of Services 2
-
3
Construction
Banking & Stock-broking
Hospitality, Restaurants,
bars, cateringInsurance
News & entertainment
Transportation (freight &
passenger)
Health care
Education
Telecommuni-cation
Retailing
Tourism
Information & data
processing
Professional consultancy
-
Marketing is the process of planning and
executingPODC
With optimal utilization of
Men, Machines, Materials & Money for
4 Ms
Resources
the conception, pricing, promotion and
distribution
4 Ps
Marketing Mix
of idea, goods and servicesProduct Blend
to create exchanges that satisfy
Customer and organizational goals.
Two
Objectives
Marketing of Services 4
-
An act or performance offered by
one party to another.
Intangible Performances,
but may involve use of physical products.
Marketing of Services 5
-
An
economic
activity
that does
not result
in
ownership
A process that creates benefits by
facilitating a desired change in
customers
themselves,
physical
possessions
intangible
assets
Marketing of Services 6
-
Includes businesses, government
institutions, agencies, nonprofits
Consistently growing
Most of the Jobs opportunities in this
sector
Marketing of Services 7
-
Service organizations size variation
from huge global corporations
to local small businesses
Adds more economic value than
agriculture, raw materials and
manufacturing combined
Marketing of Services 8
-
Service elements
within an
organization
that:
facilitate
creation of
or
add value to
its final output
Some internal
Services:
Accounting &
payroll
Administration
Recruitment &
training
Housekeeping
& Landscaping
Transportation
& Catering
Legal Services
Trend in Internal
Services
Increasing
outsourcing
Marketing of Services 9
-
Marketing of Services10
Fast Food RestaurantCosmetics
Hospital Care
Airline Flight
Teaching
Investment Advice
Bread
Soft drinks
ComputerHardware
New Car
Custom-clothing
Lo
Hi
HiIntangible Elements
-
Its Contribution to India Economy
Source : Economic Survey of India, 2010-11
-
High Share
in GDP from
Services
Growing
Employment
in Services
FDI in
Services
Services
Export
-
Rapid increase in share of services in
GDP: from 30.5% (1950-51) to 55.2% (2009-10)
to 63.4% (2009-10) (With construction also included)
Services GDP growth continuously above
overall GDP growth
pulling up the overall GDP since 1997
High Share in
GDP from Services
-
Marketing of Services 14
Year
0
10
20
30
40
50
60
70
1950 1960 1970 1980 1990 2000 2010
% of GDP
High Share in
GDP from Services
-
Marketing of Services 15
High Share in
GDP from Services
-
Source: CSO
High Share in
GDP from Services
-
Agriculture
Sector:
Dominant,
but reducing
share
Services
Sector:
Second to
Agriculture,
but rising
share
Growing Employme
nt in Services
-
18
Time, per Capita Income
Industry
Services
Agriculture
Growing Employme
nt in Services
-
Growing Employme
nt in Services
-
Problem to
measure Services share in
FDI inflows
difficult to clearly
differentiate activities between services
and goods
FDI share of major Services (in Dec 10)
51%
Business Services -financial &
non-financial
21%
Computer hardware & software,
8%
Telecom
8%
Housing & Real Estate
7%
Construction Activities
7%
FDI in Services
-
India also moving towards a services-led export growth
Total trade including services as part of GDP:
2000-01 29.2 %
2008-09 53.9 %
2009-10 46.1 %
(Global Recession)
Export growth 2004-05 to 2008-09:
Goods -22.2%
Services -25.3%
2009-10 Slowdown Less decline in services
export growth
Marketing of Services 21
Services Export
-
Marketing of Services 22
Increase in
Affluence
Increase in
Leisure Time
Women in
Working Places
Changing Life-style
Increased
Complexity
of life
Increased
Life
Expectancy
Ecology &
Resource
Concerns
Changing World
Globalisation
Privatisation/
Deregulation
Changing Economies
Range of
new products
Product
Complexity
Changing Technology
Reasons for Growth
in Service Sector
