1.

CONCEPT OF SERVICE MARKETING

Service marketing is the marketing of processes, deeds and performances, i.e. anything
which is essentially intangible in nature. Service marketing addresses the concerns and
needs of any business in which service is an integral part of offering. Service marketing is
not a self-enclosed task but is integral to service organizations as a whole and the object of
the activity is people, who are reactive, not passive as compared to products.
Service: A service is a set of one time consumable and perishable benefits:
Delivered from accountable service provider, mostly in close coactions with his internal
and external service suppliers.
Effectuated by distinct functions of technical systems and by distinct activities of
individuals, respectively.
Commissioned according to the needs of his service consumers by the service customer
from accountable service provider.
Rendered individually to an authorized service consumer at his/her dedicated trigger.
Consumed and utilized by the triggering service consumer for executing his/her
upcoming business activity or private activity.
According to Philip Kotler, service is any act or performance that one party can offer to
another that is essentially intangible and does not result in the ownership of anything.
Stanton proposed a definition in 1974 and defined service as Separately identifiable,
intangible activities which provide want satisfaction when marketed to consumers and/or
industrial users and which are not necessarily tied to the sale of a product or another
service.
The classic four Ps (product, price, place, and promotion) marketing approach works well for
physical goods, but service companies need to pay attention to additional elements.
Marketing gurus Boon and Bitner identify 3 additional Ps for service marketing:
People: People refer to anyone directly or indirectly involved in the production of a service.
People are those who come into contact with customers and have a profound effect- positive
or negative- on customer satisfaction. The reputation of companys brand rests in its
peoples hand. Customers make judgments about service provision and delivery based on
the people representing organisation. They must, therefore, be appropriately trained, well
motivated and have the right attitude. This is because people are one of the few elements of
the service that customers can see and interact with.
For example, employees in McDonalds have a standard uniform and McDonalds specially
focuses on friendly and prompt services to its customers from their employees.
Physical Evidence: Physical evidence is about where the service is being delivered from.
Physical evidence refers to the environment in which the service is assembled and in which
the seller and customer interact, combined with tangible commodities that facilitate
performance or communication of the service. Physical evidence serves as a visual
metaphor of what the company stands for, and facilitates the activities of customers and
employees. For example, many hair salons invest in comfortable and stylish sitting areas
with magazines and plush sofas for patrons to read and relax while they wait.
Process: Process is the delivery and operating systems of procedures, mechanisms and
flow of activities which services are consumed. Because services are performances or
actions done for or with the customers, they typically involve a sequence of steps and
activities. The combination of these steps constitutes a service process which is evaluated
by the customers.