Scribd
Upload
4K views

Issues and Challenges in Service Marketing

The document discusses issues and challenges in service marketing. It defines services as activities that are intangible and do not result in ownership. Key challenges of services include their higher intangibility, inability to store them, greater interaction requirements, and variability in delivery and customer expectations. Today over 50% of India's GDP comes from services. Services are more dependent on people than products. Services lack ownership and tangibility, are inseparable from their providers, perishable, and heterogeneous in their delivery. Challenges in service marketing include low tangibility, difficulty promoting relationships and value compared to products, limited options, harder quality measurement, and lack of returns.

Uploaded by

Divya Girish
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
4K views

Issues and Challenges in Service Marketing

The document discusses issues and challenges in service marketing. It defines services as activities that are intangible and do not result in ownership. Key challenges of services include their higher intangibility, inability to store them, greater interaction requirements, and variability in delivery and customer expectations. Today over 50% of India's GDP comes from services. Services are more dependent on people than products. Services lack ownership and tangibility, are inseparable from their providers, perishable, and heterogeneous in their delivery. Challenges in service marketing include low tangibility, difficulty promoting relationships and value compared to products, limited options, harder quality measurement, and lack of returns.

Uploaded by

Divya Girish
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 10

Issues and Challenges in Service Marketing

Services introduction
Kotler (1996) defines service as an activity that one

party offers another that is essential intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product

Higher Intangibility 2.Lack of Ability to store them for future Sale 3.Greater Interaction between the customer

and the service Factory


4.Greater Variability in Service Delivery 5.Greater Variability among service customers

Expectations

The service economy in developing countries is mostly

concentrated in financial services, health, and education.


Products today have a higher service component than in

previous decades. In the management literature this is referred to as the sterilization of products
. Virtually every product today has a service component

to it. The old dichotomy between product and service has been replaced by a service-product continuum .
Many products are being transformed into services

Service Marketing
Today, the service sector contributes more than 50

percent to India's GDP


This shift from manufacturing and agriculture to services

is being witnessed in countries all over the world.


Services marketing is a people-dependent activity, owing

to the fact that there is often no tangible product that is delivered to customers.

Nature of service
1. Lack of ownership.

You cannot own and store a service like you can a product. Services are used or hired for a period of time
2. Intangibility

You cannot hold or touch a service unlike a product.


3. Inseparability

Services cannot be separated from the service providers. A product when produced can be taken away from the producer.

. Perishibility

Services last a specific time and cannot be stored like a product for later use.

5. Heterogeneity

It is very difficult to make each service experience identical.

Issues and Challenges


Tangibility

Services are not tangible, which can make them more difficult to promote and sell than a product.
Relationship and Value

A service is more about selling a relationship and the value of the relationship between the buyer and seller of the service.
One Versus Many

Services typically have a single option. It can be harder to promote and sell the reputation of one single service over the benefits ofmany different products

Comparing Quality

Measuring the quality of aproduct is easier than measuring that ofa service. On the other hand, it isharder to measure the quality of a service.
Return Factor

A service is consumed as it is offered, so it lacks the return factor that a product has. Some service providers overcome this by offering money-back guarantees

You might also like